11 Mistakes to avoid when buying a New York City Co-op

11 Mistakes to Avoid When Buying a New York City Co-op

The New York City co-op buying process may have you wondering if the principals of honesty, integrity, and good faith exist in the real estate market. They do, we can assure you, even though you may be feeling doubtful. To understand why so many wannabe co-op buyers are jaded you need to see that it’s often the real estate game, and not the players, that are causing problems. In our experience, many buyers seem destined to make the same 11 mistakes—again, and again, and again:

Mistake #1: Apartment hunting without the help of a broker.

When apartments in Manhattan change hands, sellers typically pay 5 to 6 percent commission. And what do you, a buyer, pay your broker to represent your interests? Nothing. That’s because the seller typically pays out half of the commission to your broker as compensation for finding a willing and able buyer.

Warning: If you don’t have a broker then you interface directly with the seller’s broker, a seasoned professional whose fiduciary responsibility is to do anything legally in their power to skew the deal in favor of the seller and against you. It’s a sad irony that many buyers don’t seek broker representation for themselves, especially when there is no cost for doing so.

A competent buyer’s broker will help you to navigate the complicated process of buying a co-op while protecting you from the common mistakes outlined in this article. Don’t be shark bait. Get a professional on your side—at no cost.

Mistake #2: Failure to notify the seller’s broker that you have your own broker.

Your broker can’t make it to an open house? Understandable, since open houses are usually all held on Sunday afternoon, and a busy broker can’t be everywhere at once. But be sure to clearly indicate on the sign-in sheet that you are working with a broker. Moreover, make sure that your broker schedules all of your viewing appointments.

Always let the seller’s broker know that you’re working with a broker.

Mistake #3: Inadequate mortgage pre-approval letter.

Most inexperienced buyers know that they need a mortgage pre-approval letter to be taken seriously by any prospective seller. But what happens if the apartment costs more than your original budget, as is often the case? We’ve seen several situations where prospective buyers—after wasting time getting a new pre-approval letter—returned to the bargaining table only to find their dream home already in contract.

The lesson? Don’t get a pre-approval letter based on your budget; get approved for the maximum amount the bank will lend you.

Mistake #4: Believing it’s possible to lose a bidding war.

Ready for the secret of never losing a bidding war? Here it is:

If you’re in a bidding war for the apartment of your dreams, offer the maximum price that you are comfortable paying, a price above which you won’t be upset to lose the apartment. Think about it. With this simple rule, if you get outbid, then the apartment was too expensive for you; if your bid wins, you’ve paid a fair price. Bidders who feel that they “lost” a bidding war were, in our experience, trying to low-ball, a tactic that never works in the most competitive real estate market in the world. Offer the price that you know is fair—it’s the only way to never lose a bidding war.

Mistake #5: Overestimating your financial strength.

It’s not enough to have the financial strength to be pre-approved for a mortgage. Co-op boards want the comfort that you can continue to pay monthly maintenance even if you lose your job. Typically, they’re looking for enough liquid assets post closing to cover 24 months of mortgage and maintenance expenses. If you won’t have enough in reserve after closing, you may wish to consider a different mortgage structure to either reduce the down payment or lower monthly payments. Otherwise, you may have to be more realistic about your maximum purchase price.

Mistake #6: You’re told your offer is accepted. You believe it.

Your offer is accepted—party time! Not so fast. We’ve seen countless times when an offer is accepted, but the seller’s broker continues to show the apartment as a “back-up”. The trouble is that the seller’s broker is legally obligated to convey all offers to the seller, so if a “back-up” bid is higher than your own – your accepted offer will probably be rescinded. The bottom line is that an offer is not accepted until the sales contract is executed. When a seller’s broker claims to be showing the apartment to find a “back-up” offer, they’re really looking for a better offer.

Once your offer is accepted, you and your broker should do everything possible to accelerate the execution of the sales contract. If, in the meantime, the selling broker insists on showing the apartment then fight fire with fire: continue your apartment hunt. After all, you’re only looking for a “back-up”.

Mistake #7: Choosing a friend or relative to be your real estate attorney.

There’s one exception to this rule. If your friend or relative is a real estate attorney specializing in New York City—and not New Jersey or upstate New York—you may want to hire them. But in any other case hire a specialized professional. An attorney who practices in any other discipline will be a fish out of water when faced with the hurdles and nuances of New York City real estate law. Remember, hiring the right real estate attorney can make a difference between a botched deal and living in the apartment of your dreams.

Mistake #8: Failing to ensure that the Co-op is on your mortgage provider’s approved list.

From the execution of the sales contract, you’ll have about 30 days to obtain a mortgage commitment letter. If the institution that granted your mortgage pre-approval does not have the co-op on their approved lending list then you may not get it. The lending institution may deem that the building’s finances are in poor shape. Or, it’s possible that the institution has already underwritten several mortgages in the building, overexposing them to risk. Another snag arises if the building’s original sponsors own multiple units.

The solution is to check with a mortgage professional. If your first choice of mortgage provider is not willing to lend in the building, be prepared to check with other institutions. Be wary of mortgage brokers who assure you that the building will be approved once the mortgage application is submitted. It may be approved, sure, but it may not be. One thing is for certain: the mortgage broker has nothing to lose if the deal falls through—it’s you that will end up empty handed.

One final warning. If you, for whatever reason, sign a contract that is non-mortgage contingent, you will be in breach of contract if you can’t find a willing lender. In this case, losing the apartment is the least of your worries: you may lose your deposit. We’ve seen this situation before and it’s nasty. Think twice before signing a sales contract without mortgage contingency.

