Noted

Among the observations on the NYC real-estate market via a piece published this evening at DNAinfo:

Manhattan's Lower East Side continues its ascendance as the borough's hippest neighborhood: It's seeing a "significantly higher price point" and "a very different audience," especially when compared to neighboring East Village, said Jeffrey Schleider, of Miron Properties.

"The East Village is post-collegiate frat boy, where the Lower East Side is cool, artistic, fashion," he said, noting how one of the buildings they run in the area has attracted art dealers, kids of famous actors and others.

Field of nightmares

The lead today from an article in the Times titled Commercial Real Estate Slumps in New York:

There are 920 football fields of available office space in Manhattan. More than 180 major buildings totaling $12.5 billion in value — from Columbus Tower at 1775 Broadway to the office tower 400 Madison Avenue — are in trouble, meaning in many cases they face foreclosure or bankruptcy, or have had problems making mortgage payments. Rents for commercial office space fell faster over the past two years than in any such period in the last half century.

Though somehow, this still seems really expensive (call me when it drops to $29,999)

From the Times:

Bargain seekers, nostalgists and ascetics, take heart: the $200,000 apartment has returned to Manhattan.

And breathe easy: the location is not Yorkville or bust. At these prices, you’d be excused for imagining a box perched on the West Side Highway — or at the very least, a treacherous trek to the subway. Instead, you’ll find properties in Carnegie Hill; Avenue B in the East Village; Tudor City; and the East 50s, 70s and 80s.

Brokers and sellers expressed mild shock — and in some cases outright chagrin — that prime Manhattan property can now be had for a fraction of an A.I.G. bonus.

“When was the last time I saw these prices?” said Dan Danielli, a broker at Halstead Property. “Not in a long time. Let’s put it that way.”

The NYC housing slump is now A1 New York Times serious

A few excerpts from the Page 1 article today in the Times:

In this year’s first quarter, sales of co-ops and condominiums in Manhattan plunged nearly 60 percent from the first quarter of 2008. Average co-op prices fell as much as 24 percent in the same period, according to various market reports released last week.

And...

The stress is most severe at the high end of the market. There are 350 apartments and town houses for sale in Manhattan with asking prices of more than $10 million, and inventory has been growing. It would take about six years at the current sales rate to absorb all those listings.

And...

Jonathan J. Miller, an appraiser who prepares quarterly reports on Manhattan, said the market could continue to fall through this year and next, especially if credit remained tight for most buyers. After that, he said, it could take several more years to work through the excess inventory.

And...

Mr. Miller said that during the last big real estate downtown, when studio apartments were so cheap that he considered buying one on a credit card, people thought the luxury market would never come back. “Conspicuous consumption was out of vogue in 1991,” he said. “The market was back by 1997 or 1998.”

And finally...

In the newest issue of Us Weekly, Lindsay Lohan opens up about her heartbreaking split from Samantha Ronson, the "humiliating" weekend showdown with Ronson's family, and says that friends' fears she is suicidal are unfounded.

Oh, sorry. That's not from the article.

Manhattan home sales: Worse than the decline in the auto industry

"Manhattan co-op prices dropped the most since 1995 and transactions for all apartments plummeted 48 percent in the first quarter from a year earlier as the recession and Wall Street unemployment cut demand." (Bloomberg)

"The drop in sales was worse than the decline in the auto industry. In March, sales at General Motors were off 45 percent from March 2008." (The New York Times)

For anyone who has ever wanted to spend the day with Barbara Corcoran

Yesterday, of course, was Barbara Corcoran's 60th birthday. (Hope that you remembered to buy some property!) Anyway, quite by accident, I stumbled upon a Corcoran feature in the Times from March 5, 2000, titled What Do You Do All Day?

Let's take a look, shall we!

Wednesday, Jan. 19

6:00 a.m. Lana Zinger, Russian-born personal trainer, arrives for morning workout.

6:30 Tommy, 6, watches his mother work out. Between crunches, requests reading from "Harry Potter." Request denied.

7:00 Makeup artist arrives.

7:15 Dresses (brown Christian Lacroix suit with Herms scarf).

7:45 Takes Tommy to school in cab. It is absolutely freezing.

8:10 Arrives at Tavern on the Green to give speech at her company's awards breakfast.

8:15 Talks janitor into letting her practice her speech in a broom closet.

8:55 Emerges feeling confident, but "like Aunt Clara on 'Bewitched' -- dusty and smelling of Lysol."

9:00 At podium in front of 500 sales agents, clinks glass to get attention. Glass breaks.

Boring!

