LuxuryBlurb
Posts Tagged ‘luxuryletter’
Friday, November 19th, 2010
 Did you know that the waste produced from burning coal can be re-used to create portland cement?
Did you know that a incandescent light fixture replaced with a LED light fixture saves about 80% of energy consumption.
So while the world seeks some miraculous new source of energy, the rest of the world has discovered that ENERGY TECHNOLOGY is the new INFORMATION TECHNOLOGY. Yes, the ability to use the energy resource we already have, but create efficiencies within these resources is where significant strides can be made to reduce consumption and ultimately benefit the quality of life on earth.
I have friends currently in NEPAL where the air pollution is chronic: A visit to this part of the world would convince anyone that we have a responsibility to clean up our environment, and FAST. We have addressed this issue before in LUXURYLETTER, so what can owners of New York real estate do to incorporate ET into their world to individually and collectively make a difference? Here is out list:
1) Refine your heating and cooling systems: Converting a building from oil to natural gas to supply heating is a big one. Balance distribution throughout the building so that some aren’t cold and others aren’t opening their windows in the middle of winter to release excessive heating. Window AC units are grossly inefficient…..yes, someone at Historical Landmarks thinks these antiquated systems are good for facades (are they blind, or do the rest of us agree window unit are HIDEOUS!) but they are wrong, wrong, wrong. Units that go through the wall can be better, or best is a central system for efficiency. Thermostats timed to reduce useage when not at home can make a huge difference too.
2) Soon the cost benefits of Solar and wind generated systems will become meaningful. Already SOLAR GLASS is on the horizon: Imagine replacing all the glass in a building so that it generates about 50% of the electrical consumption? Yes the costs to do this will be high, but what is the cost of air quality that is so foul it kills us? What is the cost of treating lung cancer or asthma?
3) Replace incandescent lightbulbs with LED lightbulbs: yes, they are expensive to buy, but in Manhattan lots of us can afford this, and the longterm benefits are huge. They last 25,000 to 50,000 hours while regular incandescent bulbs last 1,000-2,000 hours. We don’t want to even mention fluorescent bulbs because they emit a vile quality of light, although for utility closets or laundry rooms they are super-efficient and with a decent tint, somewhat acceptable for humans. Regular fluorescent makes humans look ugly and we should boycott them in living spaces.
4) As electrical vehicles hit the streets, our needs for more electricity will rise rapidly: we had better be prepared before the next ‘brown outs’….. We have clean nuclear, wind, solar, gas, etc: lets use it wisely.
5) Insulation: properly insulated windows are a huge energy saver. New York real estate is notorious for cheap, bad windows: its time to replace them and insulate them properly when installed. Additional insulation throughout apartments can double energy savings. Anything that is leaky or drafty is no longer charming: it is damaging.
6) Use what you need when you need it: leaving a host of appliances running while away or not in use consume electricity: new technology will help you manage this better, but simple fixes are easy too. Un-plug that appliance with the bright green light that runs regardless of whether its being used!
7) New construction that ignores green building technology will probably sell for less than those developed by smart developers who see that energy efficiency is not only good common sense, but also REALLY GOOD BUSINESS.
In New York we do have the wealth advantage: remember, its not about the cost of money, its about the cost to our health and the health of future generations. Big buildings are much more energy efficient than individual suburban homes, so in that regard we are ahead of the game, but many older buildings, or cheaply constructed buildings have to do their part. Stop talking, and start doing. LEONARD STEINBERG
Monday, November 15th, 2010
 News headlines are overwhelmed with talk about how to cut the deficit. The tone before the election is noticeably different to the tone after the election as the practical realities of balancing the budget surface. On of the very biggest areas of spending is entitlements, and right now we are entering a significant milestone: The first BABY BOOMERS turn 65 on January 1, 2011. Raised in affluent times with high expectations, the first Boomers now face the prospect of longer, yet more crimped lives. Most of their homes and savings are worth less than a few years ago, and health care and energy cost more. Although many will need (or want) to work past 65, there’s less work to be had. And the longer they work, the less chance for younger citizens seeking employment.
But the biggest question raised by the Boomers’ senior moment is how it will affect the politics of Social Security and Medicare, and the nature of retirement.
Boomers’ sheer numbers (one will be turning 65 every 8 seconds) threaten to overwhelm the federal budget with rising costs for the entitlement programs.
Are New York Baby Boomers different? In many ways, yes. At a recent discussion about the development of a significant new luxury condominium, wealthy Baby Boomers were identified as an important demographic and prospective audience for super-luxe apartments, centrally located, that either remove the stress and complexities of owning a large suburban home, or provide a secondary residence for Boomers to enjoy all the City delivers.
“While there is lots of talk about the Boomers that will drain the countries budgets and suffer through more austere times, there is a small but significant group of Boomers who have accumulated significant wealth in unprecedented times,” says Leonard Steinberg, publisher of LUXURYLETTER. “There is the couple who just sold their business for $ 50million, the kids have moved out of their (much too) large house in Greenwich, Connecticut, and they want to simplify their lives: they also don’t consider themselves old, and want the vibrance, energy and options only a city like New York can offer, not to mention close and quick proximity to the best medical facilities.”