Mistake #9: Assuming the Co-op board will accept your perfect board application.

Imagine you have perfect credit, solid financials, and impressive letters of support. In short, you’re the ideal shareholder candidate. Imagine your shock when your application is rejected without a board interview. What happened?

Let’s give the board the benefit of the doubt and assume that they are not unfairly discriminating against you. Then why might your application be dismissed? For one, a board that is not investor friendly may believe that your intention is to rent your unit. If you’re seeking an investment property, check that the building is investor friendly before signing the sales contract. Second—and this is becoming increasingly common—the board may be concerned that you’re purchase price is low enough to reduce property valuations of other units in the building. Other seemingly irrelevant factors may cause problems: the co-op may not allow pieds-a-terre, gifting, or co-purchases financed by family members.

The best defense is to try to discover the board’s limitations before making an offer. Barring that, there’s usually not a lot you can do when a co-op rejects your application. You’ll have to pick up the pieces, take back your deposit, and move on.

Mistake #10: Failure to check if there is a lien against the unit.

Wondering why the seller won’t schedule a closing? If the seller is in financial distress there may be a lien against the apartment. In this case, the lien holder will have to be notified of the closing, which can cause serious delays. We’ve personally experienced one situation where the lien holder did not return e-mails or calls for weeks. The delay caused the mortgage lock to expire, and while the transaction did eventually close, the buyer was forced into a higher mortgage rate. Luckily, there is a way to avoid this problem. Once you have the seller’s information on the deal sheet you can use ACRIS, an online property register where you can check for unforeseen problems.

If a problem is found, check with the seller’s attorney to ensure they are handling it. Make sure the seller is willing to pay his liens at the closing and that he has the bill from his lein-holders.

Mistake #11: Buying an apartment to generate rental income.

Heard about all the hedge funds generating double digit yields from buying up homes and renting them out? That works well in California and Arizona, but not in New York. After paying mortgage and maintenance you’ll be lucky to make 4% a year on your investment. You’re better off with traditional bonds. It saves the trouble of finding and managing tenants. A prudent investor only buys an investment Co-op in New York when the property value has appreciation potential; rental income alone won’t cut it. Although professional renovators may do well, passive investors will likely inherit a headache at best, a money pit at worst.

In conclusion:

Most first time co-op buyers are shocked at how difficult it is to buy an apartment in New York. While the 11 pitfalls above are by no means exhaustive, they should help you to avoid the common mistakes made by first time (or even second or third time) buyers. We can’t stress this enough: team up with the best professionals you can find and many hurdles will be cleared easily. This means finding a reputable mortgage broker, a top-notch attorney specialized in New York real estate, and, perhaps most importantly, a real estate broker who is working in your best interest.

The City's First LinkNYC Wi-Fi Kiosks Unveiled - 6sqft

As Crain’s first reported, the first of the city’s upcoming 7,500 LinkNYC Wi-Fi kiosks have officially rolled out today. Two new “links” (as they’ll be called), have sprouted up along Third Avenue in the East Village, one at the corner of East 15th Street and the other at East 17th Street. Each kiosk measures 9.5 feet tall and will be equipped with a gigabit-speed Wi-Fi connection with a 150-foot range, charging stations, a touch-screen that provides maps and info about city services, and a speaker phone that will let users make domestic calls—and all for free! The kiosks are meant to replace NYC’s 6,000 now-defunct pay phones.

The network of links will cost about $200 million to implement, but according to Crain’s, who attended today’s LinkNYC press unveiling, advertising generated by the kiosks are expected to bring in $500 million in revenue over the next 12 years. The designs themselves are the product of CityBridge, a technology consortium that teamed up with the city after winning a 12-year contract through the design competition Reinvent Payphones.

While the two kiosks debuting today won’t be fully functional just yet, they will give New Yorkers an idea of what’s to come. The gigabit-speed Wi-Fi connection is expected to kick in over the next two weeks, as eight other links planned for Third Avenue below 58th Street are installed. In February, the trial phase will bring a tablet component into the mix, this bit of tech giving users the ability to make phone calls and search the web. It’s expected by June that 500 more kiosks will be installed across the five boroughs. By 2024, the city will be covered with 7,500 links

Source: The City's First LinkNYC Wi-Fi Kiosks Unveiled Today! | 6sqft

Courtyard Buildings Haven't Lost Their Cachet - BrickUnderground

If buying a place with a private terrace just isn’t financially feasible for you, a building with a common courtyard could very well be the perfect solution. Douglas Elliman’s Ralph Modica and Dylan Hoffman plunge into the pros and cons in this week’s Buy Curious. THE WISH LIST:

I've always wanted to live in a courtyard building. Can you recommend some?

THE REALITY:

Although you probably wouldn’t be able to take full advantage of it in today’s arctic temperatures, it’s no surprise that you long to live in a courtyard building, say brokers we interviewed. “[It] can be an attractive selling point,” says Modica, noting that many would-be buyers in the city love the idea of having an on-site greenspace that has everything from a BBQ to a children’s play space to a pet area. Adds Hoffman, “Some [courtyards] have beautiful landscaping and layouts. It positively affects sale prices if kept nicely.”

Communal courtyards are mostly found in prewar buildings and are often very ornate like the Upper West Side’s Apthorp, a condo building built in 1908 around a beautifully landscaped central courtyard, and The Dakota, which was built in the late 1800s and boasts landscaped interior and exterior courtyards. There’s also the Belnord, a pre-war Upper West Side structure with an inner courtyard with landscaped gardens, and Graham Court, a landmarked elevator building in Harlem with a landscaped courtyard. These buildings are fairly exclusive and will probably be out of most buyers’ reach (a four-bedroom at the Apthorp is currently on the market for just under $7 million), but their courtyard spaces sure are pretty to look at.

