Aug 20, 2014

New Construction Update: UWS | 80th and Broadway

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2234 Broadway
Friedland Properties is planning to put up a 20-story mixed-use building at 2234 Broadway at West 80th Street on the Upper West Side where a 2 story commercial building now stands according to TRD.

The 2 story commercial building was formerly the location of Lionel Leisure City and Filenes Basement.

The landlord and developer has requested a demolition permit for 2228-2236 Broadway. TRD reported the tower planned for the site will include retail space and luxury apartments. The residential units will be either rentals or condominiums and most will have balconies.
requested a demolition permit for 2228-2236 Broadway; the tower planned for the site will include commercial space and luxury apartments. The retail portion will cover two floors above ground and two floors below. The residential units will be either rentals or condominiums and most will have balconies.  - See more at: http://therealdeal.com/blog/2013/11/06/friedland-slates-mixed-use-tower-for-80th-and-broadway/#sthash.HMl8KLcb.B2fnjYrx.dpuf

2228-2236 Broadway

Freidland properties also developed the nearby Larstrand at 227 West 77th Street, a 20 story, 181 luxury rental apartment building at Broadway at 77th.

Larstrand 227 W 77th St.


The Larstrand features a mix of studio, one, two and three bedroom
rental apartments.
Friedland, both a landlord and a developer, has requested a demolition permit for 2228-2236 Broadway; the tower planned for the site will include commercial space and luxury apartments. The retail portion will cover two floors above ground and two floors below. The residential units will be either rentals or condominiums and most will have balconies.  - See more at: http://therealdeal.com/blog/2013/11/06/friedland-slates-mixed-use-tower-for-80th-and-broadway/#sthash.HMl8KLcb.ZcsJVJ2B.dpuf
Friedland, both a landlord and a developer, has requested a demolition permit for 2228-2236 Broadway; the tower planned for the site will include commercial space and luxury apartments. The retail portion will cover two floors above ground and two floors below. The residential units will be either rentals or condominiums and most will have balconies.  - See more at: http://therealdeal.com/blog/2013/11/06/friedland-slates-mixed-use-tower-for-80th-and-broadway/#sthash.HMl8KLcb.ZcsJVJ2B.dpuf
The residential units will be either rentals or condominiums and most will have balconies.  - See more at: http://therealdeal.com/blog/2013/11/06/friedland-slates-mixed-use-tower-for-80th-and-broadway/#sthash.HMl8KLcb.ZcsJVJ2B.dpuf
Friedland Properties is planning to put up a 20-story mixed-use building at 2234 Broadway at West 80th Street, where a two-story commercial property now stands.
Friedland, both a landlord and a developer, has requested a demolition permit for 2228-2236 Broadway; the tower planned for the site will include commercial space and luxury apartments. The retail portion will cover two floors above ground and two floors below. The residential units will be either rentals or condominiums and most will have balconies.
- See more at: http://therealdeal.com/blog/2013/11/06/friedland-slates-mixed-use-tower-for-80th-and-broadway/#sthash.HMl8KLcb.dpuf
Friedland Properties is planning to put up a 20-story mixed-use building at 2234 Broadway at West 80th Street, where a two-story commercial property now stands.
Friedland, both a landlord and a developer, has requested a demolition permit for 2228-2236 Broadway; the tower planned for the site will include commercial space and luxury apartments. The retail portion will cover two floors above ground and two floors below. The residential units will be either rentals or condominiums and most will have balconies.
- See more at: http://therealdeal.com/blog/2013/11/06/friedland-slates-mixed-use-tower-for-80th-and-broadway/#sthash.HMl8KLcb.dpuf
Friedland Properties is planning to put up a 20-story mixed-use building at 2234 Broadway at West 80th Street, where a two-story commercial property now stands.
Friedland, both a landlord and a developer, has requested a demolition permit for 2228-2236 Broadway; the tower planned for the site will include commercial space and luxury apartments. The retail portion will cover two floors above ground and two floors below. The residential units will be either rentals or condominiums and most will have balconies.
- See more at: http://therealdeal.com/blog/2013/11/06/friedland-slates-mixed-use-tower-for-80th-and-broadway/#sthash.HMl8KLcb.dpuf
Friedland Properties is planning to put up a 20-story mixed-use building at 2234 Broadway at West 80th Street, where a two-story commercial property now stands.
Friedland, both a landlord and a developer, has requested a demolition permit for 2228-2236 Broadway; the tower planned for the site will include commercial space and luxury apartments. The retail portion will cover two floors above ground and two floors below. The residential units will be either rentals or condominiums and most will have balconies.
- See more at: http://therealdeal.com/blog/2013/11/06/friedland-slates-mixed-use-tower-for-80th-and-broadway/#sthash.HMl8KLcb.dpuf
Friedland Properties is planning to put up a 20-story mixed-use building at 2234 Broadway at West 80th Street, where a two-story commercial property now stands.
Friedland, both a landlord and a developer, has requested a demolition permit for 2228-2236 Broadway; the tower planned for the site will include commercial space and luxury apartments. The retail portion will cover two floors above ground and two floors below. The residential units will be either rentals or condominiums and most will have balconies.
- See more at: http://therealdeal.com/blog/2013/11/06/friedland-slates-mixed-use-tower-for-80th-and-broadway/#sthash.HMl8KLcb.dpuf
Friedland Properties is planning to put up a 20-story mixed-use building at 2234 Broadway at West 80th Street, where a two-story commercial property now stands.
Friedland, both a landlord and a developer, has requested a demolition permit for 2228-2236 Broadway; the tower planned for the site will include commercial space and luxury apartments. The retail portion will cover two floors above ground and two floors below. The residential units will be either rentals or condominiums and most will have balconies.
- See more at: http://therealdeal.com/blog/2013/11/06/friedland-slates-mixed-use-tower-for-80th-and-broadway/#sthash.HMl8KLcb.dpuf

