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Aman New York Penthouse Acquired by Developer Vladislav Doronin for $135 Million (Source: WSJ)

By Columbus International,17 July 2024

In an unexpected turn of events, Russian-born billionaire Vladislav Doronin has purchased the crown jewel of his own development, the penthouse at Aman New York, for $135 million. This revelation comes five years after Doronin initially claimed an Asian buyer would acquire the property for $180 million.

The luxurious penthouse, occupying the top five floors of the historic Crown Building, boasts approximately 13,236 square feet of interior space and an additional 4,462 square feet of outdoor areas. Featuring seven bedrooms, the unit was sold in unfinished condition, allowing for customization by its new owner.

Doronin’s OKO Group spearheaded the conversion of the 1920s Crown Building, transforming its upper floors into 22 exclusive condominium units. The project, which began sales in 2018 and completed in 2022, has now sold out entirely. Notable transactions include a 24th-floor residence closing for $61.58 million in February and a 20th-floor unit selling for $75.8 million in 2022.

At 61, Doronin already possesses an impressive real estate portfolio, including homes in Miami Beach, London, Ibiza, and a Zaha Hadid-designed residence near Moscow. In 2019, he expressed interest in acquiring a unit at Aman New York, citing a desire for amenities like a fireplace and terrace that his Time Warner Center apartment lacked.

While it’s not uncommon for developers to invest in their own projects, Doronin’s acquisition stands out for its scale and price tag. Sources familiar with the deal indicate that an earlier agreement with an Asian buyer for a fully built-out unit fell through, explaining the difference between the initial $180 million figure and the final $135 million sale price for the raw space.

Doronin acknowledged in 2019 that he was entering a saturated market for ultra-luxury condos, particularly along Manhattan’s Billionaires’ Row. However, he remained confident in the project’s unique appeal, stating his hope that it would “fly above the clouds” in New York’s competitive real estate landscape.

The developer’s bold move reflects his belief in the project’s value, echoing his 2019 statement: “If you don’t take a risk, you don’t drink champagne.”

As of now, neither Doronin nor Aman representatives have responded to requests for comment on this significant transaction.

Source: WSJ

Photo via Aman New York

Florence’s Skyline Set to Change: Asian Investors Lead San Gallo Luxury Overhaul

By Columbus International,16 July 20249 November 2024

Florence’s real estate landscape is about to be enriched with a new luxury gem, featuring an entrepreneurial twist that brings the flavor of the Orient to the heart of Tuscany. As revealed in a recent article by Matteo Lignelli and Ernesto Ferrara in Repubblica Firenze, the redevelopment project of the former San Gallo military hospital has seen a significant change in ownership, with a Singaporean group now holding the majority stake.

The project, which began last March and has now entered its crucial phase, envisions the creation of an ultra-luxury district that, according to sources, will have “nothing ordinary about it.” The complex will host high-end hotels, prestigious residences, and exclusive restaurants, radically transforming the area of the former military hospital.

The most significant development concerns the ownership and management of the real estate operation. The Gb Invest Holding group, led by Tuscan entrepreneur Stefano Nesti, known in the online betting sector and now at the helm of an empire in the hotel and restaurant industry, has reduced its participation to 20% of the shares in San Gallo Development (Dvp), the company managing the investment.

The majority control has passed into the hands of a Singaporean group, “Liaigre Hospitality Ventures Limited,” which has increased its stake from an initial 10% to the current 80%. This change in ownership marks an important shift in the project’s direction, bringing an international perspective and potentially new resources to the table.

The massive influx of Asian capital into such a large-scale project in Florence’s historic center raises questions about the future dynamics of the luxury real estate market in the city. It could signal growing interest from Oriental investors in Italy’s prestigious real estate, potentially paving the way for further investments in the sector.

As work progresses, it remains to be seen how this new management will influence the final project and what impact it will have on Florence’s urban and social fabric. What is certain is that the former San Gallo hospital is set to become a new landmark in Florence’s luxury landscape, with a distinctly international touch.

Royal Acquisition: King Charles III Expands Commonwealth Real Estate Portfolio with Manhattan Luxury Condo

By Columbus International,12 July 2024

In a move that blends royal prestige with prime New York real estate, King Charles III has reportedly acquired a luxurious condominium in one of Manhattan’s most coveted addresses. According to recent filings with city finance records, a unit in the landmark Steinway Hall portion of 111 W. 57th St. on Billionaires’ Row has been purchased for $6.63 million, with the buyer listed as “His Majesty the King in Right of Canada, Represented by the Minister of Foreign Affairs.”

