real estate

Tom Ford’s $250 Million Real Estate Empire: From Fashion Mogul to Property Tycoon

By Columbus International,25 July 2024

Fashion designer turned real estate mogul Tom Ford has been quietly amassing a property portfolio worth over $250 million, according to The Wall Street Journal. Following the $2.8 billion sale of his eponymous fashion brand to Estée Lauder in early 2023, Ford has been on a real estate buying spree, adding at least three trophy homes to his already impressive collection.

“Ford presides over a real-estate empire that includes homes in New York, Los Angeles, Palm Beach, Fla., and the Hamptons,” reports The Wall Street Journal. The publication also reveals that Ford recently acquired an Aspen, Colorado mansion for $42.25 million in a previously undisclosed deal.

The designer’s penchant for architecturally significant properties is evident in his portfolio. The Wall Street Journal notes that Ford has “bought and sold numerous architecturally significant homes, including properties in London and Paris, a Tadao Ando-designed ranch near Santa Fe, N.M., and a midcentury home in L.A. designed by Richard Neutra.”

Ford’s real estate acumen may be attributed to his background. As The Wall Street Journal reports, “Growing up in Santa Fe, his parents were both real-estate agents and he later studied interior architecture at Parsons School of Design in New York.”

Howard Morrel of Christie’s International Real Estate, who sold Ford the iconic Halston house in Manhattan, describes the designer’s portfolio as “subtle and sophisticated,” mixing historic homes with more modern architectural properties. “It’s not ostentatious, but it’s high drama,” Morrel told The Wall Street Journal.

From fashion to film directing and now real estate, Tom Ford continues to demonstrate his keen eye for style and value across multiple industries. As his property empire grows, it’s clear that Ford’s business acumen extends far beyond the runway.

Photo via Instagram

Italian Luxury Retailer Luisaviaroma Makes Bold U.S. Debut in Manhattan’s NoHo

By Columbus International,24 July 2024

In a strategic move that underscores the resilience of high-end retail and the enduring allure of New York City, Italian luxury fashion powerhouse Luisaviaroma has unveiled its first international brick-and-mortar location in Manhattan’s trendy NoHo district.

The 11,300-square-foot flagship store, which opened its doors on Monday at 1 Bond Street, marks a significant milestone for the 95-year-old company as it expands its global footprint beyond its iconic Florence headquarters. This calculated expansion comes at a time when Manhattan’s retail landscape is showing strong signs of post-pandemic recovery, buoyed by an influx of tourists and the gradual return of office workers.

Brandon Singer, CEO and founder of Retail by MONA, the brokerage firm behind the deal, spoke to CoStar about the strategic importance of the location. “Luisaviaroma recognized the incredible momentum on Bond Street,” Singer explained. “NoHo has rapidly evolved into one of Manhattan’s most coveted and stylish neighborhoods, making it the perfect backdrop for this luxury brand’s U.S. debut.”

The prime real estate doesn’t come cheap, with an annual asking rent of $3.2 million, reflecting the premium placed on high-visibility locations in Manhattan’s luxury retail corridors. However, for Luisaviaroma, the investment appears well-calculated. CEO Tommaso Andorlini previously revealed to Women’s Wear Daily that the United States accounts for a quarter of the company’s online sales, with New York City leading as its largest market.

This brick-and-mortar expansion strategy aligns with a broader trend of digital-first retailers recognizing the value of physical stores in building brand awareness and providing immersive shopping experiences. For Luisaviaroma, which has built its reputation on curating cutting-edge fashion from top designers, the New York store offers an opportunity to showcase its unique aesthetic and connect with its American customer base in a tangible way.

As Manhattan’s retail sector continues its upward trajectory, Luisaviaroma’s arrival is likely to be closely watched by industry insiders and competitors alike. It not only represents a vote of confidence in the city’s economic rebound but also signals the ongoing importance of New York as a global fashion capital.

With this bold move, Luisaviaroma is poised to capitalize on the resurgence of luxury retail and cement its position as a key player in the international fashion landscape. As the company writes its next chapter on American soil, the success of this venture could pave the way for further expansion and inspire other international brands to follow suit.