The BILLIONAIRE BOOMERS are a different breed altogether, not to be confused with the majority, and thankfully they love Manhattan.
Wednesday, November 10th, 2010
 The elusive $ 10,000/square foot price has been reached in Manhattan with the sale of the Zeckendorf’s penthouse at 15 Central Park West. The $ 40million sale of their penthouse marks a turning point in the history of New York real estate pricing.
“We have by-passed The Gilded Age, and entered THE PLATINUM AGE,” says Leonard Steinberg, managing director of Prudential Douglas Elliman and publisher of LUXURYLETTER, the authority on luxury New York real estate.
The sale of this penthouse at $ 10,259.00/sf marks a new milestone in pricing. 15 Central Park West has broken all records, delivering the pre-war look with new construction advantages craved by so many buyers: it’s magnificent Limestone facade and larger windows framing superb Central Park views combined with an incredible package of services and amenities has huge appeal to the ultra-wealthy seeking the combination of status as well as safety.
On US standards, this pricing is historic, but then we are in historic times: Translate this price into Euro’s and the picture is quite different. On international standards, this pricing is still on the lower side when compared to other major cities, especially London, where super-prime real estate sells for considerably more than this.
This pricing sets a new bar for luxury real estate in Manhattan: it is a result of inventory shortages of the ‘best of the best’. And this won’t change quickly with the current slump in construction. Quality new inventory is at least 3 years away, the perfect environment to fuel even more impressive price gains on trophy properties.
Does this sale fuel the argument that the divide between the super-rich and everyone else will continue to grow?
Wednesday, November 10th, 2010
 Two trends emerged in this weeks art auctions that are a reflection of the luxury buyer: Firstly, the bulk of ‘big-bucks-buyers’ were from foreign lands (obviously using foreign currencies to capitalize on the weak dollar). The reality is the big new money is being made in many countries besides the USA. The second trend is a flight to safety: the big ticket buyers wanted safety and focused their attention on the most obvious, safe-bet buys.
The Wall Street Journal reported that the contemporary-art market’s fizz these days has been largely driven by sales of Pop classics by Warhol, Roy Lichtenstein, and others. Pop’s cheery colors and reassuringly familiar objects such as crumbly pies and red lobsters appeal to jet-setting bidders who want to buy art again but aren’t ready to stretch for edgy unknowns.
Overall, Sotheby’s Pop works helped boost its $222.4 million total above the house’s own $214.4 million high expectations. Sotheby’s helped financier Ron Perelman sell Lichtenstein’s “Still Life with Lobster” from 1972 to a European telephone bidder for $5.9 million, over its $5 million low estimate. Lichtenstein’s frothy blue “Ice Cream Soda” from 1962 also sold for $14 million, just over its $12 million low estimate.
Collectors seemed chipper as well, with real-estate developer Aby Rosen packing into the auction house’s Manhattan salesroom alongside former super-agent Michael Ovitz; newsprint magnate Peter Brant and his wife, model Stephanie Seymour; and designer Valentino Garavani, who won an untitled Joan Mitchell abstract for $2.2 million.
But the sale relied heavily on faraway collectors to pick up its priciest pieces, including examples by boom-era favorites Mark Rothko and Francis Bacon. An Asian telephone bidder paid $22.4 million for a lemony, untitled Rothko from 1955 that was being sold by architect Graham Gund. Sotheby’s London-based expert Oliver Barker also fielded the $14 million winning telephone bid for Bacon’s orange-and-blue “Figure in Movement,” which was priced to sell for up to $10 million with fees. (Sale prices include the auction house’s commission, which estimate prices omit.)
These trends are reflected in the real estate market too, where wealthy foreign buyers are fueling a notable rise in activity, buying the best quality properties around the city. Luxuryletter reported strong activity in the month of October.
Tuesday, November 2nd, 2010
Rumor has it that New York’s most expensive rental lease has been signed…..a massive pad in Midtown: And the monthly rental rate? A mere $ 210,000.00! That rent is TOO DAMN HIGH!
With a massive shift in political power to the right, it is only fitting that the Wasserstein apartment at 927 Fifth Avenue is experiencing a bidding war with an asking price of $ 26million, and the highest priced lease is signed,” says Leonard Steinberg managing director of Prudential Douglas Elliman and publisher of LUXURYLETTER. “We have officially entered a new era where being wealthy is no longer such a bad thing: it’s the dawn of THE PLATINUM AGE.”
Monday, November 1st, 2010
 Click on this link for this month’s LUXURYLETTER, New York’s only monthly report on the Manhattan real estate market downtown.
Monday, November 1st, 2010
A goregous townhouse on Grove Street in Greenwich Village has gone to contract close to its $ 15million+ asking price. Attached are some pictures of this beauty. The property was gut renovated by Triton Enterprises and never lived in, over 5,000sf in size.