Aug 15, 2014

NYC Residential Building Permit Comparison

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REBNY Research department (Real Estate Board of New York) compared the peak year for housing production (new units of housing permitted) before the recession (generally 2005-2008) in New York, San Francisco, Boston, Seattle, and Washington D.C. with their housing production in 2013. 
 
New York City has by far the largest population and the most housing units of any of these major U.S. cities.

Of these five cities, New York is the only city whose production has not reached its pre-recession peak.  However, building permit levels are on the rise in NYC for 2014, up almost 2,500 units from the same time last year.  

If NYC experiences the same level of increase in building permits in the second half of 2014 as it did in 2013, its annual total will compare positively with the average annual new housing unit permits we achieved in the last decade.  The last decade was the highest annual average in thirty years.  







Aug 6, 2014

Developers Build Affordable Housing

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Aug 2, 2014

Rental Season | Renting an Apartment in Manhattan

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Renting an Apartment in Manhattan, NYC
originally posted: Monday, September 12, 2011

Everyone wants their first New York City rental experience to be a positive one. As a current or future Manhattanite, you should familiarize yourself with the rules of renting in order to make your experience as hassle and worry free as possible. 

Carefully read any documentation presented to you by your future landlord before entering into any contract. Although many leases contain predominantly boilerplate language, in many instances clauses may be added to the lease contract that supersede or alter the lease agreement in some way. Such additions are called riders.

Also, the type of lease may vary. A Standard Form of Lease, for instance, may differ greatly from a Rent Stabilized Lease Agreement or a Cooperative Sublease Agreement. Take the time to read and digest the language of any documentation presented to you, and always ask questions should it contain something you don't fully understand.

Make a check list of information to bring with you in order to finalize your lease agreement. You will almost certainly need all of the following:
1.     A letter of employment and salary verification
2.     Bank account numbers (checking and savings), as well as any credit card numbers
3.     Current bank statements
4.     Contact information (names, addresses, phone numbers) of previous landlords
5.     Contact information of your personal accountant or attorney, if applicable
6.     Contact information of any personal or professional references
7.     Tax returns from the last two years
8.     Recent (current) pay stubs, typically from the last two pay periods
9.     Two forms of personal identification (driver’s license, passport, etc)
10.    40-50x the monthly rent in annual income is required.

170 Amsterdam Avenue
If you are relocating from outside of New York, prepare your funds ahead of time. Landlords will not accept personal out-of-state checks. Bring traveler’s checks or certified bank checks in amounts sufficient to cover two months rent, any brokerage fees, a credit check fee, and any additional fees such as a move-in/move-out fee or building application fee.

Once your personal and financial documentation is in order, you will then be prepared to view and select prospective apartments. Remember, your agent can provide you with a wealth of information to assist you in making an informed decision. Ask plenty of questions about neighborhoods, building types, public transportation access, or anything else that might be of interest to you.

When you have selected a suitable apartment, you must then fill out a rental application, or other applicable documents. Once you or your agent has negotiated agreeable lease terms, a credit report and reference check will be done.

