MilanoSesto

Milan Emerges as Europe’s Third Wealthiest Metropolis, Attracting Global High-Net-Worth Individuals

Milan has solidified its position as a magnet for global wealth, climbing to eleventh place on Henley & Partners’ ranking of the world’s top 50 cities attracting ultra-high-net-worth individuals. With 115,000 millionaires and 17 billionaires now calling the city home, Milan stands as Europe’s third wealthiest city, trailing only London and Paris in its concentration of extraordinary wealth.

A Decade of Wealth Accumulation

The Lombardy capital has experienced remarkable growth in its millionaire population, with a 24% increase over the past decade from 2014 to 2024. This positions the city globally between Sydney and Chicago, and ahead of Beijing in Henley & Partners’ prestigious wealth rankings.

This wealth migration phenomenon reflects Milan’s multifaceted appeal to the global elite. The Italian government’s flat tax program for high-income new residents has created a favorable tax environment that has clearly resonated with international wealth holders. However, Milan’s success extends well beyond tax policy.

Economic Renaissance and Business Magnetism

Milan’s traditional strengths in fashion, luxury goods, and design continue to serve as powerful wealth generators and attractors. These heritage industries have been complemented by a broader business renaissance that has seen the city welcome 49 new foreign multinational corporations in 2023 alone.

The commercial real estate sector provides further evidence of Milan’s growing international prominence, with €600 million in commercial real estate investments recorded. This performance places Milan in the same league as established global business hubs like Barcelona and San Francisco, which attracted €600 million and €900 million respectively.

Residential Real Estate Boom

The residential property market has reflected this influx of wealth, with particularly strong performance in new housing developments. In 2024, new residential properties accounted for over 22% of all real estate transactions in Milan, significantly outpacing the Italian national average of 12.8%.

This premium sector performance demonstrates how wealth concentration directly influences the city’s physical development, with demand for high-quality residential options driving new construction and urban renewal.

Post-Pandemic Economic Resilience

Perhaps most impressive is Milan’s exceptional economic recovery following the global pandemic. According to research conducted by Assolombarda, Milan has achieved a remarkable 8.7% GDP growth from 2019 to 2023, outperforming other major global cities.

This recovery surpasses Amsterdam (+8.1%), Berlin (+6.9%), New York (+4.4%), Munich (+2.2%), Barcelona (+1.9%), and London (+0.1%). Notably, Paris remains 2.6% below its pre-pandemic economic output, highlighting Milan’s particular resilience.

Future Outlook

Milan’s emergence as a wealth hub appears to be more than a temporary trend, with structural economic strengths, quality of life benefits, and strategic policy decisions creating a sustainable foundation for continued prosperity.

As global wealth mobility increases in response to political and economic factors, Milan’s balanced offering of business opportunity, cultural richness, and lifestyle benefits positions the Lombardy capital to potentially climb even higher in global wealth rankings in the coming years.

The challenge for city leadership will be managing this wealth influx to ensure it benefits the broader metropolitan community while preserving the authentic character that makes Milan attractive in the first place.

Market Volatility Creates Unprecedented Disruption In Ultra-Luxury Real Estate

Recent market volatility has triggered a significant and abrupt shift in the ultra-luxury residential real estate sector, with high-net-worth individuals reconsidering or abandoning multi-million dollar property acquisitions amid economic uncertainty. According to recent reporting by The Wall Street Journal, this sudden pullback signals a potential turning point for a segment of the market that had remained seemingly impervious to broader economic pressures.

Wealth Effect In Reverse

The luxury property market, which has demonstrated remarkable resilience through interest rate hikes that slowed mainstream housing, is experiencing what economists term a reverse wealth effect. When high-net-worth individuals witness portfolio values decline, psychological barriers to large discretionary purchases emerge regardless of their overall financial stability.

A case in point: a New York real estate agent, Peter Ocean, had secured a $10.25 million deal for a four-bedroom Lenox Hill co-op in early March, only to see it collapse days before contract signing when market turbulence eroded the buyer’s stock portfolio by approximately 25%, as reported by The Wall Street Journal.

