real estate New York

New York Real Estate 2024: A Tale of Resilience, Luxury, and the Ever-Present Search for Laundry

By Columbus International,31 December 202431 December 2024

In a year marked by seismic shifts in real estate practices and soaring housing costs nationwide, New York City’s property market demonstrated remarkable dynamics, according to new data from StreetEasy. The platform’s comprehensive analysis reveals surprising trends in amenity preferences and neighborhood valuations, painting a picture of a market that continues to evolve while maintaining its notorious premium pricing.

The Unexpected Must-Have Amenity

In a city known for luxury amenities, the most coveted feature of 2024 wasn’t a rooftop pool or a state-of-the-art fitness center—it was in-unit laundry. This practical amenity topped search rankings for both buyers and renters for the second consecutive year, underscoring a growing preference for convenience in daily living.

The pandemic’s lasting impact manifested in other trending amenities, with pet-friendly properties seeing a remarkable 200% surge in search volume compared to 2023. Private outdoor space, despite its premium price tag—often adding thousands to property values—remained a top priority for buyers, reflecting a continued emphasis on personal space in the post-pandemic era.

Manhattan’s Enduring Appeal

While market analysts have long predicted a shift toward outer boroughs, Manhattan maintained its dominant position in 2024. Midtown East emerged as the top search destination for renters, while the Upper East Side claimed the crown for prospective buyers. Traditional favorites like Chelsea, Greenwich Village, and the West Village continued to command significant interest, though Brooklyn’s Williamsburg, Park Slope, and Brooklyn Heights showed strong competition.

Premium Pricing Persists

TriBeCa reinforced its position as New York’s most expensive rental market, with median asking rents reaching an eye-watering $8,295 per month. SoHo followed with $6,100 monthly rents, marking a 14% increase from 2023. For buyers, these neighborhoods maintained their premium status, with SoHo commanding a median asking price of $4.2 million and TriBeCa close behind at $3.995 million.

The Brooklyn Factor

Brooklyn’s luxury market showed remarkable strength, with Carroll Gardens leading the borough at a median asking price of $2.65 million. The borough’s historic neighborhoods—Cobble Hill, Boerum Hill, and DUMBO—all maintained multi-million dollar median asking prices, demonstrating Brooklyn’s continued evolution as a luxury destination.

Commercial Real Estate: A Market of Contradictions

The office market defied pessimistic predictions about work-from-home impacts. Premium locations like Park and Sixth avenues, World Trade Center, and Hudson Yards maintained strong occupancy rates, while landmark properties showed divergent fortunes. The successfully renovated 28 Liberty Street (formerly Chase Manhattan Plaza) stands as a testament to strategic investment, while the delayed reopening of the Waldorf-Astoria highlights the challenges facing even iconic properties.

Looking Ahead

As New York’s real estate market enters 2025, several key trends bear watching. The continued premium on quality-of-life amenities, the resilience of Manhattan’s luxury market, and the growing strength of Brooklyn’s high-end neighborhoods suggest a market that, while evolving, maintains its fundamental appeal to both domestic and international investors.

The persistence of high interest rates and changing work patterns will likely continue to influence market dynamics, but New York’s real estate market has once again demonstrated its ability to adapt while maintaining its position as one of the world’s most valuable property markets.

Sources: NYT | New York Post

New York City’s Historic Pierre Hotel Hits Market, Signaling Luxury Hospitality Gold Rush

By Columbus International,12 December 2024

In a move that underscores the growing appetite for premium hospitality assets, The Pierre—one of New York City‘s most prestigious five-star hotels—has been put up for sale. The iconic property, which has graced the corner of Fifth Avenue and 61st Street since 1930, represents a rare opportunity for investors to acquire a piece of Manhattan’s luxury hospitality legacy.

The offering includes 189 hotel rooms, along with the property’s retail spaces and dining establishments, though the approximately 80 co-op residences within the building will remain separately owned. The sale is being orchestrated by the co-op board, which currently owns the hotel operations and will be the beneficiary of the transaction.

Douglas Harmon, co-chairman of capital markets at Newmark Group Inc., who is handling the sale, emphasizes the unique position of such properties in today’s market. “Luxury hotels, especially those in marquee cities that provide branding opportunities, are a rare and hot commodity,” he notes, highlighting the scarcity of such investment opportunities.

