Columbus International

Tuscany Leads Italy in Value of Auctioned Vineyards in 2023

By Columbus International,13 May 2024

While not ranking first in the number of vineyard lots sold at auction nationwide, Tuscany stands at the top for the overall value, exceeding 24 million euros. Umbria and Sicily follow in terms of value. A decline has been observed over the past five years, when 142 Tuscan vineyards were auctioned: “Good news for the market.” Third at the national level for the number of auctioned vineyards, although fortunately the numbers are in a marked decline, but first in value, confirming its high-quality production. In 2023, 27 lots were sold in Tuscany, taking the bronze medal of a podium topped by Sicily with 48 and Puglia with 34. However, when considering absolute value, our region has no rivals: 24,589,990 euros, leaving Umbria far behind with nine million and 267 thousand euros. These are the figures emerging from the analysis conducted by the AstaSy Analytics Study Center of Npls Re_Solutions. Overall, last year in Italy, 244 vineyard lots went under the hammer, for a total value of 66,648,711 euros. The calculation is straightforward: those in Tuscany represent 11% of the total but account for over 36% of the value. The ranking with Tuscany and Umbria in the top two positions is confirmed by judicial procedures: the properties currently for sale at the highest value are related to the Courts of Pisa and Spoleto.

In particular, in the municipality of Crespina Lorenzana (Pisa), there is an agricultural company spanning 484 hectares, of which 24 are vineyards, valued at 11.4 million euros, with a varied production including Chardonnay, Vermentino, Sangiovese, Cabernet Sauvignon, Syrah, Trebbiano, and Merlot grape varieties. The last survey by the Astasy Study Center on the sector dates back to 2019, the pre-pandemic period. At that time, the vineyards that went to auction were almost five times the current quantity (1142). About 40% were concentrated in Tuscany (more than 450), where the price of vineyards in foreclosure amounted to over 100 million euros. According to analysts, the decrease in auctioned properties represents “a positive decline, testifying to a sector, the wine industry, that is regaining strength and determination.”

“Analyzing it from a real estate perspective, the vineyard sector is as interesting as it is peculiar and challenging,” explains Massimiliano Morana, CEO of Npls Re_Solutions, who warns: “It is an appealing type of property that can offer profitable investment opportunities, but it requires in-depth knowledge of the wine sector, including agricultural practices, winery management, and market trends. It is important to consider the challenges and specific characteristics of the sector before embarking on this type of investment: the costs associated with managing a vineyard, including labor, equipment, phytosanitary treatments, and maintenance, can be high.”

Manhattan Rents Soar to Dizzying New Heights

By Columbus International,13 May 2024

New York City’s rental market is reaching dizzying new heights, shattering previous records and exacerbating the city’s affordability crisis. According to a report released by Douglas Elliman and Miller Samuel, median rents in Manhattan and Brooklyn soared to unprecedented levels in April 2024, with no signs of abating as the peak leasing season approaches.

The data paints a grim picture for renters struggling to keep up with the relentless rise in housing costs. In Manhattan, the median rent climbed to a staggering $4,250 last month, a 3.7% increase from March and a 0.2% annual hike. This figure represents a staggering 26.7% surge compared to the pre-pandemic average in April 2019. Brooklyn followed a similar trajectory, with the median rent reaching $3,599, a 3% monthly increase and a 26.7% jump from April 2019 levels.

The report’s author, Jonathan Miller, warns that these eye-watering numbers could be just the beginning. “This is the third time in the four months of 2024 that we’ve seen rental prices rise year-over-year,” Miller said. “And this is increasing the odds — because rents don’t peak until the summer — that we could actually see last year’s July/August record broken.” The rental frenzy extends beyond Manhattan and Brooklyn, with northwest Queens also experiencing a sharp spike. The median rent in the area reached $3,244, the second-highest April figure on record, marking a 1.4% increase from March and a 15.1% jump from April 2019. The escalating rents are compounding New York City’s affordability crisis, which has reached alarming proportions. A recent report from the city comptroller revealed a worsening food insecurity crisis, with one in nine households unable to access adequate nutrition.

Moreover, a StreetEasy/Zillow analysis found that New York City has the largest gap between wage and rent growth in the country, with rents growing over seven times faster than wages did last year. As summer approaches and leasing activity typically peaks, the city’s renters brace for further strain on their already stretched budgets. The affordability crisis threatens to deepen, leaving many struggling to keep a roof over their heads in the city they call home.