This pattern is repeating across the nation’s most exclusive enclaves. In Bel-Air, a $65 million transaction fell through when international buyers backed out during their contingency period following market fluctuations. Meanwhile, in Coral Gables, Florida, a businessman requested a 30-day pause on negotiations for a $42 million, 15,000-square-foot residence due to concerns about his China-dependent import business.

Strategic Recalibration Among Affluent Buyers

The market disruption extends beyond immediate wealth preservation concerns. The Wall Street Journal reports that some affluent buyers are strategically repositioning capital that would have been allocated to luxury residences.

In Brooklyn’s Park Slope neighborhood, business owners Joanna Neumann and her husband rescinded their offer on a $3.995 million brownstone despite it being their “dream home.” Their priority shifted to maintaining liquidity to support their gym business should economic conditions deteriorate further.

This calculation—weighing dream properties against business needs—represents a significant psychological shift in a market segment where discretionary purchasing power has seemed limitless in recent years.

Geographic Breadth Of The Pullback

The luxury market cooling is geographically diverse, affecting established wealth centers and emerging luxury destinations alike. According to The Wall Street Journal:

  • In Aspen, Colorado, approximately $100 million in high-end properties returned to the market in early April, including a $52.5 million West End residence that was relisted after falling out of contract
  • In Houston, Texas, a $1.3 million verbal offer was withdrawn as buyers cited market uncertainty
  • In Morris Township, New Jersey, an $9.95 million castle lost its buyer during due diligence
  • In Ridgewood, New Jersey, a $1.8 million property fell out of contract on April 2, coinciding with presidential trade action

The impact spans primary residences, vacation properties, and investment acquisitions alike, suggesting a broad-based recalibration of risk assessment among affluent buyers.

Market Context And Forward Indicators

The current disruption follows a period of extraordinary growth in luxury real estate. According to data cited by The Wall Street Journal from Redfin, the median sale price for U.S. luxury homes—defined as the top 5% of sales—increased 8.8% during the second quarter of 2024, outpacing non-luxury properties by more than double.

This price appreciation, coupled with limited inventory in premier markets, had created a seller’s market that appeared unstoppable. Recent market events, however, have prompted a reset in both seller expectations and buyer confidence.

Strategic Implications For Market Participants

Industry professionals are divided on whether the current pullback represents a temporary hesitation or the beginning of a more substantial correction. Some agents report continued interest from buyers seeking to diversify away from equities, while others note a wait-and-see approach among clients.

For sellers, the changing dynamics may require strategic patience. The Lenox Hill co-op owner who lost a $10.25 million deal subsequently rejected a $9 million offer, banking on market stabilization restoring buyer confidence.

For the ultra-wealthy, these decisions ultimately reflect portfolio management strategies rather than housing necessity—a fundamental distinction from the broader housing market that makes luxury real estate both more volatile and potentially more resilient in response to economic uncertainty.

As markets attempt to find equilibrium amid ongoing economic and policy developments, the luxury real estate sector may serve as a leading indicator of high-net-worth investor sentiment and their longer-term confidence in economic conditions.

Casa Cipriani Expands Beyond New York and Milan with Luxurious Florida Beachfront Development

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Iconic Italian Hospitality Brand Announces First Residential Venture in Miami Beach’s Prime Oceanfront Location

Casa Cipriani, the storied Italian hospitality brand synonymous with refined luxury, is making waves in the South Florida real estate market with its ambitious expansion plans. The iconic brand is set to launch its first Florida location—a sophisticated development that will feature 23 ultra-luxury condominiums alongside a boutique 40-room hotel and an exclusive private members’ club.

According to sources close to the project, this unprecedented venture will be housed in a striking 17-story oceanfront tower at 3611 Collins Avenue in Miami Beach, positioning the development in one of the most coveted coastal strips in the country.

This marks Casa Cipriani’s strategic entrance into the luxury real estate sector, establishing its presence in a prestigious oceanfront district that recently welcomed the new Aman Miami Beach just blocks away—further cementing the area’s status as a hub for ultra-luxury branded residences.

The ambitious project represents a powerhouse collaboration between three major players: Arnaud Karsenti’s Miami-based 13th Floor Investments, Joseph Cayre’s Midtown Equities, and the legendary Cipriani family themselves.