The Pierre’s availability comes at a time when ultra-luxury hospitality assets are experiencing unprecedented demand from high-net-worth investors and institutional buyers. The property, currently operated by Taj Hotels since 2007, stands as a testament to timeless elegance, with its prime location offering unparalleled views of Central Park and easy access to Manhattan’s most coveted shopping and cultural destinations.

This potential sale aligns with a broader trend of major hotel acquisitions in the American luxury market. Recent months have seen several notable transactions, including the Reuben brothers’ acquisition of Florida’s W South Beach for over $400 million, Oracle co-founder Larry Ellison’s purchase of the Eau Palm Beach Resort & Spa, and a joint venture led by Ares Management Corporation securing the Hyatt Regency Orlando in a billion-dollar deal.

The Pierre’s distinctive position in the market is further enhanced by its storied history. Since opening its doors during the Great Depression, the hotel has maintained its status as one of New York’s most prestigious addresses, hosting royalty, heads of state, and entertainment icons throughout its 94-year history.

While the exact structure of the potential deal remains to be determined, industry experts anticipate significant interest from both domestic and international investors. The opportunity to acquire such a well-positioned asset in Manhattan’s luxury hotel market—particularly one with The Pierre’s reputation and Central Park location—is expected to attract premium offers from serious contenders in the hospitality investment space.

For potential buyers, The Pierre represents more than just a hotel acquisition; it offers the chance to own a piece of New York City’s architectural and cultural heritage while tapping into the robust luxury travel market. As tourism continues to rebound in post-pandemic New York, premium properties like The Pierre are particularly well-positioned to capture high-end domestic and international travelers seeking exceptional accommodations and services.

The timing of this offering coincides with a period of strong recovery in New York’s luxury hotel sector, suggesting that The Pierre’s next chapter could mark another significant milestone in the property’s distinguished history. As the sale process unfolds, the hospitality industry will be watching closely to see who secures this crown jewel of Manhattan’s hotel landscape.

SL Green Eyes Historic Roosevelt Hotel Site for Next Manhattan Megaproject

By Columbus International,10 December 2024

Manhattan‘s largest office landlord SL Green Realty Corp. (NYSE: SLG) may be setting its sights on one of Midtown’s most iconic properties for its next major development project, according to a new analysis from JPMorgan.

The historic Roosevelt Hotel, which closed its doors in 2020 after nearly a century of operation, could become the site of SL Green’s next trophy office tower, marking another transformative project in the company’s portfolio of Manhattan landmarks.

“Given SL Green’s track record of successfully repositioning historic properties and their deep expertise in the Midtown market, the Roosevelt Hotel site presents a compelling opportunity for their next flagship development,” notes the JPMorgan analyst report released today.

The potential acquisition would align with SL Green’s strategy of targeting prime locations near major transportation hubs. The Roosevelt Hotel sits at the corner of Madison Avenue and East 45th Street, just steps from Grand Central Terminal – a location that mirrors the success formula of SL Green’s One Vanderbilt Avenue tower.

A Bold Vision for a Historic Site

The Roosevelt Hotel, which first opened its doors in 1924, has been a fixture of the Manhattan skyline for nearly 100 years. Its potential redevelopment would continue the ongoing transformation of the Grand Central district, following the success of One Vanderbilt and the recent rezoning of East Midtown.

Industry experts suggest that any new development on the site could potentially rise to heights similar to neighboring modern towers, creating another architectural statement piece in Manhattan’s evolving skyline.

Market Impact and Timing

The timing of such an acquisition could be strategic for SL Green. With Manhattan’s office market showing signs of bifurcation between newer, amenity-rich buildings and older stock, the development of a state-of-the-art tower could capitalize on growing demand for premium office space.

“Class A office properties in prime locations continue to outperform the broader market,” the JPMorgan analysis states. “A new development at the Roosevelt site would be well-positioned to capture this flight to quality.”

Financial Considerations

While specific terms of any potential deal remain undisclosed, market observers estimate that a project of this scale could represent an investment of several billion dollars. SL Green has demonstrated its ability to execute large-scale developments, as evidenced by the successful delivery of One Vanderbilt, which opened in 2020.

