Archive for January, 2010

The Hunt: Wooed, and Finally Won Over

January 30th, 2010    Posted in New York City Real Estate News, Real Estate News
 
The seven years that Karen Dahl and Brian Reich spent in Cambridge, Mass., were formative ones, but Ms. Dahl longed for New York.

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Living In | Civic Center: The Verdict: Change and Chinese Food

January 30th, 2010    Posted in New York City Real Estate News, Real Estate News
 
Civic Center has an antique feel, Chinese restaurants and all the post-9/11 security that comes with the federal courts.

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Warehouse 11 races against clock

January 29th, 2010    Posted in New York City Real Estate News, Real Estate News
 

David Maundrell, founder and president of Aptsandlofts.com, and Warehouse 11 at 214 North 11th Street
It may be a race against the clock at Warehouse 11, the Karl Fischer-designed condominium at 214 North 11th Street in Williamsburg, where nearly 60 contracts have been signed in the last two weeks, at less than $600 per square foot, according to Apartmentsandlofts.com, which is handling sales for the building. A spokesperson for Apartmentsandlofts.com said the price slashing is due to market conditions, but a source with knowledge of the situation said the fire sale marks an effort to ratchet up cash before a lender-imposed March 31 cut off date. Developer McCaren Park Mews LLC initially faced a Dec. 21, 2009 deadline to buy back the debt, according to bankruptcy filings. But, the developer had been “able to renegotiate terms with the bank," the spokesperson said, and extend the closing deadline to March. The offering plan attorney, Abe Lowy, confirmed that there was a deadline extension on a bank-developer agreement but would not elaborate on the terms of the agreement.


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Another city landlord hit with rent deregulation suit

January 29th, 2010    Posted in New York City Real Estate News, Real Estate News
 
The latest in a string of tenant-led lawsuits charging landlords with illegal rent-deregulation has hit 444 East 82nd Street. Half of the 415 units in Clermont York Associates' building are market rate, despite the fact that the owners raised rents on those units while receiving tax breaks from the city for renovations, said law firm Himmelstein McConnell Gribben Donoghue & Joseph, which filed the suit today. The suit is among a growing number of battles over rent deregulation that have been sprouting up in the wake of an October ruling handed down to owners of the massive Stuyvesant Town and Peter Cooper Village complex by the New York State Court of Appeals. The court's decision said that landlord Tishman Speyer should not have destabilized rents in thousands of apartments while receiving the city's J-51 tax benefits for building upgrades. Tishman Speyer, which has since handed the debt-laden property over to its creditors, was estimated to owe $200 million in back rent to tenants following the case. Last week, tenants at Lenox Terrace in Harlem filed a similar suit against their landlord, who could owe between $400,000 and $6 million, their lawyers said. [Crain's]


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Stuy Town rent agreement set to expire Sunday … and more

January 29th, 2010    Posted in New York City Real Estate News, Real Estate News
 
1. A “Catcher in the Rye”-themed walking tour, unveiled [NYT]
2. Environmental groups claim Battery Park City doesn’t follow through on its green claims [Downtown Express]
3. Once-troubled Downtown Brooklyn retail nabe sees rebirth [Post]
4. Potential Whole Foods site in Gowanus showing little activity [Brownstoner]
5. Brooklyn Cyclones and KeySpan end naming arrangement [Crain’s]
6. Brand Z For Less discount store shuttering in Sheepshead Bay [Sheepshead Bites]
7. Trial-mod applicants may be required to submit more paperwork under new guidelines proposed [CNNMoney]
8. Stuy Town rent agreement between rent-stabilized tenants and landlords set to expire Sunday [Crain's]
9.
Harry Macklowe close to selling Rivertower rental building to Sam Zell [Post]
10. Art show chronicles experience of squatting at East 3rd Street building and a building history [NYT]


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Posting: A Nightclub to Call Home

January 29th, 2010    Posted in New York City Real Estate News, Real Estate News
 
Douglaston Development is marking Ohm, a 288-unit tower at 312 11th Avenue and 30th Street, using the neighborhood’s nightclubs.

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In the Region | Long Island: Warming Up to Modern

January 29th, 2010    Posted in New York City Real Estate News, Real Estate News
 
On an Island awash with traditional colonials and Capes, Thomas Mojo and Mark Stumer, partners in a design firm, build architecturally unusual contemporary homes

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Mortgages: F.H.A. Lending Standards Tightened

January 29th, 2010    Posted in New York City Real Estate News, Real Estate News
 
With F.H.A. mortgage defaults increasing, the government has tightened lending standards for those with the worst credit and increased fees across the board.

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Toren approved for FHA financing

January 29th, 2010    Posted in New York City Real Estate News, Real Estate News
 

The Toren condominium and a rendering of its just-completed pool
Downtown Brooklyn's long-awaited Toren condominium at 150 Myrtle Avenue has won its bids for both Federal Housing Administration and Fannie Mae financing, Brownstoner reported, making the building's 50 percent unsold units much more accessible to new homebuyers with less-than-stellar credit scores and limited supplies of cash. The FHA program allows such buyers to finance up to $729,750 for their homes with down payments of only 3.5 percent. In other news at BFC Partners' 38-story building, Toren's indoor pool has been completed, just in time for buyers who've already closed to start moving in. [Brownstoner]


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Square Feet | The 30-Minute Interview: Daniel R. Tishman

January 29th, 2010    Posted in New York City Real Estate News, Real Estate News
 
Mr. Tishman is the chairman and chief executive of the Tishman Construction Corporation and vice chairman of Tishman Hotel & Realty.

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Habitats | St. Nicholas Avenue: Tea and Uncertainty for a Busy Family

January 29th, 2010    Posted in New York City Real Estate News, Real Estate News
 
Paul Kogan and his wife, Deborah Copaken Kogan, and their family ended up in Sugar Hill after a few wrongheaded real estate decisions.