Acclaimed architect Brandon Haw has been commissioned to design the building, which promises to masterfully blend Miami Beach’s iconic Art Deco heritage with the timeless Cipriani aesthetic—an elegance that traces back to 1931 when Giuseppe Cipriani founded the original Harry’s Bar in Venice, Italy.

A project spokesperson revealed exclusively that the luxury residences, ranging from one to four bedrooms, are expected to command starting prices in the $25 million range when sales launch later this year. Construction is slated to commence shortly thereafter, signaling confidence in Miami’s resilient luxury market despite broader economic uncertainties.

While Casa Cipriani may be new to Miami, the Cipriani family’s impressive portfolio already boasts a significant Florida presence, including the under-construction Cipriani Residences Miami, Cipriani Downtown Miami restaurant on Brickell Avenue, the completed Mr. C Residences and Mr. C Hotel in Coconut Grove, and a forthcoming Mr. C Hotel & Residences in West Palm Beach.

“Casa Cipriani is fundamentally about comfort, privacy, service and elegance,” explains Maggio Cipriani, president of Cipriani USA and fourth-generation family member. He emphasizes that the Miami location will deliver the exceptional private club experience “that our members cherish” while offering a “unique opportunity to call this extraordinary place home.”

The development will feature an impressive array of premium amenities, including a dedicated private entrance for residents, signature dining experiences, comprehensive in-home dining and catering services, exclusive private dining rooms, a swimming pool serving Cipriani’s acclaimed food and beverages, a world-class spa, a sophisticated lounge, and a state-of-the-art fitness center.

Industry analysts note that this development represents a significant vote of confidence in Miami’s ultra-luxury market, as well as the continuing trend of prestigious hospitality brands extending into the residential real estate sector to meet growing demand for branded living experiences.

Source: New York Post

Mercato immobiliare New York

Manhattan Rents Shatter Records: New York’s $1 Trillion Real Estate Market’s Post-Pandemic Transformation

When the pandemic struck New York in early 2020, it delivered a seismic shock to what was already the world’s most valuable real estate market. Office towers emptied overnight. Luxury condos sat vacant. Rental prices plummeted. The prevailing narrative quickly became one of exodus and existential crisis for a city whose identity has always been inextricably linked to its real estate.

Five years later, that apocalyptic vision has given way to something more nuanced: New York hasn’t died—it’s transformed.

The Ultra-Wealthy Have Doubled Down on Manhattan

While nearly 350,000 residents fled between 2020 and 2023, the widely predicted collapse of New York’s high-end real estate market never materialized. In fact, data shows the opposite has occurred.

“The luxury segment has outperformed every forecast,” says Jonathan Miller, CEO of Miller Samuel Real Estate Appraisers & Consultants. “We’re seeing unprecedented demand at the $10 million-plus price point, particularly in new development.”

This resilience is reflected in record-breaking transactions. In Q4 2024, Manhattan saw 47 residential sales above $10 million, a 28% increase from pre-pandemic levels.

The initial pandemic exodus of ultrawealth—when the city lost approximately 17,500 residents from the top 1% income bracket—has reversed. By 2023, net migration of high-net-worth individuals stabilized, with family offices reporting a surge in Manhattan investment activity.

“For sophisticated investors, New York presented an unprecedented buying opportunity,” explains Elizabeth Warren, head of urban investment strategy at Blackstone Real Estate. “The fundamentals never changed—limited land, global appeal, and institutional-grade assets available nowhere else.”

Trophy Assets, Trophy Prices

The median Manhattan sales price hit $1.3 million in Q4 2024, up 36% from Q1 2020. Brooklyn followed with median prices crossing the $1.1 million threshold.

Even more telling: prime assets have commanded extraordinary premiums. The penthouse at 220 Central Park South traded for $102 million in September 2024, while commercial properties in prime locations have maintained cap rates under 4%, defying national trends.

But this prosperity has been highly concentrated. “We’re witnessing a barbell market,” notes Donna Olshan, president of Olshan Realty. “Unprecedented strength at the luxury end, desperation in the middle, and a social services emergency at the affordable end.”

