New FAO Schwarz Flagship Store Opens Today

To mark the return of the iconic FAO Schwarz toy emporium to NYC in the form of a new 2.5-story, 20,000-square-foot-plus flagship at 30 Rockefeller Plaza, the store hosted a celebrity-studded VIP preview Thursday night ahead of Friday’s opening. Guests included Neil Patrick Harris and David Burtka, Whoopi Goldberg, Bethenny Frankel, Morena Baccarin, Carrie Berk, and Disney’s Mia Sinclair Jenness. Doors opened today at 10:30 a.m., kicked off with a ribbon-cutting ceremony. With a nod to the brand’s magical history as part of New York City lore, the new store uses the Art Deco architecture of its new home to amplify memories of FAO experiences from years past; a look toward the future begins with FAO Schwarz toy soldiers flanking the store’s 49th street entrance sporting new uniforms designed by supermodel Gigi Hadid.

In the words of David Conn, CEO of ThreeSixty Brands, owners of the FAO Schwarz brand, “FAO Schwarz was built on in-store experiences, which has made it a global destination over the years. We are bringing back the wonderment of toys and a deep nostalgia for the larger than life experience that FAO Schwarz has offered to parents and children alike for over 150 years.”

View of the Grand Piano. Photo by Cindy Ord/Getty Images for FAO Schwarz.

FAO Schwarz’s newest icon, a 27-foot-tall rocket ship sponsored by Build-A-Bear Workshop, awaits to transport guests at the Rockefeller Plaza HQ to a world surrounded by classic plush creations. From the 49th Street entrance, guests are greeted by an iconic three-story, three-dimensional clock tower. Inside, a journey of discovery begins with over 200 FAO Schwarz-branded toys as well as products from over 15 well-loved toy brands and unique experiences including the famous FAO Schwarz dance-on piano.

Candy, too, is in the house, courtesy of specialty candy retailer IT’SUGAR and a new FAO Schweetz-branded product line includes giant gummy bears and unicorns, make-your-own gummy worm kits, and mega chocolate bars. The new store boasts over 140 employees, and personal shoppers are on hand to fill any guest’s quest for wonderment.

MTA Approves Discounted MetroCards For 7- And 30-day Passes

Reduced MetroCards are coming to New York City in January, but the discounts only apply to weekly and monthly passes. New details about the Fair Fares program, which was officially included in the city budget in June, were released on Tuesday during an MTA board meeting. According to meeting minutes, the MTA will not be providing single trip discounts when the program kicks off next year. Instead, low-income New Yorkers who are living at or below the federal poverty level, or a household income of $25,000 for a family of four, can buy half-off 7-day or 30-day passes.  

“We always envisioned riders being able to purchase any fare type at half price and hope that this flexibility is added as the program rolls out,” David Jones, MTA board member, said in a statement to Gothamist. “Choice is important to all customers, especially for those who are financially constrained.”

A pilot Fair Fares program will launch in January and will run until June. As 6sqft previously reported, the City Council and Mayor Bill de Blasio agreed to provide roughly $100 million in funding six months of the program, fully subsidizing the cost during the test run.

Original estimates found nearly 800,000 New Yorkers would benefit from the discounted subway and bus fares. But it’s unclear as of now how many straphangers will benefit without a reduced fare for single trips. Since it’s kicking off as a pilot program first, details are still being worked out.

Amazon Could Reap Nearly $1B In City Tax Breaks With Its Move To L.I.C.

The state of New York is keeping the incentives it used to woo Amazon under wraps, but even without those benefits, an existing tax program could work in Amazon’s favor — to the tune of almost $1 billion. After a highly publicized search, the tech giant is nearing a deal to locate half of its new headquarters in Long Island City. And as The Real Deal explains, that move means Amazon will qualify for the city’s Relocation and Employment Assistance Program (REAP), which offers employers a $3,000 credit per employee per year for 12 years if they move their business into the outer boroughs and certain parts of Upper Manhattan. With Amazon’s projected workforce of 25,000, that would mean a total credit of $900 million.

The program was designed to encourage outer borough growth and cost the city $32 million in foregone taxes in the last fiscal year, according to the Department of Finance. But Amazon alone will cost the city more than that once hiring begins. The company plans to hire over the course of 10 to 15 years, which could mean a peak of between $60 and $75 million in tax breaks over the course of consecutive 12-year periods. (At the moment, the program is approved through 2020.)

