LuxuryBlurb
Posts Tagged ‘Prudential Douglas Elliman’
Saturday, October 23rd, 2010
 Is Downtown Manhattan the new New York SUBURB?
With 200 Eleventh Avenue, you have a garage attached to your own apartment……many full-full service buildings are becoming similar to suburban ‘gated communities’ affording even more conveniences than their suburban counterparts….think 101 Warren Street with its own Whole Foods, Bed Bath and Beyond and Barnes and Noble IN the building….in the suburbs you have to drive to those chains. Bicycle use has doubled in the past few years. Millions of trees have been planted, and parks are sprouting on every corner.
New York is becoming more suburbanized. You’ve got Home Depot, Costco, all the amenities that used to be reserved for the suburbs. The younger generation wants to live in Brooklyn, Hoboken, Chelsea, Tribeca, Soho and the Lower East Side, not in Westchester and Connecticut. Transportation from these areas to downtown is actually easier than to midtown. So when the decision makers are the next generations, it is likely that the importance of Grand Central to the decision makers will decrease relative to today. Advantage, downtown. It is fashionable to live and work Downtown….think VOGUE moving from Times Square to the Wall Street area.
“Convenience is the new luxury,” says Leonard Steinberg, publisher of LUXURYLETTER and managing director of Prudential Douglas Elliman, New York’s leading real estate brokerage. “Downtown dwellers love being able to walk to work. Walking is the one thing suburbs don’t allow. Downtown used to be all about manufacturing and finance offices: gentrification has changed that forever. A walk down a typical downtown street will include commercial lofts transformed into elegant homes, a doorman greeting guests…..tree lined streets, sidewalks with Mom’s or nannies with strollers, several Starbuck’s, only Downtown there is a strong infusion of unique boutiques and restaurants with an edgier flavor than Uptown,and certainly more interesting than the mix offered in Greenwich, Alpine or White Plains.”
Walk up Tenth Avenue from 14th Street and spot new condominiums and rental buildings by the dozen mixed in with hip, cool offices. Hudson Square surrounded by Tribeca and Soho features a substantial volume of media company office. Cross the street from Goldman Sachs and you land in Tribeca….stay on that side of the highway and you’re already in Battery Park City, and area that has grown tremendously in desirability. And all of this comes with greenery once only promised in suburban life.
Cut a commute from 1 hour a day to 30 minutes, and that adds up to more than a 5 day vacation per year…..
Friday, October 22nd, 2010
 SOMETHING THEY GET RIGHT IN PARIS.... A survey has just been released assessing the satisfaction of New Yorkers with their City…..Manhattan came out on top for some critical parts of the survey. Not only is it perceived to be the friendliest and safest borough, it is also considered to be the best place to live. On the down side, Manhattan was also overwhelmingly voted the least affordable…….
According to the DOT, 54% of all trips in NYC are less than two miles, and from 2006 to 2010 the number of bikes in the city doubled. As a result of increased bicyclists, new protected bike lanes are being added around the city.
“Every time we put down a protected bike lane, we see injuries for everyone go down 50%,” said Ms. Sadik-Khan.
“Bikers are completely out of control in the city,” says Leonard Steinberg publisher of LUXURYLETTER. “If the City is looking to make cyclists a growing mode of transportation AND raise revenues, I strongly suggest a clampdown on the lawlessness of bicyclists. Only yesterday I witnessed a cyclist run a red light and hit the white stick out of the hands of a blind person crossing the street! Why do the cops focus on car parking fines instead of biker violations that are significantly more harmful? Now its time to add secured bicycle parking everywhere and licensing too.”
Today the New York Times reports that a crackdown on cyclist lawlessness is underway, but….“It’s not always easy to do,” said Raymond W. Kelly, the police commissioner, who joined Ms. Sadik-Khan to announce the initiative. “Bicyclists move along at a very good clip. Particularly when a police officer is by himself or herself, it’s difficult to do.”