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Goldman offering mortgages as perks to bonus-less bankers

January 29th, 2010    Posted in New York City Real Estate News, Real Estate News
 
With cash bonuses still in -- relatively -- short supply in the aftermath of the recession, Goldman Sachs seems to be doing its part to limit the cutbacks' impact on luxury real estate. Gawker took a look at New York City property records this week and found that Goldman started lending to individual residential property owners in mid-2008, just as the financial system was beginning to collapse. There were 17 instances in total where Goldman is listed as the secured party on residential property transactions in the city; half of those involved employees of the firm. In late October 2008, managing director Oliver Frankel took out one such "hassle-free" mortgage from his employer for a co-op in Tribeca's 34 Leonard Street, where units were selling between $2 million and $8 million earlier that year. Goldman has also granted loans to managing director T. Clark Munnell for his $6.6 million Park Avenue apartment, to banking technology manager Lancelot Braunstein, who bought a $2.1 million co-op in September, and to vice president Justin Lee for his $1.9 million Chelsea apartment, among others. Terms of the mortgages are not public, but the company recently told the Wall Street Journal that it has allowed "a small number of employees" to take out mortgages, that they carry normal interest rates and that they must be paid back. Gawker did uncover the terms of one particularly high-profile mortgage, though. Rodney Martin, the chief operating office of AIG's life insurance unit was lent $4 million in April 2008 for a $4 million apartment at 15 Central Park West, courtesy of new neighbor and Goldman CEO Lloyd Blankfein's company. The 30-year mortgage had a 4.8 percent interest rate and was interest-only for the first 10 years. [Gawker]


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In the Region | New Jersey: Builders Reassess the Market

January 29th, 2010    Posted in New York City Real Estate News, Real Estate News
 
Despite the recession, several builders of multifamily projects have forged ahead — some actually building, others planning on it as soon as weather permits.

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In the Region | Connecticut: Between a Castle and a Cottage

January 29th, 2010    Posted in New York City Real Estate News, Real Estate News
 
The notion that the new “big” in housing means high aesthetic value in a less cavernous package is being tested by several high-end builders.

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At the desk of: Leonard Boxer

January 29th, 2010    Posted in New York City Real Estate News, Real Estate News
 

Leonard Boxer
From the January issue: Attorney Len Boxer is a thinking man’s lawyer. And these days he’s finding ways to wring money for development in a capital-starved market. So it’s fitting that a likeness of Auguste Rodin’s “Thinker” adorns his 39th-floor Lower Manhattan aerie. Boxer is chairman of the 50-person real estate practice at Stroock & Stroock & Lavan. His Maiden Lane office looks out on Brooklyn, where he grew up. In the 1970s, he formed a law firm with Robert Olnick, right before Olnick got involved with developing Starrett City. Since then, his deals have only grown, like Larry Silverstein’s $3.2 billion lease in summer 2001 of the World Trade Center.


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Merger appears likely for financially-strapped Cobble Hill hospital

January 29th, 2010    Posted in New York City Real Estate News, Real Estate News
 
Cobble Hill's debt-laden Long Island College Hospital is merging with SUNY Downstate Medical Center of Crown Heights, pending approval by the state. The hospital's current operator, Continuum Health Partners, has already approved the plan, which will fend off the facility's closure after a year of uncertainty. LICH is $170 million in debt and in 2008, it sold several buildings, laid off hundreds of employees and had proposed shuttering its maternity, pediatrics and dentistry departments. There is no timeline for the merger as of yet, hospital officials said. Continuum, which also operates St. Luke's and Roosevelt hospitals in Manhattan, recently submitted a proposal to take over St. Vincent's Hospital in the West Village. Continuum's plan would convert St. Vincent's it into a community health center and significantly scaling back emergency services. [Brooklyn Paper]


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Treasury relaxes paperwork requirements for loan mods

January 29th, 2010    Posted in New York City Real Estate News, Real Estate News
 
Borrowers participating in the Obama administration’s Home Affordable Modification Program will soon have a simpler route to mortgage loan modifications. Under new guidelines, borrowers seeking to lower their mortgage payments will be required to provide just three items to servicers: a form requesting the modification, authorization for the servicer to access tax information from the Internal Revenue Service and evidence of income, the Treasury announced yesterday. The HAMP program, launched one year ago, has been widely criticized for its low success rates in turning three-month trial modifications into permanent ones, and borrowers and servicers alike had pointed to complex documentation requirements as one of the major stumbling blocks. Roughly 900,000 borrowers had been given trial modifications by the close of 2009, but only 66,465 of those had been converted to permanent ones. Beginning June 1, servicers will also have to gather the documents prior to granting trial modifications in order to avoid beginning the process with borrowers who ultimately won’t be able to come up with the paperwork. [WSJ]


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Landlord sues state over electric billing

January 29th, 2010    Posted in New York City Real Estate News, Real Estate News
 

From left: Manhattan Borough President Scott Stringer, Representative Carolyn Maloney, City Council member Jessica Lappin, and State Assembly member Micah Kellner

Major multi-family owner Urban American is suing the state Public Service Commission over electric billing in thousands of units of mostly rent-stabilized apartments in Manhattan. The New Jersey-based company filed a lawsuit Jan. 15 in State Supreme Court in Albany to overturn a ruling by the commission that blocked the company from individually billing tenants in four Manhattan apartment complexes for electric usage, known as submetering. Currently the electrical charges are folded into the rent bill based generally on the apartment size, not on actual usage. The case is being closely followed by elected officials including Rep. Carolyn Maloney and Manhattan Borough President Scott Stringer, who urged the state to block the submetering until certain conditions were fulfilled.


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Relocation firm relocates to Elliman

January 29th, 2010    Posted in New York City Real Estate News, Real Estate News
 
Prudential Douglas Elliman has acquired the Acocella Group, a 23-year-old real estate company specializing in corporate relocations. Stephen Kotler, an executive vice president and director of new business development at Elliman, told The Real Deal that all of the Acocella Group’s 19 agents will now be working out of Elliman’s 485 Madison Avenue offices. Kotler, who handled the logistics of the deal, wouldn’t comment on the details of the acquisition or who initiated it, but said the move would help Elliman gain market share. “We felt that Peter and his group were a good addition to the company,” Kotler said. “We’re always looking for partnerships and acquisitions.” The Acocella Group is a brokerage specializing in corporate relocation, property management and short-term furnished housing. Kotler said he’s known the company’s president, veteran agent Peter Acocella, for years. Acocella was not immediately available for comment by press time, but a spokesperson said the firm was slated to move from its headquarters at 27 West 24th Street to Elliman’s offices today. Elliman has opened additional offices in the West Village and in Fort Greene, Brooklyn since the real estate downturn began.


