apartment New York

Beloved Stephen Sondheim’s NYC Townhouse Finds a New Maestro at $7 Million

By Columbus International,1 December 2023

Stephen Sondheim‘s cherished New York City townhouse has gracefully transitioned to a new conductor, successfully hitting the market for a noteworthy $7 million. The proud new owner is a devoted Sondheim enthusiast residing in New York City, intending to transform the Midtown townhouse into their primary residence. The seven-bedroom house attracted considerable attention, receiving two compelling offers after being listed by Sondheim’s estate for $7 million in July. The Broadway maestro, celebrated for his timeless compositions, felt at home within the walls of this property for nearly six decades until his passing at the age of 91 in late 2021. Sondheim’s connection with the five-story Turtle Bay residence dates back to around 1960, following his lyrical contributions to iconic musicals like “West Side Story” in 1957 and “Gypsy” in 1959, as narrated in Pamela Hanlon’s book, “Manhattan’s Turtle Bay: Story of a Midtown Neighborhood.”

To ease the financial burden, Sondheim leased the top three floors until around 1973, a tactic detailed in the same book. Nestled in Turtle Bay Gardens, a charming ensemble of 1860s townhomes sharing a communal garden, Sondheim’s former residence has been a magnet for artistic residents over the years. Legendary actress Katharine Hepburn was a longtime neighbor, adding allure to the area. Among the unique features of the house is a music studio with a fireplace, where the maestro housed a baby grand piano. A solarium, accessible through a dramatic wooden arch, boasts original stained glass windows and a generous 30-foot terrace with a garden view. The primary suite occupies the fourth floor, while the fifth floor features a studio apartment designed for live-in staff. Celebrated for masterpieces like “Sweeney Todd” and “Into the Woods,” Sondheim’s illustrious career was adorned with an Oscar, a Pulitzer Prize, and numerous Grammy and Tony awards. It’s important to note that Sondheim also owned a residence in Roxbury, Conn., which entered the market with a listing price of $3.25 million in November. While luxury home sales in Manhattan experienced a 22.2% decline in the third quarter compared to the previous year, the median price exhibited a slight increase to $6 million, emphasizing the enduring appeal of distinctive properties, as demonstrated by the recently sold Sondheim townhouse.

Source: WSJ

Lawsuit Alleges Conspiracy to Inflate Real Estate Commissions in Manhattan

By Columbus International,20 November 2023

On Monday, a legal action was initiated, accusing the Real Estate Board of New York (REBNY), along with over two dozen brokerages and companies, of collaborating to artificially boost commissions paid to agents involved in the sale of residential real estate in Manhattan. This proposed class action against the REBNY trade group, the Corcoran Group (HOUS.N), Douglas Elliman (DOUG.N), and others, comes in the wake of an October 31 verdict by a federal jury in Missouri, awarding home sellers $1.78 billion in a parallel case against the National Association of Realtors and multiple brokerages. The potential impact of this verdict, which a judge could triple to exceed $5.3 billion, has the potential to disrupt long-standing practices mandating sellers to pay commissions to buyers’ brokers.

The National Association of Realtors (NAR) is currently facing at least two other similar proposed class actions. In the federal court lawsuit filed on Monday in Manhattan, Monty March, the plaintiff, asserted that commissions on Manhattan residential sales persist at a stable 5% to 6%, even as home prices skyrocket, reaching an average apartment price exceeding $2 million by early 2022. March argued that sellers using REBNY’s listing service should not be obligated to pay 2.5% to 3% commissions to buyers’ brokers, especially when compared to lower commissions in “fully competitive” markets such as Brooklyn, where negotiations occur separately and average around 1%. REBNY’s General Counsel, Carl Hum, stated that the group is currently reviewing the complaint with its legal team and expressed confidence that the practices and procedures of its listing service “abide by all relevant laws.”