CityLife Milan: Redefining Urban Living in the Heart of Italy’s Fashion Capital

By Columbus International,22 July 202422 July 2024

In the bustling metropolis of Milan, a revolutionary urban development is reshaping the city’s skyline and redefining the concept of modern living. CityLife Milan, an ambitious project spanning an impressive 366,000 square meters, is setting new standards in urban planning and architectural innovation.

The Future of Urban Development

At its core, CityLife Milan represents a bold vision for the future of urban spaces. This meticulously planned development seamlessly blends public and private sectors, creating a harmonious ecosystem that caters to both residents and businesses. The project’s innovative approach challenges traditional city planning norms, offering a glimpse into the future of urban living.

A Skyline Transformed

The development’s crown jewels are three towering commercial structures that dominate the Milan skyline. These architectural marvels serve as more than just office spaces; they are the heartbeat of CityLife, around which the entire project revolves. Their striking designs not only symbolize modernity but also act as a beacon for Milan’s economic ambitions.

Redefining Residential Living

Surrounding these commercial giants are clusters of residential buildings that redefine luxury living. These homes are not mere afterthoughts but integral components of the CityLife vision. Each residential complex is a testament to contemporary design, offering residents a unique living experience that seamlessly integrates with the development’s commercial and public spaces.

Green Spaces: The Lungs of CityLife

In a refreshing departure from typical urban developments, CityLife Milan places significant emphasis on public green spaces. These areas are not just aesthetic additions but are crucial to the project’s holistic approach to urban living. Lush parks and carefully landscaped gardens serve as communal retreats, offering residents and visitors a much-needed escape from city life.

The Economic Implications

CityLife Milan is more than just an architectural feat; it’s a strategic investment in Milan’s future. The project is poised to attract international businesses, boosting the city’s already formidable economic status. Moreover, it’s likely to spark a real estate boom in surrounding areas, potentially reshaping Milan’s property market.

A Model for Future Cities

As urban populations continue to grow globally, developments like CityLife Milan offer valuable insights into sustainable urban planning. Its integrated approach to combining commercial, residential, and public spaces could serve as a blueprint for future city developments worldwide.

The Bottom Line

CityLife Milan represents a bold step into the future of urban development. By reimagining the relationship between commercial spaces, residential areas, and public domains, it sets a new standard for city planning. As the project continues to evolve, it will undoubtedly cement Milan’s position as a leader in innovative urban design and sustainable living.

For investors and urban planners alike, CityLife Milan is a project to watch closely. It may well be the harbinger of a new era in urban development, one that prioritizes holistic living experiences over mere functionality. As cities worldwide grapple with the challenges of urbanization, CityLife Milan stands as a shining example of what’s possible when vision meets execution in the realm of urban planning.

Photo via City-Life

Luxury Real Estate Market in Italy: Trends and Prices

By Columbus International,17 July 2024

The luxury real estate landscape in Italy shows a significant concentration in major cities, with Milan and Rome at the forefront. According to a recent analysis by Immobiliare.it, these two metropolises account for over a quarter of the country’s high-end property offerings.

Milan emerges as the undisputed leader, with about 16% of the national luxury stock, a trend that has been growing in recent years. Rome follows with nearly 11%, but shows signs of contraction. Florence, while ranking third, represents only 3% of the total offer.

At the regional level, Lombardy and Tuscany dominate the market, with 29% and 22.4% of high-end offerings respectively. Lazio ranks third with 14.8%.

Tourist destinations play a key role in the luxury segment. Como has seen an increase in offerings, while destinations like Forte dei Marmi have experienced a decline.

In terms of prices, Portofino stands out as the most expensive municipality, with an average of 19,074 euros/sqm. It’s followed by Villasimius in Sardinia and Capri. Tourist destinations generally surpass large urban centers in terms of cost per square meter.

Among regions, Valle d’Aosta leads the ranking with average prices of 9,173 euros/sqm, followed by Sardinia and Campania. Lombardy, despite its strong presence of luxury properties, ranks only fifth in terms of average prices.

This analysis highlights a dynamic and geographically diverse luxury market, with a clear preference for coastal and tourist locations in terms of property valuations.