Amazon is facing criticism for forcing cities to compete for its business by offering billions of dollars in tax and other incentives. The pushback from politicians in Queens, in particular, has been vociferous. State senator Michael Gianaris and City Councilman Jimmy Van Bramer made a joint announcement on Sunday denouncing the planned expansion. They are concerned that the company’s move could tax the borough’s infrastructure and that it was planned without community input. “We were not elected to serve as Amazon drones,” Gianaris and Van Bramer said. “It is incumbent upon us to stand up on behalf of the people we represent and that is what we intend to do.” Even Facebook and Google have spoken out against Amazon, noting that their growth in New York City came without any tax incentives.

The tech giant is reportedly looking at the Anable Basin site in Long Island City for its new headquarters, where a proposed rezoning could open up 15 acres to mixed-use development, including 335,000 square feet for industrial spaces, nearly 5,000 housing units, and a new public school. Just a few weeks ago, the city announced that it will invest $180 million “to support sustainable growth” in Long Island City, a move that many now believed was done to tee up the Amazon move.

The Monthly Update - November 2018

The Buyer’s Dilemma: Buy Today Or Buy Tomorrow?

We are, no doubt, in a buyers’ market. Prices have fallen significantly since the beginning of the year across all sectors. Meanwhile, buyers are certainly taking their time looking at properties and placing offers, with no measurable sense of urgency at all. Why? Buyers are still on the fence about whether this is the best time to buy or not. A lot of them are asking themselves whether it would be more affordable to wait six months when properties might be 10 percent cheaper, but interest rates are higher. Or is it better to buy now while rates are still low?  

The truth is, it’s better to buy today. Some sellers have been on the market for so long that, in many instances, they’re extremely negotiable. And, if you can take advantage of the still historically low interest rates today, as well as the negotiable deals available, you can truly have the best of both worlds: low prices and low interest rates.

And prices never stay low in Manhattan for long. Once there is the mere suggestion of a “buyers' market”, buyers move into the market quickly and snatch up what’s available. Then, before you know it, prices are climbing back up again for the next cycle. It happens quickly — just ask anybody who was trying to time the market in 2009, 2010, 2011… They waited a few more years and, all of a sudden, the cycle was over. So, if you’re interested in purchasing a property, get out there and find the one you want, make an offer and get the deal done. Today is the day to buy.  

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Winter Village at Bryant Park

November 1, 2018 - January 2, 2019

Immerse yourself in the holiday spirit at Winter Village in Bryant Park. Starting November 1, the holiday market features 150+ vendors as well as free ice skating. For more information, click here. 

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Holiday Train Show

November 15, 2018 - February 3, 2019
History and train enthusiasts alike will enjoy the Holiday Train Show, set up inside the New York Transit Museum Store. The installation features a 34-foot-long model train layout with trains and subways that run on eight loops of track. You can read more here. 

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The Nutcracker

November 23 - December 30, 2018

Enjoy a holiday tradition with George Balanchine’s The Nutcracker, which returns on November 23. With old-fashioned costumes, a tree that grows before your eyes, and Tchaikovsky’s captivating music, the ballet is hosted at David H. Koch Theater. Buy tickets here.

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Rockefeller Center Tree Lighting

November 28, 2018

Join thousands of spectators in awe for the annual lighting of the Rockefeller Center Tree. Free and open to the public, the ceremony will occur on November 28th. Read more about this historic tradition here. 

143 East 36th Street - Murray Hill Townhouse

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143 East 36th Street

MURRY HILL, MANHATTAN

7 Beds  |  5 Baths  |  4 Units | Townhouse

Offered At $4,750,000

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Murray Hill Four-Unit Townhouse

This perfectly located four-unit building is the ideal opportunity for investors, homeowners or developers looking to create high-end rentals or a stunning single-family home in the heart of Murray Hill.

Virtually staged photographs highlight the possibilities in this fantastic 17-foot-wide Italianate building filled with period details. Currently configured as a garden-floor duplex with three full-floor flats above and a total of 9 fireplaces, this is an ideal opportunity as an investment property, primary residence with income-producing units or a reimagined five-story showplace. The duplex offers upscale finishes, two fireplaces, central air, a full-floor master suite and open plan living space that opens to the large, landscaped backyard. Upper units — two (2) two-bedrooms and one (1) one-bedroom — include fireplaces, crown moldings and lovely hardwood floors. All four free-market units will be delivered vacant at closing.

143 East 36th is a handsome brick and brownstone townhouse with a forecourt garden enclosed by a stately iron fence. Situated on a tree-lined block, just across from historic Sniffen Court, this central location is surrounded by great dining, shops and services. The AMC Kips Bay theater and Fairway Market are just minutes away, and the attractions and open space of Bryant Park and Madison Square Park are within easy reach. Access to transportation is unbeatable with 4/5/6, S, 7, B/D/F/M trains, the Midtown Tunnel and East 34th Street ferry landing within easy reach.