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Friday Diversion: Stephanopoulos Buys in the Hamptons, Anderson Cooper’s New Firehouse

January 29th, 2010    Posted in New York City Real Estate News, Real Estate News
 
Dan Burns
Interior designer Cindy Rinfret lists her home in Greenwich, Conn., for $14.5 million.

Renting could become housing’s “new normal,” but here is a look at luxury homes being bought and sold this week:

George Stephanopoulos, co-host of ABC’s “Good Morning America” show and a former adviser to President Bill Clinton, buys a home in East Hampton, N.Y., for $3.5 million, about 7% less than its asking price. The 4,500-square-foot shingled home was built in the 1890s and expanded in 1993. It has five bedrooms, four-and-a-half bathrooms, three fireplaces, a pool, an outdoor shower and a separate guest cottage. Photos. (WSJ)

Interior designer Cindy Rinfret, whose clients include fashion mogul Tommy Hilfiger and television personality Regis Philbin, lists her Greenwich, Conn., home for $14.5 million. Located on more than five acres, the Tuscan-style home measures roughly 14,000 square feet and has six bedrooms and six bathrooms. Built and designed by Ms. Rinfret in 2005, the home features French limestone fireplaces, a home theater, herb and perennial gardens, a bocce court and outdoor kitchen, dining and living rooms. Photos. (WSJ)

Daria Zhukova, editor of the British fashion magazine Pop and girlfriend of Russian billionaire Roman Abramovich, pays $19.5 million for a Tuscan-style home in Los Angeles’ Hollywood Hills. She paid 11% less than the $21.9 million listing price. The newly built home is about 9,700 square feet and has six bedrooms and eight-and-a-half bathrooms, as well as a pool, a billiards room, a movie theater and a wine cellar. Photos. (WSJ)

CNN’s Anderson Cooper plans to move into a former firehouse in New York City’s Greenwich Village. The New York Board of Fire Underwriters sold the four-story building in September for $4.3 million. Mr. Cooper has hired architect Cary Tamarkin to convert it into a home, but plans for the construction have not yet been filed. The Beaux Arts-style building measures 8,240 square feet and has its original spiral staircases and brass fire poles. (New York Post)

A penthouse on the 76th floor of the Time Warner Center in Manhattan, once rented by Jay-Z for $40,000 a month, hits the market for $38 million. Jay-Z rented it from real-estate investor Michael Hirtenstein, who paid $15.7 million for the home. Mr. Hirtenstein later sold the four-bedroom unit for $27 million in early 2007. (Curbed)

A Las Vegas mansion that Michael Jackson rented sells for $3.1 million in cash. Mr. Jackson paid $1 million to rent the 15,000-square-foot home for six months in 2006 and 2007. The property includes seven bedrooms, a tennis court, a basketball court and a 20-seat theater. (Bloomberg)

Performer Ashlee Simpson-Wentz lists her 7,100 square-foot home in Los Angeles’ Beverly Hills area for $4 million. The Mediterranean-style villa is walled and gated and has hillside and canyon views. It also has five bedrooms, six-and-a-half bathrooms, cathedral-beamed ceilings, an eat-in kitchen, a fitness room, a media room, a swimming pool, a spa and a meditation garden with a fountain and fire pit. The property also includes a two-story guesthouse. (Los Angeles Times)

Katie Lee, Billy Joel’s ex-wife, lists her Manhattan townhouse for $12.9 million. The 4,000-square-foot home has four bedrooms, four bathrooms, four fireplaces, an elevator and a pool. The home was previously owned by Johnson & Johnson heir Seward Johnson. (New York Post)


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Co-op Buyer Looks for a ‘Bridge’

January 29th, 2010    Posted in New York City Real Estate News, Real Estate News
 

I own a co-op in Forest Hills. I am waiting to buy a bigger unit – now owned by the sponsor – when it becomes available. I don’t want to sell my place until this larger one is for sale. My mortgage broker told me that banks no longer give bridge loans. I thought of offering to pay rent for the new apartment until I sell mine. Is this possible?

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When Apartments Make You Sick

January 29th, 2010    Posted in New York City Real Estate News, Real Estate News
 

Six months ago I bought a co-op apartment in Bayside, Queens. I am susceptible to mold, so before closing I had the apartment inspected by a specialist who didn’t find any mold. Days after the closing I felt sick in the apartment and brought this to the attention of management. I never received a response. Is the co-op responsible for correcting the problem?

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What Constitutes a Board Vacancy

January 29th, 2010    Posted in New York City Real Estate News, Real Estate News
 

Our Brooklyn co-op has a five-member board of directors. One of them notified the board that he was “suspending” himself for an unspecified period of time, but was not resigning. There are five months before the next election. What should our board do until then?

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Cuomo gets big campaign bucks from real estaters

January 29th, 2010    Posted in New York City Real Estate News, Real Estate News
 

Some of Cuomo's big contributors in the real estate industry, from left: Jerry Speyer, Jeff Blau, Aby Rosen, Andrew Farkas, Richard LeFrak, Kent Swig, and Shaya Boymelgreen

Attorney General Andrew Cuomo is emerging as the real estate industry’s darling, as he prepares his bid for the gubernatorial race, which could include potential candidates Rick Lazio and current Governor David Paterson, with developers and other real estate bigwigs throwing cash behind the potential candidate. The industry has been so fiscally generous to Cuomo that it’s ranked as the Attorney General’s top giver, according to the New York Times. Cuomo has raked in around $18 million in funds donated from real estate executives, including some troubled figures. Three top executives from Tishman Speyer Properties, the erstwhile owner of Stuyvesant Town and Peter Cooper Village, have donated a combined $151,000, while Shaya Boymelgreen has given $8,000 and Kent Swig has forked over $15,000 in the past two years.


