Ares Management to Acquire a Large Hell’s Kitchen Residential Building
By Manhattan Real Estate Tracker, November 12, 2024
The majority (75%) of 525 West 52nd Street will be purchased by Ares Management. The deal was structured to incorporate an assumed $200 million loan at a below-market rate. This building was designed by Handel Architects. According to the building’s website, the apartments include state-of-the-art appliances, including in-home Bosch washers and dryers, high ceilings, and rooms are framed by oversized windows showcasing city and river views. Current availabilities range from approximately $3600 for a studio to $8000 for a two bedroom. It’s great living in Hell’s Kitchen.
Saks Fifth Avenue to Reduce Holiday Lighting This Year
By Manhattan Real Estate Tracker, November 13, 2024
Saks Fifth Avenue announced today that the light display that radiates over the entire front of the building will not be up this year. The company did however say that the windows will be decorated for the holidays. A Saks spokesperson stated, “We look forward to welcoming customers to our holiday windows throughout the season and invite them to discover inspiring gifts and unique holiday offerings within the Saks Fifth Avenue New York flagship.”
By Manhattan Real Estate Tracker, September 13, 2024
The latest residential leasing report by Corcoran indicates that while average rents continued to increase by 4%, the number of reported signed leases has declined in eight of the last nine months. The number of signed leases decreased annually by 15% to fewer than 4,800 lease – the lowest level since the early stages of the pandemic in June 2020. Corcoran concludes that “a larger portion of Manhattan’s renters have decided to stay put.”
Gary Malin, Chief Operating Officer, The Corcoran Group stated:
“Median rents in both Manhattan and Brooklyn continued their rise during June and are now at new all-time highs in both boroughs. However, it is important to note that the number of lease signings slowed on both sides of the East River, falling a substantial 14% and 23% in Manhattan and Brooklyn, respectively, when compared to May. Historically, activity increases as we enter summer, so the record-high pricing might be keeping some apartment seekers on the sidelines or choosing to explore options in other boroughs or locales. It will be interesting to see if this trend reverses as we move through the season. At a certain point, there is a limit to how much a renter is willing — or able — to pay. Barring a turn-around, landlords may need to increase incentives or make the necessary adjustments to spur greater numbers of tenants to act.”
Trader Joes is coming to Harlem at 123 West 125th Street. This will be their first store in Harlem. The store is 18,000 sq. ft. in size and the company said that over 100 employees will be hired. The 125th Street corridor has transformed over the past 10 years into an amazing blend of local and national retail stores and restaurants. Neighbors to this new store include Whole Foods, Marshall’s, Old Navy, Shake Shack, McDonald’s, Bath and Body Works, Chipotle, Wingstop and Checkers.
Trader Joe’s was founded in California in 1967 and has grown to 571 stores nationwide. There are now 10 stores in Manhattan.
The lottery for a newly constructed 19-story building at 339 West 38th Street is open until August 19, 2024. The Department of Housing Preservation and Development states that the apartments in this building have washers and dryers. There is also a lounge, outdoor terrace, fitness center, ping pong center, bike storage, tenant storage, and conference center in the building. The building will also have a 24-hour lobby attendant and two package rooms. Tenants will pay for electricity including electric cooking and heating, the rent includes hot water. The eligible household income range is $31,612 to $218,010. More information can be found at the HPD website at Lottery Details -Housing Connect (nyc.gov)
Manhattan Real Estate Tracker has learned that the financially troubled American Strategic Investment Company (ASIC) has entered into a contract to sell the building at 9 Times Square for $63.5 million. The company will be taking a huge loss on the sale price since according to company records, the property was purchased for $162,291,000 prior to 2015 – a loss of more than $98 million. Formerly New York City Reit trading under the NYC symbol, the company changed the name to American Strategic Investment Company in an effort to purchase property outside of the city. This REIT has been a disaster for investors who have lost a huge amount of their initial investment. The stock went public 2021 and has dropped approximately 90% in value. After paying off the loan, the sale is expected to net only $13.5 million which the company claims will be used to buy other properties outside of Manhattan. The sale price of 9 Times Square reflects how the Midtown office market has plunged since the pandemic resulted in many employees working remotely.
Manhattan Real Estate Tracker spoke with a couple of law firms this week who have shuttered their Manhattan offices giving back large chunks of space to the landlord. Some companies have most of their employees working remotely with only a receptionist and a few conference rooms to meet with clients. Other law firms outside the city in New Jersey and Long Island have also closed offices and are working remotely. The same business model change has also occurred in the insurance industry with many adjusters now working from home.
Michael Anderson, the Chief Executive Officer of ASIC stated, “We expect this sale to generate approximately $13.5 million in net proceeds at closing, which we intend to use to pursue the expanded asset acquisition and diversification strategy into higher yielding assets that was announced last year. Additionally, if completed, we expect that this strategic disposition will strengthen our balance sheet.”
More information on the sale of 9 Times Square can be found on the ASIC website.
Real Estate Agents Rally to Stop Intro 360 at New York City Hall
By Manhattan Real Estate Tracker, June 12, 2024
Real estate agents and brokers came out this morning to City Hall in Downtown Manhattan today to rally against Intro 360 which would require only those who hire a real estate agent to the broker fee. While all commissions are negotiable, typically the broker fee for leasing an apartment is 15 percent of the first year’s rent. New York City is unlike any city in the country, Manhattan Real Estate Tracker strongly opposes Intro 360.
According to the co-sponsor of the measure, City Council member Chi Ossé, renters deposit $10,000 on average for a new home. One major expense he wants to eliminate is the mandatory broker fee. However, landlords will simply raise the rent and in the long run, the renter would have paid more in rent than if they paid a broker fee and received a lower starting rent.