In terms of usable outdoor space, buildings in the recent past have tended to favor roof decks over courtyards. “[Developers] have tried to optimize every foot eligible for development for the best return,” says Hoffman. Roof decks therefore make more sense than courtyards "so there is no wasted space where apartments can be built.”

Perhaps it’s a certain sense of nostalgia or maybe developers are simply catching on to the fact that people love a good courtyard, but only recently have some newer buildings begun to once again embrace the idea of an open green space on the premises. “We are now seeing ultra-luxe new developments starting to turn back to the courtyard-ish idea by introducing private driveways/entry courtyards,” says Hoffman.

Examples include Lincoln Square’s 15 Central Park West, which has an open courtyard between its two limestone towers, and Midtown’s 220 Central Park South, where courtyards are currently being built. Courtyards are also being planned at Extell’s new Lower East Side 250 South Streetdevelopment.

Courtyards aren’t specific to any neighborhood—they’re found all over NYC. In fact, there’s even a spate of them in Inwood, including 4761 Broadway, a mid-rise elevator building, and 15 Seaman Avenue, a pre-war development with a private courtyard.

Pros of living in a building with a courtyard are obvious. “Buyers who want outdoor space but can’t afford to purchase a unit with a private terrace or balcony will generally go for a building that at least has some sort of common outdoor space for residents,” says Modica. Adds Hoffman, “A courtyard could be considered an added amenity and ultimately secure a higher sale price.”

But while having an open-air oasis surely sounds enchanting to New Yorkers hungry for anything al fresco, there are some negatives, too. “Some apartments will look onto the courtyard and thus have no view other than other apartments looking onto the same courtyard,” says Hoffman, noting that this can compromise the light of the apartment. And some buildings don’t allow fun stuff like barbecuing or hanging out in their courtyards—they’re strictly to be admired from afar. Make sure you know which type of courtyard you’re getting before committing to anything. 

“There can also be an expense for keeping up the courtyard, adding to common charges,” says Modica. In addition, there are many buildings that don’t do much or anything with their courtyards. “The value of the space depends a lot on what they do with it,” he says.

Here are a few units in courtyard buildings:

East Harlem two-bedroom/two-bathroom co-op, $699,000: This top-floor unit at 1825 Madison Avenue, between 118th and 119th Streets, has hardwood floors, an upgraded kitchen with granite countertops and a dishwasher, three custom closets (including a walk-in in the master bedroom), seven east-facing windows and a private balcony. The full-service, pet-friendly elevator building, Madison Plaza, has a live-in super, a 24-hour doorman, a laundry room, a bike room, a community room and an outdoor courtyard with a barbecue grill. It’s an HDFC building, though, so you must make below $215,000 to qualify.

Gramercy studio/one-bathroom co-op, $479,000: With uptown views and a wood-burning fireplace, this studio unit at the Gramercy House, located at 235 East 22nd Street between Second and Third Avenues, is sunny and warm. There’s a separate windowed kitchen, a windowed bathroom, and a dressing area with a custom closet. The pet-friendly co-op building offers a full-time doorman, a planted roof terrace, bike storage and a courtyard.

Midtown East studio/one-bathroom co-op, $367,500: This studio in Woodstock Tower, located at 320 East 42nd Street between Second Avenue and Tudor City Place is just a five-minute walk to Grand Central Station. The apartment has an updated kitchen with custom cabinetry, wood floors throughout, four closets and built-in bathroom storage. The building offers an on-site gym and laundry facilities, a 24-hour doorman and a resident-only inner courtyard garden.

Chelsea one-bedroom/one-bathroom co-op, $705,000: Features of this one-bedroom unit at 360 West 21st Street, between Eighth and Ninth Avenues, include high ceilings, recessed lighting, an exposed brick wall and wood floors. The modern bathroom was recently renovated and there’s a separate kitchen with updated cabinetry. The living room is large enough to fit a living and dining combination, and opens to a bedroom separated with pocket doors. There’s also hidden storage throughout the apartment. The pet-friendly elevator building offers bike storage, on-site laundry, and a large courtyard/garden area that’s exclusively for building residents.

Upper East Side two-bedroom/one-bathroom co-op, $749,000: Located at 309 East 87th Street, between First and Second Avenues, this two-bedroom features a kitchen with a separate dining area and breakfast bar, an exposed brick wall in the living room, oak floors, recessed lighting and six closets. The full-service co-op building has a 24-hour doorman, a live-in super, a newly renovated lobby, a parking garage and a furnished rear courtyard for entertaining.