As of now, Corcoran and Douglas Elliman have not responded to requests for comments. March claimed to have paid inflated commissions when he recently sold property on Manhattan’s Upper East Side, with property records revealing the sale of an apartment for $5.6 million in July 2022. Commencing January 1, REBNY will mandate sellers, rather than their brokers, to directly remit any commissions to buyers’ brokers, aiming to enhance “transparency and consumer confidence in the residential marketplace.” March expressed uncertainty about whether this change would lead to lower commissions or potentially cause delays in sales as buyers’ brokers negotiate with sellers. The lawsuit seeks damages for sellers of Manhattan residential property over the past four years who paid buyer brokers’ commissions under REBNY rules.

Source: Reuters

Top 50 Priciest New York Neighborhoods in Q3 2023: Brooklyn Breaks into the Top 3 for the Second Time This Year

By Columbus International,8 November 2023

In the third quarter of 2023, residential property sales in New York City continued to experience a gradual decline, with both sales numbers and median prices dropping compared to the same period the previous year. By the end of September, the median sale price in NYC stood at $750,000, which was a 1% decrease from the third quarter of 2022. However, the most significant decline was seen in the number of sales, as there were 24% fewer residential transactions in the city compared to the previous year, resulting in approximately 2,400 fewer closed deals in the third quarter of this year.

On a positive note, quarter-over-quarter sales numbers showed an increase of 418 transactions, indicating a seasonal trend similar to 2022 and 2021, where third-quarter sales surpassed those of the second quarter. During the same period, the median sale price remained relatively stable. Nevertheless, the year-to-date data through September revealed a 28% decrease in the number of closed residential deals in NYC compared to the same timeframe in the previous year, with a total of 20,833 sales recorded. Notably, among the top 50 neighborhoods (which included 56 neighborhoods due to some ties), 24 were from Manhattan, 23 from Brooklyn, and nine from Queens. Notably, none of the Bronx neighborhoods made it to the list this quarter, despite the Bronx’s historic appearance in the top 50 during the first quarter of the year. The median sale price in the Bronx was $362,000, marking a 6% decrease from the previous year, which was the most significant year-over-year decline in median sale price among the four boroughs. Across all four boroughs, median sale prices experienced slight declines compared to the previous year, with Queens following the Bronx with a 2% drop, and Brooklyn and Manhattan both seeing 1% decreases. Similarly, overall sales activity decreased in each borough, with Brooklyn experiencing a 26% drop, Manhattan and Queens both recording 24% decreases, and the Bronx seeing a 22% decrease compared to the third quarter of 2022.

Unsurprisingly, Manhattan continued to host some of the most expensive neighborhoods in New York City, with seven out of the top 10 spots. Brooklyn also made its presence felt in the top three, securing two spots. Among the top 10 neighborhoods, seven saw an increase in the median sale price, while sales activity decreased in seven of them. Hudson Yards remained the most expensive neighborhood in NYC with a median sale price of $8,150,000, marking a substantial 39% increase from the previous year. This increase can be attributed to the larger average square footage of properties sold in the third quarter of 2023 compared to the previous year. However, Hudson Yards saw an 8% year-over-year decline in the number of residential deals during the quarter. SoHo secured the second spot with a median sale price of $4.2 million, surpassing TriBeCa in the second quarter of 2023. The median sale price in SoHo was 77% higher than in the third quarter of 2022, although the number of sales decreased significantly by 48% during the same period. Brooklyn’s DUMBO took the third position, with a 60% year-over-year increase in its median sale price, rising from $1,775,000 in the third quarter of 2022 to $2,833,000 in the third quarter of 2023. Hudson Square, TriBeCa, Flatiron District, Red Hook, Little Italy, Theatre District-Times Square, and Greenwood Heights completed the top 10. Manhattan’s median sale price was $1,125,000, while Brooklyn’s median reached $805,000 by the end of the third quarter, with more than half of Brooklyn’s neighborhoods experiencing a drop in median sale prices compared to the previous year.