The company’s strong track record in securing development rights, obtaining zoning approvals, and attracting premium tenants suggests they could be well-positioned to undertake such an ambitious project.

Looking Ahead

If the prediction proves accurate, the redevelopment would join a series of transformative projects reshaping the Grand Central corridor. The area has seen increased development activity following the East Midtown rezoning, which aimed to encourage modern office construction in the aging business district.

Any potential announcement regarding the Roosevelt Hotel site would likely generate significant interest from both the real estate community and preservationists, given the property’s historic significance and prime location.

For SL Green, which has built its reputation on identifying and executing complex development opportunities in Manhattan’s most coveted submarkets, the Roosevelt Hotel site could represent another chance to reshape New York’s skyline while reinforcing its position as a leading force in Manhattan commercial real estate.

The company has not yet commented on the JPMorgan analysis or any potential interest in the property.

The Turkey Day Effect: How Thanksgiving Shapes New York City’s Real Estate Market

By Columbus International,28 November 2024

The aroma of roasting turkey and pumpkin pie typically signals family gatherings and football games, but in New York City‘s cutthroat real estate market, Thanksgiving represents something entirely different: a pivotal moment in the annual real estate cycle that savvy investors and homebuyers increasingly leverage to their advantage.

Market Dynamics During the Holiday Lull

The period from November through January has historically been the quietest in New York City’s real estate calendar. According to data from the Real Estate Board of New York (REBNY), transaction volumes typically drop 30-40% during Thanksgiving week compared to October averages, creating what industry insiders call the “Turkey Day Dip.”

However, this temporary market slowdown masks a more nuanced reality. Properties listed during the Thanksgiving period tend to stay on the market 15% longer than those listed in September or October, but they also sell at an average 7% discount compared to peak season prices. This phenomenon has created opportunities for strategic buyers who specifically target this period for negotiations.

The Psychology of Holiday Selling

The holiday season introduces unique factors into real estate transactions. Sellers who maintain their listings during Thanksgiving often have compelling reasons to close before year-end, whether for tax purposes or relocation deadlines. This motivation, combined with reduced competition from other buyers, creates distinct advantages for those willing to house-hunt between turkey dinners.

In 2023, properties that went into contract during Thanksgiving week in Manhattan averaged a 5.8% deeper discount compared to similar properties sold during peak seasons. This pattern suggests a clear opportunity for buyers willing to dedicate part of their holiday season to real estate hunting.

The Luxury Market Exception

The ultra-luxury segment (properties above $10 million) operates under different rules. While overall market activity dips during Thanksgiving, transactions for properties above $10 million have shown a counter-cyclical trend over the past three years, with a 12% increase in showings during holiday weeks. The privacy afforded by the quiet period appears to appeal to high-net-worth buyers who prefer to conduct transactions away from the spotlight.

Strategic Implications for Buyers and Sellers

For buyers:

Consider scheduling viewings immediately before or after Thanksgiving when competition is minimal
Leverage the holiday timing in price negotiations
Be prepared for faster decision-making as motivated sellers may want to close before year-end

For sellers:

If possible, avoid listing immediately before Thanksgiving unless motivated to sell quickly
Consider strategic price adjustments before the holiday period to attract serious buyers
Invest in holiday-appropriate staging to create emotional appeal

Looking Ahead: The Post-Pandemic Shift

The pandemic has reshaped many real estate traditions, including holiday market dynamics. Remote work has made buyers more flexible about viewing times, and virtual tours have reduced the impact of holiday-related showing restrictions. The traditional rules about holiday slowdowns are evolving, with seasonal patterns showing less pronounced variations than in previous years.

Despite these changes, Thanksgiving remains a unique window in New York’s real estate calendar. For those willing to mix property viewings with their holiday plans, it continues to offer opportunities that can be as sweet as pumpkin pie – and potentially more rewarding for their investment portfolio.

Market Metrics: Thanksgiving Week vs. Annual Averages

Average days on market: +15%
Listing price reductions: +8.3%
Buyer competition (measured by multiple bid scenarios): -45%
Successful price negotiations: +7.2%

The Bottom Line

While most New Yorkers focus on parade routes and dinner reservations during Thanksgiving week, real estate professionals recognize this period as one of unique opportunity. Whether this holiday season brings a surge or slowdown to the real estate market remains to be seen, but the data suggests that serious buyers and sellers can find distinctive advantages during the Thanksgiving lull.