The Office Market’s $100 Billion Question

Manhattan’s 419 million square feet of office space—valued conservatively at $500 billion—faces unprecedented challenges. Vacancy rates hover at 18.2%, more than six times higher than 2000 levels, with empty space equivalent to 32 One World Trade Centers.

This vacancy crisis has triggered the most significant repricing of commercial assets in modern history. Class B and C office buildings have experienced value declines of 40-60%, with distressed sales becoming increasingly common.

“We’re seeing the Great Conversion,” explains Mary Ann Tighe, CEO of CBRE’s New York Tri-State Region. “Properties that no longer make economic sense as offices are finding new life as residential, life sciences, or mixed-use developments.”

This transformation is accelerating, with over 14 million square feet of office space currently undergoing conversion plans. The Adams administration has streamlined zoning to facilitate these transitions, recognizing that commercial-to-residential conversions represent a critical opportunity to address the housing crisis.

The Housing Crisis Intensifies: Manhattan Rents Break Records

For ordinary New Yorkers, the post-pandemic real estate market has become increasingly punishing. The median Manhattan apartment rent reached an all-time high of $4,500 in February 2025, surpassing the previous record of $4,400 set in August 2023, according to data from brokerage Douglas Elliman.

This new peak signals an ominous trend for renters amid slowing housing construction and stubbornly high housing prices across all boroughs. Industry experts see no relief in sight for the multifamily market that has consistently defied expectations of a correction.

Even the historically affordable Bronx has seen rent increases approaching 40%. Nearly 630,000 households—or roughly one in four New York renters—now spend more than half their income on housing.

This affordability crisis has pushed the city’s rental assistance spending to unprecedented levels—$1.1 billion for the current fiscal year, compared to $302 million in 2021.

Despite these challenges, 2024 saw 34,000 new housing units delivered, the highest production since 1965. “But we need to triple that output annually for the next decade to achieve market equilibrium,” warns Vishaan Chakrabarti, founder of PAU architectural firm and former Manhattan planning director.

The Demographics Driving Demand

New York’s real estate future hinges on demographics, and the trends are contradictory. The city recorded just 99,000 births in 2021-2022, the lowest level since the Great Depression. Public school enrollment has plummeted, with 111,000 fewer students than in the 2018-19 academic year.

Families with young children were more than twice as likely to leave the city in 2023 as childless households. Black residents continue to exit at twice the rate of white residents, accelerating a pre-pandemic trend.

Yet immigration has provided crucial population stability. More than 230,000 migrants have arrived since spring 2022, helping push the population back to 8.48 million by the end of 2024—still 262,000 below 2020 levels.

A Real Estate Market for the 1%

The pandemic has accelerated New York’s evolution into a city of extremes. While lower-paying jobs in home healthcare have grown 45% since December 2019, middle-income sectors like retail and construction have contracted dramatically, shedding 54,100 and 30,700 jobs respectively.

This economic polarization is reflected in housing development. “Luxury units and affordable housing get built because they have separate financing ecosystems,” explains Rafael Cestero, former NYC Housing Commissioner. “What’s disappeared is market-rate housing for the middle class.”

The data bears this out: 60% of new housing starts in 2024 were either luxury (defined as exceeding 175% of median prices) or subsidized affordable housing. The middle market has all but vanished.

Investment Implications: The Next Five Years

For real estate investors, New York presents both extraordinary risks and opportunities:

  1. Trophy commercial assets will maintain value. Prime office buildings with ESG credentials and modern amenities continue to command premium rents and institutional capital.
  2. Distressed commercial assets represent generational buying opportunities. Buildings trading at 40-60 cents on the dollar can yield exceptional returns through conversion or repositioning.
  3. Multifamily remains the safest bet. With rental demand exceeding supply by approximately 200,000 units, well-located rental properties continue to outperform all other asset classes.
  4. Retail is experiencing a renaissance in select corridors. High-street retail in SoHo, Fifth Avenue and the Meatpacking District has recovered to pre-pandemic rents, while secondary locations remain challenged.
  5. Industrial and logistics assets command premium valuations. Last-mile delivery facilities in the outer boroughs have seen 85% value appreciation since 2019.

