Thursday, February 25, 2016

The Splurge Brigade: Top Residential Real Estate Deals of 2015


New York City has been a real estate hub for a very long time now. Some of the most expensive and sought after apartments and condos in the world are located here. And while there has been an increase in the number of new units introduced downtown, uptown New York still reigns supreme in the market. If one takes a look at the top deals for the past years, it is easy to see that most of these are located uptown. Here’s a brief overview of what the city’s real estate deals were in 2015:

A group of investors led by Perching Square Capital has made one of the biggest deals of the year by purchasing the seventy fifth and seventy sixth floor penthouse at One57. The beauty of this duplex is in its curved glass atrium, which gives an uninterrupted view of Central Park. The purchases were made at an amount of around six and a half thousand dollars per square foot while the going rate was around ten thousand dollars per square foot - quite a steal! Coming in next is Woody Johnson’s former duplex that was purchased by the co-chairman and founder of Access Industries, Mr. Leonard Blavatnik. This deal went down for a cool 77.5 million dollars.

The fourth most expensive purchase was made by a Chinese buyer under the name of Genever Holdings LLC. The co-op was sold by the founder of Liberty travel, Mr. Gilbert Haroche. The deal went down for around 67.5 million dollars, which was quite a come down from the 85 million dollar asking price. At 52 million dollars, a six and a half bath penthouse at Extell Development Company’s Carlton House was sold to someone under the company name of Azalea Holdings, adding to the list of incredible co-op purchases.

The penthouse belonging to Andrey Vavilov was sold at the Time Warner Center for 50.92 million dollars. The house is a six bedroom; eight and a half bath apartment offering full length glass windows. The seventy seventh floor at 157 West 57th Street was bought by Unit 58A Acquisition Corp for 47.78 million dollars. It is a four -bedroom, five and a half bath unit.

A five and a half bath, eighty eighth floor unit at the same location as above was bought by Pac Wholly Own LLC, another foreign buyer. The unit has five and a half baths, and is a little more than six thousand square feet in area. At 45 million dollars, the 18th and 19th floor unit at 15 Central Park West was purchased after having been listed for quite a while. The unit is around five thousand six hundred square feet in area, and has a three hundred and ninety two foot terrace.

Moving towards the second half of the list, the co-founder of Netscape, James H. Clark, purchased an eight bedroom town house at 127 East 70th street for thirty seven million dollars. The place was formerly owned by an Irish businessman Tony White. At 775 Park Avenue, a triplex penthouse was purchased by Elizabeth and Andrew Right. The unit has six bedrooms, eight fireplaces and an elevator. The place was sold for 35.14 million dollars. It was formerly owned by the managing director of Morgan Stanley, Charles G. Phillips, and was sold within a few months of being listed on the market.

Jon Bon Jovi’s seven thousand square foot penthouse was first listed in 2013. It was eventually bought by businessman Gerhard Andlinger, of Austrian origin. The place has six bedrooms, a wood fireplace and a private deck and was sold for thirty four million dollars. A penthouse at Trump International Hotel and Tower was bought by a mystery buyer listed under DLNH and Bean LLC. The unit has four bedrooms, four and a half baths with full length glass windows. The purchase was made for thirty three million dollars.

Making an unusual entry on this list, Harry Maclowe’s condo was sold at 32.66 million dollars, but without any interior walls or furnishings. It was bought by French-born Raymond Svider who is a financier by profession, and the co-chair and co-managing partner of BC Partners. The place is six thousand square feet in area, and he intends to make it his permanent residence. Next, a Greenwich Village townhouse formerly owned by actors Sarah Jessica Parker and Matthew Broderick was bought and renovated by developers David American and Warren Hammerschlag for 11.2 million dollars. The two added a twenty seven foot swimming pool with a jacuzzi and gym, a steam room and a wine cellar. This place is now being sold for a whopping 32 million dollars, purchased by someone under the company name East 10th LLC.

