Posts Tagged ‘245 Tenth Avenue’
Wednesday, May 22nd, 2013
Posted on May 22nd, 2013
Michael Shvo is back……and this time he is returning as a developer, having partnered with an established developer to buy the LUKOIL/GETTY gas station (reported fist here, btw….). Shvo, with developer Victor Homes, beat out competitors to acquire 239 Tenth Avenue, a gas station site at Tenth Avenue and West 24th Street overlooking the High Line.The property was listed for $18.95 million, but the partnership paid well over the asking price in a heated bidding war settling at $23.5 million – or a record-setting $800 per buildable square foot. Supposedly they are out shopping for additional air rights, although it seems doubtful they can build up in that location as there are pretty strict heigh restrictions for the neighborhood. Positioned diagonally opposite Cary Tamarkin’s 508 West 24th Street and a few doors down from Adam Gordon’s 560 West 24th Street (and 200 Eleventh Aveue), this block is developing into West Chelsea’s PRIME block.
While the brokerage community is aflame with snide and hate-filled comments about the return of Shvo, surely the owners of 245 Tenth Avenue are celebrating the demise of what was the number one de-valuer of that building…..those owners have just added 15-20% of value to their building thanks to Shvo. So what are the lessons to be learned here?
1) You can be loathed throughout the industry and return (having lots of cash to do so helps): this industry is extremely forgiving and forgetful.
2) Nothing is forever, not even the gas station that everyone said the owners would never, ever sell. Many had tried before and failed.
3) $ 800 per buildable square foot is the new $ 500 per buildable square foot. That 60% escalation happened quickly! Too quickly?
4) Only time will tell: what pricing will this property have to command to absorb the land acquisition costs PLUS the de-contamination costs (we have heard the site has lots of spillage) PLUS building costs PLUS marketing costs (Shvo is not cheap).
Tick, tick, tick, tick…..
Monday, March 26th, 2012
Posted by Leonard Steinberg on March 26th, 2012
This morning Ben Bernanke spoke on the subject of the economy: his conclusion was that the improving employment and growth figures were a product of CATCH-UP. We can see the same thing clearly happening in the luxury Manhattan real estate market.
The above picture shows a line of prospective buyers (no this photo was not taken in 2007!) waiting to get in to an open house at 422 West 22nd Street over the weekend. The new building is one of very few new buildings offering ‘affordable’ price points for buyers eager to be in a top location and a brand new building. These price-points have been largely ignored in the past few years and even more so going forward as developers are mostly focused on the very high end of the market. More importantly this showcases how many buyers waiting for the ‘bottom’ of the market now feel they may have missed that. I spoke to some buyers over the weekend who regret not buying a unit I was selling at 245 Tenth Avenue…..it went to contract at the end of December 2011, and a very similar unit just went to contract…..3 months later……for about 12% more.
So the real estate market’s energy is probably just like the overall economy…. playing catch-up. Its always easiest to see the best time to buy or sell in the rear view mirror. So what does the future hold? Several thousand new apartments are currently in the development stages, and already the sleeping giant that was new construction has awoken. Around the city fences are being erected around construction sites, and the roar of concrete trucks is being heard throughout the city….this is just the beginning. I think the result will be a surge in construction-related employment. Imagine just the downtown market alone where I am personally familiar with about 2,000 units that will be built over the next 2-3 years: thats lots of concrete, wood, windows, steel, bath fixtures, appliances, plumbing, electrical, cabinetry, security, engineers, architects, etc, etc. And once they are completed, all these properties will require furniture, electronics, movers, transfer taxes….what I am really trying to say is that when a sleeping giant awakens, the earth moves and we will see an unprecedented hive of economic activity in New York very soon.
One area that Bernanke addressed was those un-employed who could not find work because they did not possess the new skills the market is looking for. If you compare this factor to real estate, many home owners are disturbed how their apartments are not selling at the record prices they read about in the N ew York Times and Post….or worse, not selling at all. Often these apartments exist in buildings that are out of touch with what the consumer of today wants and expects. I own an investment apartment in a building that had the most hideous lobby and entrance: it looked like a border crossing. The lobby renovation is almost completed, and all of a sudden the pricing in the building just bounced upwards: its a lesson that just like those in need of learning new skills to function in todays new economy, apartmentss and buildings have to upgrade and evolve to compete.
Thursday, September 29th, 2011
Posted by Leonard Steinberg on September 29th, 2011
Have you walked the HIGHLINE PARK by 245 Tenth Avenue recently? If so, you will see a light installation called REMOTE NATION by artist Kevin Cooley that is really rather exceptional. All West facing windows overlooking The Higline Park emanate light transmitted by dozens of televisions placed in the units in the building. The exhibit continues through to the end of October, 2011.
245 Tenth Avenue is a brand new, stainless steel clad condominium cantilevered over the Higline Park. See: www.245tenth.com Units range in size from 2,400sf two bedroom, three bathroom units to a 3,000sf+ duplex penthouse. Prices start around $ 1,5 million.
