LuxuryBlurb
Posts Tagged ‘Manhattan’
Saturday, November 5th, 2011
 Posted by Leonard Steinberg on November 5th, 2011.
Have you noticed how the bulk of newly built New York residential buildings possess as much charm as Ann Coulter or Al Gore? Does modern design have to mean sterile design? Understandably, re-creating aged patina can be a bit Disney-esque, but surely within the vast array of good modern design, there MUST be some way of making people’s homes (yes, when they come home and walkthrough that lobby, that is the beggining of their ‘home experience’ just the way a driveway and front yard would be in the burbs) more of a pleasant experience. With the 1% (yes, that’s the luxury market in New York real estate) under much greater scrutiny and derision than ever before, coming home should feel like a big hug, a way of saying “yes, you have more than the other 99%, but it’s not your fault…it’ll be ok….you earned it too!”
I am horrified on a daily basis when architects and designers think that a lobby or hallway overwhelmed with fluorescent lighting that renders a ghostly, sick complexion on humans is acceptable design. Throw in some material choices that are either reminiscent of a bomb shelter or worse, a psuedo-boutique-fashion-of-the-moment hotel and one truly has to wonder whether these designers know anything about the human psyche.
It is easily possible at any price point to achieve a more charming experience with a newly designed building by integrating materials, lighting, artwork and possibly something unique and special to the environment. Attempting to re-create a pre-war experience a-la-15 Central Park West (that while beautifully executed looks like any high end Ritz Carlton) is not what I am calling for. I do believe good modern design can be both inventive and human.
Come on starchitects and world class designers: human beings are not machines….yet.
Thursday, October 13th, 2011
 Posted by Leonard Steinberg on October 12th, 2011
As the BLACKBERRY BLACKOUT continues, I as a real estate broker vow never to complain about my Tech ever again, even though at times it may be warranted. Life in real estate land in New York is simply HORRIBLE without a functioning Blackberry. I feel I have lost a part of my brain. It reminds me of the times we schlepped the streets of Manhattan with appointment books and just Cell phones. It’s not that doing business was impossible, but it was significantly slower, bound us more to an office environment, and in my opinion it was a lot less efficient. The stress of reading and responding to hundreds of e-mails a day while on the road has now been replaced by the stress of knowing you will have to address them once you get back to your desk. And while I do love my I-pad, it simply does not compare to that hand sized little wonder we have become so accustomed to.
Sunday, July 31st, 2011
 Posted by Leonard Steinberg on July 30th, 2011
We have covered this subject before in LUXURYLETTER: Manhattan and New York City sidewalks are constantly covered with hideous, unsightly construction sheds and scaffolding. Always dark, somewhat sketchy, and often covered with graffiti, the sheds leave much to be desired, which is why the Department of Buildings hosted the UrbanSHED Competition, asking designers to create a more aesthetically pleasing design for these sidewalk canopies. A prototype of the winning design has just been unveiled: the arched steel structure with a transparent top is a breath of fresh air. Designed by winner Young-Hwan Choi with architect Andrés Cortés and engineer Sarrah Khan of New York-based Agencie Group, the new canopy is a huge improvement from the standard pipe and plywood shed.
It is time to really evaluate this ugly scaffolding once and for all: While I love the concept of re-designing the scaffolding and making it more attractive, personally I see permanent sidewalk covers as the solution. The cost to building owners to rent these structures is prohibitive. With the sun a lot less desirable these days, why not cover sidewalks (a la Meatpacking District and Tribeca) with permanent canopies. These (attractive) canopies could be made of solar panels to generate power and also transmit light. Something needs to change.
Monday, June 20th, 2011
Posted by Leonard Steinberg on June 20, 2011
The other day I did a showing of a rather wonderful Chelsea apartment that boasts the most extraordinary view…..the kind of view that leaves you breathless even after seeing many truly incredible views. This view located from the top of the Chelsea Stratus building at 101 West 24th Street, has to be the ultimate panorama of Manhattan, Queens, Brooklyn, New Jersey and beyond. It’s truly that good.
The prospective buyer gazed through the window and made an interesting observation. While he loved art, he said the view was like a magnificent work of art to him, constantly changing, inspiring, telling a story, invoking emotion….and he went on. I stared back out of the window and I really, really believed him. So like great art, gorgeous views often command pricing that defies basic logic or rational evaluation (certainly not the scrutiny of an appraiser). Especially if it achieves collector status. And even more so if its protected.
And rightfully so.
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
Tuesday, March 29th, 2011
 Posted by Leonard Steinberg on March 29, 2011
Living on the river’s edge has exposed me to how much wind New York City experiences: The other day as I turned the corner onto the West Side Highway, I leaned my full body weight into the wind to propel myself forwards. Thats quite a lot of energy considering the masses of deserts I’ve consumed recently.