New York Remains Global Wealth Capital Despite Millionaire Migration

By Columbus International,10 May 2024

While some wealthy residents have left New York City for lower-tax destinations like Florida, the Big Apple still reigns supreme as the world’s wealthiest metro area. A new report by immigration consultancy Henley & Partners reveals that New York has a staggering $3 trillion in total private wealth held by its citizens. The city boasts nearly 350,000 millionaires, up 48% over the last decade, giving it the highest millionaire population of any city globally. Approximately one in every 24 New York residents is a millionaire, compared to just one in 36 a decade ago. The city’s concentration of ultra-high-net-worth individuals is also unmatched – it has 60 billionaires and 744 people worth over $100 million.

This wealth has been bolstered by strong gains in financial markets in recent years. Global equities surged 20% in 2022 and are up nearly 7% so far this year, benefiting New York’s position as the U.S. financial capital. However, the city has seen some of its wealthiest residents decamp to lower-tax states like Florida during and after the COVID-19 pandemic. Over 91,000 New York residents relocated to Florida in 2022 alone as part of a larger migration of over 545,000 people leaving the state that year.

This trend has fueled a rise of “Wall Street South” in Florida, with major hedge funds like billionaire Carl Icahn’s and Paul Singer’s Elliott Management relocating headquarters to the Miami and West Palm Beach areas since 2020. In total, 160 Wall Street firms have moved out of New York in recent years, 56 of them to Florida, taking a combined $1 trillion in assets under management. The impact has been felt in South Florida’s luxury real estate and clubs, with golf memberships doubling or tripling in price. Miami now ranks 33rd globally for its millionaire population, up 78% over 10 years. Still, New York’s position at the top remains unmatched for now. Following it are the Silicon Valley region with 305,700 millionaires, Tokyo, Singapore, a fading London, Los Angeles, Paris, Sydney, Hong Kong and fast-growing Beijing.

Historic Tobacco Factory Reborn as Modern Residential Oasis in Florence

By Columbus International,9 May 20249 May 2024

A new residential project called “Zenit” is coming to life in the area of the former Manifattura Tabacchi in Florence. Designed by the international architecture firm Quincoces Dragò & Partners, led by David Lopez and Fanny Bauer Grung, this project will transform the iconic entrance building of the Manifattura into 34 new residential units. Spanning an area of 4,800 square meters, with an additional 1,530 square meters of rooftop spaces, loggias and terraces, the project aims to preserve and enhance the original architecture, reinterpreting it in a contemporary and sustainable way.

The architects have chosen to preserve the characteristic features of the building, such as the imposing volumes, exposed reinforced concrete structures, and large windows, while introducing modern and comfortable elements. Most of the apartments will feature private loggias and terraces, with privileged views of the restored industrial complex, the historic center of Florence, and the surrounding hills. The completion of the Zenit project is scheduled for March 2026. The new residences are already available for purchase in the experiential marketing suite located on the ground floor of Building 4 of the Manifattura Tabacchi (information is also available on www.liveinmanifattura.com), and the partnership with Savills has been renewed for the commercialization of the residential units. Zenit takes shape in the two wings of the entrance building of the Manifattura Tabacchi, which formerly housed the management, offices, and lodgings of the old factory.

Built between 1936 and 1940, the distinctively curved building features a monumental portal decorated with original bas-reliefs by the sculptor Francesco Coccia. This historical heritage becomes an integral part of the project’s identity, even in its name: Zenit was one of the cigarette brands produced at the Manifattura Tabacchi. The ground-floor apartments will be developed over two levels, taking advantage of the exceptional height of the original spaces to create a new mezzanine level. The living areas will extend outwards into cozy covered gardens or private terraces. The first-floor residences, arranged on a single level, will feature spacious private panoramic outdoor areas on the rooftop, accessible from the living area via a spiral staircase.

Zenit will enjoy privileged views of landmarks of the Manifattura Tabacchi’s regeneration, such as the Chimney Courtyard and Piazza Emanuela Loi, destined to host extensive green areas and cultural activities, as well as the skyline of Florence, the cultivated fields of the Agricultural Institute, the Cascine park, and the verdant hills. Future residents of Zenit will have access to numerous exclusive amenities, including a fitness room, a workshop equipped for bicycle maintenance, a pet room dedicated to the care of domestic animals, and a furnished condominium rooftop of approximately 400 square meters. Zenit is a candidate for achieving the Breeam Excellent environmental certification. All apartments, rated Class A1 or higher, will be equipped with state-of-the-art technological systems and rainwater recovery and recycling systems. Zenit follows the launch in 2022 of Anilla and Puro (a total of 45 units), currently in the final stages of construction in Buildings 7 and 12 and designed by Patricia Urquiola and the Florentine studio q-bic, respectively.