A five and a half thousand square foot unit was bought by a buyer under the name of Hebrews 3:4 LLC. This five-bedroom, five and a half bathroom unit was built by Extell, and sold for 30.68 million dollars. At 30.04 million dollars, a forty five hundred square foot unit was bought by a man named Dongjiang Li. This very luxurious apartment has three bedrooms, four and a half bathrooms, and is surrounded by an array of beautiful views.


And to round off the list, at 1040 Fifth Avenue a unit with a private elevator landing, library, twenty six windows and a wood burning fireplace was sold for thirty million dollars. The building was the former residence of Jacqueline Kennedy Onassis, who lived one floor above. The place was bought by Related CEO Jeff Blau and his wife Lisa. And finally, at 13 E 75th street, Russian billionaire Roman Abramovich purchased a townhouse for thirty million dollars. The place was sold to the Chelsea Football Club owner by investor Mark Fife and his wife Lori.

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Wednesday, February 24, 2016

High End Rentals: A Changing Market


The city of New York is home to a large population that includes everyone from the rich and famous to everyday people. And, in all these years, it has earned the reputation of being a city of plenty. Properties in Manhattan are probably some of the highest priced in the entire country. It is home to some of the wealthiest people in the world, and certain neighborhoods are in a very real sense billionaire territory. However, in recent times things are beginning to take a turn. There seems to be a surplus of luxury condos in the city, but not enough buyers. Because of this, the market is veering from a home-owned base to a more rent-based set up.

This shift has given rise to a boom in rental buildings, with over eight thousand units being added to Manhattan and Brooklyn this year. These buildings are unique not only in their outlook, but also in their appearance. And while renting is their main market, the prices are still pretty steep with some studios renting out for as much as five thousand dollars. The owners of these properties are quite unflinching, even with the current drop in the market. They believe that the city is currently at its best both in terms of safety and aesthetics, which will encourage people to move there.

So confident are they in the rental market that they have been going all out with the design and architecture of these buildings. One such building is the Via 57 West, which has been designed by the Danish company Bjarke Ingels Group. The schematic of this building is odd, to say the least, with the architects giving it a tetrahedron-like appearance. This means that instead of roofs, the building has tapering walls. This unusual design was given the green light to increase the artistic appeal of the city.
The Via 57 West is only one of such off-beat architectural designs. Most of the new high end rentals that are cropping up have a similar outlook and feel; unique in their own way to attract potential renters. The same is true in Brooklyn as well. But, all this comes at a time when there are a lot more vacant apartments in the city. A vacancy rate of two percent is usually indicative of a weak market, however this rate has seen an increase to about 2.74 percent. All this makes it a strange time to add more units to the city.


However, this is possibly good news for renters. The dip in the market is indicative of reduced rental prices. And while the current prices are still quite high, they are a lot lower than what they were forecast to be at this time just a few years ago. The extent of the drop in rents can only be established once the rental offices of these new additions are in action. So, while this new trend is set to play, another factor that also affects how things work is a new generation of young renters. How the clogs of the wheels are going to fall together is something that only time will tell!

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The Home of the Rich: 15 Central Park West