As New York evolves, its real estate market is becoming even more stratified—a mirror of the city’s widening economic divide. The question isn’t whether New York is “back,” but rather, what kind of New York is emerging. The answer, increasingly, is a tale of two cities within the same 302 square miles, each operating under different economic realities but bound by the same fundamental asset: some of the most valuable real estate on earth.

“The pandemic didn’t break New York’s real estate market,” concludes Barry Sternlicht, CEO of Starwood Capital Group. “It accelerated trends that were already underway, creating a market that’s simultaneously more global and more local, more luxury-focused and more subsidy-dependent than ever before.”

For investors with the capital and vision to navigate this new landscape, the opportunities remain as outsized as the buildings that define the skyline—provided they understand which New York they’re betting on.

Sources: Bisnow | The New York Times

Upper East Side

Giuliani Slashes Price on NYC Penthouse Following Legal Settlement

Former New York City Mayor Rudy Giuliani has relisted his Manhattan penthouse at a significantly reduced price following the resolution of his high-profile legal battle with two Georgia election workers, according to real estate records.

The three-bedroom Upper East Side residence hit the market Monday for $5.2 million—representing a substantial $1.4 million price reduction from its previous listing price.

This latest listing comes just days after a judge declared Giuliani had “fully satisfied” the terms of a settlement agreement with Ruby Freeman and Shaye Moss, two Georgia election workers who had successfully sued him for defamation. As The New York Post reported, the settlement allowed Giuliani to retain ownership of valuable assets—including this penthouse—that might otherwise have been seized to satisfy the $140 million judgment against him.

Luxury Living in Historic Landmark

The penthouse, located in the prestigious Lenox Hill neighborhood, offers luxury amenities rarely found in Manhattan’s high-end market. The property features a wood-paneled library, a wood-burning fireplace, and a glass conservatory. Previous listing photographs showcased Giuliani’s memorabilia collection, including a signed replica of Joe DiMaggio’s Yankees jersey presented to him in 2002.

Situated in a Gothic-inspired terra cotta and brick building constructed in 1906 and designated a landmark in 1977, the residence provides panoramic Central Park views. The white-glove cooperative includes full-service amenities with a monthly maintenance fee of $10,934 covering door attendants, porters, and a resident manager.

History of Price Reductions

This isn’t Giuliani’s first attempt to sell the property. According to listing history, the penthouse was initially offered in summer 2023 for $6.3 million and has undergone three separate price reductions since then.

The New York Post reported that prior to the recent legal settlement, Giuliani had made “a last-ditch bid to sell the pad at a $1 million discount” before it could potentially be seized by Freeman and Moss, who had successfully sued him after he accused them of ballot tampering during the 2020 election.

The current listing is being handled by Serena Boardman at Sotheby’s International Realty.

Boxing Legend Floyd Mayweather Expands Real Estate Empire with $402 Million Manhattan Portfolio

This article is featured in the “Newsroom” section of Columbus International, a real estate boutique founded by Richard Tayar with offices in New York, Miami, Milan, and Florence. Columbus International specializes in residential, commercial, luxury real estate and investment opportunities in bridge markets between Italy and the United States.

The Undefeated Champion Takes His Winning Strategy from the Ring to New York’s Property Market

Former boxing champion Floyd Mayweather Jr. has delivered a knockout punch in the New York real estate market with his latest acquisition—a massive $402 million multi-family portfolio in Upper Manhattan. The undefeated athlete, known for his financial acumen as much as his boxing prowess, shared the news with his nearly 29.7 million Instagram followers in characteristic victory style.

“All the buildings belong to me, I don’t have no partners,” Mayweather declared in his social media announcement. “And all the retails down below on my buildings, all of them belong to me too. You can do the same. It’s all about making power moves.”

The impressive portfolio includes 62 multifamily properties comprising more than 1,000 units, many of which are rent-stabilized, according to earlier reporting by The Real Deal. The acquisition was made through Mayweather’s real estate investment firm, Vada Properties.