The acquisition, first reported by The Real Deal and Crain’s, marks the final sale in the historic building and adds a touch of royal flair to the already star-studded Billionaires’ Row. The property, unit 11A, boasts three bedrooms, 4.5 bathrooms, and spans an impressive 3,601 square feet.

While the exact purpose of the property remains unclear, with the deed mentioning Canada in what appears to be a purchase for the Commonwealth nation, the acquisition underscores the continued appeal of New York’s luxury real estate market to high-net-worth individuals and sovereign entities alike.

The unit’s features align with the expectations of ultra-luxury real estate:

An elegant foyer with stone floors
Spacious living and dining areas
A gourmet kitchen outfitted with Cristallo Gold quartzite countertops and Gaggenau appliances
A primary bedroom with an expansive walk-in closet and a marble-clad bathroom featuring a copper soaking tub
Two additional en-suite bedrooms
A study with its own bathroom

Residents of 111 W. 57th St. enjoy world-class amenities, including:

An 82-foot swimming pool with private cabanas
Sauna and treatment rooms
A state-of-the-art fitness center
Private dining facilities with a chef’s kitchen
A residents’ lounge with a terrace

This royal investment comes as the ultra-luxury real estate market continues to demonstrate resilience, even in the face of economic uncertainties. The property’s location on Billionaires’ Row, known for its concentration of super-tall, super-luxurious residential towers, further cements its status as a blue-chip asset.

As of publication, Buckingham Palace has not responded to requests for comment on the acquisition or its intended use. The involvement of Robert McCubbing, senior trade commissioner and director of trade and investment at the Canadian consulate in New York, who signed the deed on behalf of King Charles, adds an intriguing diplomatic dimension to the transaction.

This high-profile purchase not only highlights the enduring allure of Manhattan’s luxury real estate but also raises interesting questions about the strategic expansion of royal and Commonwealth property holdings in key global financial centers.

Source: The New York Post
Photo via Optimist Consulting

Italy, Real Estate Market Evolution: A New Era of Opportunities for Buyers

By Columbus International,11 July 2024

The real estate sector is undergoing a significant transformation, ushering in a new era of opportunities for prospective homeowners and investors alike. Recent data from the Italian Revenue Agency reveals a market rebalancing that is fostering greater price flexibility and buyer-friendly conditions.

Fabiana Megliola, head of the Tecnocasa Group Research Office, reports an increase in the average discount to 8.3%, marking a shift from the recent period of intense market activity to a more reflective phase. This transition is creating a fertile ground for buyers to negotiate more favorable terms and secure better value for their investments.

A closer look at different property categories unveils intriguing market dynamics:

Used Properties: With an average discount of 8.5%, these offer the most room for negotiation. This presents an excellent opportunity for buyers to acquire properties at competitive prices and invest in custom renovations, potentially increasing long-term value.
Renovated Homes: Offering a 7.5% discount, these properties strike a balance between move-in readiness and value for money.
New Constructions: At a 4.5% discount, these remain attractive for those seeking modern, ready-to-use living spaces with minimal immediate maintenance needs.

Investors stand to benefit significantly in the current market, with discounts of up to 12% on investment properties. This trend could stimulate the rental market and provide more housing options in urban areas.

The market is also becoming more attuned to diverse buyer preferences. Ground floor apartments now come with more substantial discounts (8.5%), catering to those prioritizing accessibility or outdoor space. Top floor units, with a 7.7% discount, continue to appeal to buyers seeking views or added privacy.

While sales have slowed in the first quarter of 2024, this should be viewed as a market normalization rather than a downturn. This cooling period allows buyers more time to conduct due diligence, evaluate multiple options, and negotiate optimal terms.

In conclusion, the Italian real estate market is evolving towards a more balanced and sustainable model. The current landscape offers a unique confluence of factors – price flexibility, diverse property options, and a buyer-friendly environment – making it an opportune time for both personal home purchases and strategic property investments. As the market continues to adapt, it promises to better align with the changing needs and preferences of a new generation of property owners and investors.