Golden Crown: A $25M Penthouse Redefines New York Luxury Living

By Columbus International,14 November 202415 November 2024

A historic Fifth Avenue penthouse crowned by a spectacular gold dome has hit the market at $25 million, offering a rare opportunity to own one of Manhattan’s most distinctive residences.

The 5,777-square-foot property at 170 Fifth Avenue occupies the top two floors of the 1898 Beaux-Arts building, featuring five bedrooms, five bathrooms, and a stunning two-story octagonal cupola that has become an architectural landmark in its own right.

“There’s nothing of this kind in that price bracket,” says Sotheby’s listing agent Lawrence Treglia. Most comparable properties are found in modern developments, making this offering uniquely appealing to buyers seeking authentic New York character.

The penthouse’s sole owner since 2001, philanthropist Gregory C. Carr, who acquired the property for $7.5 million, has announced that proceeds from the sale will fund educational initiatives in Mozambique.

Historic Charm Meets Modern Luxury

Originally home to the Sohmer Piano Company, known for pioneering baby grand pianos in the 1880s, the building predates its famous neighbor, the Flatiron Building, by four years. Designed by renowned architect Robert Maynicke, whose portfolio includes several landmark Manhattan properties, the structure’s narrow 29-foot width and 120-foot length create uniquely proportioned living spaces.

The penthouse’s architectural highlights include:

360-degree city views from the gold-domed cupola
A grand wrought-iron spiral staircase
An open-concept kitchen with skylights
Marble-finished bathrooms
Private roof deck access

Investment Potential

The property’s asking price represents a significant premium over its 2001 sale, reflecting both extensive renovations and the area’s transformation into one of Manhattan’s most desirable neighborhoods. Its position adjacent to the iconic Flatiron Building adds significant landmark value to the investment.

“It’s really buying a true old New York piece of property,” notes Treglia, emphasizing the penthouse’s unique position in the luxury real estate market. The combination of historical significance, architectural distinction, and prime location makes this offering particularly noteworthy for collectors of prestigious Manhattan real estate.

Photo credit (Social Media):
170 5th Avenue | Street Easy | Sotheby’s International Realty

Billy Joel Lists Long Island Estate for $49.9 Million

By Columbus International,23 October 2024

The legendary rockstar is selling the property he once admired as a teenager while dredging oysters.

“Piano Man” Billy Joel has listed his grand Centre Island estate in Long Island for $49.9 million. According to The New York Times, the 26-acre property, dubbed “MiddleSea,” features a main house, a beach house, and two guest houses, totaling 18 bedrooms and 16 bathrooms.

The property’s acquisition story is particularly meaningful: Joel first spotted the mansion as a teenager while working as an oyster dredger in the surrounding waters. Living in working-class Hicksville at the time, young William Martin Joel could never have imagined he would one day own the very same mansion he gazed at from his boat.

The estate, purchased in 2002, includes three swimming pools, a bowling alley, a helipad, and over 2,000 feet of private beach – a rare feature in Long Island’s “Gold Coast.”

Joel, 75, has decided to sell the property primarily for family reasons, having relocated to Florida where his two youngest daughters attend school.

Photo via Instagram

Floyd Mayweather Acquires $402 Million Real Estate Portfolio In New York City

By Columbus International,21 October 2024

Legendary boxer Floyd Mayweather Jr., who retired from professional fighting in 2017 with a 50-0 record, is making a major real estate play in New York City.

According to TMZ Sports, the 47-year-old has purchased over 60 apartment buildings containing more than 1,000 units across upper Manhattan for a total of $402 million. Mayweather’s goal is to provide affordable housing for struggling families in the area.

“Growing up I used to dream about owning just one home by myself. When you work hard, you can achieve anything,” Mayweather said in a statement to TMZ.

The purchase is the latest in a long line of lucrative business ventures for Mayweather, who is widely regarded as one of the wealthiest and most financially successful athletes of all time. His record-breaking fight against Manny Pacquiao in 2015 generated $600 million, with Mayweather pocketing an estimated $250 million. He then earned a reported $275 million for his 2017 fight with UFC star Conor McGregor, bringing his career earnings over the $1 billion mark.

