Real Estate News, Information, Data and Insights for New York City Real Estate
By Manhattan Real Estate Tracker, December 18, 2024
FARE Act Passed by New York City Council
The FARE Act, also known as Introduction 360-A, became law on December 14, 2024. Mayor Adams did not sign the law. The new rule forbids landlords from charging potential tenants the fees of brokers they engage, and it will go into force 180 days after it is passed.
The full press release by the City Council can be found here.
Heating and Hot Water Requirements for Apartments in the Five Boroughs of New York City
By Manhattan Real Estate Tracker, November 13, 2024
Residential tenants are legally entitled to hot water and heat from building owners. A consistent minimum temperature of 120 degrees Fahrenheit must be maintained for hot water throughout the year. During the “Heat Season,” which runs from October 1 to May 31st, heat must be supplied under the following circumstances:
Day
If the outdoor temperature drops below 55 degrees between the hours of 6:00 am and 10:00 pm, the interior temperature must be at least 68 degrees Fahrenheit.
At night
The inside temperature must be at least 62 degrees Fahrenheit between 10:00 p.m. and 6:00 a.m.
From NYCHPD
City Council to Vote on FARES Act Tomorrow
By Manhattan Real Estate Tracker, November 12, 2024
Tomorrow the City Council will be voting on the FARES act, a bill that is sponsored by Brooklyn Council Member Chi Osse (D).
A day before the bill is anticipated to pass the chamber, Mayor Eric Adams voiced reservations on Tuesday regarding City Council legislation that would exclude the majority of renters from paying real estate broker fees. Adams stated during his weekly off-topic news conference on November 12 that although he supports the FARE (Fairness in Apartment Rentals) Act’s premise, he thinks it will have unexpected consequences. If the FARE Act is passed, the person who hires a real estate broker would have to pay the fee, which is typically passed on to the renter. Adams argues that the law would force landlords to pay for brokers themselves, despite supporters’ claims that it would remove a significant upfront financial burden for renters.
According to Adams, “Some of the ideals collide with the reality of the operationalizing implementation,” Adams said. “We got to get it right, make sure that we reach the goals that we’re looking for, and at the same time don’t hurt small property owners and try to get some relief to some of those who are trying to live in the city … I think the bill has the right intention, but sometimes good intentions do not get the results you’re looking for.”
In response to the mayor’s remarks, Brooklyn Council Member Chi Ossé (D), the bill’s primary sponsor, wrote on social media on Tuesday that the measure would result in lower rent payments rather than higher rent. Minutes after claiming that Democrats lost the presidential election to Donald Trump due to the party’s failure to address “pocketbook issues,” Ossé also criticized the mayor for not fully endorsing the proposal.
If the measure is passed, renters will no longer be able to choose from apartments that are listed with or without broker fees.
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.
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.”
By Manhattan Real Estate Tracker, July 2, 2024
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)
Photos of 339 West 38th Street from HPD
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.
ABC 7 New York NYC Council considers shifting broker fees to landlords – ABC7 New York (abc7ny.com)
Article from the Real Estate Board of New York (REBNY) regarding Intro 360:
1,500 Agents Rally at City Hall to Oppose Broker Fee Bill | Rebny
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.”
From NY1.com:
By Eric Feldman Manhattan
PUBLISHED 10:45 AM ET May 15, 2024
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.
“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.
This article is from NY1.com.
From: Yimby
Image from Google.com.
BY: VANESSA LONDONO 6:30 AM ON SEPTEMBER 24, 2022
Permits have been filed for an 11-story mixed-use building at 489 Ninth Avenue in Manhattan’s Midtown West. Located between West 37th and West 38th Streets, the lot is four blocks from 34th Street-Penn Station subway station, serviced by the A, C, and E trains. Susan Wu of ZD Jasper Realty is listed as the owner behind the applications.
The proposed 120-foot-tall development will yield 63,264 square feet, with 57,250 square feet designated for residential space and 6,013 square feet for commercial space. The building will have 59 residences, most likely condos based on the average unit scope of 970 square feet. The concrete-based structure will also have a cellar and a 30-foot-long rear yard.
Archimaera Architecture is listed as the architect of record.
Demolition permits will likely not be needed as the lot is vacant. An estimated completion date has not been announced.