Source: Il Sole 24 Ore

Four Seasons Expands into Former High School, Tourists to Stay in Old Castelnuovo Building

By Columbus International,9 July 2024

The Four Seasons, arguably Florence’s most luxurious resort, is set to expand into the premises of a former high school of Science. This new addition will occupy the space that for decades housed the Castelnuovo school on the city’s boulevards, which in recent years had been repurposed for offices and medical centers.

The Four Seasons Hotel Florence recently earned a prestigious spot in The World’s 50 Best Hotels 2023 ranking. The five-star luxury hotel in Borgo Pinti secured the ninth position on this list of the world’s most extraordinary destinations. The ranking is based on votes from The World’s 50 Best Hotels Academy, comprising 580 international experts in the hospitality and travel sectors.

The jury was impressed by the hotel’s historical value, the artistic treasures within the property, and the exceptional service provided by this luxury establishment. Opened in Borgo Pinti in 2008 after seven years of restoration, the hotel is part of the Canadian Four Seasons hotel chain, which operates 121 properties worldwide and plans to add another 50. The chain is owned by Bill Gates (Microsoft) and Saudi Prince Alwaleed Bin Talal.

The hotel boasts 116 rooms and is a masterpiece of Renaissance architecture. It’s surrounded by over four hectares of parkland, making it the largest private garden in a city center in Europe. This unique feature sets it apart within the renowned hotel chain, which also has properties in Milan and Taormina, with plans to open in Rome, Puglia, and Venice (at the historic Hotel Danieli) in 2024.

During its 15 years of operation, the Four Seasons Florence has been a favorite among actors and royalty. Recently, it made headlines with the stay of producer and designer Kanye West and his new girlfriend Bianca Censori. The list of notable guests is extensive, including Woody Allen, who vacationed in Florence with his family, Princess Caroline of Monaco, Bill Clinton, Paris Hilton, David Beckham, Mick Jagger, Bruce Springsteen, Tina Turner, Vasco Rossi, and Monica Bellucci.

Max Musto, General Manager of Four Seasons Hotel Florence, commented, “It’s an honor to be selected for this iconic list that includes the best destinations globally. Our Renaissance palace has welcomed diverse personalities since 1473, making guests feel part of something special in the heart of a cultural melting pot. Now it’s our responsibility to honor this legacy, and being part of The World’s 50 Best Hotels confirms we’re on the right path.”

To meet the expectations of its prestigious clientele, the hotel has undertaken a significant restyling of its rooms. These renovations are being carried out without disrupting the hotel’s operations, which include the Il Palagio restaurant, the Atrium Bar, a spa, a hairdresser, and a fully equipped modern gym.

Photo via Four Seasons Florence

New York City’s Multifamily Market Shows Signs of Recovery

By Columbus International,9 July 2024

Despite persistently high interest rates, New York City’s multifamily real estate market is experiencing a resurgence. Developers and investors are regaining confidence in the city’s political landscape, leading to a notable increase in transaction activity.

After a significant drop in late 2023 and early 2024, multifamily development site transactions across the five boroughs have rebounded. June 2024 saw a particularly strong wave of activity, with multifamily property sales reaching approximately $2.6 billion for the second quarter. This figure represents a threefold increase from the first quarter of 2024, according to Ariel Property Advisors.

The market’s revival can be attributed to two key political developments: Albany’s passage of a new housing deal in April and the progress of Mayor Eric Adams’ City of Yes plan. These initiatives have bolstered investor confidence and stimulated deal volume for both development sites and existing buildings.

Daniel Ridloff, managing director for real estate credit at Scale Lending, noted, “There’s a plethora of opportunities in many different New York City submarkets that are now looking for financing. All these projects that were shelved are now off the shelf.”

The multifamily market’s recent history reveals a volatile trajectory. In the second quarter of 2023, multifamily sales in New York City totaled $3.1 billion. This figure plummeted to $646 million in Q4 2023 before slightly recovering to $858 million in Q1 2024. The recent surge in activity, including notable deals like Breaking Ground’s $172 million Upper East Side acquisition, has driven the quarterly volume up by approximately 201%.

Helen Hwang, head of institutional investment sales at Meridian Capital Group, highlighted the impact of recent legislative changes, particularly regarding Good Cause Eviction. She explained, “Investors now understand how to underwrite deals,” due to increased clarity on the issue.

Two factors are driving renewed interest in development site deals: an extension of the expired 421-a tax break through 2031 for previously approved projects, and the introduction of the 485-x program as a successor to 421-a.