Source: Courtyard buildings haven't lost their cachet | BrickUnderground

Sales of $10M+ Apartments Were Down 14% in 2015 - The Real Deal

From left: One57, rendering of the Baccarat Hotel and Residences, and One Madison

Though Manhattan apartment prices hit record-breaking levels last year, the same could not be said for the volume of luxury apartment sales. Sales of units priced at $10 million or more in the borough fell nearly 14 percent year-over-year in 2015 — with only 177 apartments at that price point sold in Manhattan last year, compared to a record 205 in 2014. While units priced $10 million and up comprise only 1.4 percent of Manhattan’s total apartment sales, they make up 14.4 percent of the dollar volume, according to the Wall Street Journal. Brokers cited resistance from buyers to rising prices, as well as a slowdown in transactions in the second half of the year attributed to increased global economic uncertainty. “The buyer that used to drive our market is being cautious,” Kirk Henckels of Stribling & Associates told the Journal. Older co-op buildings saw the greatest decline in transaction volume, with sales of co-ops priced at $10 million and up falling nearly 25 percent in 2015 – to 46 in 2015 from 61 the year prior. Going beyond the $10 million benchmark, there was a slighter drop in sales of units priced at $20 million or more – 44 in 2015, compared to 48 in 2014 – while the five apartments sold at $50 million or more last year was only one less than in 2014. [WSJ] – Rey Mashayekhi

Source: Manhattan Luxury Apartments | NYC Luxury Apartment Sales

Manhattan land was worth $1.4 trillion total in 2014 - The Real Deal

Real Land Values Index for Manhattan, 1950-2014, (1950=100). Logarithmic scale. (credit Barr, Smith and Kularni) A group of economists think they know what all the land in Manhattan is worth: $1.4 trillion. Jason Barr, Fred Smith and Sayali of Rutgers University analyzed sales of vacant Manhattan properties that year, and extrapolated the figures to include all the parcels on the island. The team analyzed data going back to 1950. It found that, adjusted for inflation, total Manhattan land prices have risen by about 15.8 percent since 1993, Vox reported. The economists extrapolated all the way back to 1626, when Dutch settlers purchased the island from its native inhabitants. By the analysts’ calculations, the price of the island has grown at a 6.4 percent annual rate over the past 388 years. [Vox] – Ariel Stulberg

Source: Manhattan Land Prices | Rutgers University

First Look at Rafael Viñoly's Boxy Chelsea Office Building - Development Update-o-Rama - Curbed NY

A recent Crain's article about the trend of "boutique office properties" offers one particularly interesting tidbit for the architecture-obsessed: the first rendering of Rafael Viñoly's latest NYC commission, an office building at 61 Ninth Avenue.

Viñoly's building will replace the nearly century-old Prince Lumber, a holdover from the Meatpacking District and Chelsea's industrial days. The new structure will stand nine stories, with 115,000 square feet of office space and 37,000 square feet devoted to retail. Though it's shorter and squatter than the Uruguayan architect's best-known NYC project, 432 Park Avenue, it has some of the same boxiness that defines that supertall building. (But is this one inspired by a trash can, or some other quirky quotidian object?)

Construction is set to start by the middle of this year, with an anticipated completion date of 2018—and the whole thing will cost $100 million. But according to Crain's, rents in the building will likely start at $150 per square foot, which is double the average for Class A spaces in Midtown, so the developers shouldn't be in the red for long.

Source: First Look at Rafael Viñoly's Boxy Chelsea Office Building - Development Update-o-Rama - Curbed NY

Penn Station's $3B Renovation Plans, Revealed! - Curbed NY

Within hours of word spreading that Governor Andrew Cuomo waspoised to announce a radical plan for the renovation of Penn Station, that plan has arrived. On Wednesday, Cuomo announced a forthcoming Request For Proposals that will be issued by Empire State Development, Amtrak, and the MTA later this week for the renovation of Penn Station, as well as the remaking of the neighboring Farley Post Office, into the Empire Station Complex at a total cost of $3 billion. The $2 billion redevelopment of Penn Station may entail razing Madison Square Garden's Paramount Theater and adding new entrances on Seventh Avenue or 33rd Street and a glass wall and entrances along Eighth Avenue, the Times reports. Whichever developer's proposal is chosen will control all the retail in Penn Station, and that's huge.

Another Request For Proposals will be issued for the $1 billion remaking of the James A. Farley Post Office into a waiting area for Amtrak passengers, complete with shops and office space. One developer can nab both projects if their proposals are chosen. Developers Related Companies and Vornado Realty Trust, who were chosen to redevelop the post office into Moynihan Station in a decade-old agreement, aren't out per se: they're welcome to submit proposals, and if their vision for the site is not selected, the state is required to reimburse the developers upwards of $30 million. The two developers are at an advantage, though—they're intimately knowledgeable about the station and post office, and that'll be a boon being that the state wants proposals submitted within 90 days. The Real Deal says Cuomo is gunning to have the redevelopments complete within the next 3 lightyears.

The main goal of the $3 billion redevelopment is to bring more light and air into the station while alleviating some congestion. "Frankly, it's a miserable experience," Cuomo said of the existing terminal. The Executive Vice President of the Municipal Arts Society, Mary Rowe, applauded the project in a statement but doesn't think it will be enough to deal with the station's influx of passengers, "[I]n the long term, these improvements won't be enough to fully address Penn Station's severe overcrowdingor meet the growing needs of its rapidly developing neighborhood and our regional economy."

Exactly how the project will be financed is up in the air, but Cuomo is expected to address it in next week's State of the State speech. At least $325 million will come from government sources, like Amtrak, the Port Authority, and the federal government. The Wall Street Journal suggests that the station's and post office's air rights may be leveraged to finance the project. In July, Cuomo announced a similarly ambitious plan to revamp LaGuardia Airport.

Source: Penn Station's $3B Renovation Plans, Revealed! - Transportation Watch - Curbed NY

Javits Center to Get Even Bigger With $1B Expansion Plan - Curbed NY

Governor Andrew Cuomo sure has been busy this week. As part of his 2016 State of the State agenda, the governor has detailed plans for an expansive, $3 billion revamp of Penn Station; allocated $300 million to bolster New York'senvironmental protection fund; and revealed a program to boost economic development. This morning, Cuomo detailed yet another component of his 2016 plan: to expand the Jacob K. Javits Center by 1.2 million square feet, in an ambitious plan intended to drive more events (and, by extension, cash) to the convention center.