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As Seen In The New York Times: 129 Columbia Heights Blvd. #42

Brooklyn Heights Co-op • $1,300,000 • BROOKLYN • 129 Columbia Heights, No. 42

An 1,100-square-foot, two-bedroom, one-bath with a formal dining room, in a Beaux-Arts elevator building. Scott Sobol, Compass, 917-502-2375; compass.com

Read More Here

720,000 NYC Tax Photos From 1940 Are Now Digitized Online

If you’ve ever tried to research an old building–to find out the history of your home for renovation purposes or just to see what it used to look like–you may have found yourself tasked with a trip to the Municipal Archives for an in-person search or having to order up a large, glossy photo by mail, sight unseen. Access to one of the city’s most thorough documentation efforts, the black-and-white tax photos taken of every building in the city between 1939 and 1941, just got a lot easier, as Brownstoner reports. The New York City Department of Records & Information Services has released 720,000 digitized images made from the original negatives, meaning that a photograph of every building in the city that was standing at the time is now available to look up online.

Beginning in 1939, photographers covered the five boroughs for the tax photo project, undertaken by the Works Progress Administration and the New York City Department of Taxation. The idea was to use the photos to determine property value assessments; the resulting collection would prove to be immensely valuable in the long term as well.

Aside from providing a view into the streetscapes and storefronts of a bygone era, the photos are an important part of determining what a building used to look like when planning historic renovations and working in landmarked neighborhoods. A similar set of photos from the 1980s has been available online for some time, but the period between the two was a time of transition in many neighborhoods and lots of alterations were made.

You’ll need to know the block and lot number of the building in question to access the photos online, which you can find here. Then check out the archives here.

129 Columbia Heights, Unit 42

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129 Columbia Heights, Unit 42

BROOKLYN HEIGHTS, BROOKLYN

2 Bed  |  2 Bath  |  Co-op

Offered At $1,300,000

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Nestled on one of Brooklyn Height's most picturesque tree-lined blocks, this turn-key two-bedroom home offers you the perfect blend of modern convenience and pre-war charm. Rarely available, the current owner has lovingly maintained the unit's original hardwood flooring and wainscoting, but fully upgraded the chef's kitchen and bathroom, for a clean and welcoming feel. The gracious layout and over-sized living spaces, including a formal dining room, allow you plenty of space to entertain or to simply enjoy a quiet day lounging at home. Classic architectural details include 9’ beamed ceilings, parquet flooring with original inlays, and decorative moldings throughout. Plus, wonderful natural light. Ability to add an additional half-bath too. Storage locker available. Low maintenance. 129 Columbia Heights is an idyllic Beaux Arts elevator co-op, in prime Brooklyn Heights, located directly across from the beautiful Brooklyn Heights promenade.

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OLSHAN Luxury Market Report $4M+

October 22-28, 2018

21 Contracts Signed

Twenty-one contracts were signed last week at $4 million and above, fueled once again by discounts. The average price was slashed by 17% off the original asking price before a property went to contract. The average days on the market swelled to 541.

The No.1 contract was 58/59B at 252 East 57th Street, asking $13.875 million, reduced from $14.875 when it was listed off of floorplans in September 2014 by the developer. Now completed, the duplex condo has 4,516 square feet with 5 bedrooms and 5.5 bathrooms, and a 40-foot living room featuring spectacular views of Central Park and the East River. It also has 11-foot-high ceilings. The building was designed by Skidmore, Owings & Merrill, and amenities include a concierge, garage, fitness center, a children’s playroom, a 75-foot swimming pool, a library, billiards and screening rooms, a catering kitchen, dining room, bicycle and storage rooms, and furnished guest suites. A play space and grooming station for dogs are also available.

The No. 2 contract was a townhouse at 30 Sullivan Street, asking $12.5 million, reduced from $13.95 million when it went on the market in April. The owner paid $8,233,333 in August 2016. The house is 25 feet wide with 5,900 square feet plus terraces totaling 1,525 square feet. The house is in mint condition with 11-foot ceilings, 4 bedrooms, 4 bathrooms, a staff room, and 3 powder rooms.

Total Weekly Asking Price Sales Volume: $156,559,500
Average Asking Price: $7,455,214
Median Asking Price: $6,500,000
Average Discount from Original Ask to Last Asking Price: 17%
Average Days on Market: 541
*Condop is a co-op with condo rules.