Friday, July 15th, 2011
Posted by Leonard Steinberg on July 15, 2011
The question arose this week (and many times before) about the future of West Chelsea as an Arts Center: will West Chelsea go the way of Soho? Will Gagosian become the Gap? Will Prada replace Paula Cooper? Chanel replace Cheim & Reid?
“The biggest difference between Soho’s evolution into a high fashion retail environment and West Chelsea to-day is the fact that now most galleries own their space and don’t rent,” says Matt Amico, a West Chelsea resident and a Prudential Douglas Elliman broker. “When I moved into the Caledonia (450 West 17th Street)it was a brand new construction building: Alternatively, had I moved into Soho years ago, I probably would have replaced an artist.”
Soho artists did own many of the lofts that they moved from, mostly because they had bought them for next to nothing years ago: subsequently they have left behind a huge mess with the AIR program and walked away with huge, often retirement-fund-sized profits (well deserved, as they pioneered the area and transformed many derelict buildings into habitable homes and studios). West Chelsea is very different as the focus is not so much artists as it is galleries….and these (often highly profitable) galleries own their space this time: In Soho most were renting their retail/commercial space.
Another huge value to anyone in commerce is the high concentration of an industry: With about 350 art galleries concentrated within just a few blocks, the ability to lure potential art buyers is so much greater than being spread around the city, or worse, outside of the City removed from easy access. “The experience of visiting West Chelsea is now further enhanced by the fact that the recently opened Highline Park extension acts as a connector between West Chelsea’s arts district and the Meatpacking District, a thriving retail environment: so the area combines everything that Soho was 15 years ago with what it is to-day.”
The Highline Park, the new Avenue’s School, new restaurants, amenities and services combined with the Hudson River Park to the West add fuel to West Chelsea’s fire. When the subway stop is added to Eleventh Avenue and 34th Street, the northern end of the Arts District will be connected to Times Square via a 5 minute subway ride. Add to this a substantial volume of construction planned for the Hudson Yards area, diminishes the urgency to vacate current art gallery spaces to convert them or tear them down for residential use. There are still many vacant/commercial, non-art gallery building sites in West Chelsea to satisfy developers for several years. Walking on the Highline Park the other night amongst a very civilized group of calmer, more elegantly dispositioned New Yorkers, you actually saw the realization of this amazing neighborhood transformation: illuminated landscaping bracketed by exceptional new buildings that arch over the park such as the two stainless steel clad HL23 and 245 Tenth Avenue …..and in the distance a host of interesting new building mixed in with the older residential and commercial structures….and one day soon all this will terminate at a brand new Whitney Museum….
So my conclusion is that the unique flavor that has been created in West Chelsea is here to stay, for at least the next 10 years, and possibly much longer. Remember the entire area was re-zoned too to prevent a big mess, so maybe this is one area that will serve as a textbook case study for responsible development?
Thursday, June 9th, 2011
Posted by Leonard Steinberg on June 9th, 2011
YOSI MILO GALLERY is opening a new gallery at 245 Tenth Avenue, the iconic stainless steel building hovering over the newly opened extention of the Highline Park.
I am shamelessly sharing this information as we are marketing the building, but it is always exciting when another gallery is added to what is already a prized gallery district for contemporary art….and Yossi Milo represents some of the very best artists of our time. And also lets celebrate the fact this retail space will not become another boring bank or Duane Reade! (even though it can be convenient to have one on every corner in Manhattan!) Now all retail is sold at 245 Tenth Avenue, and the condominium plan is about to be declared effective. www.yossimilo.com
Thursday, January 13th, 2011
Posted by Leonard Steinberg on January 13, 2011
After a 2 year hiatus, ‘New Development’, the darling of Manhattan high end real estate is coming back with a vengeance! We hear new buildings such as the Extell’s Park Hyatt building, Harry Macklowe’s Park Avenue tower, 250 West Street, the Rudin’s St.VIncent building are all moving forward aggressively. Almost completed buildings One Madison Park shows strong signs of life and 245 Tenth Avenue is back on track for a Spring launch.
Everywhere we hear chatter of brand new projects, old projects coming to life, and buildings in limbo being resurrected. Based on the dreadful supply of quality apartments, this is happening out of necessity. The big questions are:
1) How will the banks view financing these projects? What will interest rates be by the time they close?
2) How soon can they actually be delivered to prospective buyers: do buyers have the will or the guts to commit now to a property that may only be delivered 18 months to 30 months from now?
3) With the expiration of the 421-A tax abatement program, will those buildings that don’t have a tax abatement have monthly carrying costs so high they scare off buyers or are unfairly dis-advantaged next to those buildings that do have the abatement because they were secured before the program ended?
4) Will buyers be equipped to buy again from floorplans? (see previous post).
5) What kind of pricing can developers realistically expect? Lets face it, the record prices of 15 Central Park West were only achieved when buyers could physically tour the building, completed, up and running. The value of the finished product should not be under-estimated.