“The key to this story is,” says Leonard Steinberg, managing director of Prudential Douglas Elliman and publisher of Luxuryletter, “It sold FAST, mostly because its a beauty, but more importantly because it was in move-in condition, superbly renovated, in a prime location. There is a shortage of this type of property. We just closed on 60 Jane Street, also a beautifully renovated Greenwich Village townhouse that sold for a premium price.”
Monday, November 1st, 2010
 In this weekend’s New York Times, an interview with Frederick Peters, the head of Warburg Partnership, illustrates clearly how the world of real estate brokerage has changed forever.
“I remember a time many years ago when I started doing e-mail blasts to the brokerage community, announcing new properties I was listing,” says Leonard Steinberg, managing director of Prudential Douglas Elliman and publisher of Luxuryletter. “Frederick Peters called me, somewhat outraged that I was using the e-mail system to do this. At that time, even Warburg’s website was an annoying distraction. Now, Frederick Peters is on Facebook, Tweets and is as tech-savvy as any 18 year old tech start-up geek! Now with “Selling New York”, will he be the next Danielle Staub?”
One does have to admire a company leader that at one time may have remained stuck in the past, who now embraces the new world whether we like it or not. Whether we think Fred’s “Housewives-of-New Jersey-style-reality-TV” debut into “Selling New York” is something we think is great is a whole other story. There is no reality in REALITY TV, and unfortunately we think the distortions of reality are counter-productive. Then again, reality TV is the info-mercial of the 2000′s and can be food for brand recognition.
So while the old world of brokerage, the broker-to-broker chatter, the listing systems, the broker open houses, etc, will continue as from the past, now the web, blogs and all things electronic and cyber will be entrenched into the industry…..until the next great thing comes along.
Sunday, October 31st, 2010
 In CRAINS, a report shows how New York City is unlike the rest of the USA, and is truly an international city.
These days, buyers of commercial property in New York can expect their investments to provide similar rates of return as they would in London, Paris and Washington D.C.—cities RCA calls the “Fabulous Four.”
Capitalization rates, the yields investors receive from investing in commercial properties, are more in parity among these four markets than with their respective regions.
Over the past year, yields on prime properties in New York and Washington have averaged a mere 50 basis points, or 0.5%, above those of London and Paris. But they have ranged from 50 to 300 basis points—0.5% to 3.0%—below the average yield in the U.S. as a whole, where prices are significantly lower. Similarly, those in London and Paris have been on average as many as 200 basis points below the average office yield in Western Europe.
One of the main reasons is the strong interest from cross-border buyers, who represent a large share of acquisitions in each of these four cities and help keep prices aligned within these global markets. Foreign buyers account for more than half of office transactions in London and Paris, and a quarter of transactions in New York and Washington.
“A buyer can jump from New York to Paris very quickly,” said Dan Fasulo, head of global research at Real Capital Analytics. “It’s the same buyers, the same debt providers.”
This isn’t a new phenomenon, but it has regained momentum since the recent slump. Mr. Fasulo said that it has been a macroeconomic trend for close to a decade but was put on hold during the global economic downturn in late 2008 and early 2009.
And what does this mean for residential real estate? “When there is money to be made in New York City,” says Leonard Steinberg of Prudential Douglas Elliman and publisher of Luxuryletter, “the wealthy are there. That bodes well for our City.”
Saturday, October 30th, 2010
 With almost certainty we will see a major political shift after next week’s elections. The presidency will be stuck in a potential gridlock where the only window of opportunity is 2011 says Nouriel Roubini in to-day’s Financial Times. The president deserves credit for setting up a bipartisan debt commission, which is most likely to propose a sensible combination of entitlement spending cuts and increases in taxes. But sadly the chance that these recommendations will be implemented in 2011 is close to zero: Republicans will veto any tax increase, while Democrats will resist unpopular entitlement reform. Again, Washington politicians serving their own interests of power and not the well being of the country. The TEA PARTY is not the Third party this country needs after all…..the THIRD PARTY needed is the one that can unlock gridlock and side with the party that makes the most sense for the country, trimming it’s excesses and de-radicalizing its agenda….an intelligent party …….GO BLOOMBERG!
So we see LOTS OF GRIDLOCK over the next 2 years, a protracted Halloween if you like. And how will this affect New York real estate?
“New York’s high end real estate is fueled primarily by Wall Street,” says Leonard Steinberg, managing director of Prudential Douglas Elliman and publisher of LUXURYLETTER. “Wall Street goes where the money is, and if growth is not in the USA, it will put its money where it can make the most money. There are many other parts of the world where growth and success are huge, and US investors and companies have their hands in all of this. Remember corporations and private equity are sitting on over 2 Trillion dollars of cash right now. Wall Street likes certainty, and its almost certain not much is going to change in Washington for the next 2 years. We think this will keep the markets stable: they will not soar upwards, nor dip downwards. Some areas of inventory shortage may rise more than others though: that is happening already.”
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I think you make some great points here in the face of so much criticism about what the baby boomer demographic will do to our economy. You are right to point out the fact that a sizable percentage of baby boomers are extremely successful. Certainly there are some counterpoints to the negativity we have been hearing about the baby boomers. Thanks for sharing!
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