Wednesday, October 20th, 2010
 Rents in New York, Los Angeles and Washington D.C. average $2,090 and are among the highest in the nation, running as much as 218% higher than in other major metro areas, according to Movoto.com, which tracks sales and rental prices in the 40 largest U.S. cities.
“This fact is common knowledge throughout our dear land and amongst the Federal government,” says Leonard Steinberg, publisher of LUXURYLETTER and a managing director of Prudential Douglas Elliman. “The Federal government still taxes people living in these cities as if they were living in Tupelo, Ms: Yes, $ 250,000.00 income a year makes you quite wealthy in Tupelo, but not in New York!”
Now compare these rents to incomes; in most metro areas, income dropped between 2008 and 2009, according to the Commerce Department. In the New York metro area, for example, income fell 4.6% to $52,375, which translates into no more than $1,527 per month rent or about 35% of your income. You’d be hard-pressed to find that kind of deal on a studio in Manhattan or a two-bedroom in Brooklyn.
Jimmy McMillan, the nutty governor candidate for New York State may have a point. Except of course, like all politicians, what the politician says does not necessarily apply to the politician: Mr. McMillan pays $ 800/month in rent, almost a third of the average rental in New York……
In an unexpected twist, many cities are seeing rent prices rising because of the housing downturn. This includes areas that didn’t experience a construction boom, but where a large number of people have lost their homes to foreclosure and now have no option but to rent. In Austin, Texas, a new two-bedroom two-bath condo runs around $1,800, but cost $1,200 before the downturn, says Jack McCabe, CEO of McCabe Research & Consulting, which tracks the housing industry. In Austin, income fell 4.9% to $35,522, making that 35% of income threshold a meager $1,036 rent payment.
So why then does the Federal Government not make a provision in their tax code for the cost of living for certain cities where the middle class are really not rich or middle class anymore? Is Middle Class the new POOR in New York?
Thursday, October 14th, 2010
  Have you ever noticed the trash in front of some buildings (a system that appears more in keeping with 19th century technology) while other buildings do not have to succumb to placing large bags of garbage in front of their buildings?
“It is truly amazing that in the 21st Century, with a world full of I-pads, self-parking cars and self-service checkout, that New York still places piles of garbage onto the streets awaiting collection,” says Leonard Steinberg, publisher of LUXURYLETTER and managing director of Prudential Douglas Elliman. “We should look to other international cities that get it right with somewhat elegant containers that house the garbage before pick up, thus taking it off the streets. Surely with the exorbintant real estate taxes we pay in this City, our lovely government could come up with a more sightly and sanitory method for garbage collection?”
Matt Amico discovered the two examples above: the projects in Chelsea with immaculately clean side-walks, while a few doors away….
Any ideas/suggestions for a solution?
Tuesday, October 12th, 2010
 2010 Bonus pay on Wall Street is on pace to break a record high for a second consecutive year, according to a study conducted by The Wall Street Journal……so brace yourself for a real estate boost this coming Winter in New York.
About three dozen of the top publicly held securities and investment-services firms—which include banks, investment banks, hedge funds, money-management firms and securities exchanges—are set to pay $144 billion in compensation and benefits this year, a 4% increase from the $139 billion paid out in 2009, according to the survey. Compensation was expected to rise at 26 of the 35 firms. We suspect many of these bonuses will not be cash, but even if they are paid out over extended periods, when the wealthy feel wealthier they spend. This could be great for New York’s economy.
“Huge bonuses usually fuel a very active real estate market in New York,” says Leonard Steinberg, managing director of Prudential Douglas Elliman and publisher of LUXURYLETTER. “I would suggest to anyone wanting to buy an apartment in Manhattan at “2009 PRICES”, to start looking and deciding right now: super-low interest rates, reduced inventory of quality apartments, minimal building, combined with this level of money infusion can lead to only one thing…..rising prices. Already we have seen an uptick in activity: the wealthy are always a few steps ahead of the game. Brace yourself.”