6) Some developers of new developments in New York were culprits of delivering buildings that fell far short of the promises made in their sales offices: have buyers of New York property forgotten this already? Or have developers been forgiven and has trust returned? With the power of the blogs, I believe those developers that screwed up in the past will have to provide much greater assurances and incentives to provide sufficient confidence in their ability to deliver a quality building. Those that did deliver quality, will be handsomely rewarded.
7) Pricing: Labor and materials and land all cost less now than at the peak: will these savings be passed on to the consumer for the first group of buyers to incentivize momentum? I see no way around this. Those who take the biggest risk should be rewarded for doing so.
8) Will the weak dollar save the day as foreign buyers view New York’s prices as ‘good buys’? Lets face it, in China the recession was a very brief moment…..these buyers are still quite used to buying off floorplans.
We believe the beginning will be tough, but will improve as buyers recognize the opportunity for buying a quality existing property is slim with the current limited supply.
Thursday, September 16th, 2010
In this morning’s Wall Street Journal the subject of Spain’s 1,5million vacant apartments in ZOMBIE BUILDINGS is addressed: do we have ZOMBIE BUILDINGS in Manhattan? Two that come to mind are 1 Madison Park and 245 Tenth Avenue, both really wonderful buildings caught in the financial storm of 2008/2009.
“The difference between these two buildings and Spain’s ZOMBIE BUILDINGS are that when 245 Tenth and 1 Madison Park come back to the market, they probably will sell out quickly,” says Leonard Steinberg, managing director of Prudential Douglas Elliman and publisher of LUXURYLETTER. “The worst ZOMBIE BUILDINGS are the generic ones built in areas that have the ability to build many more similar buildings at lower prices.”
BENIDORM, Spain—Torre Lugano, Spain’s tallest residential tower, attracted buyers from here and abroad with glossy brochures promising a luxury building with a glass-walled elevator and sweeping views of this Mediterranean resort’s turquoise waters.
The reality is very different. The garage floods, windows are drafty and backed-up toilets flood apartments with sewage. The glass elevator never materialized. Residents, some recently forced to shower in a communal rest room because the plumbing on their floors failed, are suing the developers for €28.2 million ($36.4 million), citing “construction defects.”
Torre Lugano is a 420-foot-tall example of the gap between Spain’s recent dreams of economic glory and its grim new reality. Some 1.5 million unfinished, unsold or unwanted residential units stand scattered across the country, products of a still-deflating housing bubble that threatens to undermine Spain’s broader economy for years to come. It is the hangover after an epic fiesta, a period Spaniards now refer to as “cuando pensábamos que éramos ricos”—”when we thought we were rich.”
Once hailed as early proof of the success of the euro, Europe’s single currency, Spain’s low interest rates from the mid-1990s and its proximity to richer neighbors ushered in a decade-long period of prosperity.
Monday, August 30th, 2010
It is now certain that within the next 10 years, the Manhattan skyline will look very different. Plans for a spate of significant high rise buildings appear to be moving forward now as the economy slowly un-locks.
Developers are readying two residential towers that will rise above most of Midtown. The massive mixed-use development planned west of Penn Station would transform Manhattan’s skyline as viewed from New Jersey. Downtown, the transformation is already happening, with the warped, metallic skin of Frank Gehry’s Beekman Tower looming over the neighborhood around City Hall and, at Ground Zero, 1 World Trade Center already rising to 36 stories.
Some of the proposed alterations to the city’s skyline have been opposed. Vornado Realty Trust’s plan to build a tower near Penn Station attracted criticism from people wanting to preserve the Empire State Building’s iconic spot.
But the new projects are being propelled by powerful forces. The City Council’s near-unanimous approval of the Vornado project is a sign that elected officials are much more concerned about producing jobs than aesthetic concerns. “They were saying New York needs new buildings,” says Carol Willis, director of the Skyscraper Museum. “Before that, I would’ve said that New Yorkers like their city just fine the way it looks right now.”
“Politics trumps everything in development,” says Leonard Steinberg, managing director of Prudential Douglas Elliman and leader of the LUXURYLOFT team. “When politicians need to create jobs, huge buildings that employ thousands become desirable, something that also caters to the Unions. Remember the midtown Jean Nouvel tower that was proposed a few years ago? Jobs were not a political issue then, so the Tower was scrapped.”
From a residential perspective new towers are definitely in demand, especially in the Midtown area: they offer the views, services and amenities that this buyer craves. Aside from the Bloomberg Tower and the Time Warner building, there are not too many options.
From the commercial perspective, businesses are demanding super-efficient high-tech spaces with high security and quality space. It is very difficult to retrofit existing buildings to achieve this.
And if you don’t think this will happen, look at West Chelsea to-day compared to 10 years ago…..100 Eleventh Avenue, 456 West 19th Street, 200 Eleventh Avenue, 231 and 245 tenth Avenue, Gehry’s IAC building, HL23, The Caledonia, all viewed from the Highline Park…..