Notably, DUMBO’s 60% increase in median sale price made it one of the top three neighborhoods, marking the second time a Brooklyn neighborhood achieved this since the first quarter of 2023 when Vinegar Hill held the position. DUMBO’s success can be attributed to 15 of its 33 sales taking place at Olympia, a condo building that significantly influenced the median sale price, with condos at Olympia selling for a median price of $4.95 million. Red Hook returned to the rankings after a year, recording nine residential sales above the $2 million median price threshold. Its median sale price also increased by 30% on a quarter-over-quarter basis. Greenwood Heights, previously ranked #23, climbed to the 10th position this year, experiencing the fourth-highest increase in median sale price year-over-year in the third quarter among the top 50 neighborhoods.

The neighborhood also saw a 6% increase in sales activity. In addition to these three neighborhoods, nine more neighborhoods had medians above $1 million, including Cobble Hill and Gowanus, which ranked 11th and 12th, respectively. Both neighborhoods experienced declines in medians and sales activity. Cobble Hill recorded the second-largest decline in year-over-year sales activity, falling by 58%, while Gowanus saw a 35% decrease in sales compared to the previous year. The most significant increase in sales activity was recorded in Manhattan Beach, up 25% year-over-year. Despite the increase in the number of transactions, the median sale price in Manhattan Beach dropped by 5% from the third quarter of 2022 to the third quarter of 2023, standing just below $1 million. Queens saw the sharpest increase in median sale price, with Little Neck experiencing a remarkable 121% year-over-year surge in the third quarter. Little Neck’s median sale price rose from $370,000 in the third quarter of 2022 to $818,000 in the third quarter of 2023, securing its place among the top 50 priciest neighborhoods in NYC. This increase occurred despite a notable drop in sales activity. Among the 50 most expensive neighborhoods, Queens also recorded the most significant decline in sales activity, with Queensboro Hill seeing a 61% decrease in the number of transactions. The most expensive neighborhood in Queens was Hunters Point, with a median sale price of $1,205,000, which was a 14% increase compared to the previous year, although sales activity fell by 21%. Auburndale was the next-priciest neighborhood, with a median sale price of $958,000, marking a 9% year-over-year increase.

Source: Property Shark

New York Real Estate Market: Co-ops Struggle, New Developments Forced, Brooklyn Triumphs

By Columbus International,11 October 202311 October 2023

The decline in New York home sales has left virtually no one in the real estate industry unscathed, with particular areas of the city’s market experiencing the most acute pain. Despite the seasonal increase in property listings this fall, the market won’t escape the grip of the low-supply environment that has kept prices high, even as mortgage rates have surged, further dissuading potential buyers. For instance, on Staten Island, new property listings in August saw a 17 percent drop, and inventory plummeted by 37 percent compared to the previous year. Simultaneously, the median price rose by 3 percent, and the days a property spent on the market increased by a staggering 50 percent, as reported by the Staten Island Board of Realtors. “These are challenging times for the real estate market,” stated Sandy Krueger, CEO of the organization. “But challenges also create opportunities for those who remain attentive to the market’s signals.”

Here are three key signals to watch as the fall selling season gets underway:

Co-ops: The Losers
Co-op properties were already facing difficulties before the increase in mortgage rates impacted sales. Cheaper co-ops have been particularly affected by the rising rates. Buyers in recent years had become increasingly discouraged by the antiquated rules and bureaucracy of co-op boards. Now, with higher mortgage rates, homebuyers on the lower end of the income spectrum find themselves priced out due to co-ops’ stringent debt-to-income and post-close liquidity requirements. Just a year earlier, a couple earning $240,000 annually could borrow $600,000 for a co-op valued at $750,000 and successfully pass a board application. However, in today’s market, this is no longer possible. This situation is striking, considering that $240,000 is roughly three times the area’s median income in New York City, and $750,000 often represents the starting point for homes in many neighborhoods. Monthly charges are also rising in many co-op buildings due to Local Law 97, which caps greenhouse gas emissions in larger buildings, and Local Law 11, which mandates facade inspections and repairs for buildings taller than six stories every five years. This, in addition to rising rents, makes it increasingly challenging for lower-end and first-time buyers to enter the market.