This project is part of the ambitious redevelopment plan promoted by the real estate company of the Cassa Depositi e Prestiti Group and Aermont Capital, with the coordination of MTDM – Manifattura Tabacchi Development Management Srl, which envisions the recovery of the historic industrial area by 2026, transforming it into commercial and office spaces, cultural and educational facilities, residential areas, hospitality, and public green spaces, totaling approximately 110,000 square meters.

According to Michelangelo Giombini, CEO of MTDM, “Manifattura Tabacchi is progressively transforming into a new, vibrant neighborhood that will be a protagonist in the social and economic life of Florence. Zenit is an important step in this journey, as it perfectly represents the synthesis of tradition and avant-garde design, promoting a high-quality lifestyle while prioritizing environmental and people’s well-being. Our goal is to create a sustainable and scalable model of urban regeneration, demonstrating that it is possible to develop by repurposing historic architecture – in this case, the factory built by Pier Luigi Nervi in the 1930s – choosing to preserve rather than demolish, enhancing green spaces, and offering the community of residents, professionals, students, and tourists a stimulating environment from an architectural, cultural, and professional standpoint.”

David Lopez Quincoces and Fanny Bauer Grung stated, “The project of recovering and transforming the former industrial spaces of the Manifattura Tabacchi is the result of a careful balance between preserving existing historical elements and introducing contemporary features that are functional for its new intended use. The meticulous attention paid to preserving the original elements, creating new spaces, and integrating modern technology reflects a comprehensive and thoughtful approach to renovation and design. The traces of the industrial past integrate with the new residences, as if seeking a kinship, a connection with the place. The old factories become an integral part of the new residences, a symbol of continuity and belonging to the territory. The result is a delicate balance between contemporary elements and highly historicized elements, a prudent choice aware of the context’s complexities.”

Source: Il Sole 24 Ore
Images: The Florentine and Manifattura Tabacchi

Milan, real estate prices on the rise with several surprises, from Garibaldi to Moscova, from Porta Nuova to CityLife

By Columbus International,8 May 20248 May 2024

According to analyses by the Tecnocasa Group Research Office, residential property prices in Milan increased by 0.1% in the second half of 2023, bringing the overall annual growth to 0.3%.

Central areas like Garibaldi, Moscova, Porta Nuova and CityLife witnessed a 2.1% surge in values, being highly sought-after by domestic and international buyers looking to live, work and study in the city. Demand concentrated on spacious properties exceeding 200 sq.m, with multiple bedrooms, outdoor spaces and top floor units.

The highest prices, peaking at €15,000/sq.m for sales, were recorded in the Porta Nuova district. Some semi-central neighborhoods like Lambrate, Navigli and Famagosta experienced a slight price decline, partly attributable to the abundant supply of new constructions. However, the rental market remained vibrant, with average monthly rents of €1,500 for a two-room apartment in central zones. The Vercelli-Lorenteggio macro-area saw a 1.6% price hike, fueled by growth in Lorenteggio-Frattini and Tolstoj. The Lodi-Corsica area witnessed a 1% increase, propelled by ongoing works for the Olympic Village development. Modest declines were observed in the Bovisa-Sempione (-0.7%), Central-Station (-1.6%) and Navigli (-0.5%) macro-areas, with varying trends across different neighborhoods. The Bovisa district was bolstered by the Scalo Farini redevelopment project.

Prices remained largely stable in the Città Studi-Indipendenza area, with localized increases along Viale Abruzzi and Corso Buenos Aires. Rental demand remained robust, driven by students and non-resident workers. In summary, Milan’s real estate market experienced modest yet consistent growth in 2023, underpinned by the central areas and large residential units, while exhibiting heterogeneous dynamics across various semi-central neighborhoods.

Source: Monitor Immobiliare
Photo: CityLife Residences

Among private gardens and inner courtyards, here is the latest oasis of peace in New York

By Columbus International,6 May 2024

The New York Post reports that an imposing townhouse in Lenox Hill at 164 East 66th Street, with access to a lush hidden garden, has been put on the market for $10.75 million. “This rare home offers privileged access to one of Manhattan’s best-kept secrets, gifting its lucky buyer an unprecedented boast,” it reads. The townhouse, spanning around 3,620 square feet, is outfitted with amenities such as a basement sauna, a rooftop terrace and, above all, access to the exclusive Jones Wood Garden – a corner of nature enclosed between the buildings of Lexington and Third Avenue.