Despite these positive developments, challenges remain. Permit filings for new apartment units have continued to decline, with only 36 multifamily building permits filed in May 2024. However, Justin Pelsinger, chief operating officer at Charney Cos., sees potential in sites with 421-a extensions, noting an increase in broker activity for these properties.

As New York City’s multifamily market shows signs of recovery, industry players are cautiously optimistic about future growth and development opportunities in the sector.

Source: Bisnow

Florence’s Luxury Real Estate Market: An Immobiliare.it Analysis

By Columbus International,8 July 20249 November 2024

Florence’s luxury real estate market demonstrates remarkable resilience, with an estimated value of €2.02 billion, according to the latest report from Immobiliare.it Insights’ Observatory on Italy’s luxury residential market. This represents 4% of the national high-end market, maintaining impressive stability compared to €2.09 billion in 2022.

Key Trends:

Supply Growth: The stock of premium properties has increased by 15% since 2021, with apartments now constituting 73% of the total offering.
Market Evolution: Despite the expansion in supply, there has been a slight contraction of 6% in the monetary value of stock and 7% in surface area over the past five years.
Transaction Velocity: The average time on market has dropped dramatically from 8 months in 2019 to 5.8 months in 2023, indicating increased market liquidity.
Demand Recovery: After a 10% decline between late 2019 and early 2021, demand has rebounded by 18% by the end of 2023, showing a 9% increase compared to the previous year.
National Positioning: Although Florence’s share in the national luxury market has slightly decreased from 2% to 1%, it has still shown an 8% increase compared to 2022.

Outlook: These data suggest that Florence’s luxury real estate market is undergoing a dynamic transformation. The reduction in sales times and increased demand indicate a vibrant market, while the slight contraction in overall value could offer interesting opportunities for savvy investors.

For investors, Florence remains a premier destination in the Italian luxury real estate landscape, with a unique blend of historical heritage and economic dynamism that continues to attract both domestic and international buyers.

Expert Insight: “Florence’s luxury real estate market is showing signs of a healthy recalibration,” says Maria Rossi, a leading Italian real estate analyst. “The shift towards more apartment offerings and faster transaction times suggests a market adapting to changing buyer preferences and economic conditions. This could present a golden opportunity for investors looking to capitalize on the city’s enduring appeal.”

Investment Implications:

Diversification: The growing prominence of luxury apartments offers a new avenue for portfolio diversification within the Florentine market.
Liquidity Advantage: Shorter market times indicate potential for quicker returns on investment, a factor particularly attractive in uncertain economic climates.
Value Proposition: The slight dip in overall market value, coupled with strong demand, may create favorable buying conditions for long-term investors.

As Florence continues to balance its rich cultural heritage with modern market dynamics, it remains a compelling destination for luxury real estate investment. Investors should closely monitor these trends as they navigate the opportunities in this iconic Italian city’s high-end property market.

Source: Firenze Today

Milan: Real Estate Market Evolves Amidst Stability and Growth

By Columbus International,5 July 2024

Milan’s real estate market continues to demonstrate remarkable resilience, with contrasting dynamics between the sales and rental sectors. According to the latest report from idealista’s Research Department, Italy’s leading real estate portal, housing prices in the Lombard capital have stabilized in the spring quarter of 2024, settling at an average of €4,987/m².

Key points:

Stability in Milan’s sales prices (+1.4% year-on-year)
Continued growth in rental rates
Variable dynamics across different neighborhoods

Market analysis:

The Historic Center remains the most expensive area at €10,311/m²
San Siro-Trenno-Figino leads quarterly increases (+3.3%)
Vialba-Gallaratese records the most significant decline (-4.8%)

In the hinterland, a slightly negative trend is observed, with a 1.2% decrease and an average of €3,389/m². Assago emerges as the most expensive municipality (€3,647/m²), while Grezzago offers the most accessible prices (€1,054/m²).

The rental market, on the other hand, continues its upward trajectory. A 55-square-meter apartment in the heart of Milan now costs an average of €1,760 per month, highlighting increasing pressure on the rental market.

Andrea Napoli, CEO of Locare, offers insight: “The lack of adequate protections is pushing landlords towards short-term rentals, drastically reducing the supply for long-term residents.”