Tenants claim that they had to pay the broker fee even though “they didn’t hire a broker.” When an agent markets an apartment for rent and a potential tenant inquires about it, it was the agent’s experience and knowledge of real estate and marketing that not only secured the exclusive listing but also generated the call. This work has value and in certain cases, the agent should be compensated by the renter.
Links to local online articles regarding today’s rally and Intro 360 from local New York television stations can be found below.
Manhattan Real Estate Tracker will be attending the rally at City Hall on Wednesday, June 12, 2024 to oppose Int. 360. This bill would stop real estate brokers and agents of a landlord from collecting a broker’s fee from a renter. All agents and brokers can attend to support the opposition of this bill.
The City Council states, “This bill would require an individual who is a representative or an agent of a property owner or a prospective tenant in a residential rental real estate transaction to collect fees charged in the transaction from the party employing the individual. The provisions of this bill would not impact the collection of fees by a landlord or property owner.”
One of the first buildings protected by New York City as a landmark could be in danger of being destroyed. The team at the Merchant’s House said they believe construction that has been approved next door could cause irreversible damage.
Take away the modern plumbing and electrical upgrades, Merchant’s House is a 19th century single-family home preserved inside and out, according to Pi Gardiner, the museum’s executive director.
What You Need To Know
Merchant’s House is a 19th century home that has been preserved inside and outside
It is a landmark at the local, state and federal level
Engineers and attorneys representing the home believe construction next door could damage, even destroy, the landmark
The Landmarks Preservation Commission said they believe a stricter standard of precautions were approved for the project to move forward
“This is one of a kind,” she said. “There’s nothing like it.”
Nearly 60 years ago, the Landmarks Preservation Commission was empowered to protect historic sites around the five boroughs. Gardiner said Merchant’s House was the first approved by the commission in Manhattan.
Yet now, she and others are afraid it could be in danger.
“This is the most dangerous project I’ve seen approved in the 30 years I’ve been doing this work,” said Michael Hiller, a lawyer who is representing Merchant’s House.
He has been fighting against the proposed development of a garage next door.
In 2018, NY1 covered the effort by a developer to build a hotel. It was a project the LPC approved in 2014. Hiller had concern about the construction next door damaging Merchant’s House.
Ultimately, the City Council rejected it.
However, this past December, the LPC approved a new project to turn that garage into a commercial office building.
An LPC spokeswoman said the passage came with contingencies to protect Merchant’s House. There were 10 listed, including more testing for soil conditions, requiring excavation of the building to be further from Merchant’s House and enhanced vibration monitoring from construction.
It also requires real-time notification to Merchant’s House of construction updates and data.
The spokeswoman called it “stricter than what is normally required under current building code.”
Hiller said, though, he’s not convinced and doesn’t even believe the LPC reviewed the documents Merchant’s House engineers submitted. He pointed out the following exchange in the December meeting.
“Has the Merchant’s House reviewed this plan? And have they any comments on it,” said one of the commissioners to the developer’s engineer.
“Yes. Yes they have,” responded the engineer.
“Do they have a consulting engineer or somebody who is advising them on this,” asked that same commissioner.
The commissioner was seemingly unaware Merchant’s House in fact has a consulting engineer, who submitted a report to the commission chair four days before the meeting. The report claims the developers’ engineers may have incorrectly calculated the weight of the building and that foundation shifting could be three times the allowable limit.
While the developer’s engineers pledged to stop construction at a threshold below the foundational shifting limit, Hiller did not believe the project would truly stop. He said, furthermore, the problem is that no one seemed aware of the potential issue.
“The fact is none of them spoke up because none of them had read the materials,” said Hiller.
Hiller said he was further convinced when the commission asked for a new study on the potential impact construction could have on Merchant’s House’s plaster, which is from the 19th century.
Hiller said engineers for Merchant’s House did a plaster study 10 years ago, raising questions and concerns about the impact from next door construction.
While the commissioners said they received more than 600 emails in opposition to the project, it was approved in December.
“Keeping our city’s landmark buildings safe and secure is a top priority, and when considering proposals for work adjacent to designated properties, the agency coordinates closely with DOB and requires building owners to use enhanced safeguards to protect these landmark buildings when appropriate,” said an LPC spokeswoman in an emailed statement to NY1. “Regarding Merchant’s House Museum, the Commission required that proposed work on the adjacent property at 27 E. 4th Street include stringent measures to ensure the integrity of Merchant’s House. The plan approved by the Commission includes stabilization and protective methods that are stricter than what is normally required under current building code, and includes enhanced monitoring and real-time notifications.”
In a city always changing and growing, Merchant’s House has stood the test of time. Its leadership said the question now is whether it will continue to.
Advance Estimates of U.S. Retail and Food Services
Advance estimates of U.S. retail and food services sales for April 2024, adjusted for seasonal variation and holiday and trading-day differences, but not for price changes, were $705.2 billion, virtually unchanged (±0.4 percent) from the previous month, but up 3.0 percent (±0.5 percent) above April 2023. Total sales for the February 2024 through April 2024 period were up 3.0 percent (±0.5 percent) from the same period a year ago. The February 2024 to March 2024 percent change was revised from up 0.7 percent (±0.5 percent) to up 0.6 percent (±0.1 percent).
Retail trade sales were virtually unchanged (±0.4 percent) from March 2024, but up 2.7 percent (±0.5 percent) above last year. Non-store retailers were up 7.5 percent (±1.6 percent) from last year, while food services and drinking places were up 5.5 percent (±2.1 percent) from April 2023.