Even in retirement, Mayweather has found ways to keep the money rolling in. He’s participated in several high-profile exhibition matches, including bouts with WWE Superstar Logan Paul and boxer John Gotti III. Mayweather is also the founder of Mayweather Promotions, a boxing promotion company that has signed and promoted numerous notable fighters since its inception in 2007.

This latest real estate move signals that Mayweather is looking to diversify his investments and create a lasting legacy beyond his Hall of Fame boxing career. With his unparalleled earning power and business acumen, it’s clear that “Money” Mayweather is as formidable in the boardroom as he was in the ring.

Photo via Instagram

Amina Rubinacci Expands U.S. Presence with New Flagship on Madison Avenue

By Columbus International,22 August 2024

Renowned for its dedication to the Neapolitan sartorial tradition, Amina Rubinacci, the womenswear brand beloved by tourists on Capri and the Amalfi Coast, is making a significant leap into the U.S. market with the opening of a new flagship store on New York’s Madison Avenue.

“We’ve had a presence in the U.S. for some time; my mother is credited with pioneering the knit blazers that have become a signature piece, particularly popular among American clients visiting Capri,” stated Alessandro Spada, CEO and son of founder Amina Rubinacci.

With the recent departure of longtime stockist Delle Celle from its historic location at 17 East 67th Street, Amina Rubinacci seized the opportunity to occupy this prime spot. The new Manhattan flagship features a minimalist design with parquet flooring and cream walls, showcasing the brand’s clothing and accessories through prominent street-facing windows.

“We’re investing in retail and flagship stores to consistently and coherently express our brand’s identity,” Spada emphasized.

Founded in 1968 by Amina Rubinacci, whose expertise in textiles laid the foundation for the brand, the company entered the U.S. market seven years ago. It has since established a solid wholesale footprint with around 50 retailers and is now expanding its direct presence. Its portfolio includes stores in Palm Beach, Charlotte, Greenwich, Washington, D.C., and Portland, among others.

“We have strategically avoided major department stores, focusing instead on specialty boutiques,” Spada added.

Globally, Amina Rubinacci operates 350 wholesale stockists, four franchised stores, and 16 directly operated boutiques in key cities including Milan, Rome, Capri, Geneva, London, and Moscow.

“Our family-owned status is both a strength and a limitation. It allows us to grow incrementally while staying true to our origins,” Spada noted.

Looking ahead, the brand plans further expansion with new openings slated for Vienna and Paris in 2025, and is also focusing on strengthening its position in Japan, where it could potentially introduce monobrand stores through its partnership with local distributor Sanki.

In 2023, the brand’s revenue reached €15 million, with wholesale accounting for 60% of this total. Spada anticipates a low-double-digit growth in 2024, driven by strong performance in key markets, including the U.K.

New York City’s retail landscape has not only rebounded from the pandemic but has also thrived, with significant leasing activity and rent reductions. “We’ve observed a robust recovery,” commented Gene Spiegelman of Ripco. “Rents have decreased by 50%.”

Vacant restaurants and luxury fashion spaces have seen rapid turnover, with high-profile brands like Dolce & Gabbana and Prada securing prime locations on Madison and Fifth Avenues, signaling a dynamic shift in the city’s retail market.

Photo via Amina Rubinacci

Bronx Renaissance: NYC’s 7,000-Unit Housing Plan Signals Borough’s Transit-Led Revival

By Columbus International,20 August 20249 November 2024

In a bold move to expand investment opportunities in New York City, Mayor Eric Adams has given the green light to a transformative plan for the East Bronx, an ambitious project that will add 7,000 new residential units.

The rezoning initiative, centered around four future Metro-North stations, exemplifies the growing trend of transit-oriented development. By 2027, residents of Parkchester/Van Nest, Morris Park, Hunts Point, and Co-op City will enjoy direct access to Manhattan’s Penn Station, reshaping and redefining the real estate landscape of these neighborhoods.