The planned expansion would bring the convention center—already the country's largest such meeting place—to a whopping 3.3 million square feet, and would add five times the meeting space. The proposed expansion could cost as much as $1 billion, and according to Cuomo, construction is expected to begin sometime this year. (We're guessing this means the idea of a Javits-esque convention center at Sunnyside Yards is off the table.)

The expansion would have a few different components, which you can see below in new renderings (created by FXFOWLE) from the Governor's office:

One element would be a new, 58,000-square-foot ballroom, which Cuomo said would the largest such room in the northeast.

The expanded center would have five times the meeting space, thanks to the addition of a new exhibition hall and meeting rooms, which together would add nearly 650,000 square feet to the expanded space.

There would also be 22,000 square feet of "outdoor event space," which would join the convention center's enormous green roof as one of its al fresco amenities.

The expansion would also include a four-level, 633,000-square-foot truck garage which, according to Cuomo, would "move 20,000 trucks off the neighborhood streets."

During the press conference, Cuomo also touted the job creation possibilities of the plan (including 4,000 full-time and 2,000 part-time jobs), along with the fact that it could give a serious boost to the city's hotel industry—more events means more people who need hotel rooms, after all. "The Javits Center is the busiest convention center in the country," Cuomo said. "But we have to grow to stay ahead." Indeed.

Source: Javits Center to Get Even Bigger With $1B Expansion Plan - Coming Attractions - Curbed NY

How Much to Tip Your Building Staff: 2015 Edition - Curbed NY

Early December may be when building staffers prefer to get their tips, but for the last-minute gift givers: we're here for you. Every year the question comes up: How much should I tip my building staff? This handy annual guide, based on a memo sent out by Two Trees Management back in 2005, should help you dole out the dollars (original here, and years' worth of Curbed tipping advice over here). But what worked for Two Trees' staff and tenants a decade ago won't necessarily work for the rest of New York today. Brick Underground always provides a comprehensive guide, offering a general tip range for different types of building staff. Should that tip range seem too broad and uncertain still, Curbed reader and mathematician Spencer Greenberg made a tool that really helps tenants hone in what they should be gifting this giving season.

Brick Underground's general tip range remains the same as it has been the last few years:

Super, resident manager: $75 -$175 on average (broad range: $50 - $500) Doorman, concierge: $25-$150 on average (broad range: $10 - $1,000) Porter, handyman: $20 - $30 on average (broad range: $10 - $75) Garage attendant: $25 - $75 on average (broad range $15-$100)

Every year, Brick Underground also conducts a poll asking New Yorkers how much they tip. Nearly 1,500 people answered in 2014, and here are a few takeaways from the results: · two percent of owners in doorman buildings tipped nothing. · 16 percent of owners in non-doorman buildings also tipped nothing. · 34 percent of renters in non-doorman buildings tipped nothing as well. · Only two percent of renters in doorman buildings tipped nothing, while the lion's share—25 percent—tipped less than $250. · 45 percent of renters in non-doorman buildings tipped less than $250, a precipitous drop from 2013's polling numbers when 23 percent of renters in non-doorman buildings tipped more than $2,500, which BU thought could be "a testament to the Airbnb sharing economy where renters rely on supers to turn a blind eye and/or [lend] a helping hand." Could the drop be the city's agenda against Airbnb catching up?

This year's poll is ongoing, but as was the case with last year, owners and renters are maintaining a tighter grip on their cash. So far: · 20 percent of owners in doorman buildings tipped between $250 and $500. One percent tipped nothing. · 64 percent of owners in non-doorman buildings tipped less than $250. 12 percent tipped nothing. · 48 percent of renters in non-doorman buildings tipped less than $250. 24 percent tipped nothing. · 26 percent of renters in doorman building tipped less than $250. 24 percent tipped between $250 and $500, and two percent tipped nothing. · 12 percent of renters in doorman buildings tipped more than $2,500, making them the most generous tippers of the bunch.

Source: How Much to Tip Your Building Staff: 2015 Edition - The Tipping Point - Curbed NY

Wishing You All A Great Holiday Season & Happy New Year! - The Hoffman Team

7 Things You Need to Know About Manhattan's Resi. Market - TheRealDeal

Clockwise from top left: One57, rendering of One Riverside Park, 834 Fifth Avenue and the Schumacher at 36 Bleecker

By the time the ball drops on Dec. 31, roughly $24 billion worth of Manhattan residential real estate will have traded hands, according to CityRealty.

In a year-end report, CityRealty said the median sale price is projected to hit a record $1.1 million in 2015, up from $970,000 in 2014. The average was no bargain either — at a record $1.9 million.

The 16-page report — with projections based on closed sales as of Nov. 30 — is full of fun facts about record prices, priciest neighborhoods and toniest buildings. We sifted through the data to give you these seven key ideas.

1. Condos were no bargain

The median condo sale reached a record $1.6 million, up from $1.5 million in 2014. Thirty-four percent of condo sales were Downtown, accounting for $4.2 billion in sales.

2. Buyers took their time

The number of units traded – 12,700 – was lower than last year’s 12,900. Co-ops saw 7,200 sales valued at $10 billion. Condos saw 5,500 sales valued at $14 billion.

3. At long last, the new condos were ready…

New condo closings will jump more than 60 percent to 1,340 in 2015, according to CityRealty’s projection, compared to 836 in 2014. But the average price of new units dropped to $3.9 million from $4.8 million in 2014.