Upon final confirmation, you will be asked to sign a lease and settle any outstanding applicable fees.

In Manhattan, residential real estate is made up of rental buildings, condos, condops, coops and townhouses. All can make fine homes and all are available for rent.

Please contact me to rent your Manhattan Apartment.

Jul 25, 2014

New Construction Update | Upper West Side

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219-223 West 77th Street
 New Construction Update | Upper West Side

Plans to demolish a five-story parking garage on the Upper West Side were filed with the Department of Buildings. The Naftali Group, a developer is expected to build residential condominiums on the site according to The Real Deal.

The developer is in contract for the site at 219-223 West 77th Street for $61 million, or about $792 per square foot. The garage also includes Alamo and National car rental services.

The 7,700-square-foot lot, between Amsterdam Avenue and Broadway, features 75,000 square feet of build-able space. The deal is expected to close by September. No brokers represented Naftali.

The Naftali Group is working on several condominium projects in Manhattan, including the nearby 25-unit property at 206 West 77th Street.

Jul 20, 2014

Q & A | What are Lot Line Windows?

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732 West End Avenue
Adjacent 736 West End Avenue lot line windows sealed off
Q: What are lot line windows? 
732 West End Avenue
Adjacent 736 West End Avenue lot line windows
A:  "A lot line window” is a window that is built on a side of a building that shares a boundary line with a neighboring property.  If the adjacent building is built up to or higher than this window, then the lot line window will likely need to be sealed off.  For this reason, lot line windows are not counted towards light and ventilation requirements. 

In condominiums and cooperatives, the offering plan will generally indicate whether there are any lot line windows in the building, and if so, which apartments may be adversely affected by the lot line windows.

Review Offering Plan, "Special Risks" section to determine if Lot Line windows are present.

If a building has lot line windows, it can be very difficult to determine the probability of whether the lot line windows will actually be sealed off.  Signs indicating that an adjacent property may be developed (i.e. vacant, adjoining lots or a rental building) could increase the probability that a lot line window may be sealed off.  An architect or attorney who specializes in zoning and land use should be consulted.

Jul 17, 2014

HDC Affordable Condos and Coops.

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Q: What is an HDC condo, coop, condop or rental building.

A. New York City Housing Development Corporation (HDC) provides financing for affordable housing.  

Strivers Gardens Condominium
HDC provides financing for large-scale developments, issues bonds and provides subsidy and low-cost loans to develop and preserve a variety of housing, ranging from large to small rental and condo, condop and coop home ownership. 

HDC-financed apartments are sold to low and middle-income households. They may have different income tiers within the building. Some apartments may have higher maximum income restriction than others. Often some of the original owners purchased their units through a city lottery.

HDC finances the construction of residential buildings. A portion of the unit is subsidized. In some HDC financed buildings if an owner sells a unit prior to the HDC mortgage expiration date a percentage of the unit's profits are paid to HDC. 

HDC approves the buyer's eligibility based on their current gross income. Income is calculated using annual gross (pre-tax) income, and also includes interest income earned from assets. 

Currently I have a  top floor 1 bedroom coop at  255 West 148th St. Apt 6C, The Washington a post-modern (built in 2004) six story 15 unit elevator coop through HDC. Maximum income allowed 255% of area median income (AMI) $214,750 =$214,750. There is no flip tax.

255 West 148th Street Apt 6C
I also recently listed a 2 bedroom 2 bath at Strivers Gardens Condominium at  300 West 135th Street A full service condo building with a garden atrium, state of the art gym, Zen Garden, resident lounge and On-Site Garage with valet parking. 75% of units at Strivers Gardens have an income max at 175% of Area median Income $150,325 (AMI) and 25% at 250% AMI - $214,750.

300 West 135th Street Strivers Gardens Condominium
HDC uses the proceeds from the sale of tax-exempt bonds to make first position mortgages and also uses its corporate reserves to make 1% second mortgage loans. HDC projects are aligned with the city's plaNYC green building policy. 

Jul 8, 2014

Income & Assets

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I'm often asked what a coop or an HDFC coop will consider or count as income and assets.
While assets are important most coops are only interested in liquid assets. 

Below is a list of types of income and assets. This is a typical example of income and assets.
Some forms of income such as child support may or may not count as income in certain coops.