Key points:

7,000 new residential units, including 1,700 permanently income-restricted homes
$500 million investment in local infrastructure
Projected creation of 10,000 new jobs
Rezoning of 46 blocks, allowing residential use in previously commercial and manufacturing areas

This move represents the largest residential (and more) endeavor since the 2021 Gowanus project in Brooklyn. As Richard Tayar, founder and CEO of Columbus International, has often emphasized in these pages, the East Bronx is poised to attract developers and financiers, replicating the success seen in Gowanus, where projects like Domain Cos. and Vorea Group’s 420 Carroll are already operational.

Vivien Krieger, co-chair of Cozen O’Connor’s zoning practice, describes the plan as “significant and exciting,” highlighting the potential to transform the East Bronx into a regional connector. The rezoning is expected to particularly benefit areas around the new train stations, with Montefiore Health System already exploring expansion opportunities near the Morris Park station.

Revitalizing and expanding the East Bronx aligns with the broader “City of Yes” plan, which aims to add up to 108,850 new residential units over 15 years. It’s a timely intervention for the Bronx, which currently boasts the lowest median monthly rent ($1,280) and the tightest vacancy rate (0.82%) among New York City’s boroughs.

As New York faces its challenges, the East Bronx project stands as a testament to the city’s commitment to innovative, transit-oriented solutions. With its mix of affordable housing, job creation, and infrastructure improvements, this initiative could serve as a model for urban development in the coming years of revival for the City That Never Sleeps.

For investors and developers, the East Bronx presents a unique opportunity to participate in the revitalization of one of New York’s most promising areas. As Mayor Adams put it, “The Bronx bought a ticket to the future.” It remains to be seen how this ambitious bet will pay off for the city and its residents. At Columbus International, we view this wager with both pragmatism and anticipation.

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Preview photo on social media via Unsplash/Becky Phan

America’s Million-Dollar Home Surge: A New Era in Real Estate

By Columbus International,19 August 2024

In a groundbreaking shift in the American real estate landscape, the share of homes valued at $1 million or more has reached an unprecedented 8.5%, according to an exclusive analysis by Redfin provided to the Wall Street Journal. This figure marks a significant increase from 7.6% just a year ago and more than doubles the pre-pandemic level of 4%.

The Driving Forces

The surge in million-dollar properties is primarily attributed to the nationwide boom in home prices. Redfin’s data reveals that the median home sale price climbed 4% year-over-year to a record $442,525 in June. Even more striking, the luxury home market – defined as the top 5% of listings – saw a 9% year-over-year increase, with median prices hitting $1.18 million in the second quarter.

Market Dynamics

Despite rising mortgage rates dampening demand, a persistent inventory shortage continues to push prices upward. Redfin economist Chen Zhao notes, “The housing market is in a pretty unusual spot right now.” This situation benefits current homeowners but exacerbates the affordability crisis for potential buyers.

Geographic Hotspots

California, particularly the San Francisco Bay Area, leads the nation in million-dollar home concentration. In San Francisco proper, an astounding 80.6% of homes were valued at or above $1 million in June, up from 76.4% the previous year. Other California cities, like Anaheim, are experiencing rapid growth in this segment, with 58.8% of homes now in the million-dollar range, up from 51% last year.

The New Normal

“Years ago, if you owned a $1 million home, you would have been considered pretty rich,” Zhao observes. “Now, that’s the entry point for some markets.” This shift is particularly evident in areas like the San Francisco Bay Area, where local real estate agents now consider $1 million the starting point for condo searches, with single-family homes often out of reach at this price point.

Market Outliers

Interestingly, Austin, Texas, bucked the trend, showing a slight decrease in million-dollar homes due to increased new construction. Meanwhile, cities like Detroit, Cleveland, Pittsburgh, and Kansas City maintain less than 1% of their housing stock in the million-dollar category.

Looking Ahead

While inventory levels are slowly increasing nationwide, they remain about 30% below pre-pandemic levels. This persistent shortage, coupled with sellers reluctant to give up low interest rates and elevated construction costs, suggests that the million-dollar home phenomenon may continue to reshape the American real estate market for the foreseeable future.

As this trend unfolds, it raises important questions about housing affordability, wealth distribution, and the changing definition of luxury in the U.S. real estate market. Industry experts and policymakers will be closely watching these developments and their broader economic implications in the coming years.

Source: Wall Street Journal