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Mendlowits’ UWS tenement gets receiver

January 29th, 2010    Posted in New York City Real Estate News, Real Estate News
 

201 West 92nd Street (source: PropertyShark)
A New York State Supreme Court Judge approved a request by Istar Financial to appoint a receiver at an Upper West Side tenement complex owned by Adorama investor Mendel Mendlowits, who is facing foreclose proceedings at the properties. Judge James Yates ordered attorney Peter Weiss to take over as receiver of the rental buildings while the foreclosure works its way through the courts. The judge further ordered that Walters & Samuels, a Manhattan-based property management firm, oversee the properties. Istar, a Manhattan-based commercial real estate lender, filed suit earlier this month to foreclose on the site at 201 West 92nd and 200 West 93rd, after Mendlowits allegedly defaulted on a $46 million mortgage, failed to pay $329,950 in taxes and signed a commercial lease for a pet shop without the prior consent of the lender.


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Update: Is New York Ready for ‘Trump Town’?

January 29th, 2010    Posted in New York City Real Estate News, Real Estate News
 
Getty Images
Mr. Trump in August

Donald Trump, the real-estate developer and outspoken reality television personality, could be headed downtown.  The New York Post reports that Mr. Trump is interested in buying or managing Manhattan’s sprawling Stuyvesant Town/Peter Cooper Village.

As we’ve reported, a group led by Tishman Speyer Properties opted for its own version of jingle mail,  dumping the 11,000-unit development - for which it paid a stunning $5.4 billion at the top of the market in 2006 - on its creditors.

That’s created a rare opportunities for developers looking to manage what was once considered a Big Apple jewel. The shine might be off, but The Donald still faces plenty of competition. Other interested parties reportedly include: Related Cos.; the LeFrak Organization in partnership with private-equity firms Centerbridge Partners and W.L. Ross & Co.; current tenants; Stonehenge Partners; Prudential Douglas Elliman; and WinnCompanies, the nation’s eight-largest apartment manager.

Mr. Trump, not known for humility, tells the Post: “No one has a better track record running properties.”

Mr. Trump made news in November for abandoning his bid to regain control of three New Jersey casinos bearing his name. He began developing casinos in the 1980s and has sought bankruptcy protection for them three times.

In New York City proper Mr. Trump’s put his name on a number of glitzy high-end residential towers. Stuy Town, with its working class look and feel (some have dubbed it Moscow on the East River), is decidedly more down  market.

Is New York ready for “Trump Town”?

Late Friday, Crain’s New York Business pointed out that an interim agreement dropping the complex’s rents to stabilized levels for January and February expires Sunday, adding even more drama to the situation.

Follow Dawn on Twitter at www.twitter.com/dwotapka


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Goldman’s Latest Perk: Offering Mortgages to ‘Cash-Strapped’ Bankers

January 29th, 2010    Posted in New York City Real Estate News, Real Estate News
 

Bankers are feeling squeezed these days. Their employers, facing public anger and political retaliation, have curtailed cash bonuses. And the new pay culture is hurting bankers with hefty mortgage payments and private-school tuition bills, according to this Journal story Thursday.

But banks want to help. Bank of America Corp. and Citigroup Inc. are doling out shares that employees can sell within months—much sooner than normally allowed. Other giant banks, including Goldman Sachs Group Inc.  let certain employees borrow money to relieve personal cash crunches.

In a fascinating follow-up to the WSJ story, Gawker looks at New York City property records to see if Goldman hooks up employees with, what it calls “no-hassle” mortgages. “The answer is yes, for a few people at least.”

Goldman is listed as a party in a handful of residential transactions–17 in the last decade–all after mid-2008, when the credit markets froze.

Goldman is listed as the secured party, for instance, for a $2.1 million co-op that Lancelot Braunstein, who manages banking technology for Goldman, purchased with his wife in September 2009. Just yesterday [Wednesday], Goldman became the secured party for Goldman managing director T. Clark Munnell’s $6.6 million Park Avenue apartment. Likewise, it is the secured party for the $1.9 million Chelsea apartment that Goldman vice president Justin Lee purchased on January 5. Same with vice president Annamaria Timofte-Pelfrey’s Queens apartment, purchased last month, and the two units in an Upper East Side building that managing director David Perez bought in August.

One juicy tidbit:

Goldman lent $4 million to Rodney O. Martin, the COO of AIG’s life insurance unit. Martin and his wife purchased a $4 million apartment in 15 Central Park West just as the bottom was falling out, and none other than their new neighbor Lloyd Blankfein, who also lives in that building, supplied them with a 30-year mortgage, which was interest-only for the first ten years.

Rates and terms weren’t made public, but we’re guessing that these loans were recourse–minimizing the chances that a disgruntled ex-Goldman employee “walks away.” Of course, with perks like million-dollar mortgages in the offing, we’re guessing disgruntled Goldman bankers are as hard to come by as a 30-year mortgage for us regular folks.


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Downtown’s office market holds — for now

January 29th, 2010    Posted in New York City Real Estate News, Real Estate News
 
State Sen. Daniel Squadron has criticized the FDIC’s decision to leave its home at 20 Exchange Place for the Empire State Building.
State Sen. Daniel Squadron has criticized the FDIC’s decision to leave its home at 20 Exchange Place for the Empire State Building.
From the January issue: Resilient. That's the word for Lower Manhattan's commercial real estate market for the past 12 months. In the aftermath of the greatest financial meltdown in recent history, Lower Manhattan boasts the lowest vacancy rate of any market in the city at 7.3 percent, according to CB Richard Ellis data for November. Midtown and Midtown South had rates of 10.2 percent and 9.8 percent, respectively, in the same month. Sounds like good news, right? Not so fast. There's a looming cloud. "In many instances it is always calm before the storm," said Hal Stein, who heads up Newmark Knight Frank's Downtown office. "Here is the issue: [In 2010] there is going to be substantial space hitting the market from some of the financial firms and that is going to be a telltale sign."