15 Central Park West is probably one of the most powerful and influential addresses in the world. The place was constructed and completed in 2008 by Arthur and William Lie Zeckendorf, and is said to be one of the most plush and upscale residential buildings there is. The place comes with an in-house chef, a pool and a screening room. Over the years, it has become home to an assortment of the rich and famous including celebrities, bankers and a large number of high profile clients. The building has two sections, and two hundred and one units. It also has a library, a private restaurant, a three lane pool and a health club. And, in the last five years of its existence, its list of well-known residents has only grown.
Daniel Leob, a hedge fund manager, bought an eight bedroom penthouse condo here in 2005 for forty five million dollars. He was probably one of the first buyers of the property, when the earth was still being dug. The CEO of Goldman Sachs, Lloyd Blankfein, also bought a condo here for 25.7 million dollars back in 2006. Following close at his heels in 2007, the former CEO of Citigroup, Sandy Weill bought a full floor penthouse here for 43.7 million dollars as a Valentine’s Day surprise for his wife.
Another early buyer was hedge-fund owner Daniel Och. He bought the top floor of a forty-three story tower for about a million dollars. He is also known to have celebrated his birthday there, with the band Five for Fighting performing live. Another high profile buyer is Israeli scientist Shlomo Ben-Hain. However, he sold his penthouse to then CEO of Barclays, Mr. Bob Diamond, in 2012 for thirty seven million dollars. It is also home to well-known Hollywood A-lister Denzel Washington who bought his three bedroom apartment for thirteen million dollars in 2006.
World renowned singer Sting bought his condo for twenty six and a half million dollars in 2008. NASCAR champion Jeff Gordon bought a condo for 9.6 million dollars in 2007, but is known to have sold the place for twenty five million in 2013. Talk about profit! Robert De Niro is known to have rented the apartment owned by Leroy Schechter. The co-founder of Yahoo, Jerry Yang is known to have paid around twenty million for a condo in the complex.

Adding to the list of techies, Google executive Omid Kordestani has a unit in the complex priced at twenty nine and a half million dollars, which he bought in 2008. He is currently an executive chairman at Twitter. The publisher of Wine Spectator, Martin Shanken owns a 19.75 million dollar half floor penthouse. Another well-known name in the sports world, Bob Costas owns an eleven million dollar pad in the complex. The founder of Marquis Jets, Jesse Itzler, bought two condos for 14.7 million dollars. However, he and his wife sold them for 30 million dollars due to his wife’s fear of heights. The Zeckendorf brothers, who developed the building, also have purchased units here. One of them however later sold his for 40 million dollars.
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Manhattan Market - Condos & Co-ops Overview Fourth Quarter 2015


Fourth Quarter 2015 market sales prices were forced upward to record high market measures, influenced by a large increase of new construction closings. Condo closings accounted for 51% of total sales. More significantly, a greater share of those sales occurred in new construction projects. With 3,183 closed sales in the fourth quarter of 2015 (3% fewer than prior year) the overall average sales price was $2,014,000, showing an 11% increase over the prior year. The overall median sales price also had a significant year-over-year increase of 17% to $1,150,000. In the analysis presented by three distinct price tiers – under $3M; $3M to $10M; and over $10M – the rising market price trend is most evident in the two lower tiers. Properties sold under $3M in this quarter accounted for 84% of the total market sales. However, the quarter saw 7% fewer closed sales in this price tier as compared to the same quarter in 2014. In the next price tier, $3M to $10M, the average sales price showed an increase of 8% and a median sales price increase of 12%. There were 34% more sales this quarter over the prior year and units sold in this price tier accounted for approximately 15% of total sales. The top price tier (properties over $10M) is where we encountered a decrease in average sales price. With fewer record setting sale prices in the top tier of the market, the average sales price for units sold over $10M dipped 19%, while the median sales price increased marginally by 6%.


The New York City residential real estate market had a strong fourth quarter and a strong full year in 2015.  According to the Vanderbilt Appraisal Company, the average sales price increased a remarkable 11% over last year and the overall median sales price was up an extraordinary 17%. These price increases were driven by low inventory at the lower price points resulting in exciting bidding wars. If you are interested in buying a studio or one bedroom, be prepare to act swiftly. More people are coming to New York City to experience the city that has it all and fewer are leaving. If you are ready to expand your “nest”, there are many new condominiums about to hit the market, filled with the latest amenities from resident spas to basketball courts. It is also a great time to buy at the high-end and ultra-luxury (properties over $10M) price points, as we have seen a slight softening with more units and longer days on the market. With the ultra-luxury market, the fourth quarter of 2015 had 10% fewer sales and prices were statistically lower as compared to the end of 2014 which included record closings at One57. 

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