CLICK HERE TO VIEW 17 CONTRACTS SIGNED ON APARTMENTS

CLICK HERE TO VIEW 4 CONTRACTS SIGNED ON TOWNHOUSES

117 East 57th Street, Unit 20A

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117 East 57th Street, Unit 20A

MIDTOWN EAST, MANHATTAN

3 Bed  |  3.5 Bath  |  Condo | 24Hr Doorman

Offered At $3,600,000

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This sprawling three-bedroom, three-and-a-half bathroom delivers style and comfort at the Galleria Condominium, one of Midtown East's most revered buildings.

Step into this 2,050-square-foot high-floor residence and take in fantastic city views and in a wealth of fine finishes. Luxurious wainscoting, wall treatments and designer lighting set an elegant tone throughout living spaces, and each bathroom features stone and designer fixtures. Classic tile flooring greets you in the entry, while rich herringbone hardwood paves the great room and lush carpeting adds calm to bedrooms.

With a gracious flow and layout for entertaining, the welcoming foyer ushers guests to the expansive living and dining areas where a built-in bar is hemmed by frameless glass doors. The foiled tray ceiling adds a touch of glamour in the dining room, and the nearby kitchen, accessed both from the dining room and the foyer, features deep-stained cabinetry, granite counters and premium stainless steel appliances.

The master suite boasts a massive walk-in closet and an en suite bathroom awash in marble. The second bedroom includes a private bath and walls of windows on two exposures, and the third bedroom is situated directly across from the third full bathroom. A large foyer closet and powder room, plus an in-unit washer-dryer, add comfort and convenience to this contemporary Midtown residence.

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The Galleria offers attentive full-service staff including full-time doorman, concierge, elevator attendant and live-in super. Residents also enjoy a phenomenal list of amenities, including a state-of-the-art health club with pool and spa and a 54th-floor sky terrace lounge with a breathtaking views of Central Park and the city skyline. The lobby offers direct access to the building's parking garage, Nare Sushi, a beauty salon, seamstress, food stores and dry cleaners.

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Located near the corner of Park Avenue and 57th Street, the building straddles the border of Midtown East and the Upper East Side. World-famous shopping, dining and cultural institutions are found in literally every direction. Central Park is just four short blocks away, and MoMa and the Museum Mile are at your disposal from this central Manhattan enclave.

Amazon To Open A Cashier-less Store at Brookfield Place

Amazon will open its first cashier-less store in New York City in Battery Park City, Recodereported on Monday. Amazon Go is like a futuristic convenience store, offering ready-to-eat meals and groceries without having to wait in line. According to the company, “Just Walk Out Technology” is used, which automatically keeps tracks of products taken or returned via a virtual cart. With no lines or checkout, once you find an item you want, you can just leave.

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Amazon plans to open the store in the Winter Garden atrium inside Brookfield Place, a shopping center across from the World Trade Center. Amazon Go is currently only open in Seattle, on the ground floor of the company’s headquarters, Chicago, and San Francisco. Amazon has said it hopes to open 3,000 Amazon Go stores by 2021, as reported by Bloomberg.

The store uses the same technology found in self-driving cars, like computer vision and sensor fusion. Shoppers must use the Amazon Go app to enter the store. All products will be charged to the Amazon account, with a receipt sent after.

Items offered do differ among stores, but products like grocery staples, snacks, and ready-to-eat meals are available. Plus, there are even “Amazon Meal Kits,” which are designed by chefs and include all of the ingredients needed to make a 30-minute meal for two (à la Blue Apron).

Last month, Amazon opened a brick-and-mortar store in Soho that only sells items rated 4-stars and above. Aptly called Amazon 4-star, the store, located at 72 Spring Street, features products that are top sellers and “trending,” with actual customer reviews next to them.

[Via Recode]

400 East 85th Street, Unit 12A

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400 East 85th Street, Unit 12A

UPPER EAST SIDE, MANHATTAN

1 Bed  |  1 Bath  |  Co-Op | 24Hr Doorman

Offered At $695,000

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Flooded with sunlight and open-sky views, this one-bedroom, one-bathroom home is the perfect high-floor retreat in a full-service Yorkville co-op. 

A gracious entry hall opens to an expansive and sunny great room offering plenty of room for living and dining areas surrounded by stunning skyline views to the south and east. The updated kitchen is well-stocked with gloss white lacquer cabinetry, stainless steel appliances and breakfast counters. Gleaming hardwood floors lead to the extra-large king-size bedroom with a roomy closet, and the tiled bathroom features a large tub/shower. Two more closets near the entry provide ample storage space, and central air ensures year-round comfort in this high-floor oasis. 