New Development: The Losers
Developers who had been waiting for a more favorable economic climate before launching their projects may now be compelled by their loan terms to list properties this fall. Projects with units lingering on the market may be forced to offer price reductions. Developers have pre-payment milestones with their lenders and can no longer delay their projects. While some units were overpriced for the current rate environment, others missed the post-lockdown market boom due to supply and labor shortages. For instance, the last available penthouse at One Clinton Street in Brooklyn Heights recently sold for $8 million, down from the original asking price of $10.2 million. An opportunistic buyer’s broker can search for older properties that may have been overlooked, presenting an excellent investment opportunity in the city.

Brooklyn: The Winner
Brooklyn’s real estate market has remained strong throughout the year, a trend that is expected to continue into the fall. Brooklyn has been outperforming Manhattan in terms of market expediency, primarily due to the demand for more space and outdoor living. Brooklyn has been growing into a primary market for years, a trend that accelerated during the lockdown period of the pandemic. Buyers sought to avoid high-rise elevators, subways, and crowded streets. Although transit use has mostly recovered, the shift towards Brooklyn shows no signs of slowing down. “The trend for Brooklyn has been on fire,” remarked UrbanDigs founder John Walkup.

Source: TRD

Trump Looks for Information Regarding the Future of His Family’s New York Real Estate Holdings (Wall Street Journal)

By Columbus International,11 October 2023

According to The Wall Street Journal, Donald Trump’s legal team has sought clarity from New York State Supreme Court Justice Arthur Engoron regarding a ruling that could potentially strip the former president of control over part of his real estate empire.

Justice Engoron recently ruled in a civil case brought by New York State Attorney General Letitia James, stating that Trump and his company had committed fraud by falsely valuing his properties. This ruling could significantly impact the Trump family’s business entities, potentially affecting hundreds of entities, including real estate assets like Trump Tower. The judge has ordered the cancellation of legal certificates that permitted these entities to conduct business in New York and instructed both parties to identify a receiver to oversee their dissolution.

This decision could also affect trial proceedings set to begin on Monday, where further allegations of fraud will be addressed. Trump’s lawyers have sought clarification on the ruling’s impact, including whether affected properties will be sold or managed by the receiver. James’ lawsuit alleges that Trump inflated his net worth by falsely valuing his properties, potentially impacting his ability to obtain favorable bank loans. In addition to canceling business certificates, James has sought $250 million in penalties. Trump has accused James of pursuing him for political reasons, arguing that asset valuations are subjective and that no one suffered financial harm.

Canceling business certificates is a drastic remedy, typically reserved for cases involving illegal enterprises or fraudulent schemes. The ruling effectively bars Trump from transacting business in New York, potentially affecting his financial interests within the state, though the fate of his out-of-state assets connected to New York-based corporate entities remains unclear. Despite its potential financial impact, Trump’s business focus has shifted away from New York over the last two decades, emphasizing deals in other states and countries.

Many New York buildings bearing the Trump name have been renamed due to his policies and persona’s unpopularity among New York voters. The Trump Organization’s last significant deal in New York City was a hotel and condominium development in Soho, which underwent a name change in 2017 amid controversy.

New York City’s Urban Renaissance: from Offices to Homes, Unveiling the City’s Bold Transformations

By Columbus International,17 August 2023

There has been significant discussion surrounding the transformation of office spaces into residential properties in New York, accompanied by inquiries into the entities successfully executing these endeavors.

An analysis conducted by The Real Deal delved into alteration permits filed between 2022 and 2023, revealing the most substantial office-to-residential conversion projects.