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George Stephanopoulos buys in Hamptons

January 29th, 2010    Posted in New York City Real Estate News, Real Estate News
 
ABC’s George Stephanopoulos is moving from Washington D.C. to New York City and has purchased a $3.5 million, five-bedroom home in East Hampton to accompany the relocation. The newly-appointed “Good Morning America” host and former adviser to President Bill Clinton scored the 4,500-square-foot house from two local restaurateurs at 7 percent off the asking price. It sits on a one-acre lot and has three fireplaces, a pool, outdoor shower, and guest cottage. John Glicking of Sotheby’s International Realty represented Stephanopoulos and his wife, actress Alexandra Wentworth, in the sale. Lori Barbaria of Prudential Douglas Elliman had the listing. [WSJ, 2nd item]


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George Stephanopoulos buys in East Hampton

January 29th, 2010    Posted in New York City Real Estate News, Real Estate News
 
ABC’s George Stephanopoulos is moving from Washington D.C. to New York City and has purchased a $3.5 million, five-bedroom home in East Hampton to accompany the relocation. The newly-appointed “Good Morning America” host and former adviser to President Bill Clinton scored the 4,500-square-foot house from two local restaurateurs at 7 percent off the asking price. It sits on a one-acre lot and has three fireplaces, a pool, outdoor shower, and guest cottage. John Glicking of Sotheby’s International Realty represented Stephanopoulos and his wife, actress Alexandra Wentworth, in the sale. Lori Barbaria of Prudential Douglas Elliman had the listing. [WSJ, 2nd item]


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Trump, Related eyeing Stuy Town takeover

January 29th, 2010    Posted in New York City Real Estate News, Real Estate News
 

Donald Trump and Stuyvesant Town
Now that Stuyvesant Town and Peter Cooper Village owners Tishman Speyer and BlackRock Realty are out of the picture, some of the city’s biggest real estate names are vying for a stake in the 110-building complex, including one Donald Trump. Tishman Speyer and BlackRock announced earlier this week that they would hand over the debt-ridden property to creditors after missing a $16.1 million mortgage payment earlier this month. Since then, “people have asked us if we would get involved in running it or buying it," Trump told the Post. "We are looking at it right now very seriously." Trump isn’t the only one. WinnCompanies, the Boston-based apartment manager, is looking to dip its feet into the New York City market by taking on the property manager role at Stuy Town, and earlier this week, a high-profile group including investor Wilbur Ross, real estate mogul Richard LeFrak and investment firm Centerbridge Partners said they were interested in taking ownership. Rose Associates, the Related Companies and Prudential Douglas Elliman are also reportedly interested in a management role. Whoever owns the property next could be responsible for the $200 million in rent overcharges left over from October’s rent-stabilization ruling against Tishman Speyer, said Alex Schmidt, the tenants' attorney in that case.


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Battery Park City Authority approves $11 M in contracts for Pier A renovation work

January 29th, 2010    Posted in New York City Real Estate News, Real Estate News
 
Battery Park City’s landmark Pier A will soon get its final repairs as the redevelopment project moves along under budget. This week, the Battery Park City Authority approved $11.1 million in construction contracts for core and shell work on the three-story pier, which is slated to begin once the underwater repairs are completed in April. That’s less than the project’s $30 million budget -- which came from the city -- had allotted for the repair work, and the surplus funds will be used to design the pier’s public plaza, the authority said. The authority is looking to have a tenant in the building by next year and is currently seeking proposals from prospective occupants. The city would have to approve the rent and terms of any lease. This isn’t the first redevelopment effort at Pier A; the city had previously enlisted a private developer to rehabilitate the former marine firehouse but the project never got off the ground. Some authority board members expressed skepticism that the authority would be able to find a tenant willing to pay a sum that would be agreeable to the city, especially given this history. [Downtown Express]


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Battery Park City Authority approves $11.1M in contracts for Pier A renovation work

January 29th, 2010    Posted in New York City Real Estate News, Real Estate News
 
Battery Park City’s landmark Pier A will soon get its final repairs as the redevelopment project moves along under budget. This week, the Battery Park City Authority approved $11.1 million in construction contracts for core and shell work on the three-story pier, which is slated to begin once the underwater repairs are completed in April. That’s less than the project’s $30 million budget -- which came from the city -- had allotted for the repair work, and the surplus funds will be used to design the pier’s public plaza, the authority said. The authority is looking to have a tenant in the building by next year and is currently seeking proposals from prospective occupants. The city would have to approve the rent and terms of any lease. This isn’t the first redevelopment effort at Pier A; the city had previously enlisted a private developer to rehabilitate the former marine firehouse but the project never got off the ground. Some authority board members expressed skepticism that the authority would be able to find a tenant willing to pay a sum that would be agreeable to the city, especially given this history. [Downtown Express]


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Construction company slapped with violation after debris falls off Beekman Tower, the Distrikt Hotel to open Feb. 1 … and more

January 29th, 2010    Posted in New York City Real Estate News, Real Estate News
 
1. Construction company slapped with violation after debris falls off Ratner's Beekman Tower, causing street closures [Downtown Express]
2. The Distrikt Hotel to open Feb. 1 [Hotel Chatter]
3. Vogue's Anna Wintour writes to Landmarks Commission calling proposed 178 Bleecker Street building "out-of-scale, inappropriate" [Post via Downtown Express]
4. The worst is over for hotels, PFK research shows [National Real Estate Investor]
5. Museum of Contemporary African Diaspora Arts unveils Brooklyn gentrification exhibit [Brooklyn Paper]
6. The case against rent stabilization [Post]
7. Cobble Hill special education program will be forced to close after failing to find new home [Brooklyn Paper]
8. Education council chooses Option 2 for Lower Manhattan school rezoning [Downtown Express]
9. Van Leeuwen owner said to be opening brick and mortar ice cream shop next to Manhattan Inn within weeks [Eater]
10. A full list of Downtown apartments eligible for rent stabilization following court ruling on 421-g tax breaks [Downtown Express]
11. Citigroup reportedly negotiating to sell global real estate investment unit [Bloomberg via BusinessWeek]
12. Worker falls at new Battery Park City ballfield towers site [Downtown Express]
13. Largest off-site airport parking operator in country files for Chapter 11 [Reuters]
14. Neighbors concerned about safety following power shutdown at 60 Hudson Street [Downtown Express]
15. Should you hire an engineer to inspect your potential new home? [NYDN]


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Residential Sales Around the Region

January 28th, 2010    Posted in New York City Real Estate News, Real Estate News
 
A comparison of recent residential sales by region and price range.