While many bonus recipients already own fabulous apartments and have no need to buy a new one, the confidence boosted by bonuses usually adds momentum to the real estate market. It is often the first time bonus recipient that buys their first apartment, or the ‘rising star’ recipient whose bonus has increased dramatically that decides to upgrade. This fuels transactions.
The benefit to the City and State is two-fold: firstly, substantial taxes are collected on these bonuses……taxes on the bonuses themselves, and then sales taxes on the bonus money used for spending. Every time a $ 1million property sells, about $ 28,000.oo is paid in transfer taxes and mansion taxes alone, not to mention mortgage taxes and sales tax on products needed for moving: movers, new furniture, electronics, etc. This demand also fuels new jobs, that takes welfare and state beneficiaries off the dole.
Yes, we can all be green with envy at these often ridiculous sums of money sometimes paid to people who probably don’t deserve that much money, but we are all the beneficiaries. And to those outside of New York complaining about Wall Street: remember that for every dollar New Yorker’s pay to the Federal government, only about 85cents comes back to the state: so other states are the beneficiary. New York pays almost 12% of all federal taxes collected. Also be reminded that 41% of New Yorkers pay no Federal taxes at all.
Sunday, October 10th, 2010
 Yes, this door, a simple door located in THE CALEDONIA fronting onto The High Line Park, could very well be the most expensive door in the world….. Reliable sources have told us that negotiations between the building and the Parks department have broken down after the building was asked to pay an annual fee of $ 800,000.00 to the Parks department to operate this access point to the High Line Park.
Located in West Chelsea, steps from the Meat-Packing District, THE CALEDONIA is a condominium and rental building with a large Equinox Gym developed by RELATED, the company best known for its development of the Time Warner building at Columbus Circle and the Superior Ink building in Greenwich Village. The building that fronts the High Line Park has a door to access the old elevated railway turned hotspot park that runs from the Meatpacking District all the way north to the Hudson Yards in the 30′s.
“This is another example of a ridiculous City tax that simply won’t work,” says Matt Amico, a broker with Prudential Douglas Elliman and member of the LUXURYLOFT team. Matt, who lives in the Caledonia and is a resident broker expert in the building added: “The building always knew it would have to pay a fee to the Park’s Department for this access point: the building built and provided a bathroom and elevator that the City has an easement to access. But asking for $ 800,000.00 a year for the use of a door is excessive and out of touch with reality. It is this form of New York-style government abuse that causes people and companies to head out of state.”
Sunday, October 10th, 2010
 Does real estate with a racy image expose you to potential legal hazzards? Does it inspire bad behaviour? An Australian businessman acquitted of trying to rape a maid at The Standard is suing the Meatpacking District boutique hotel for $10 million, charging that its racy atmosphere contributed to the false charges filed against Matthew Moorhouse, 42, who allegedly attacked the maid when she went to clean his room on Nov. 9, 2009.
He claimed she lied after he caught her rifling through his bag. He was acquitted in July this year. The hotel’s floor-to-ceiling windows are well known for allowing nude guests to put on a show for passers-by in nearby High Line Park.
The suit was filed last week in Manhattan Supreme Court.
“It makes you think about real estate in general,” says Leonard Steinberg, managing director of Prudential Douglas Elliman and publisher of LUXURYLETTER. “What exactly will the new owners of the Guccione Mansion on the Upper East Side be inspired to do, and who will be sued if bad behavior ensues? Interestingly, Andre Balazs bought the Upstate New York mansion that used to belong to Bob Guccione several years ago….maybe this purchase inspired the antics at The Standard?”
Is everything, including real estate, leaning towards CONSERVATIVE this Fall?
Saturday, October 9th, 2010
 The Financial Times reports that weekenders are becoming more adventurous in their quest for a second home. Where once a cottage in the countryside was de rigueur, today’s budget airlines mean that a new breed of buyer can get to the house of their dreams quickly and cheaply. “In the UK,” says Georgina Richards of Knight Frank the international affiliate of Prudential Douglas Elliman, “we’ve even seen people commute backwards and forwards from abroad with just hand luggage, taking Friday or Monday off.” To make this possible, proximity to the airport is key.