The following are summaries of the five most notable ventures:

25 Water Street

Following the inauguration of Harry Macklowe’s One Wall Street in March, the mantle for the largest office-to-residential conversion in the country shifted to 25 Water Street. This project involves altering over 900,000 square feet of the building’s 1.1 million square feet. Formerly recognized as 4 New York Plaza, this 22-story office edifice previously housed notable occupants like the New York Daily News, American Media, and J.P. Morgan Chase. In the wake of the pandemic, these entities vacated the premises. The property was acquired by GFP Real Estate and Nathan Berman’s Metro Loft Management for $250 million in December. Their vision encompasses adding 10 additional floors and reimagining the interior to create open and well-lit spaces, including courtyards. Anticipated to yield around 1,200 rentals, the apartments will span from studios to four-bedroom units, accommodating approximately 50 residences on each floor. Certain units will feature 10-foot ceilings and dedicated home office spaces.

160 Water Street

The transformation of this 487,000-square-foot former office building in the Financial District is overseen by architecture firm Gensler. The project entails augmenting the existing 24-story structure by five floors. The resulting 586 rental units will enjoy access to shared amenities such as a rooftop terrace, gymnasium, co-working areas, dining spaces, a bowling alley, and a spa. The expansive redesign and expansion have secured financing through a $272.5 million loan from Brookfield Real Estate Financial Partners. Vanbarton Group, the developer, intends to reconfigure the building’s facade as part of the revitalization. Occupants are expected to begin moving in starting September 2024.

55 Broad Street

Located in proximity to the site of Lower Manhattan’s forthcoming tallest residential tower at 45 Broad Street, Silverstein Properties and Metro Loft Management are collaborating on the conversion of 55 Broad Street. This office building will be transformed into 571 market-rate rental units. The acquisition of the property, made in July from Rudin Management at a cost of $172.5 million, involved the former owner retaining a stake in the project. Recent permits filed in August have designated 49 Broad Street as the locus for a construction endeavor encompassing more than 400,000 square feet. This entails the addition of six stories to the existing 30-story structure. Among the amenities planned are a private club, fitness facilities, co-working spaces, and a rooftop pool featuring a landscaped sundeck and grilling area. The construction is slated to commence this month.

650 First Avenue

Acquired by Lalezarian Properties for $33.5 million on March 23, this eight-story office building in Murray Hill received the green light from the Department of Buildings for conversion into residential spaces. Upon completion, the property will encompass 23,000 square feet of commercial area and over 116,000 square feet of housing, according to official filings.

330 West 42nd Street

In Midtown, Resolution Real Estate is embarking on a significant undertaking involving the partial conversion of the McGraw-Hill Building at 330 West 42nd Street. As a designated city landmark with 33 stories and art deco architecture, the tower will witness the transformation of more than 560,000 square feet into 224 rental units. These units will span from studios to two-bedroom residences and will occupy floors 12 through 32. Notably, the renovation, totaling $100 million, will not impact office contracts; corporate lessees will continue to rent space on the lower floors. Prior to this overhaul, the owners expended $40 million to restore the building’s historic appearance, which included the removal of non-historical windows along one of the city’s prominent thoroughfares.

NYC Roars Back: Recaptures 99% of Pandemic Jobs, Yet Economic Gains Dance to Different Beats

By Columbus International,4 August 2023

New York City‘s private sector job market has successfully rebounded to pre-COVID-19 levels, although the recovery varies significantly across different industries. The recent analysis was hailed as positive news for the city’s economic outlook by State Comptroller Thomas DiNapoli. He emphasized that while sectors like securities, transportation, warehousing, and offices have displayed resilience and growth, others such as retail, restaurants, construction, and tourism are still struggling to catch up with the national recovery pace.

This study sheds light on the ongoing challenges that New York City continues to grapple with following the economic disruptions caused by the COVID-19 pandemic. The analysis comes shortly after the conclusion of a three-year-long national emergency officially declared by the federal government.