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Number of serious delinquencies on the rise, Freddie Mac reports

January 28th, 2010    Posted in New York City Real Estate News, Real Estate News
 

Click graph for larger version (source: Calculated Risk)
The rate of serious delinquencies on single-family homes, those that are 90 days or more behind, increased more than 2 percent between December 2008 and December 2009, up to 3.87 percent from 1.72 percent, according to the latest data from Freddie Mac. This figure may not, however, be as dramatic as it seems, according to Calculated Risk. Some of the loans counted in the report may be in trial modification programs and won’t be considered out of delinquency until they enter the permanent modification stage.


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State insures $38M mortgage for Bushwick rental conversion

January 28th, 2010    Posted in New York City Real Estate News, Real Estate News
 
Troutman Gardens, a 144-unit Bushwick development at 114-136 Troutman Street, has gone rental, and is getting $37.5 million in state support for its decision. Mayer Schwartz's five-story building was originally intended to have condos, but that plan went sour along with the economy. Today, the State of New York Mortgage Agency agreed to insure the building's $37.5 million mortgage in support of its rental conversion, which will enable its lenders to sell the mortgage to New York City employee pension funds and invest in new housing. Construction on Troutman Gardens was completed in October, with leasing beginning later that month. It is currently 63 percent leased. Units at the building will be rent-stabilized due to a 421(a) tax exemption. TRD


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Outlook still grim for Florida real estate

January 28th, 2010    Posted in New York City Real Estate News, Real Estate News
 
From the South Florida Web site: A statewide survey of real estate professionals puts unemployment at the top of stumbling blocks to a robust market recovery in Florida. Since unemployed people don't need office space, don't shop, don't pay rent and don't buy houses, one respondent said, it’s unlikely to mean a serious recovery is in the offing. Reactions from 319 participants in 13 urban regions of the state representing reactions for 15 types of property were largely unified: more vacancies and decreasing rents will hit commercial and residential real estate for some time. The current unemployment rate of 11.8 percent must decline before people can start participating in the market again, said Tim Becker, director of the University of Florida's Bergstrom Center for Real Estate Studies in Gainesville, which conducted the survey. [more]


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Retailers jump on lower rents in east Midtown, Hudson Hotel club to open in time for Fashion Week … and more

January 28th, 2010    Posted in New York City Real Estate News, Real Estate News
 
1. St. Vincent's had reportedly been looking for partners since 2007 [Crain’s]
2. Droves of supporters turn out for proposed Sheepshead Bay mosque [Sheepshead Bites]
3. Retailers jump on lower rents in east Midtown [Crain’s]
4. Short-term office space company, Green Desk, expanding to Brooklyn [Brownstoner]
5. Lincoln Center renovations progressing speedily [My Upper West] 
6. NYC restaurants racing against the clock to open space [NYT]
7. Alicia Keys reportedly buying Lenny Kravitz’s 30 Crosby Street home for $14.5M [Post]
8. Famed chef David Bouley set to open new restaurant, BrushStroke, in early July [Grub Street]
9. New Hudson Hotel club slated to open its doors in time for Fashion Week next month [Post]
10. Heartbeat Digital signs 10-year lease at 200 Hudson Street [GlobeSt]
11. Luxury market grows stronger in New Jersey [Post]
12. Major renovation effort underway at 125th Street retail spaces [Harlem Bespoke]
13. Five Napkin Burger is firming up plans to open a second location at 2315 Broadway on the corner of 84th Street [Zagat]
14. Facebook group emerges in protest of the NYC Board of Standards and Appeals [Brownstoner]


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Downtown retail goes down market

January 28th, 2010    Posted in New York City Real Estate News, Real Estate News
 
Winick’s Diana Boutross and Darrell Rubens in front of 30 Broad Street.
Winick’s Diana Boutross and Darrell Rubens in front of 30 Broad Street.
From the January issue: Darrell Rubens brokered the deals for high-end fashion stores Thomas Pink and Canali in early 2007 during the luxury rush Downtown. Last fall, however, he inked leases for Korean chicken chain BonChon Chicken at 104 John Street and nail salon Spring Sun Nail at 119 Fulton Street. "Obviously, it's slowed," said Rubens, senior managing director at Winick Realty Group. Four years after BMW touched off a luxury boom that brought Tiffany & Co. and Hermès to Lower Manhattan's Wall and Broad Street corridors, the district's upscale aspirations have collided with the hard reality of the Great Recession. By the middle of last month, no new luxury fashion transactions had been completed in 2009 in Lower Manhattan, according to numerous local brokers and Alliance for Downtown New York research reports. Instead, the openings touted by the Downtown Alliance in its first-, second- and third-quarter retail market overviews were mainly casual restaurants including Swich, which makes pressed sandwiches, and discount fashion stores such as Bolton's and Strawberry.


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Bloomberg calls for drop-in center, public pool closures in budget talk

January 28th, 2010    Posted in New York City Real Estate News, Real Estate News
 
Mayor Michael Bloomberg called for the closure of a homeless drop-in shelter and four public pools, while encouraging a reduction of public facilities in his unveiling of a four-year financial plan for the five boroughs today. The plan aims in part to close the $4.9 billion city budget deficit without raising taxes, according to a statement sent from the Bloomberg administration. If this preliminary budget plan goes through, it would reduce 2011’s fiscal year expenses by 1.8 percent (see full preliminary budget here). The plan includes significant budget cuts to the public services and facilities, such as police, fire, libraries and parks. Additionally, the city will hire 29 new tax auditors to increase audit revenue, and will reduce the number of corrections facilities staff members by 291. Bloomberg’s announcement comes on the heels of a major kerfuffle between the mayor and the Governor David Paterson, who Bloomberg believes has promoted an untenable state budget reform program.


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Hotel Biz May Lack Luster, But W Hollywood Opening Is All Glam

January 28th, 2010    Posted in New York City Real Estate News, Real Estate News
 
Tim Street Porter
The lobby of the W Hollywood

This isn’t exactly the best environment for opening a hotel. Still developer Gatehouse Capital Corp. and hotel operator Starwood Hotels and Resorts Worldwide Inc. are rolling out their new Hollywood hopeful on Thursday: The 305-room W Hollywood hotel in the center of Tinsletown.