400 East 85th Street is a well-managed, pet-friendly cooperative offering 24-hour doorman service, a live-in superintendent, laundry, fitness room, bike room and storage. Subletting, pieds-à-terre and co-purchases allowed. 

Nestled in the heart of the Upper East Side's Yorkville neighborhood, this location is surrounded by fantastic parks, shopping, dining and nightlife on all sides. Central Park and riverfront Carl Schurz Park are minutes away. Nearby 86th Street is lined with great shops, cinemas and both Whole Foods and Fairway Market. Transportation couldn't be easier with Q and 4/5/6 trains and both M86 and M15 SBS bus lines all nearby.

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15 Hudson Yards Reveals Model Home With Shoppable Interiors By Neiman Marcus

The first phase of the Hudson Yards megaproject, including the public square and gardens and its centerpiece, Vessel, as well as The Shops & Restaurants at Hudson Yards, which will be anchored by NYC’s first Neiman Marcus store, is preparing to open this March. Now, Fifteen Hudson Yards has announced that that Neiman Marcus fashion director Ken Downing has designed and styled the interiors for a new model home at the 88-story luxury condominium. Furthering the connection between the upper-crust department store and the development’s high-end aspirations is a freshly-launched Neiman Marcus microsite that will allow people to purchase select items in the residence.

Fifteen Hudson Yards, designed by Diller Scofidio + Renfro in collaboration with the Rockwell Group, is one of a trio of skyline-redefining additions to the largest private real estate development in the U.S. The new tower is the development’s first building to offer condominiums for sale; sales launched about a year ago, and Fifteen Hudson Yards quickly became Manhattan’s fastest selling condo.

In designing the model home, Downing was inspired by his years of travel to the world’s fashion capitals, his passion for art collecting and the building’s dramatic skyline vistas. According to a press release, his design interprets Neiman Marcus’ distinct, luxury jet-set style for New York City and provides a peek into the new luxury environs on offer at the condo. The retail department store will anchor the development’s seven-story retail center with 250,000 square feet; Fairway grocery store will occupy about 45,000 square-feet on a lower floor.

It’s certainly worth mentioning that 15 Hudson Yards just launched an affordable housing lottery for 107 of its nearly 300 units. Listings for the market-rate condos have ranged from a $3.8 million two-bedroom to a $32 million penthouse. By comparison, the affordable rentals, available to New Yorkers earning 50 or 60 percent of the area median income, range from $858/month studios to $1,350/month two-bedrooms. And in addition to the uncharacteristically accessible price point, rental residents will have access to all of the mega-development’s amenities, including new parkland, The Shed performance space and retail and restaurant space which will include the new Neiman’s, of course.

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Whether those residents will be excited to purchase the shoppable catalog‘s offerings, which include a $1,495 “John-Richard Collection Escher Perspective Cube Sculpture” and  a more affordable plush “Venice Punch Knife-Edge Pillow” for $98, remains to be seen.

15 Hudson Yards also has a 24-hour attended lobby, two floors of wellness offerings including a gym, yoga studio, and swimming pool, and a skytop lounge with views of the Hudson River and Thomas Heatherwick’s huge climbable installation, Vessel.

‘Law & Order’ Mariska Hargitay Lists UWS Brownstone For $10.75M

It’s hard to believe actress Mariska Hargitay has been starring as NYPD Lieutenant Olivia Benson on “Law & Order: SVU” for nearly two decades, but when it comes to her living situation, she likes to change things up a bit more. She and her husband, actor Peter Hermann, bought a stunning Upper West Side brownstone for $7 million in 2012, and they’ve now put it on the market for $10.75 million. Hermann told the Wall Street Journal that they’ve decided to sell because their “family needs have changed,” but they’d remain in the neighborhood. The six-story, 6,000+ square-foot home is located at 45 West 84th Street, between Central Park West and Columbus, and is “loaded with color and vibrancy,” according to Hermann, thanks to a collaboration with designer Jeffrey Bilhuber.

The home boasts an elevator, five bedrooms, six bathrooms and three powder rooms, and a vented laundry room. The main parlor floor has a gas fireplace and a modern, mirrored wall. Past here, is a dining room/library that overlooks the kitchen below and the rear garden.