(Credit: CityRealty)

4. The luxury market showed its softer side There were 190 sales over $10 million in 2015, down by 11 percent from 214 sales in that price range in 2014. But properties between $4 million and $10 million were booming, with $10.7 billion total sales compared to $10 billion last year.

5. Noho: where prices shot up the most

The neighborhood’s average price per foot shot up 27 to $2,583, a steeper jump than any other neighborhood. That’s largely because of Stillman Development’s Schumacher project, a 20-unit development at 36 Bleecker Street.

6. Even the priciest pad was only $91M

Last year, a buyer paid $100.5 million for a penthouse at Extell Development’s One57. The building took the year’s priciest sale this year, too, with hedge fund manager Bill Ackman’s purchase of a $91.5 million pad. Billionaire Len Blavatnick set a new co-op record at 834 Fifth Avenue, where he paid $77.5 million. (That deal was also the second-priciest sale of the year.

7. And in the building match-up, One57 wins again Not surprisingly, One57 had $564.9 million in aggregate sales in 2015 the most of any building, followed by One Riverside Park with $315.9 million in sales. Fun fact: One57 had just 26 sales to One Riverside Park’s 122 transactions.

- See more at: http://therealdeal.com/blog/2015/12/17/manhattan-median-prices-crossed-1m-for-the-first-time-in-2015-report/#sthash.evoQQyJ6.dpuf

Source: NYC Apartment Sales | NYC Condo Prices

Four Bold New Designs for New York City's Ubiquitous Sidewalk Sheds - Curbed NY

[All photos via New York Building Congress]

Could the city's current design for construction sidewalk sheds become a thing of the past? That's what the New York Building Congress is hoping for: Over the summer, the organization launched a competition asking architects and designers to submit proposals for more "aesthetically pleasing" sidewalk sheds. Today, the four winners of the contest were revealed, along with renderings for their proposed designs.

First up is the design above (↑), called SCAFFOLDWING, byGannett Fleming Engineers and Architects. It hinges on a translucent polycarbonate "wing" that would extend over the sidewalk, but be pitched at such an angle to allow light to soar in, and rainwater to drain off properly.

↑ Francis Cauffman came up with the Side+Ways+Shed, which barely looks like a sidewalk shed at all; the traditional posts are replaced with ones that are set back on the sidewalk and lit with LEDs. The idea is to "enliven the streetscape and provide visual cues to pedestrians."

↑ Gensler's design, the G-Shed, doesn't look too different from the typical sidewalk shed—though it's definitely not as ugly—but it's different in one key way. The posts would be modular, which, according to the architects, would "allow for seamless adaptation with existing systems, eliminating complicated bracing while creating an inviting arcade" which would help both pedestrians and businesses affected by the shed's placement.

↑ The final design is called UrbanArbor, from PBDW Architects and Anastos Engineering Associates. As the name suggests, it's meant to "evoke the experience of walking down a tree-lined boulevard," with diagonal braces offering both structural support and the feeling of wandering under a thicket of tree branches. It would also use translucent polycarbonate parapets to allow natural light to flow through to the sidewalk.

Even if the Department of Buildings gets on board with these designs, there's another hurdle to clear before you'd see these on the streets: the developers. A previous competition held by the DOB in 2010 brought forth the Urban Umbrella, but developershaven't used the steel-and-plastic contraption because it's more expensive to implement than traditional sidewalk sheds. The NYBC's contest sought "practical, cost-effective off-the-shelf designs," according to a statement, but when developers are involved, who knows what cost-effective really means. Still, the designs are nice to think about—who wouldn't want the city's streets to look just a bit prettier?

New Renderings of One Vanderbilt, Midtown's Future Tallest Office Tower - 6sqft

 1 VANDERBILT AVENUE, NEW YORK, NY, UNITED STATES

The digital production studio Visualhouse has posted on their website our first motion video look at SL Green’s 63-story office tower known as One Vanderbilt. Hailed to forever change the face of Midtown East and reinvigorate the business district, the $1 billion-plus, 1.6-million-square-foot tower was unanimously approved by the City Council this past summer, thus granting SL Green the green light to begin construction of the supertower immediately.

Visualhouse’s newly released film and renderings provide us with a clearer picture of how the building’s full-block base will meet the street, and also remind us just how gargantuan the tower will be. According to the tower’s architects Kohn Pedersen Fox (KPF), the tower will rise 1,501 feet to its spire, making it the third tallest building in the city upon completion. However, unlike the pencil-thin supertalls underway around Central Park, the project will throw up a substantial amount of bulk into the air.

The new nighttime depictions show the office floors will be topped by a sizable illuminated crown that is sure to join the Chrysler and Empire State Building as nighttime skyline fixtures.

Demolition of the pre-war buildings at the site is expected to last until the second quarter of 2016, and excavation/ foundation work is slated to end by 2017. TD Bank is already lined up to occupy 200,000 square feet of space in the building and will also provide a flagship retail branch at the base.

Source: New Renderings & Video of One Vanderbilt, Midtown's Future Tallest Office Tower | 6sqft

Developers Swapping Penthouses For Top Floor Amenities - The Real Deal

From left: Renderings of 626 First Avenue in Murray Hill (credit: JDS Development) and the One Thousand Museum in Miami (credit: One Thousand Museum)

A luxury Manhattan penthouse is one of the world’s great status symbols, but some developers are forgoing whole-floor units at the top of their buildings and instead creating shared amenities spaces for all residents.