In a style fitting the location, the hotel’s unveiling won’t lack for glitz and glam. A day after the hotel’s opening, a “civic recognition event” on Friday is expected to draw 300 to the hotel, including Los Angeles Mayor Antonio Villaraigosa. The event will include appearances by late-night television host Jimmy Kimmel and singer Robin Thicke. This weekend, the W will host the Grammy Awards post-event party for EMI’s Capitol Records, which is headquartered across the street from the hotel.

The fete was a long time coming for Gatehouse Chief Executive Officer Marty Collins. He drafted plans for the W Hollywood in the late 1990s and spent the next decade haggling with various local and regional government agencies and building the hotel at a cost of $350 million. In addition to the hotel, the project has 143 residences priced at $500,000 to $7 million. Of those, 43 are under contract.

Occupancy at hotels in Los Angeles has declined by nearly 11 percentage points since 2007 to 64.3%, according to Smith Travel Research. Revenue per available room declined by 20% to $73.46 in the same span. And hotel projects offering pricey condos have found few buyers in this economy. But Mr. Collins is undaunted.

“Today the economy is less robust than it was three years ago,” he concedes. “But, relative to what it was 12 years ago when I started (the W project), this neighborhood has exploded.”

Gatehouse Capital is the project’s developer and minority owner. The majority owner is HEI Hotels & Resorts, based in Norwalk, Conn. German bank HSH Nordbank AG provided the project’s $250 million construction loan. The hotel is the 36th to carry Starwood’s trendy W brand.

Located at the intersection of Hollywood Boulevard and Vine Street, the W is within walking distance of the Pantages, Hollywood Palladium and Avalon theaters. It contains a Bliss spa, the Drai’s Hollywood nightclub and the Delphine restaurant. The W’s rates range from $219 for a 400-square-foot room to $2,000 to $4,000 for a 1,650-square-foot room.

“We say internally that we’re introducing the newest star on the boulevard,” said Jim McPartlin, the hotel’s general manager. “So, you take the training wheels off and see what happens.”


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Panel approves charter school expansion within Red Hook’s P.S. 15

January 28th, 2010    Posted in New York City Real Estate News, Real Estate News
 
Just after the city's Panel for Educational Policy voted to close 19 under performing public schools in the early hours of Wednesday morning, the group decided to allow a Red Hook charter school to expand. The PAVE Academy, which has occupied part of P.S. 15 -- the Patrick F. Daly School -- on Sullivan Street since it opened in 2008, is increasing the size of its kindergarten-through-second-grade program to include children through the eighth grade. The Department of Education had previously said PAVE could grow in that space by one grade per year, for the next five years. This panel's vote gives PAVE more space within P.S. 15 for just three more years, after which it will have to find its own facility. Still, teachers and community members' opposition made the decision contentious. “You know damn well that building won’t be built in three years," said Julie Cavanaugh, a teacher at P.S. 15, who said she believes the decision is part of an effort by Mayor Bloomberg to move the city away from public schooling. “It will be a whole other ordeal and a whole other fight.” [Brooklyn Paper]


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Housing’s ‘New Normal’: More Renters, Slowing Home Appreciation

January 28th, 2010    Posted in New York City Real Estate News, Real Estate News
 
Superstock
Dreamland no more: The disillusionment over homeownership could last for decades, Mr. McIlwain writes.

With so much focus on determining whether housing has finally hit bottom, little thought has been given to the future of housing, post bubble. Here’s a potentially sobering prediction: “The old ‘normal’ will not return,” predicted John K. McIlwain, senior resident fellow at the Urban Land Institute, at a presentation in Washington this week.

It must have been a grim talk. Mr. McIlwain said overall home prices will likely fall another additional 10% this year, fueling even more foreclosures and underwater mortgages, which could hit 21 million by the end of the year. With more people owing more than their home is worth “the growing number of consumers who are choosing to walk away from those mortgages suggests a fundamental change from the long-held notion of homeownership as the ultimate American Dream,” Mr. McIlwain predicts. “This disillusionment over homeownership as a way to build wealth could persist for decades to come, as those entering the housing market will be more apt to rent longer, and to place more emphasis on buying for shelter rather than investment purposes.”

In the decade ahead, he thinks home appreciation will slow to 1% or 2% annually, while the home ownership rate of 67% will fall as low as 62%. “The age of suburbinization and growing homeownership is over,” he says. That, of course, means more people will stick with renting - whether by choice or necessity. Mr. McIllwain says that housing in and around major cities will remain unaffordable for many who work there. (We’ve previously reported that some 42% of those who once purchased, but don’t currently own, do not think they’ll own again.)

Mr. McIlawain’s presentation comes from this 24-page report, brimming with interesting housing stats and discussion.

Readers, do you agree with Mr. McIlwain? How do you picture the new landscape?

Follow Dawn on Twitter at www.twitter.com/dwotapka


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Cuomo plans to sue landlord Vantage

January 28th, 2010    Posted in New York City Real Estate News, Real Estate News
 

From left: New York Attorney General Andrew Cuomo and Neil Rubler, president and CEO of Vantage Properties
New York Attorney General Andrew Cuomo announced today that he would sue Vantage Properties, one of the largest landlords of rent-regulated housing in New York City, for allegedly harassing tenants. Cuomo said in a statement that he would sue to halt to the alleged harassment and seek monetary damages to tenants who were victimized. “[Vantage's] underhanded tactics displace long-time residents from their homes and exacerbate the acute affordable housing shortage," Cuomo said in a statement. This is not the first time the office of the New York attorney general has put pressure on a large city landlord. In December 2006, the office of then Attorney General Eliot Spitzer hammered out an agreement with Pinnacle Group, a landlord that was strongly criticized for evictions and rent charges. The allegations against Vantage, headed by Neil Rubler, include trying to evict tenants with claims that the apartment is not their primary residence, and suing tenants in housing court for non-payment despite receiving rent payments in cash.