So where do New Yorker weekend if they aren’t going to the Hampton’s, Upstate New York, Buck’s County or the Jersey Shore? We are hearing of many spending 3-4 days per week in Florida, mostly Miami, Fort Lauderdale and Palm Beach because of direct flights. Also, with out-of-state residency come tax advantages….
Why this trend? “New York taxes,” says Leonard Steinberg, managing director of Prudential Douglas Elliman and publisher of LUXURYLETTER. “The fact that many can work from anywhere with a phone and a computer: some seek a weekend property that ultimately morphs into their retirement home, budget….there are many reasons why New Yorkers are looking for weekend homes outside of the obvious in locations that are not drive-able. Likewise, we see New York as an ‘escape destination’ for many who live outside of Manhattan.”
JetBlue flies directly from New York to West Palm Beach, Fort Lauderdale, Nassau, Bermuda, St Marteen, Kingston, Fort Myers…..
Wednesday, October 6th, 2010
 As first reported on LUXURYBLURB a few days ago, Bank of America has exited the wholesale residential lending market, cutting off its business with mortgage brokers, the bank announced yesterday.
“After receiving $ 45 BILLION in TARP funding from the US Governemnt/taxpayers, BOFA was one of the first banks to re-pay this debt,” says Leonard Steinberg, managing director of Prudential Douglas Elliman and publisher of LUXURYLETTER.
The move came as a surprise to local mortgage providers who did business with the Charlotte, N.C.-based bank. It means that mortgage brokers and their clients will have one less option when they are looking for a loan to buy a condo or co-op in the city.
A BofA spokesperson said, given the opportunity in retail business, the bank preferred “to reallocate its resources to its retail channel and correspondent lending channel.” Less than 5% of the mortgages that the bank annually made came from its wholesale channel. In just the first six months of the year, BofA originated $145 billion in mortgages, according to trade publication Inside Mortgage Finance.
Loan applications via the wholesale lending channel were accepted through the end of the business day on Tuesday and must close by Dec. 1.
“This was not expected,” said Melissa Cohn, president of Manhattan Mortgage, adding that the bank had scheduled a conference for top mortgage brokers in the New York area and had abruptly cancelled it. “We were caught flat-footed.”
BofA’s exit follows a similar move by J.P. Morgan Chase & Co., which got out of the wholesale lending business last year.
“It’s another way for banks to cut back,” Mr. Weinstein said. Yes, but at whose expense?
Tuesday, September 28th, 2010
 Ken Fisher, head of Fisher investments, made what we think to be the most defining comment of our time to-day:
“WE ARE CHIMPANZEE’S WITH NO MEMORY”
How apt. While power-hungry, self-serving politicians, panicked individuals, self-serving commentators, ratings starved media, and generally paranoid humans exploit this moment in the current cycle, constantly over-analyzing the current conditions, future conditions and all other conditions no-one has any direct control over, at last the voice of reason: Yes, things are not great right now. We are just emerging from a HUGE financial crisis. But like all cycles, this part of the cycle will evolve into the next part, and soon the economy will be growing a lot more than anyone is saying it will right now. And then stupid politicians, greedy bankers and deluded consumers will get into the exact same trouble we got into this time around….
Ken Fisher was arguing against the notion that we are in a “NEW NORMAL”, a theory proposed by PIMCO’S head…… he predicts growth to be a lot more robust than the general consensus.
“We agree with Ken Fisher,” says Leonard Steinberg managing director of Prudential Douglas Elliman and publisher of LUXURYLETTER. “Lets re-visit this subject in 2020: only then will we know who was right.”
|
Steve 
Jeff T 
Bank of America controls more assets than any bank in the US with the exception of Citi Group.
Bofa claims to waive fees but also quote higher rates.
This is a huge blow to mortgage brokers.