JDS Development’s two-towered rental building at 626 First Avenue in Murray Hill will offer tenants access to a rooftop deck and an infinity pool, a fitness center and a spa on the top floor of its East tower.

The project, set to be completed in 2017, will be composed of two “dancing” towers – one 40 stories and the other 49 stores – leaning into one another, with a sky bridge connecting them. SHoP Architects is designing the project. Studio apartments there will start at around $2,800, the Wall Street Journal reported.

In July of last year, JDS secured a $390 million loan from Cornerstone Real Estate Advisors, a division of Massachusetts Mutual Life Insurance Co. JDS bought the property from Sheldon Solow for $172.1 million in 2013.

The Zaha Hadid-designed One Thousand Museum in Miami will also feature a “public penthouse space” with a sunbathing terrace, a bar, a private dining room, and a theatre, according to the developer Louis Birdman. [WSJ] – Ariel Stulberg

- See more at: http://therealdeal.com/blog/2015/12/04/developers-swapping-penthouses-for-top-floor-amenities/#sthash.UCM4D5Ab.dpuf

Source: NYC Penthouse | 626 First Avenue | JDS Development

You Can Now Pay to ‘Park’ Your Pup - New York Post

Eric Abis pictured with his pouch "Bernie" outside Fort Greene General Store at 218 Dekalb avenue using a "Dog Parker." Photo: Paul Martinka A Brooklyn woman is launching a pay-by-the-minute network of sidewalk dog kennels that allow owners to safely park their pooches while running errands. The kennels are locked by radio signals, monitored by Web cams and temperature controlled. ADVERTISING Chelsea Brownridge said she got the idea for the “dog parker” containers after she had to leave her pup, Winston, at home while she took a long summer walk to Prospect Park because the trip included a stop for breakfast with friends. Photo: Paul Martinka Photo: Paul Martinka Dog Parker outside Fort Greene General StorePhoto: Paul Martinka “I ran into this problem dozens of times,” said the 31-year-old former nonprofit worker, who doesn’t feel safe tying Winston up outdoors. “It was a bummer because it was a nice day and he wasn’t going to be able to go outside.” Two models are being tested on Dekalb Avenue in Fort Greene as part a private pilot program. They’ll be joined by eight more come mid-December, with a total of 100 available in the late spring. At that point, the kennel network will be run through an app that charges members 20 cents per minute or $12 for an hour. Membership is $25 per year, and users will be able to call dibs on a kennel 15 minutes ahead of time. Currently, locks are used to secure the white doghouses to a storefront. In the future, they will be bolted to the ground. The two Dekalb Avenue prototypes are already drawing interest. “You get a range of responses, from, ‘Wow, great,’ to, ‘Seriously?’ to, ‘Do they have one for kids?’ ” said Keith Goldberg, 50, who owns Baguetteaboutit, a coffee shop and bakery where one is parked. “We’ve had a couple of people use it in the past couple of weeks . . . I’m just happy to have another service I can offer my customers.” Brownridge said she has been working with City Hall’s new animal advocate to get proper permissions, but most stores own the three to five feet of sidewalk in front of their shops, so it’s largely their cooperation that she needs. The second prototype is outside Adrianna Spence’s Fort Greene General Store several blocks away. “Some businesses can’t allow you to bring in dogs, and some dogs you can’t really bring into stores,” said Spence, a dog owner. “So if it’s cold out or you have a dog that might get stolen, this is a better option than just tying them up outside.” Source: You can now pay to ‘park’ your pup | New York Post

Robert A.M. Stern To Design 'Opulent' Sony Building Condos - Curbed NY

The long-awaited conversion of Philip Johnson's Sony Building at 550 Madison Avenue is finally making some progress. The project—called, somewhat blandly, 550 Madison—launched a teaser site last night, which has few details beyond some architectural information and the team behind it (which includes Chetrit Group, which bought the building for $1.1 billion in 2013), but we've got the scoop on plans for the iconic Midtown building—which includes an assist from Robert A.M. Stern. As previously reported, the conversion of Johnson's building will include pricey condos—but the current plan differs from what we previously knew about the building. Instead of 96 units, the residential portion of the building will have 113 condos designed by none other than Robert A.M. Stern Architects. They'll occupy floors 21 through 43 of the building. (A spokesperson has yet to confirm if the pricing and floorplans that were previously revealed for the building are still accurate, but we'll update with that info when we can.) There will also be a hotel portion, which will be operated by Oetker Collection, the hospitality group responsible for Hotel du Cap-Eden-Roc in France; the "New York masterpiece" (that's the tagline for the hotel, not the official name) will be a 170-key hotel will have 60 fancy suites, along with predictably over-the-top amenities like a 25-meter pool, a spa, and an upscale restaurant. Those amenities will also be available to the ultra-wealthy residents of the building's condos. And finally, there will be luxury retail on the ground floor. So there you have it: Midtown is getting another pricey hotel-condo hybrid, in the vein of buildings like One57 (which has a Park Hyatt hotel on its lower floors). Though construction has yet to begin on 550 Madison, it's expected to open in early 2018. Source: Robert A.M. Stern To Design 'Opulent' Sony Building Condos - Coming Attractions - Curbed NY

Behold, the Interiors of Extell's 80-Story Lower East Side Condo - Curbed NY

Extell's Lower East Side tower dubbed One Manhattan Square, now on the rise alongside the base of the Manhattan Bridge, hasn't made many friends in the neighborhood. Maybe that's why the developer chose to launch sales of the $1-$3 million condos abroad before availing them to the states. Whatever the case may be, The Low Down got its hands on some of the overseas marketing materials which now bring a first, very comprehensive look inside the 850-foot building. In addition to first renderings of the 80-story tower's apartments, which will be designed by Meyer Davis, the materials also show off the building's surrounding gardens and the remainder of its 100,000 square feet of amenities, which are as over-the-top as they promised to be.

