Monday, July 07, 2008
Vacancies Rise at Retail Centers
WSJ: “Vacancies at retail properties rose to multiyear highs in the second quarter as retailers closed stores and curtailed expansion plans. Meanwhile, apartment-complex vacancies remained unchanged and rents rose by a stronger-than-expected 1.1% in the quarter, according to real-estate research firm Reis Inc. in New York. Rent growth was stronger than expected in the second quarter given the economic slowdown and weaker wage growth. Rents climbed 1.1% in the second quarter, off the 1.3% growth in the same quarter last year, according to Reis. The apartment vacancy rate remained unchanged from the previous quarter at 5.9%.”
Friday, June 20, 2008
Board Backs Rise in Rent Up to 8.5%
NY Times: “The board that regulates rents for New York City’s one million rent-stabilized apartments approved its highest rent increases in years at a raucous meeting on Thursday...rent increases of up to 4.5 percent on one-year leases and 8.5 percent on two-year leases. Last year, the board approved increases of 3 percent on one-year leases and 5.75 percent on two-year leases.”
Wednesday, June 11, 2008
Squeezing Big-Box Retailing Into Small City Spaces
NY Times: “After many delays, East River Plaza, which stretches from 116th Street and 119th Street along Franklin D. Roosevelt Drive, is expected to open in October 2009, Mr. Blumenfeld said. It will have 485,000 square feet of retail space on five floors and parking for 1,248 cars — all on only six acres. “
Tuesday, May 27, 2008
City ready to choose E. 125th developer
Crains: “Fresh from the rezoning of most of 125th Street, the city is preparing to select a developer for a project on the eastern edge of the planned revitalization of Harlem’s storied thoroughfare. A decision is expected by the end of the summer. The East 125th Street Development calls for the creation of a 1.7 million-square-foot complex, which will include a retail component anchored by a national chain, plus local shops, restaurants, cinemas, nightclubs and possibly a hotel. It will also have offices and specialized space for nonprofits. The plan also envisions up to 1,000 apartments, with at least 30% of the units reserved for low-income residents.”
Thursday, May 22, 2008
'Excessive' Demand Buoys Rental Apartment Market
NY Sun: “Despite the cloudy economic forecast and the nearly 80% drop in investment sales of commercial office properties in the first quarter of 2008, industry leaders are bullish on the value of residential rental apartments in New York City and nearby New Jersey.”
Monday, May 12, 2008
Confirmed: Harlem's Hip New Aloft Hotel
Curbed: “On the website of W Hotel parent company Starwood, under a list of new hotels planned for North America, an Aloft—the new Starwood spinoff brand—is listed as opening in June 2010 at 2296-2308 Frederick Douglass Boulevard.”
Tuesday, May 06, 2008
Board’s Proposal for Rent Increases Disappoints Landlords and Tenants Alike
NY Times: “The board that regulates rents for New York City’s one million rent-stabilized apartments proposed a tentative range of increases Monday night that could lead to larger increases than last year’s. The city’s Rent Guidelines Board recommended increases of 3.5 percent to 7 percent for one-year leases and 5.5 percent to 9.5 percent for two-year leases. The nine-member board will hold two public hearings on June 11 and June 16 and is scheduled to set a final number, not a range, at a meeting on June 19.
The proposed range of increases apply to leases renewed between Oct. 1, 2008, and Sept. 30, 2009. Last year, the board approved increases of 5.75 percent on two-year leases and 3 percent on one-year leases. Those increases were modest compared with those passed in 2006, when the board voted to allow increases of 7.25 percent on two-year leases and 4.25 percent on one-year leases. The board decides the size of the allowable rent increases for rent-stabilized apartments, and its annual round of public meetings and hearings have become a rowdy dramatization of the battle of wills and pocketbooks between the city’s landlords and tenants.”