It made me realize how much energy surrounds us every day that we simply don’t tap into at all. We have huge flags flying around the city, mostly on rooftops, but not a single windmill or wind turbine. Imagine every building in Manhattan had a windmill or turbine generating electricity? A single 1MW turbine operating at a 45% production rate will generate about 3.9 milion kW of electricity in a year. This would be enough to meet the needs of about 500 households per year. Imagine we had many more, smaller, less obtrusive windmills each producing enough power for 100 households?
New York City is the perfect environment to achieve notable results through numbers because of its scale: For example, by addressing leaks, waste and lower flow shower heads and toilets, New York City reduced its water consumption by 28% from 1979 to 2006. Now imagine 50% of buildings were to install a simple wind turbine on their roofs. Or a set of solar panels. I stare every day at the US Post Office building on 11th Avenue and 24th Street and wonder how much energy the building could produce if it replaced the 12 or so light posts and flag posts with wind turbines on its roof.
We all need to take a long, hard look at the viability of Nuclear energy in the shadow of the recent Japanese disaster. Yes, nuclear energy is extremely efficient and extremely safe. Unfortunately, when things go bad, the level of bad is so awful and destructive we have to ask ourselves whether there is an alternative? Yes, nuclear energy may be much cheaper, but what will be the price of un-doing the damage in Japan: that cost has to be added to the bottom line.
Wednesday, March 23rd, 2011
Posted by Leonard Steinberg on March 23, 2011
Overheard tonight at a little gathering in a swell penthouse overlooking all of Manhattan, amidst dramatic lightening and ice/hail….A 3-unit combination apartment st THE PLAZA has gone to contract for around $ 48million….and a rather swell pad at TIME WARNER has gone to contract for around $ 33million: The luxury, BILLIONAIRE BUYER is back in town! These prices are headline grabbing indeed even for the New York luxury real estate market.
Sunday, March 20th, 2011
 Posted by Leonard Steinberg on March 20, 2011
For years I said the upscale Manhattan crowd would never travel ALL THE WAY to Brooklyn to live in what are arguably neighborhoods as refined and desirable as the West Village, Tribeca and the Upper East Side: I was wrong. About 3 years ago, a friend of mine (and now fellow broker) Aimee Scher moved to DUMBO. I dreaded the thought of traveling ALL THE WAY over to visit…..until of course I did so. I was wrong. It took less time to get there from my Flatiron office than it does to get to the Upper East Side. I was shocked. I’d always loved the Brooklyn neighborhoods and thought they had huge potential, but I never thought of them as being this accessible.
Flash forward, and last Fall, the owner of a recently renovated house in Brooklyn Heights invited me over to see his property on Hicks Street. Again, I dreaded the trip ALL THE WAY to Brooklyn. I left my apartment in West Chelsea and 11 minutes later I was at the front door. Un-believeable! I had been transported in a few minutes to what has to be one of New York’s most beautiful neighborhoods. I walked on gorgeous tree lined streets reminiscent of the West Village, by charming cafe’s brimming with Saturday ‘bruncher’s’ (a good-looking bunch I may add!) taking in the beautiful Fall weather.
We chatted with the owner and my fellow broker and after a tour of this magnificent house I was convinced: Brooklyn Heights has to be one of THE neighborhoods of New York, if not Manhattan. It is an area anyone wanting a strong quality of life should seriously consider. And this house that we recently listed is a prize: 25,5 feet wide, exquisitely renovated (seriously, world-class) and pretty from inside and outside with a picturesque garden too. And minutes from Manhattan. Minutes.
With pricing of similar houses in Manhattan in the teen’s, 74 Hicks Street in Brooklyn Heights priced at $ 6,5million is an eye-opener. Certainly a wake-up call to me, the sometimes jaded Manhattan broker.
Tuesday, January 18th, 2011
 Posted by Leonard Steinberg on January 18, 2011
Co-op and condo owners are slated to pay much higher real estate taxes next year, under a preliminary assessment roll released on Friday by the Bloomberg administration. The city attributed the rises, due to take effect in July 2011, to higher market values placed on apartment buildings by tax assessors. Yet no-one is asking for their methodology, no-one is asking why co-op and condo taxes should rise by almost TRIPLE the mount of single family homes. CORRUPTION?
Did you know that New York property taxes have risen by 78% in the past 10 years? Of course, some have risen significantly less than this 78% and other significantly more……why? CORRUPTION?
Tax collections are expected to rise by 7.5% for co-op owners, and 9.6% for condo owners across the city, according to a summary report released by the Department of Finance, yet single-family homes would only pay 2.8% more. CORRUPTION? Is this because Mayor Bloomberg lives in a townhouse?
ALSO: No-one is questioning why some co-ops, condo’s and single family houses are taxed so extremely differently from one another, often in neighboring properties: When the assessors re-valued the entire city did they even look at or consider the disparity between properties? I doubt it. CORRUPTION?
Taxes on rental buildings will also increase significantly, the report said—by 9% for rent-regulated apartments and by 8.1% for unregulated apartments. Some of this tax increase is passed on to tenants.