The garden level has another living area, as well as the uber-contemporary (and very yellow) eat-in kitchen in the rear, where the renovation added floor-to-ceiling casement windows to created a double-height space that leads to the landscaped garden. The third floor is dedicated to the master suite and includes a double walk-in closet and dressing room, small terrace, and marble en-suite bath. The fourth and fifth floors each have two bedrooms, all with their own bathrooms and one with its own terrace. Perhaps the best part of the house is the top-floor sun room, which has both north- and south-facing terraces. Back in 2008, Hargitay sold her equally stylish Chelsea penthouse for $8.15 million. She reportedly makes upwards of $500,000 per “Law & Order” episode now, so we don’t think finding a spectacular new family home will be much of an issue.

Welcome David Margolies!

David Margolies

Licensed Associate Real Estate Broker

dmargolies@compass.com

M: 917.679.7263

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About David:

With $500 million in sales to date, top-producing broker David Margolies sets the standard for service in the industry and is known throughout the city for his discretion, finesse, and foresight that sets him apart. An encyclopedic knowledge of New York's residential buildings, combined with the most expansive marketing platforms, make David the obvious choice for sellers and buyers alike. 

Achieving the highest price in any given market in the buildings where he sells goes hand in hand with his consistent delivery of outstanding customer satisfaction. David always follows through for anyone he represents, becoming lifelong friends with many of his clients. His dedication is matched by his charismatic personality that ensures smooth dealings with attorneys, mortgage brokers, other agents, and clients from all walks of life. David's large referral business and accolades from many happy clients are a testament to his impressive professional accomplishments. David's press coverage includes such diverse publications as The New York Observer, The New York Times, New York Magazine, The Real Deal, The Wall Street Journal, and a number of international publications. 

Utilizing his boutique customer service skills that earned him the #1 agent in gross sales at his previous firm, David then joined the Corcoran Group where he spent 7 years as a consistent member of the Multi Million Dollar Club. David's move to Compass maximized his effectiveness with the best tools and technology in the business. A downtown resident since 1989, David has traveled the world extensively, and previously lived in Greece for four years where he ran his own business. He is a magna cum laude graduate of New York University with a degree in Psychology. 

The Monthly Update - October 2018

Dear Reader, 

Sorry for the delay in the monthly update, I was waiting for the Q3 data to arrive. After reading and re-reading Compass Q3 report, Bloomberg's, The New York Times, StreetEasy and Miller Samuel by Johnathan Miller. Rather than giving you a long drawn out explanation of the current state of the Manhattan markets, I'll just sum it up in two easy-to-read charts by Bloomberg (below) entitled, "More Pain for Sellers and More Choices for Buyers." 

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COMPASS NEWS:

• Compass has now officially opened in Austin! Press

• We are excited to announce the latest $400M funding round and plans for international expansion! Press

• Starting this month Compass has partnered with WAZE, Compass pins will pop up on the Waze Map, indicating listings equipped with our groundbreaking reimagined real estate sign. Press

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Q3 2018 Manhattan Quarterly Market Insights Report

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Q3 2018 Highlights

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1. Manhattan Inventory

The overall number of active listings totaled 6,987 units in Manhattan at the end of Q3 2018, representing an 8% Y-o-Y increase compared to the same period in 2017. The increase was driven by both condo and co-op inventory at smaller unit types, which also indicated lower price segments, with listings asking below $1M up 24% Y-o-Y and listings asking between $1M-$3M up 10% Y-o-Y. In contrast, listings asking above $10M declined 26% Y-o-Y to 317 units in Q3 2018, mainly attributable to a few reasons: 1) stale and aggressively priced inventory finally getting absorbed as sellers become realistic regarding price expectations and 2) developers delivering units that have attainable price points as they capitalize on the shift in market demand from ultra-luxury large units to more efficient units.
 
The overall Manhattan median asking price continued to decrease in Q3 2018 by 11% Y-o-Y to $1.55M compared to the same period in 2017. As aforementioned, sellers reduced asking prices and accepted further discounts to seal the deal; we see these factors as positive signs for prospective buyers. Condo median asking price declined 9% Y-o-Y to $2.2M, registering the lowest asking price in 4 years since 3Q 2014. While co-op median asking price declined 13% Y-o-Y to $995K, registering the lowest asking price in 3 years since 3Q 2015.
 
* Q3 2018 inventory as of September 15, 2018

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2. Manhattan Contracts Signed

The number of contracts signed totaled 1,948, reflecting a slight 1% Y-o-Y decrease during Q3 2018. The 4% Y-o-Y increase in the number of co-op contracts signed (1,081 units) almost balanced out the decline in the number of condo contracts signed (-7% Y-o-Y, 867 units). Aligning with the aforementioned decrease in ultra-luxury inventory, the best performing price segments were $5M-$10M and $10M+. The 30% Y-o-Y increase in the $5M-$10M category was primarily driven by contracts signed in several new development buildings such as The Belnord at 225 W 86th Street and 100 E 53rd Street. With regards to contracts signed last asking $10M+, co-op sales on the Upper East Side primarily contributed to the 10% Y-o-Y increase in this price segment. As of Q3 2018, there were 8.5 Months of Supply to be absorbed in Manhattan, indicating a relatively healthy market.
 