Source: Monitor Immobiliare

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

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

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

Manhattan Office Market Shows Signs of Recovery as Worker Return Gains Momentum

By Columbus International,1 July 2024

In a promising turn for New York City’s commercial real estate sector, recent data suggests that the Manhattan office market is gradually regaining its pre-pandemic vigor. According to an analysis by the Real Estate Board of New York (REBNY), office “visitations” in May reached 74% of 2019 levels, marking a notable improvement from 70% in the same month last year.

This upward trend in office occupancy offers a glimmer of hope for property owners and investors who have grappled with the challenges posed by remote work policies in the wake of the COVID-19 pandemic. The data, derived from Placer.ai location information, encompasses visits to 350 office buildings, tracked through cellphone records, and includes retail traffic within these properties.

While the May figure showed a slight dip from April’s 75% due to Memorial Day weekend travel, analysts believe the overall trajectory remains positive. Keith DeCoster, REBNY’s director of market data and policy, notes that excluding the holiday weekend, May’s numbers would have surpassed those of April.

Key Takeaways:

Manhattan office visitations in May 2024 reached 74% of pre-pandemic levels.
Year-over-year improvement from 70% in May 2023 indicates steady recovery.
Data reflects both office worker return and retail traffic in office buildings.

Looking ahead, industry experts are cautiously optimistic but remain vigilant. “We will watch closely to see if visitation rates increase, hold steady or decline during the summer in line with historic behavior,” DeCoster adds.

As the New York office market continues to evolve, stakeholders will be keenly observing these trends. The gradual return to office spaces could have far-reaching implications for the city’s economy, from local businesses that rely on office worker foot traffic to the valuation of commercial real estate assets.

For investors and business leaders, this data provides valuable insights into the changing dynamics of urban work environments and may inform strategic decisions regarding office space utilization and real estate investments in the post-pandemic era.

Real estate investments in Milan. An in-depth market analysis and numerous tips from Corriere della Sera

By Columbus International,27 June 202427 June 2024

In an ever-evolving real estate market, Milan continues to be one of the most attractive locations for investors. A recent study reveals that about 20% of real estate transactions in the Lombard capital are aimed at generating income. But how truly profitable is investing in Milan’s brick and mortar? Il Corriere della Sera has conducted a detailed analysis to shed light on this trend.

Comparing Returns: Real Estate vs. Government Bonds

To assess the actual profitability of real estate investments, we compared Milan’s rental yields with those of 8-year Italian Government Bonds (BTPs), currently at 3.2% net. Our analysis is based on standard 8-year free-market rental contracts, assuming a reliable tenant and regular payments.

The Milan Landscape: Data and Figures

Based on data provided by immobiliare.it, we examined a typical 70 m² apartment:

Average purchase price: €378,000
Monthly rent: €1,631
Gross yield: 5.17%
Net yield: 3.36%

It’s important to note that the net yield, considering taxes and expenses, is only slightly higher than that of BTPs, but carries significantly greater risks.

The Geography of Returns

Our research highlighted considerable disparities between different areas of Milan:

Historic center: 2.3% net yield
Premium areas (> €350,000 for 70 m²): yields lower than BTPs
Peripheral areas like Baggio and Ponte Lambro: yields up to 4.6% net

Milan’s Hinterland: An Interesting Alternative?

Extending the analysis to the province, surprising data emerges:

Average yield: 6.8% gross, 4.4% net
Top 3 for monthly rents: Gorgonzola (€1,156), Vimodrone (€1,084), Segrate (€1,075)
Municipalities with the best yields: Turibigo, Truccazzano, Tribiano (> 6% net)

These data suggest that the hinterland could offer more profitable investment opportunities compared to the city center.

Short-Term Rentals: The New Frontier?

The short-term rental phenomenon is gaining ground, promising higher gross returns. However, management costs, taxes, and platform commissions significantly erode margins. The profitability of this model seems to be limited mainly to specific areas of Milan.

Conclusions for Investors

Real estate investment in Milan can still offer interesting returns, but it requires careful risk assessment and deep knowledge of the local market. Investors should consider:

Location as a key factor for profitability
The potential for capital appreciation in developing areas
Management and maintenance costs, especially for short-term rentals
The financial stability of tenants for long-term rentals

In a market characterized by high prices and compressed yields, due diligence and a well-thought-out strategy are more crucial than ever for real estate investors in Milan.

Source: Corriere della Sera