As of March 2023, New York City has managed to restore 99.4% of its total private sector employment figures from March 2020, when the initial cases of coronavirus were reported in the state. Specifically, the analysis reveals a 6.41% surge in securities-related positions, totaling 192,700 jobs, between March 2019 and March 2023. Office jobs also experienced a 3.72% increase during the same period, amounting to a total of 1,513,100 positions, despite a 22% current vacancy rate in commercial office spaces. Transportation and warehousing sectors exhibited modest growth, reaching 130,300 positions. However, the arts, entertainment, and recreation industry underwent a substantial decline of 14.59%, leaving a total of 79,600 jobs, down from 93,200 in 2019.

Tourism faced a similar setback, losing 14.50% of its workforce, which now stands at 243,153 jobs. Retail experienced a reduction of 12.65%, with employment dropping from 343,900 jobs in March 2019 to 300,400 jobs in March 2023. Construction jobs saw an 8.07% decrease, totaling 145,900 positions across the city’s five boroughs. Furthermore, the restaurant sector encountered a 4.54% decrease in staffing.

In total, New York City’s private sector employment currently stands at 4,078,300 jobs, reflecting a 1.06% overall increase compared to the 4,035,500 jobs recorded four years ago. DiNapoli cautioned that industries facing ongoing challenges, including the arts, hospitality, and retail sectors, must regain a substantial number of jobs to ensure the stability and long-term growth of the positions that have already been restored. He emphasized the importance of these sectors, which collectively employ hundreds of thousands of workers, in contributing to a robust and inclusive economic recovery that benefits all residents of New York City.

Rub Shoulders with Nicole Kidman and Domenico Dolce in this New York City Home. The price? Just $9 Million!

By Columbus International,28 July 2023

Get ready for a luxury and glamorous adventure in the heart of Chelsea!

Located at 200 11th Ave, a building renowned for housing celebrities like Nicole Kidman, Domenico Dolce, and Diana Widmaier Picasso, it is now capturing attention with a new real estate offer. This extraordinary paparazzi-proof Chelsea duplex even had its moment in the spotlight during a Vogue photoshoot back in 2015. The Chelsea duplex, spanning an impressive 2,364 square feet, offers ample and sophisticated space, but what truly sets it apart is the private sky garage situated at the same level as the apartment. You can park your car in style without having to descend into an underground parking lot. And all of this can be yours for the price of $9 million, nearly double what it was purchased for in 2010 when it was acquired through the Perdita Real Estate LLC for $5.52 million. The sellers, David Levy and Amanda Bowman, are well-known for hosting numerous charity events in their residence. However, their generosity extends beyond that. In 2015, the same year they were featured in Vogue, they decided to donate a custom-built mansion from 1996, located in Sloatsburg, NY, to the Archdiocese of New York. Initially listed for $8 million in 2009, they later lowered the price to $3.5 million, but still had no takers. Ultimately, their altruistic spirit led them to donate the residence.

The West Chelsea home boasts towering 24-foot-tall ceilings, creating an atmosphere of elegance and grandeur. The panoramic view of the Hudson River adds a touch of enchantment to the overall picture. The design of the residence is truly a sight to behold, with window walls and French doors overlooking the splendid Hudson River panorama. These features have not only caught the attention of Vogue but have also been featured in prestigious design magazines like Casa Vogue and New York Design Magazine. The interior is equally stunning, with folding teak doors that open up to a chef’s kitchen, making it a haven for even the most discerning cooks. The main bedroom suite, situated on the top floor, ensures the utmost comfort and privacy. The spa-like bathroom is a true oasis of relaxation, while a sliding pocket door leads to a third bedroom suite with its own private bathroom. This real estate gem is a testament to the luxury and extraordinary lifestyle of its inhabitants. It presents a unique opportunity to immerse yourself in the elegance and prestige of one of the most coveted areas of New York City. If you’ve ever dreamt of living like a celebrity, don’t miss out on this opportunity, as time is precious, and this dream residence could soon become your exclusive retreat!

Source: New York Post