In terms of overall median contract price, it increased 4% Y-o-Y to $1.2M this quarter from $1.15M during Q3 2017. The slight upswing was primarily attributable to a 9% Y-o-Y increase in co-op median contract price. However, the increase in median contract price was combined with significantly prolonged median days on market (104 days in Q3 2018 vs. 83 days in the same period prior year). It is notable that this Y-o-Y increase in days on market was driven by contracts signed below $3M as opposed to contracts signed above $5M. With regards to the Y-o-Y increase of contracts signed between $5M-$10M this quarter, it is comforting to see median days on market shortened significantly by 79 days to 126 days from 205 days in Q3 2017.

* Q3 2018 contracts signed as of September 15, 2018

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3. Manhattan Closings

The total number of closings decreased 18% Y-o-Y during Q3 2018 to 2,616 transactions, consisting of 1,163 condos (44% of total) and 1,453 co-ops (56% of total). Furthermore, all price segments exhibited Y-o-Y sales price declines ranging from 6% to 33%. Closings above $10M saw the lowest Y-o-Y percentage decline of 6% from 55 closings in Q3 2017 to 52 closings in Q3 2018. Closings between $5M - $10M declined by the highest percentage (-33% Y-o-Y), which was attributable to 34 clustered closings at Madison Square Park Tower in Q3 2017.
 
Median sales price declined by 3% Y-o-Y to $1.1M during Q3 2018 from $1.2M in Q3 2017, attributable to a 4% Y-o-Y decrease in condo median sales price ($1.6M), slightly offset by a 1% Y-o-Y increase in co-op median sales price ($855K). However, it is notable that this has been the 12th consecutive quarter since Q4 2015 that the median condo sales price has surpassed $1.6M. Negotiability, the median variance between last asking prices and closing prices, was -3.2% this quarter vs. -2% in Q3 2017. Notably, the $3M-$5M price segment had the deepest median negotiability at -6.6%. Median days on market for city-wide closings increased from 63 days to 70 days this quarter.

* Q3 2018 closings as of September 15, 2018

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NYC Report On Contracts Signed $4M & Above - Olshan Report

17 Contracts Signed

Seventeen contracts were signed last week at $4 million and above, sluggish activity that mirrors the same total in the same week last year. The average days on the market was a dismal 521. Prices on average were reduced by 8% off the original asking price before a property went to contract. The top 2 deals were sold by sponsor/developers.

For the seventh time this year, the No.1 contract was at 432 Park Avenue. This time, it was 41C, asking $17.175 million. The condo has 3,575 square feet including 3 bedrooms and 3.5 bathrooms, and features a 29’ x 29’ corner living room. The building is 96 stories high, a concrete-and-glass edifice designed by Rafael Vinoly that can be seen from almost anywhere in the 5 boroughs. Amenities include a fitness center, a 75-foot swimming pool, private dining room, parking, a garden, and a children’s playroom.

The No. 2 contract was 5E at 21 East 61st Street asking $12.5 million, reduced from $15 million when it went on the market in May 2014. It has 4,060 square feet and includes 5 bedrooms and 5.5 bathrooms. A living room, formal dining room, and kitchen with a family room---all face Madison Avenue. The apartment is in the Carlton House, a 16-story building that was built as a hotel in 1950, and was converted into a 69-unit condop by Extell Development. (A condop is a co-op that leases the land and has condo rules.) Amenities include concierge, doorman, a fitness center with a swimming pool, and bike and storage facilities. Many of the units have terraces.

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Total Weekly Asking Price Sales Volume: $128,130,000
Average Asking Price: $7,537,059
Median Asking Price: $6,495,000
Average Discount from Original Ask to Last Asking Price: 8%
Average Days on Market: 521

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*Condop is a co-op with condo rules.

UES $75,000/Night Is Nation's Most Expensive Hotel Room.

Most New Yorker don’t spend $75,000 a year on rent, but a hotel room on the Upper East Side is asking that hefty sum for just one night. First reported by Bloomberg, the duplex penthouse suite is at the swanky Mark Hotel and boasts six bathrooms, five bedrooms, two wet bars, a 25,000-square-foot rooftop terrace overlooking Central Park, and a living room under the landmarked building’s cupola that can be converted into a full-sized Grand Ballroom. In addition to being the country’s most expensive hotel suite, it’s also the largest at 10,000 square feet.