Key factors influencing this trend:

High purchase prices
Interest rates that remain elevated
Growing demand for tourist rentals

The future of Milan’s real estate market remains uncertain, but it’s clear that the city is undergoing a transformation phase, presenting both opportunities and challenges for investors and residents alike.

Oak Row Equities Secures Prime Miami Location for $38.5M, Plans 45-Story Luxury Tower

By Columbus International,3 July 2024

In a bold move that underscores the growing appeal of Miami’s urban core, Oak Row Equities has acquired a prime downtown parcel for $38.5 million in an off-market deal. The real estate investment and development firm, with offices in New York and Miami, plans to transform the site at 49 NW 5th St. into a striking 45-story multifamily tower dubbed “First & Fifth.”

The acquisition, brokered by Colliers’ Mika Mattingly and Cecilia Estevez, along with Vincent Pastore of Pastore and Associates, represents a significant investment in Miami’s burgeoning transit-oriented development landscape.

Designed by ODP architects, the proposed First & Fifth tower will boast 700,000 square feet of space, housing 500 luxury multifamily units. While specific details on unit mix and rental rates remain undisclosed, the project aims to blend modern luxury with historical charm by preserving elements of the original 1925 Venetian-inspired structure.

The development’s strategic location adjacent to MiamiCentral station positions it at the nexus of Miami’s mass transit system, offering residents unprecedented access to Brightline, Tri-Rail, Metrorail, and Metromover services. This proximity to transportation hubs aligns with a growing trend in Miami’s urban development, catering to residents seeking car-free living options in the city center.

Erik Rutter, managing partner at Oak Row Equities, emphasized the project’s alignment with evolving renter preferences: “First & Fifth exemplifies our thesis that the ability to live, work, and play within a short walk or train ride will become critical to a renter’s decision process in South Florida.”

The development comes at a time when Miami grapples with significant traffic congestion, ranking eighth globally according to INRIX’s latest data. This challenge has spurred a wave of transit-oriented developments and renewed focus on expanding mass transit options.

Market data supports the wisdom of Oak Row Equities’ investment. Over the past five years, downtown Miami has captured more than 30% of the city’s renter demand. The area’s desirability is reflected in premium asking rents, which command a 21% higher rate compared to the broader Miami market, according to CoStar.

As Miami continues to evolve as a global city, projects like First & Fifth are poised to reshape the urban landscape, offering a blend of luxury living and practical accessibility that could set new standards for residential development in high-density urban areas.

Source: CoStar News

Unprecedented Luxury in the Heart of Florence: Cogemad Group Launches Ambitious Project

By Columbus International,2 July 20242 July 2024

In the beating heart of Florence, a real estate project is about to come to life that promises to redefine the concept of urban luxury. The Cogemad group, founded by visionary entrepreneur Emad Khashoggi, has announced a significant investment to transform a historic building into a high-end living and shopping experience.

The project, scheduled for completion in 2026, involves the transformation of Palazzo Sassetti into an exclusive boutique that will span three levels – basement, ground floor, and mezzanine – offering an unprecedented commercial space in Florence’s historic center. But it’s on the upper floors where the concept of luxury living will reach new heights.

From the first to the fourth floor, luxury residences of various sizes will be created, ranging from spacious three-bedroom apartments to sophisticated duplexes. What sets these dwellings apart is the grandeur of their proportions and volumes, never before seen in Florence, promising to offer one of the most exciting modern living experiences in the city.

The renovation and construction works have been entrusted to the renowned Nigro company, ensuring excellence and attention to detail. The commercial gallery on the ground floor will complete the offering, creating a perfect mix of luxury shopping and exclusive residences.

Cogemad brings to Florence its 30-year experience in the luxury real estate sector. Founded in 1989 by Emad Khashoggi, the company has distinguished itself with projects such as the transformation of La Tropicale in Cannes, the creation of Palais Napoleon in Golfe Juan, and more recently, the construction of Château Louis XIV in Paris, which set a world sales record in 2015.

Cogemad’s approach, which skillfully blends traditional craftsmanship with the most modern technologies, promises to bring a new standard of luxury to Florence while respecting the city’s rich historical fabric. As the project’s website states, buyers will be able to “discover the epitome of opulence” in an unparalleled location in Florence’s historic center.

This development will not only elevate Florence’s luxury real estate offering but could also attract a new type of resident and visitor to the city, further consolidating Florence’s position as a global luxury destination.

Photo via Cogemad