Unlike that famous gated area of lower Manhattan, however, Jones Wood Garden cannot be admired from the street; only nearby residents can use and stroll through it. The Post reports that three other townhouses on E. 65th Street that share access to the garden are for sale between $8.75 million and $13.45 million. They are now ready to be sold for the first time since the 1990s. Several owners raised their families here, and now that their kids are mostly out of the house, they feel it’s the right time to downsize a bit.

The article delves into the history of the approximately 10,800 square foot two-level garden, which according to the Post was “created by developers seeking to breathe new life into 12 brownstone-style buildings along East 65th and 66th Streets” around 1920 after combining their backyards. More than a century later, strolling through Jones Wood continues to inspire a sense of curious wonder.

How many other magical nooks like this are silently growing throughout the city, veiled by brownstone buildings, hidden from the public to be enjoyed by only a lucky few? The amenities of the home at 164 East 66th Street for sale, beyond garden access, include a gym, radiant-heated marble floors, an elevator, a bar, six fireplaces, a rooftop deck, two balconies, five bedrooms and 5.5 bathrooms. It is a small community, New York’s latest oasis of peace.

Trump Ally Tom Barrack Exits Luxury Florence Real Estate Project

By Columbus International,3 May 2024

Billionaire real estate investor Tom Barrack, known as an advisor and major supporter of former President Donald Trump, is exiting a prime 18,000 square meter (193,750 sq ft) development in the heart of Florence, Italy after a decade of ownership before the site’s transformation into luxury residences could be completed.

Through his Colony Capital investment firm, Barrack in 2013 acquired the former headquarters of Cassa di Risparmio di Firenze bank on the prestigious Via Bufalini near the iconic Piazza Brunelleschi. Plans called for converting the historic property into upscale condos and apartments designed by the acclaimed Genius Loci architecture firm.

The Arab-American tycoon, a close friend of Trump for over 30 years who chaired the former president’s 2017 inaugural committee, was arrested in 2021 on charges of illegally lobbying on behalf of the United Arab Emirates. Barrack, whose other major deals included buying and flipping the luxury Costa Smeralda resort from the Aga Khan and Michael Jackson’s Neverland Ranch, is now selling the unfinished Florence renovation project. The buyer is an Italian real estate fund founded by Eugenio Radice Fossati.

While the sale price was not disclosed, the property’s coveted address between the Arno River and Florence’s iconic Duomo cathedral ensures it will command a top premium. The new owners aim to complete the upscale residential conversion at this crossroads of art, finance and la dolce vita in Tuscany’s Renaissance capital.

Source: Repubblica Firenze

New York’s Real Estate Roller Coaster: Navigating the Highs and Lows of the Housing Market

By Columbus International,29 April 2024

As the world’s financial capital and a global cultural beacon, New York has long been a real estate juggernaut. Its housing market encompasses everything from ultra-luxury Manhattan condos to family-friendly suburbs and bucolic vacation homes. This diversity fuels a perpetual churn of buyers and sellers, each with their own motivations and priorities. However, the pandemic triggered seismic population shifts, with New York losing 2.6% of its residents between 2020 and 2023 according to moving data.

This exodus has contributed to declining listings and sales statewide, even as certain pockets remain red-hot due to inventory constraints. Statewide, new listings plunged 22.4% year-over-year in Q2 2023, while closed sales dropped 22.6%. The median sale price of $405,000 represents a 1.8% annual dip but still outpaces much of the nation. Yet this macro view conceals a intricate tapestry of micro-markets, some scorching, others tepid. “All of these contribute to the diversity of the housing market,” says Jeffrey Decatur, a RE/MAX Capital broker. “There’s strong demand for luxury homes in Manhattan, while the tech hubs attract new buyers from around the world.”

For buyers and sellers navigating these currents, strategic timing is paramount. Higher mortgage rates pose affordability hurdles, while uncertainty surrounding the 2024 election could further dampen activity. Conversely, New York’s resilient long-term appreciation trajectory promises future upside. Ultimately, personal circumstances should guide decisions. “The one thing you don’t want is to think yourself into doing nothing at all,” Decatur advises. “When someone has to buy or sell, the water is fine. Jump in.” In this dynamic landscape, New York’s real estate opus continues its perpetual reinvention, redefining itself with every transaction as an indelible thread in the rich tapestry of the Empire State.

Escape Velocity: The Ultra-Rich Forge a Parallel Housing Universe

By Columbus International,29 April 2024

In leading cities and luxury destinations around the world, a surprising new phenomenon is emerging: a concept of an ultra-luxury real estate market completely independent from conventional economic forces. No longer bound by the same rules that govern traditional housing markets, the super rich are developing their own real estate stratosphere where prices have become almost irrelevant and scarcity is the true luxury commodity.