This translates into an average tax increase of $384 for co-ops, $490 for condos, and $107 for single-family home owners. In Manhattan, the tax bill will go up an average of $594 to $9,351 for co-ops and by $970 to $11,348 for condos: How on earth is it possible to have this broad a range? CORRUPTION?
Finance Commissioner David M. Frankel denied that assessments were raised to increase tax collection, saying the department “performs a ministerial function valuing properties in accordance with state law and the best practices.” Oh, really! CORRUPTION?
The new assessments are not final. Taxpayers can ask the Department of Finance to make corrections, and can appeal their new assessments to the city Tax Commission. The deadline for appeals is March 15 for owners of one- to three-family homes, and March 1 for others. I strongly urge all property owners who are being unfairly assessed to rise up now and fight this corruption ONCE AND FOR ALL.
Owen Stone, a spokesman for the department, attributed about 30% of the increase in assessments on apartment buildings to improved earnings by the owners of rental buildings (in a market where rentals have dropped significantly over the past 24 months…..CORRUPTION?), and the rest due to technical factors, including a new, more accurate assessment methodology (PLEASE SHOW US THIS METHODOLOGY……PLEASE!), as well as lower interest rates on bonds, which are used in the calculation of market values.
Some of the increase in average tax assessments is due to new construction, renovation and expiring tax exemptions on individual properties.
Under state law, valuations of co-ops and condos are calculated as if they were similar rental buildings, though they are entitled to co-op and condo abatements, usually 17.5%.
Tax collections on office buildings were due to rise by 7.25%, according to the report. In total, city revenue was expected to rise by $900 million under the new assessments, Mr. Stone said. And what will we be using this $ 900 million for exactly? The MTA? The Sanitation workers bonuses? CORRUPTION?
Michael Slattery, senior vice president at the Real Estate Board of New York, said the steep increases were cause for concern and that he would be consulting with property owners.
“Some of the numbers look high, surprisingly so,” he said. “I can’t believe the market went up that much.” He says this after his OWN REPORT released just recently showed a slight improvement in pricing, but fails to mention that real estate taxes were never lowered when the property values declined.
The city also changed its assessment methodology for one- to three-family homes “to more accurately reflect sales prices,” resulting in some significant increases in market values of the most expensive homes in Manhattan. PLEASE SHOW US….WE SIMPLY DON’T BELIEVE YOU!
Market values of one-family homes in Manhattan went up by 16.3%, but because the assessment increases can only be phased in over many years, the assessed value for these homes rose far less, 7%. This translates into an average increase of $1,645 to an average tax bill of $33,132. PLEASE, PLEASE, someone, somewhere show us how one-family house values rose by 16,3% in the past year: WHAT PLANET ARE THESE IDIOTS LIVING ON?
In Queens, the city’s estimate of the market value of co-ops went up by 32.4%, with average tax bills to go up by 12.5%, or an average increase of $292.
So, dear taxpayers, if you believe everything our beloved City officials have spewed forth in this dumptruck of ‘facts’, go ahead and pay those taxes. If for some slight reason you question the legitimacy of these numbers, maybe now is the time to stand up to what I consider the MOST CORRUPT REAL ESTATE TAX SYSTEM IN THE WORLD.
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.
 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.
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Thank you for addressing the undertaxing of single family homes and townhouses and the overtaxing of condominium homes. It is completely unbalanced and unfair. The city needs to be held accountable.
The so-called “tenants rights” groups and their legislative kin need to held accountable for creating a system of rent control that reduce property tax income by more than $400 million. Spending is a factor, sure, but a good place to start is to have everyone pay their fair share.
Hey there! This is my 1st comment here so I just wanted to give a quick shout out and tell you I really enjoy reading your posts. Can you suggest any other blogs/websites/forums that deal with the same subjects? Thanks a lot!
The methodolgy of Coop and Condo assessment was enacted at ta time where most buildings where rental buildings in the city and there was no point of reference of individual sales to determine the value of a unit or building except the “value of an asset that would return a certain profit based on a capitalization rate”. If you look at the tax rolls, the rental estimates are ALL wrong as they compare building with rent stabilized rent wih Coops, Condo and who knows what. This is total Insanity. The value determined by the city has nothing to do with the real markeatable value of apartments and the methodolgy leaves so much to desire that it is virtually impossible to have a fair system. We have enough points of reference sales (Condo AND Coops) to be able to determine a fair market value of apartments. Also how do you explain a coop that sell for the same price than a Condo and the same price than a single home end up with such different tax bill. The law and consitution of NY state states clearly that every one has to be treated equally. Our corrupt government has found a way to treat people inequally and is doing nothing to change it. This is just outrageous and lame of lazy politicians.
Look at the related link portion at thr right of the commentary, included curbed, the real deal etc. All good real estate related information.
Has anybody realized that right after Bloomberg became mayor (2002), 2 years later (2004) he changed the name of the notice of assessments to notice of property value and removed the total property tax from the notice to make it more difficult to find your total real estate tax for that year. If you look at your assessments there is no more tax total on the notice