Wednesday, April 30, 2008
Council approves Harlem rezoning
The Real Deal: “The City Council voted by an overwhelming 47-2 margin today to back the rezoning of Harlem’s 125th Street corridor, capping off one of the most ambitious and controversial development programs launched under the Bloomberg administration. The rezoning is expected to create 1 million square feet of new office space, 90,000 square feet of non-profit and visual arts space and more than 3,800 new apartments. “
Tuesday, April 22, 2008
Macy's shopping for Harlem site
The Real Deal: The rumors are over…
“Department store giant Macy’s is in talks with Vornado Realty Trust to open a new store at the developer’s proposed Harlem Park office complex on 125th Street, according to brokers with knowledge of the negotiations.”
“The Macy’s store could rise up to the third floor of the 21-story building, however the amount of available space hinges on how big a lease Major League Baseball takes for the new television network it is launching.”
“The store is one of several major department chains and retail outlets reportedly scouting locations on 125th Street, which is expected to be rezoned now that the Bloomberg administration and City Council have come to a compromise agreement on the amount of affordable housing to set aside and other height restrictions for the new buildings. “
Now let’s see about the W hotel, Bed Bath & Beyond and Whole Foods.
Wednesday, April 16, 2008
Compromise Is Reached on Harlem Rezoning
NY Times: For those following this story here is the latest:
“[A] compromise was reached after an all-night negotiating session that started on Monday evening. It reduces the height limit on new buildings to about 19 stories from 29; creates a $750,000 loan program to assist 71 small businesses that would probably be forced to move; and allocates about $5.8 million in improvements to Marcus Garvey Park.”
“Among projects planned for 125th Street are at least two hotels, two shopping malls and a tower that would be the headquarters of a new Major League Baseball cable television network.”
Tuesday, April 15, 2008
City Council subcommittee approves Harlem rezoning
The Real Deal: “The rezoning of Harlem’s 125th Street commercial corridor appears headed toward approval, now that the City Council’s influential land use subcommittee on zoning and franchises has voted 9-1 to approve a modified plan, city officials said. The rezoning plan would allow developers to build market-rate apartments and office towers on 125th Street. Inclusionary zoning provisions will allow density bonus incentives if developers set aside a percentage of apartments for affordable housing.”
Wednesday, March 26, 2008
NY RENTAL BUILDINGS $OARING
NY Post: “The median sales price of a rent-stabilized building in Manhattan skyrocketed from $1.99 million to $4.5 million between 2003 and 2007, according to figures released yesterday. Prices for rent-regulated buildings in the other boroughs also zoomed: 78 percent in Queens, 81 percent in Brooklyn and 92 percent in The Bronx.”
Although rent stabilized properties are great assets to buy, we here at Royal Field feel that it is extremely important for all investors to work with local operators who understand their specific submarket. It is not uncommon to see rent stabilized properties trade for amounts that are grossly over market.
Monday, March 24, 2008
A Bright Spot for Housing Investors?
New York Times: “FALLING prices, tighter credit and rising foreclosures have taken their toll on the housing market, but there is one residential sector that could actually benefit from these economic woes: multifamily rentals.
The reasoning seems simple enough. “People still need a place to live,” said Richard Anderson, a senior real estate analyst at BMO Capital Markets, adding that “a bad homeowner could be a very good renter.”
Indeed, occupancy rates for apartments have remained stable, averaging in the mid-90 percent range, and rising in some cities, industry reports show. Homeownership, meanwhile, has fallen steadily nationwide. The ownership rate slipped to 67.8 percent at the end of 2007 from a peak of 69.2 percent in 2004, according to the Census Bureau.”
Thursday, March 20, 2008
BIG APPLE COMING TO ITS CENSUS
NY Post: “New York City’s population reached 8,274,527 last year, an increase of 0.3 percent over 2006.
Since the last Census in 2000, the city’s population has grown by 265,873. The latest year-to-year estimates by the Census Bureau show the largest population gain in Manhattan, which grew 0.51 percent by adding 8,237 new residents last year bringing the borough to 1,620,867.”
Wednesday, March 12, 2008
In Gaining Approval for Harlem Tower, Vornado Gave Concessions
New York Observer: “After weeks of talks, last Friday the community finished up an agreement with Vornado, for which the development firm will put more than $1 million toward maintenance and capital costs of parks and ball fields in Harlem; $50,000 for streetscape improvements; and about $300,000 for a community hiring program. “