Building a Diversified Real Estate Portfolio

This Upper Manhattan investment represents just one component of Mayweather’s rapidly expanding real estate empire. The boxing legend has demonstrated strategic diversification across various property segments:

  • A $100 million investment in a $3 billion luxury rental portfolio joint venture, including The Copper’s twin residential towers in Murray Hill
  • Another $100 million investment across nine skyscrapers in partnership with SL Green, New York City’s largest commercial landlord
  • An 18-asset deal in November spanning properties in New York, Chicago, and Jersey City, marking his entry into office real estate
  • Personal residential moves including the purchase of a five-bedroom unit in the Baccarat Hotel and Residences in Midtown Manhattan

Luxury Living and Strategic Divestments

Mayweather’s personal real estate portfolio has seen significant activity as well. The Post’s Gimme Shelter reported on his New York house hunt late last year, which included touring a $150,000-per-month Soho bachelor pad and a Gilded Age mansion before settling on his Baccarat residence.

The entrepreneur has also been strategically divesting properties, selling a $22 million home in Miami’s Biscayne Bay last year and recently listing his $12.5 million Las Vegas mansion.

Beyond Real Estate: Sports Ownership Aspirations

As Mayweather celebrates his 48th birthday, the billionaire’s increased presence in New York City isn’t solely attributed to his real estate ventures. Reports suggest he’s exploring potential plans to purchase a minority stake in the New York Giants alongside business partner and real estate magnate Meyer Orbach.

Mayweather’s aggressive expansion into real estate comes at a time when many investors have retreated due to high borrowing costs, particularly in the affordable housing segment. This countercyclical approach aligns with the boxing champion’s career-long strategy of identifying opportunities where others see obstacles.

“Over 1,000 apartments, I’m just getting started,” Mayweather stated confidently in his Instagram post, suggesting this latest knockout acquisition is merely the opening round in his real estate championship bout.

Italian Luxury Powerhouse Boggi Milano Makes Bold U.S. Entry with New York Flagship

Boggi Milano, the sophisticated Italian menswear brand with a global footprint spanning 58 countries, has officially planted its flag in the U.S. market with the grand opening of its first American retail location in New York City’s fashionable SoHo district.

The 1,900-square-foot boutique at 115 Mercer Street represents just the initial phase of an aggressive expansion strategy. The luxury retailer has already secured leases for two additional high-profile Manhattan locations: an impressive 8,810-square-foot, two-story space at 527 Madison Avenue (corner of 54th Street) slated to open this spring, and a 6,000-square-foot, dual-level store at The Shops at 10 Columbus Circle, expected to welcome customers this summer.

This strategic U.S. market entry comes at a poignant moment for the company, following the recent passing of CEO and owner Carlo Zaccardi. “In these last months, Carlo taught us what it meant to fight,” said Claudio Zaccardi in a statement to Spin Off. “Carlo was a tireless worker, even his last day was spent working with his co-workers.”

Carlo Zaccardi, along with brothers Claudio and Roberto, acquired the Boggi Milano brand in 2003, transforming it into a retail powerhouse with more than 225 stores worldwide. At just 58, his untimely death after a lengthy illness left what his brother described as “a great void but at the same time an immense legacy of values and strategy.”

The Milan-headquartered brand has built its reputation on contemporary men’s tailored clothing, sportswear, and accessories, distinguishing itself through a commitment to sustainability with organic fibers, recycled materials, and innovative fabric technologies. The company’s dedication to excellence extends to its workforce, evidenced by the 2016 launch of the Boggi Milano Academy, an internal program focused on employee development and staying ahead of global fashion trends.

Industry observers will be watching closely as this Italian luxury contender establishes its American presence in one of the world’s most competitive retail markets.

Source: Fashion United
Image: Instagram – Boggi Milano

Il caso Madison Avenue

NYC Retail Surge: IBM Building On Sale as Madison Avenue Booms

Historic IBM Building Hits Market at $1.1 Billion While Madison Avenue Retail Flourishes

In a pivotal moment for Manhattan’s trophy office market, the iconic 590 Madison Avenue – long known as the IBM Building – has been put up for sale with an ambitious $1.1 billion price tag. The State Teachers Retirement System of Ohio, which acquired full ownership of the property in 2015 after initially purchasing it with Edward J. Minskoff Equities in 1994, has enlisted Eastdil Secured to market the prestigious asset.