1:00 Sharon Baum walks in dressed in fur-trimmed suit with faux-diamond "Sold" pin. Corcoran says, "Boy, if you're not rich you certainly look it." Departs in Baum's Rolls-Royce for lunch at the Lobster Club. Shares creamed spinach, biscuits, French fries with Baum. Discusses whether the market will survive if the dot-com companies take a hit, how even Wall Streeters with millions in cash can't find apartments.

2:45 Departs restaurant. Gets call from office saying that the seller of the nine-room Park Avenue apartment she's been wanting to buy for herself finally wants to make a deal. Phones from car. ("I'm so nervous, I have to stop thinking like a sweaty-palmed buyer and start thinking like a broker.") Strategizes with Baum about how to be the winning bidder. Baum tells her to get as much information as she can about the family. Makes the call to the Park Avenue seller. "Oh, God, I got disconnected. Does anyone else have a cell phone?" Everyone in the car has a cell phone, including the driver. Still can't get through. Is now very hyper. Stays in the car and keeps trying while Baum looks at multimillion-dollar "maisonette" on upper Fifth Avenue.

4:00 Driver drops Corcoran off at gym, where she meets Becky Wood, Tommy's nanny, and watches Tommy swim.

Noted

"Priced out of Brooklyn? You might want to try Manhattan. Many neighborhoods in Brooklyn are now more expensive to live in than Manhattan neighborhoods (and I'm talking below 90th Street here), according to data compiled by StreetEasy.com for October 2008." (Daily News)

An end to the real estate boom

Excerpts from a Times piece titled "Failed Deals Replace Real Estate Boom:"

After seven years of nonstop construction, skyrocketing rents and sales prices, and a seemingly endless appetite for luxury housing that transformed gritty and glamorous neighborhoods alike, the credit crisis and the turmoil on Wall Street are bringing New York’s real estate boom to an end.

It is hard to say exactly what the long-term impact will be, but real estate experts, economists and city and state officials say it is likely there will be far fewer new construction projects in the future, as well as tens of thousands of layoffs on Wall Street, fewer construction jobs and a huge loss of tax revenue for both the state and the city.

After imposing double-digit rent increases in recent years, landlords say rents are falling somewhat, which could hurt highly leveraged projects, but also slow gentrification in what real estate brokers like to call “emerging neighborhoods” like Harlem, the Lower East Side and Fort Greene.

“Any continued impediment to the credit markets is awful for the national economy, but it’s more awful for New York,” said Richard Lefrak, patriarch of a fourth-generation real estate family that owns office buildings and apartment houses in New York and New Jersey.

“This is the company town for money,” he said. “If there’s no liquidity in the system, it exacerbates the problems. It’s going to have a serious effect on the local economy and real estate values.”

Meet Manhattan's fat-cat home buyers (all you need is $45 million!)

The Post has a feature today on the richies who have paid more than $45 million for their Manhattan digs. You know, the $45 Million Club. As the article notes, hedge-funder Daniel Loeb bought a 10,000-square-foot apartment in newly renovated 15 Central Park West for $45.8 million in February. "The place has five bedrooms and five baths - but, in what seems quite a scandal, his view of Central Park is obscured by an adjacent apartment." Perhaps Loeb can pay to have that adjacent apartment removed.

Real estate update: "Much of Manhattan continues humming along"

The Wall Street Journal has a piece today on cities where home prices on holding up. While the housing market may be soft in, say, San Francisco, to no surprise, you won't many bargains in Manhattan.



According to the Journal:

While New York's commuter market -- which includes suburban New York, New Jersey and Connecticut -- is down about 8% from its peak in mid-2006, much of Manhattan continues humming along. Neighborhoods such as SoHo, the Lower East Side, Greenwich Village, Chelsea, Murray Hill, the Upper West Side and Harlem are all up in the past year, according to DataQuick's Zip Code analysis.

Bidding wars still happen. Toni Haber, an executive vice president at Prudential Douglas Elliman, a New York City real-estate firm, says 60 people waited in line recently at an open house to view a three-bedroom apartment in Greenwich Village. The owner had four competing offers within the week, and agreed to sell for about $2.5 million -- $300,000 over the asking price.

Part of the city's strength comes from the fact that few buyers were investing in properties to flip them. Moreover, many apartment buildings in New York aren't condominiums but co-ops, which impose financial demands on potential buyers far more rigorous than banks do -- which helps keep the number of foreclosures down. In addition, foreign investors have been exploiting the weak dollar by grabbing Manhattan real estate.
One area of weakness: the Financial District in Lower Manhattan, where median prices are down, in part because of an abundance of new construction in the area.

Those areas of Brooklyn that are close to Manhattan are also holding up well. On the periphery, places like Jamaica, Queens; parts of the Bronx; and nearby New Jersey towns such as Jersey City and Hoboken are off between 3% and 14%.