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NYU snaps up 12th Street building for $134M

January 28th, 2010    Posted in New York City Real Estate News, Real Estate News
 

Founders Hall, at 120 East 12th Street
New York University has spent $134 million to buy a 190,000-square-foot building at 120 East 12th Street in Greenwich Village, approximately a year into its 30-year lease with Hudson Companies, according to a tip from PropertyShark.com. The school had been using the East 12th Street Hudson-owned building called Founders Hall, with whom the school had designed the 26-story structure, as a 733-bed dorm. The school signed a lease December 2008, with an option to buy, and students moved in in May 2009. NYU plans to continue to use it for that purpose, said John Beckman, a school spokesperson. The deal, which closed Jan. 21 and was filed with the city two days ago, comes on the heels of the school's $65 million purchase of the Forbes building at 60 Fifth Avenue. The school has been working on a long-term expansion plan, according to a written statement released earlier this month from Michael Alfano, an executive vice president of NYU. The expansion will rely on “community-oriented planning principles,” Alfano said, with an “emphasis on acquiring existing structures rather than resorting to new construction.” Once the home of St. Ann’s Church, Hudson purchased the East 12th Street lot in 2004 and developed the space, while maintaining the original building’s façade. Alan Bell, a principal with Hudson, said that the company had considered constructing a condo and hotel in the space, but scrapped that plan when it was approached by NYU and the New School.


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Discount stores score sweet deals in the Bronx

January 28th, 2010    Posted in New York City Real Estate News, Real Estate News
 
While empty storefronts linger still on Madison Avenue in Manhattan, many discount retailers are hungry to snap up new leases on University Avenue in the Bronx. Rick Stassa, a broker with NAI Friedland, has recently completed several new leases on the stretch, and says the market is prime for the few businesses currently able to expand. One such business is Mohammed Salman Khan's 99 Cent Discount King, which inked a deal for a 12-year lease for a third store location, a 1,875-square-foot space at 2364 University Avenue. “Business owners looking to lease can be aggressive because there aren’t a lot of other people looking,” Stassa said, noting that discount clothing and shoe retailers are among the few that fall into that category. “A lot of landlords are giving reduced rent in exchange for shortening the length of a lease or in exchange for rent increases deeper into the lease." [Post]


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Haitian devastation thwarts development

January 28th, 2010    Posted in New York City Real Estate News, Real Estate News
 
The future of a mixed-use, $40 million development in Haiti is now uncertain as the impoverished nation reels from the damage caused by the Jan. 12 earthquake. New York-based Societe Immobiliere d'Agriculture, de Commerce et de Tourisme, an organization of Haitian-Americans from New York City,South Florida and Chicago, had planned to break ground on their Belle Rive project this week in the picturesque port city of Jacmel. The proposal calls for the 23-acre site calls for a 120-room boutique hotel, 120 condos, a 150-seat theater and a marina that would offer full services for up to 20 boats at a time. New York-based architect Rodney Leon said most of the consultants and contractors who were to work on the project in Haiti must now tend to their families and find ways to survive, instead. [GlobeSt]


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Neighbors protest new Bed-Stuy housing facility for recovering addicts

January 28th, 2010    Posted in New York City Real Estate News, Real Estate News
 
A new temporary housing facility for recovering alcohol and drug addicts in Bedford-Stuyvesant has the surrounding community up in arms over its potential impact on the neighborhood. Roughly 20 new residents of 332 Malcolm X. Boulevard "came in over night," said Eric Smith, president of the Bainbridge Street Block Association. Bedford-Stuyvesant "needs that place like a hole in the head," he said. Neighbors say they've seen the men throwing out empty beer cans and liquor bottles from the home, though the Gelzer Foundation, a private organization that runs the facility insists the men had not been drinking and have been undergoing outpatient treatment for drug and alcohol abuse. There's already a men's shelter one block away from the three-story building, whose safety is already in question as it has also been hit with a temporary stop work order for building without a permit. "Why would you bring a shelter on a block that has a history of drug issues that we're trying to kill?" said Henry Butler, chair of Community Board 3. Butler is meeting with city agency representatives this evening about the stop work order at the site.


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How Will the White House ‘Step Up’ Refinancing?

January 28th, 2010    Posted in New York City Real Estate News, Real Estate News
 
Getty Images

In his State of the Union address, President Barack Obama said the administration would step up mortgage refinancings. But how?

Mr. Obama devoted just three lines of his State of the Union address to housing on Wednesday night: “[W]e’re working to lift the value of a family’s single largest investment—their home,” he said. “The steps we took last year to shore up the housing market have allowed millions of Americans to take out new loans and save an average of $1,500 on mortgage payments.”

That much is true. With mortgage rates at below 5% for much of the year, many borrowers were able to refinance into much lower rates.

More interesting was what Mr. Obama said next: “This year, we will step up refinancing so that homeowners can move into more affordable mortgages.”

Now, square that with Wednesday’s release of data from the Mortgage Bankers Association. Mortgage rates stood at 5.02% last week, up slightly from 5% the week before (though still near record lows). Nonetheless, refinance applications were down 15% from the previous week.

“Although rates remain low, there appears to be a smaller pool of borrowers who are willing and able to refinance at today’s rates,” said Michael Fratantoni, MBA’s Vice President of Research and Economics.

There are plenty of reasons for that.

  • Mortgage rates have been at record lows for much of the past year, so most borrowers who have been able to take advantage of low rates probably have.
  • Save for through the Home Affordable Refinance Program, or HARP (which hasn’t had nearly the effect that the administration said it would), many borrowers can’t refinance because they don’t have enough equity.
  • Credit standards are tight (except for loans insured by the Federal Housing Administration), so many of the most marginal borrowers may not be able to qualify for a refinancing. Fannie and Freddie charge add-on fees for borrowers with less than pristine credit or for riskier loans, such as those for condos. That can drive up the cost of refinancing to the point that it’s not really worth it.

But consider: rates aren’t going down this year, certainly not if the Federal Reserve stops buying up mortgage-backed securities as scheduled. So just how is the administration planning to “step up” refinancing?

Safe to say, it’s not likely to be through conventional means. That makes it a reasonable bet to expect some new modification effort or refinements to existing programs, such as HARP, Hope for Homeowners, where investors reduce the borrower’s principal and refinance them into an FHA-backed loan, or the administration’s loan modification program, Home Affordable Modification Program.


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