The 41-story, 1-million-square-foot Midtown tower represents the first potential billion-dollar investment sale in New York City in two years. The timing is particularly significant as it coincides with a reinvigorated retail leasing landscape across key Manhattan corridors, according to the latest Real Estate Board of New York (REBNY) report.

This is a watershed moment for Manhattan commercial real estate. The IBM Building sale will be closely watched as a barometer for how investors truly value premium Manhattan assets in the post-pandemic landscape.

While IBM itself has relocated to SL Green’s One Madison Avenue development, the property at 590 Madison continues to attract blue-chip tenants. Luxury conglomerate LVMH recently secured 150,000 square feet across four office floors at an impressive asking rent of $190 per square foot, with potential plans to expand into the building’s retail space.

Other notable tenants include Reverence Capital Partners, E.F. Hutton, and Crestview Partners. Edward J. Minskoff Equities, which continues to manage the property, is transforming IBM’s former client-facing space into premium amenities available to all tenants.

Madison Avenue’s Retail Renaissance

The iconic tower’s sale coincides with a remarkable retail recovery along Madison Avenue, particularly in the luxury corridor between 60th and 76th streets, where storefronts are nearly fully leased with prestigious brands like Giorgio Armani and Van Cleef & Arpels.

“Madison Avenue has maintained its position as one of Manhattan’s most in-demand retail destinations,” notes the REBNY report. The area has benefited from fashion retailers new to the city, including Boggi Milano at 527 Madison, part of a trend that accounted for 20% of major recent leasing deals.

The retail revival extends beyond Madison Avenue, with seven blocks of Bleecker Street in the West Village approaching full occupancy. Rockefeller Center’s retail space is now completely leased, with a new Eataly Cafe expected to open this year.

However, the recovery remains uneven. Despite increased demand, “asking rent in every corridor except Bleecker Street is at least 10% below its pre-pandemic peak,” according to REBNY’s research head Keith DeCoster. Certain areas, including Midtown Third Avenue, Times Square, and Herald Square, continue to face challenges.

IBM’s Strategic Relocation

IBM’s move from its namesake building to One Madison Avenue has helped energize the eastern portion of the Flatiron District. The tech giant’s relocation is part of a broader trend of companies seeking modernized office spaces with state-of-the-art amenities.

IBM’s new home at One Madison represents the evolution of corporate office demands in the post-pandemic era. This shift has created a domino effect of positive retail activity throughout the neighborhood.

All of One Madison’s storefronts are now leased, including to celebrated chef Daniel Boulud’s new La Tete D’or steakhouse, further enhancing the area’s appeal.

The REBNY report identified multiple factors driving Manhattan’s retail resurgence in the latter half of 2024, including a strong jobs market, healthy tourism, and “back-to-office momentum.” These elements have contributed to several large-scale retail deals, including Ikea on Fifth Avenue and Burlington on Sixth Avenue’s Ladies Mile, some spanning up to 80,000 square feet.

As Manhattan’s retail and office landscapes continue their evolution, the pending sale of 590 Madison Avenue stands as a critical test of investor confidence in New York City’s commercial real estate market. Whether the property achieves its ambitious $1.1 billion asking price could set the tone for trophy asset valuations throughout 2025.

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The $300 Million Leaning Tower of Manhattan: A Real Estate Development Gone Wrong

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In New York‘s competitive luxury real estate market, the story of 1 Seaport stands as a cautionary tale of ambitious development, cost-cutting decisions, and devastating consequences. The 60-story glass residential skyscraper, developed by Fortis Property Group with projected sales of $300 million, now leans up to eight inches off-center—a $250 million mistake that remains unfinished and embroiled in litigation.

A Promising Start

When Fredrik Eklund, star broker of “Million Dollar Listing New York,” secured the exclusive rights to sell 1 Seaport’s units in 2016, the project seemed destined for success. Within eight weeks, Eklund had pre-sold 20 units, demonstrating strong market demand for luxury waterfront properties in Manhattan’s Financial District.

Fatal Flaws in Foundation

The project’s troubles began with a critical decision: rather than using traditional pile foundations driven to bedrock—standard practice for Manhattan skyscrapers—Fortis opted for a “soil improvement” method that would save $6 million. This decision came despite warnings from engineering consultant Robert Alperstein about potential “differential settlements” in the challenging site conditions, which included Colonial-era infill and former marshland.