From the billionaires’ homes in New York to the ultra-luxurious properties in Dubai, the concept of luxury living is being redefined by a rarefied class of buyers for whom money is truly no object. In these realms, a nine-figure price tag is not just the cost of entry – it is a badge of exclusivity that leads to excelling over others. At the highest levels, the motivations go far beyond mere real estate investment. It’s about curating a lifestyle narrative, joining an ultra-exclusive club where admission is granted by the audacity of what you can afford to spend. This dynamic is fueling a boom in what can only be defined as ultra-luxury accommodation: properties so lavishly appointed that they belong in a separate category from traditional high-end homes. Think private garages for your car collection, ultra-private elevator foyers, and amenities so bespoke they verge on the absurd, like hallways with coral aquariums and lounges dedicated to a Space observatory.

In Miami, the new Residences have just unveiled 17,800 sq ft penthouses listed for the staggering sum of $200 million, including a private helipad and a wine cellar stocked with Cristal. While most city real estate markets rise and fall with local economies, these ultra-luxury enclaves have become isolated from such earthly concerns. Their values are unshackled, buoyed by an elite of globetrotting investors who crave a stamp of absolute pedigree and provenance. As wealth concentrates at the highest levels, the appetite for this degree of extravagance continues to grow. In the race to reach escape velocity from conventional markets, the sky is no longer the limit for the highest real estate stratosphere.

The Great Tech Migration to New York City

By Columbus International,29 April 2024

For years, Silicon Valley has reigned supreme as the global epicenter of the tech world. However, a seismic shift is underway, as a growing number of young tech professionals are trading in the Bay Area for the bright lights and endless possibilities of New York City. This trend, which gained momentum during the COVID-19 pandemic, defies conventional wisdom. New York is notorious for its exorbitant cost of living, with rents and everyday expenses dwarfing those of even the priciest Bay Area enclaves. Yet, the allure of New York’s vibrant culture, diverse opportunities, and unparalleled social scene appears to be outweighing financial considerations for many millennials and Gen Zers in the tech industry.

Take Sanchit Gupta, a 29-year-old product manager who recently relocated from the Bay Area to Manhattan. “I always thought New York could be a much more fun city than San Francisco,” Gupta said, citing the city’s world-famous nightlife, robust dating scene, and thriving tech community as key factors in his decision. Gupta is far from alone in his quest for a more fulfilling work-life balance. A recent study found that tech workers leaving the Bay Area are most likely to head to New York, even as apartment rents in the city have reached record highs, and the average income lags behind San Francisco’s.

This trend has not gone unnoticed by the tech industry’s power players. Venture capital firms like Sequoia Capital, long headquartered in the Bay Area, have opened offices in New York to tap into the city’s burgeoning tech talent pool. In 2022 alone, New York attracted a staggering $29.5 billion in venture capital investment, second only to Silicon Valley’s $74.9 billion. While few expect New York to dethrone Silicon Valley as the undisputed tech capital anytime soon, the city’s ascendance offers valuable lessons for Bay Area companies. Young tech professionals’ priorities are evolving, with many placing a premium on experiences and quality of life over traditional markers of success.

“Living in the Bay Area, things kind of shut down around 10 p.m.,” said Kai Koerber, a recent UC Berkeley graduate and founder of the AI startup Koer AI. “So, if you’re in tech and want to kind of live a fun life in your 20s, while also building life-changing technology during the day, New York is kind of the place to be.” This sentiment is echoed by tech recruiters who have observed a growing trend of recent college graduates flocking to Silicon Valley for their first jobs, only to decamp for greener pastures like New York after a couple of years. Some attribute this exodus to burnout from the intense culture of Big Tech, while others believe the Bay Area has simply lost its luster for younger employees. Mass layoffs at tech giants like Google and Twitter, coupled with San Francisco’s staggering 36% office vacancy rate, have undoubtedly contributed to this perception. In contrast, New York has rebounded from the pandemic with remarkable resilience, boasting a vibrant street life, bustling retail scene, and a much lower office vacancy rate than its West Coast counterpart.

As New York solidifies its position as the nation’s number two tech hub, Bay Area companies would be wise to take note. Fostering a more dynamic, experience-driven culture could be key to retaining top talent in an increasingly competitive landscape. For many young tech professionals, the bright lights of New York City have become too enticing to resist.

Source: San Francisco Chronicle