As Bloomberg notes, the Mark gets is share of high-rollers thanks to its Jean-Georges restaurant, Frédéric Fekkai salon, and reputation as the go-to meetup spot before the Met Ball.

The hotel was originally built in 1927 in the Renaissance Revival style at 25 East 77th Street. It was renovated in 2009 with new interiors by designer Jacques Grange and has 100 hotel rooms and 56 suites. It also has 10 co-ops, which the penthouse was originally offered as. As 6sqft previously reported, since its renovation, it has been “fraught with buyer back-outs, lawsuits, and heavy price cuts.”

The penthouse first hit the market in 2008 for $60,000 (plus $44,645 per month in common charges) and tried unsuccessfully for the next seven years to find a taker. Interestingly, the hotel’s general manager, Olivier Lordonnois, told Bloomberg that someone was renting it during this time, though it was never publicly listed as such.

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In addition to the aforementioned perks, the penthouse has a library room, a dining room to seat 12, and 26-foot ceilings in the living room.

The kitchen has a custom island, breakfast room, wine fridge, and double ovens.

Off a sky-lit conservatory is a custom-designed staircase by Eric Schmitt that leads to the roof terrace, complete with its own fireplace and dining area.

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The master suite has a double-sided fireplace, sitting room, walk-in closets, and his-and-hers bathrooms with a steam room.

When asked about the astronomical price, Lordonnois said he thinks it’s fair based on the competition, citing the Four Seasons’ Ty Warner penthouse, which is only 64,000 square feet with no outdoor terrace and asks $64,000 a night. The Plaza’s 4,500-square-foot Royal Suite–with 24-carat gold bathroom fixtures and a full gym–asks $40,000 a night, and the Mandarin Oriental’s 3,300-square-foot suits goes for $36,000 a night.

[Via Bloomberg]

Compass Nabs $400M Investment, Valuing The Real Estate Startup at $4.4B

Compass is officially a $4.4 billion brokerage.

The New York-based firm said Thursday it closed another mega-round, raising a $400 million Series F led by SoftBank’s Vision Fund and Qatar Investment Authority. Wellington, IVP and Fidelity also participated in the deal, which gives Compass a total capital raise of nearly $1.2 billion, the company said.

Compass said the latest funding, first reported by Bloomberg, will enable it to accelerate plans to control 20 percent market share in 20 U.S. cities by 2020, and to double down on its technology. The firm, which was founded in 2012, also said it plans to expand internationally.

“Real estate is the largest asset class in the world,” founder Ori Allon said in a statement, “and we are excited to bring Compass technology to international markets.”

News of Compass’ latest funding comes less than a year after Softbank poured $450 million into the company in December 2017, at the time valuing the brokerage at $2.2 billion. That round closely followed a $100 million funding from investors including Fidelity Investments.

With nearly $1 billion in new money over the last year, Compass has been on an unabashed growth spree, scooping up agents and brokerage firms nationwide. (On Thursday, SoftBank also announced a $400 million investment in the iBuying platform Opendoor.)

Over the past year, Compass said it has tripled its agent headcount to 7,000 nationwide. On Thursday, one brokerage head who has lost a substantial number of agents to Compass said the latest round was nothing short of terrifying. “This is going to be a killer for us,” the CEO said.

Last month, Compass told The Real Deal it is on track to hit $35.6 billion in sales volume this year, up from $14.8 billion in 2017. This summer, it picked up Pacific Union International, a $14 billion firm in San Francisco. Compass is also projecting $1 billion in 2018 revenue up from $370 million in 2017.

In addition to brokerage revenue, Compass is banking on new tech products, licensing and other money-making ventures to hit that target.

The firm plans to roll out title and escrow services, and this summer it announced its first tech licensing deal — though the partnership fell apart soon after. Some of the latest tools it has introduced to brokers include a CRM (customer relationship management) system and illuminated real estate signs that feature QR codes.

At $4.4 billion, Compass’ valuation blows other residential firms out of the water. Realogy — the New Jersey conglomerate that owns Coldwell Banker, the Corcoran Group and Sotheby’s International Realty — has a market cap of $2.5 billion. Its stock is down 25 percent since the start of the year, with a closing price of $20 per share on Wednesday.

Compass has stayed tight-lipped about its own plans to go public, but some speculated that the Series F would be the last one before an IPO.