Tragedy and Construction Issues

The project was plagued by safety violations and construction problems. In September 2017, these issues culminated in tragedy when Juan Chonillo, a 44-year-old carpenter, fell to his death from the 29th floor. The construction company, SSC High Rise, later pleaded guilty to second-degree manslaughter and was fined just $10,000.

The Lean Becomes Apparent

By April 2018, contractors discovered the building was leaning three inches northward. Rather than halting construction, attempts were made to correct the lean by intentionally misaligning upper floors in the opposite direction. This strategy backfired, resulting in what one lawyer described as a “banana-shaped” structure leaning up to ten inches in some places.

Financial Impact and Legal Battles

The project has spawned over two dozen lawsuits involving:

  • Fortis Property Group and Pizzarotti (the construction manager)
  • Buyers seeking to recover deposits
  • Multiple contractors and subcontractors
  • Insurance companies and lenders

Construction halted in July 2020, leaving the tower in development limbo. The structure, now under receivership, stands as a stark reminder of the risks in luxury real estate development.

Bottom Line

1 Seaport represents one of the most significant real estate development failures in recent New York history. While structural engineers maintain the building won’t collapse, its commercial viability has. The project demonstrates how seemingly minor cost-saving decisions can cascade into catastrophic financial consequences in high-stakes real estate development.

For investors and developers, 1 Seaport offers crucial lessons about the false economy of cutting corners on foundations and the importance of maintaining rigorous construction standards—especially in an era of increasingly ambitious luxury developments.

Source: The New Yorker 

Manhattan immobiliare

NYC Defies National Rental Trends With 5.6% Rise as Other Major Cities See Declines

In a striking display of its characteristic maverick nature, New York City’s rental market continues to forge its own path, posting significant increases while other major metropolitan areas experience declining rates.

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The Big Apple’s Exceptional Growth

According to the latest Realtor.com report, while the top 50 U.S. metros witnessed an average rental rate decline of 1.1% from December 2023, New York City demonstrated remarkable resilience with a 5.6% increase. This divergence underscores the unique dynamics of New York’s real estate market, where limited new construction in the city’s dense urban landscape contrasts sharply with the national surge in housing inventory.

Behind the Numbers

The national median asking rent has dropped to $1,695—its lowest point since April 2022. However, New York City tells a different story:

  • Citywide median rent for 0-2 bedroom units: $2,967
  • Manhattan median rent: $4,487 (5.4% year-over-year increase)
  • Manhattan 0-2 bedroom units: $4,387 (9% year-over-year increase)
  • Manhattan 3+ bedroom units: $7,091 (0.8% increase from December 2023)

“There seems to be a trend of smaller units receiving more demand in Manhattan than in the other, more affordable boroughs,” notes Realtor.com senior economist Joel Berner. “This could be a sign that there’s renewed interest from young people moving into the city recently.”

Borough-by-Borough Breakdown

The market is showing signs of equilibrium, with rent growth occurring across all five boroughs at more comparable rates than earlier in 2024. However, the time properties spend on the market has increased significantly in most areas:

  • Brooklyn: 48 days (60% increase year-over-year)
  • Manhattan: 51 days (104% increase year-over-year)
  • Queens: 46 days (39% increase)
  • Staten Island: 36 days (12.5% increase)
  • The Bronx: 38 days (1.3% decrease)

Market Dynamics

Manhattan maintains its position as the most expensive borough, with median asking rents reaching $4,530 in December 2024—representing a 2.1% monthly increase and a 6.4% year-over-year rise. Brooklyn, the second most expensive borough, experienced a 2.9% month-over-month increase and a 5.8% year-over-year growth.

Notably, the Bronx, while posting its lowest year-over-year rent growth (4%) since March 2022, still maintains a remarkable 46.2% increase compared to December 2019 levels.

Looking Ahead

The current trends suggest a market recalibration, particularly in Manhattan, where smaller units are seeing increased demand. This shift could indicate a new phase in New York City’s rental market evolution, as the city continues to attract young professionals despite maintaining some of the highest rental rates in the nation.


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