 

TYPES OF INCOME AND ASSETS
TYPES OF INCOME

Salary
Self-employment earnings
Unemployment, Disability,
Worker’s Compensation
Social Security
Pension
SSI Interest
Welfare Assistance
Armed Forces Reserves
Alimony
Child Support
Dividends
Interest Income
Income from Rental Property
Scholarships and/or grants

TYPES OF ASSETS
Savings Account
Checking Account
Cash Value of Revocable Trusts
Equity in real property or
other capital investments
Stocks, Bonds, Treasury Bills, Certificates of
Deposit, Money Market Funds
Retirement Plans
Surrender value of life insurance policies
Inheritances, lottery winnings, capital gains,
Insurance settlements


 

Jul 1, 2014

Manhattan Market Report | Second Quarter 2014

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 Manhattan Market Report | Second Quarter 2014
·     
      Overall, the market-wide cost for Manhattan’s homes increased 20% in average sale price, 6% in median sale price, and 15% in average price per square foot versus Second Quarter 2013. The average price per square foot reached $1,286 this quarter, a new peak. 



Highlights of Manhattan Second Quarter 2014 Market Report:

·         Inventory Starting to Turn Around.  Although the number of properties listed for sale remains low (52% below the peak in Q1 2009), inventory rose for the second quarter in a row.

·         Limited Supply Buoys Prices.  inventory was up, but its overall continued depressed level maintained competitive conditions among those in the market to purchase.

·         Slower Activity in Bread-and-Butter Sales.  In Manhattan, one- and two-bedroom units are the primary drivers of residential sales activity, but they are occurring with decreasing frequency.  (see Sales by Price Category, p. 6.)  

·         Luxury Sales Grow Disproportionate.  Activity at the high end continued to be robust, and grew as an overall percentage of the market.  Properties above $3M now account for 12% of sales (up 3% from a year ago), and 26% of available inventory (up 4%).

·         Price Per Square Foot Sets New Record.  The focus on high-end sales drove the average price per square foot for Manhattan real estate up to $1,286.


The Second Quarter described signs of buyer fatigue and caution, particularly amongst prospective buyers of small units.  With prices at their peak, there is less incentive to become a first-time buyer, or to trade up from a starter home. 

Sellers act now and price it right. 

Each market segment and neighborhood has it's own nuances. If you're thinking about buying or selling a home, or would like to discuss the market or this report please contact me.
 

For the complete Corcoran Manhattan Second Quarter Report including neighborhood reports.














Jun 29, 2014

HDFC Coops Affordable Apartments No "But No Catch"

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Contrary to a recent article in the NY Times, most H.D.F.C. coops still provide affordable home ownership for low to moderate income households. Currently there is pent-up demand from qualified buyers for affordable apartments. Large affordable apartments are in extreme demand and sell quickly when priced right.

In my opinion the article in the Times is an urban myth perpetuated by it's reporter based on anecdotal evidence that may cause some consumers to make wrong real estate decisions.

I've been writing and publishing this blog about Manhattan real estate since 2006 as a transparent consumer service to help Manhattan buyers and sellers make informed real estate decisions. Having represented numerous sellers and buyers of H.D.F.C. coops in successful transactions, I would be remiss if I did not write this post.

I was surprised that HPD (New York City Housing Preservation Department), the city agency that administers H.D.F.C. coops was not included, quoted or represented in the article particularly since the new Mayor Bill de Blasio has made the goal of affordable housing a top priority of his administration.  

In my opinion, there is no "catch" or "bargains with a but" as the headline alludes and the article insinuates. Most of the HDFC listings the article included are anomalies.

The only 'But" and "catch" is when an H.D.F.C. unit is not priced right, not below market and not affordable for the intended low to moderate income buyer that can qualify for and needs a coop loan.

They are not "bargains" for low and moderate income home buyers that meet the maximum income allowed that will need to make monthly mortgage and maintenance payments but they are affordable. 

They are only bargains for fortunate cash buyers mentioned in the article that can also afford to purchase market priced apartments.

Like most coops, many H.D.F.C. coop boards use debt to income ratio to determine affordability. Typically, no more than approximately 30% of gross income should go toward housing expenses to be considered affordable. Most lenders will allow a significantly higher percentage than most coops.

NYC landlords use an income formula when renting an apartment: Income must be 40x rent. For example to qualify for a $3500/month rental apartment the tenant must have an income of $140,000.

30% of a household of 4 with a $140,000 income (165% of area median income) can qualify for a coop loan, with principle and interest payments plus monthly maintenance totaling $3500/month.

Do the math. If it doesn't work something is not Kosher.