The master bathrooms will be finished in ocean blue travertine stone slab and mosaic tiles.

Buyers will be able to choose between two finish packages designed by Meyer Davis. The "dark" choice, pictured here, includes custom stained oak, Caesarstone countertops, Mountain White Striato stone bartop, and five-inch wide dark stained oak flooring.

The "light" package, pictured here, includes custom-painted oak cabinetry, Caesarstone countertops, a polished statuary stone bar top, and five-inch wide light stained oak flooring.

Landscape architecture firm West 8 designed an outdoor space that includes gardens, a treehouse, fire pits, and courtyards.

The building will also have an outdoor kitchen and dining areas for grilling and entertaining.

A very idyllic look at the building's fire pits.

Per the development's promotional pamphlet, "The gardens at One Manhattan Square incorporate influences from around the world and offer peaceful enclaves for closeness and serenity."

An overhead look at the building's landscaped outdoor space.

An entrance on Cherry Street will lead the building's private motor court.

The building will have a 24-hour doorman and concierge.

A view of the lobby.

The "culinary lounge" will have a demonstration kitchen.

Of course One Manhattan Square has a fully-stocked cellar bar designed by Meyer Davis Studio Inc.

A 70-seat movie and performance theater will be rentable for private events, performances, and viewings.

The building's amenities are "designed for the whole day and the whole family," the pamphlet reads. So of course there will be pool.

And bowling.

The children's playroom is somehow the least flashy of the building's amenities.

The building will have a multi-level gym that will include a cardio room (pictured), golf simulator, swimming pools, and squash courts.

Not to mention a basketball court.

The multi-level gym will also have a relaxation area.

Here's a look at how apartments on some of the building's lower floors will break down.

A full look at the pamphlet via The Low Down, this way.

Source: Behold, the Interiors of Extell's 80-Story Lower East Side Condo - Rendering Reveals - Curbed NY

NYC Tiny Apartments Are HERE! - Curbed NY

Floor plans for the city's first micro-unit development, Carmel Place have been unveiled, Buzz Buzz Home reports, along with a series of new images of the interiors of the micro dwellings.

The floor plans of eight units have been listed so far and range in price from$2,650 per month for a 265 square foot studio to $3,150 per month for a 355 square foot studio. Residents will start moving in as early as February 2016.

The development features a total of 55 apartments. Almost 40 percent of those are affordable. Eight apartments have been set aside for veterans. The project, located at 335 East 27th Street is being developed by Monadnock Developmentand has been designed by nArchitects. The building also comes equipped with a ton of cushy services.

Source: See the Tiny Floorplans For Carmel Place's Micro-Units - Microdwellings - Curbed NY

Most Expensive Condo Buildings In NYC - Curbed NY

New York’s most expensive new condominium buildings get plenty of attention, but it’s nonetheless easy to forget just how expensive they, as a group, are (at least in the eyes of their developers). Just 12 buildings are projected to sell out for a total of $20 billion dollars, 44 percent of the total projected sellout of all 200 condo projects currently being built in Manhattan, according to a chart produced by CityRealty. (The analysis included planned and completed new condos where less than 50 percent of the units have closed, which is why One57 didn’t make the cut.) The heaviest hitters are also among the most famous: CIM Group and Macklowe Properties’ 432 Park Avenue, which projects a total sellout of $3.1 billion; Vornado Realty Trust’s 220 Central Park South, with a total projected sellout of $3 billion; and Hines’ 53 West 53rd Street, the MoMA Expansion Tower, with a total projected sellout of $2.2 billion. Though, buildings often fall short of the projected total sellout. It’s a good thing developers think they’ll hit such high revenues, because their costs are reportedly sky high as well. Earlier this month, The Real Deal reported that Vornado was spending $5,000 per foot to build the Robert A.M. Stern-designed 220 CPS. [CityRealty] – Ariel Stulberg Source: Most Expensive Condo Building NYC | Condo Development NYC

The d'Orsay Will Bring 21 Luxury Condos To West 14th Street - Curbed NY

Developer Adellco has finally revealed its plans for the West 14th Street site it purchased for $27.65 million in April 2014. It should come as no surprise that the site between Seventh and Eighth avenues will give rise to condos, but what is surprising is that the developer has tapped notable French architect and interior designer Jacques Garcia, whose work includes the Nomad Hotel and the Decorative Arts Galleries at The Louvre, to design the building's interiors. The project will be Garcia's first multifamily residential building in the city. Goldstein Hill & West is designing the 11-story building, which will go by the name The d'Orsay. The d'Orsay will have 21 one- to four-bedroom residences starting from $1.675 million, as per the building's newly-launched teaser site. Building amenities will include a drawing room, gym, spa with a plunge pool, rooftop garden, full-time concierge, as well as bicycle storage and private storage rooms available for purchase. Although only one official render for the project is out there to-date (↑), a fencepost rendering of the building surfaced in September. It hints that some of the building's condos will also come with private outdoor space. Sales will launch in January 2016 with Mary Ellen Cashman of Stribling Marketing Associates. Closings are anticipated at the end of 2016. Construction at the site is ongoing. Source: The d'Orsay Will Bring 21 Luxury Condos To West 14th Street - Development Watch - Curbed NY