With a 20% down conventional loan, a household of 4 earning the maximum $141,000 at a 4.5% interest rate $3500/month can afford a maximum price of approx $600,000 +/- with maintenance around $1000 +/- Households of 5 -8 people with a higher maximum income allowed can afford more. A 1 person household can afford less.

There is a correlation between household size, household income, apartment size, apartment price and affordability.

My advice to buyers looking to purchase an H.D.F.C coop: If you can find the same size non HDFC apartment in the same neighborhood in a similar building comparably priced then the HDFC is certainly NO BARGAIN. The HDFC coop should sell below market. Hence 'affordable'.

If a lender won't finance in the building or the coop won't disclose their financials that is a red flag. Why? The three largest banks in America (Citibank, JP Morgan Chase and Bank of America) are all eager to loan in H.D.F.C coops as long as the coop cooperates with lender and can meet FHA (Federal Housing Authority) guidelines. My preferred H.D.F.C. coop lender is Michael Most at Citibank

Comps (Comparative Market Analysis): Always compare apples to apples. Never compare apples to oranges when purchasing an HDFC coop or for that matter any apartment in Manhattan.

Apt 2E 3BR 2 Bath The Monerey Morningside Heights
There is no restricting an HDFC seller from trying to sell for what ever they want, other than possibly a resale cap in the coop's bylaws. Responsible HDFC coops want to remain affordable. During the board application process and interview the board can use their discretion to ascertain the purchaser's total financial picture and decide if the purchaser "fits in" just like any other coop.

My advice to HDFC sellers: Congratulations prices have risen in HDFC coops over the years. Priced right and marketed properly, listed with an experienced HDFC coop broker it will sell quickly to a qualified buyer providing the HDFC is well managed with good financials.

Like most real estate, the longer you've lived there, the more equity you will have accumulated. Since most HDFC coops are a form of limited equity home ownership a portion of your profits are shared with the coop in the flip-tax. Pricing an HDFC coop is as much of an art as a science, a skill that only comes with experience, knowledge and insight.

The flip tax in HDFC coops, unlike regular coops that converted in the 1980's wasn't to deter anyone looking to make a quick profit as the article states. You couldn't make a quick profit 30 years ago with an HDFC coop. You couldn't give them away. NYC HPD through an affordable housing program helped to rehabilitate the buildings, trained the tenants on home ownership and set the Coop up financially to be self-sustaining.

In my opinion, the reporter totally missed the point. NYC subsidized these apartments by selling them significantly below market prices, keeping the maintenance low with reduced property taxes. Instead she referred to them as "a small and quirky breed of co-op."

I've represented sellers and buyers in The Monterey, a Morningside Heights architecturally significant and sought-after HDFC coop, 45 Central Park North, Harlem's most distinguished and sought after HDFC coop on Central Park as well as HDFC's in Hamilton Heights, Sugar Hill, Manhattan Valley, Hell's Kitchen and the East Village

I've sold HDFC coops at record breaking prices while still maintaining the intent and spirit of affordable home ownership in NYC.
Central Park view from apt 3F 6.5 rooms at 45 Central Park North
I currently have qualified buyers with pent-up demand waiting for my next exclusive HDFC coop listing.

Full Disclosure: The Times reporter interviewed me for the article. It's the second time she interviewed me for an article and didn't quote me. The last time was about buyer's that ride their bikes to work. I can only assume that since my experiences with affordable HDFC coop's have been positive and rewarding for my sellers, buyers, coop boards and lenders, my quotes were not needed since the article's angle was about a a "But and a Catch"


More reading about HDFC Coops:

HDFC Coops | Affordable Home Ownership

HDFC Coops | Facts vs Myths
HDFC Coop Income Standards 
HDC Affordable Condos & Coops
The Flip Tax
Restrictive Covenants 

List your HDFC coop

Disclaimer: The opinions expressed here are those of the author and do not necessarily reflect the opinions or policy of The Corcoran Group.
Disclaimer: I am not a lawyer or accountant. This blog and my answers to questions are my opinions for information purposes only based on my experience as a NY licensed real estate associate broker and not intended as legal or financial advice and should not be used as a substitute for advice of legal counsel.


 
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This blog site is designed and published as a consumer service by local real estate broker to help Manhattan, New York City buyers, sellers and renters make informed real estate decisions. This site and its feeds are owned and operated by Mitchell J Hall, a NY State licensed real estate associate broker associated with The Corcoran Group and member of the Real Estate Board of New York.

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