Who Is Getting Rich (or richer) From The Snap IPO

Snap's hotly-anticipated IPO is going to make a lot of money for its founders, investors and early employees. 

The company is seeking to price its share sale at between $14 to $16 a share, although that could always go up (or down) before its anticipated IPO on March 2.

According to its S-1 filings, Snap's co-founders Evan Spiegel and Bobby Murphy own the most shares. 

Benchmark could also see some nice returns, as one of the company's top shareholders. 

Here's the list of Snap's major shareholders at its IPO and what the value of their stake would be at $16 a share.

Note: This doesn't include shares that haven't vested by the time it goes public (including a $145 million stock bonus for Imran Khan), but does include Spiegel's bonus that he'll receive immediately upon IPO. 

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Evan Spiegel, Snap cofounder and CEO: $4.2 billion

Projected value at $16 a share: $4.2 billion (which includes the extra 3% of stock he'll get when it goes public.)

Class A shares: 113,164,485
Class B shares: 5,862,410
Class C shares: 107,943,924 + 37,232,102 granted as a bonus for going public

Evan Spiegel launched Snapchat with Bobby Murphy in September 2011. Described as a product visionary to rival Steve Jobs, Spiegel holds the title of CEO at the company and has set up its share structure so he and Murphy will retain control in the future too.


Bobby Murphy, Snap cofounder and CTO

Projected value at $16 a share: $3.63 billion

Class A shares: 113,164,485
Class B shares: 5,862,410
Class C shares: 107,943,924

Murphy and Spiegel were frat brothers at Stanford when they cofounded the app and have grown it to a company much larger than just disappearing messages. While Spiegel is described as a product genius, it is Murphy who is leading a lot of Snap's cutting edge work in its Snap Labs division.


Benchmark

Projected value at $16 a share: $2.11 billion

Class A shares: 65,799,720
Class B shares: 65,799,720

Benchmark is the largest venture shareholder in Snapchat, thanks to the round it lead in 2013. "We believe that Snapchat can become one of the most important mobile companies in the world," Benchmark's Mitch Lasky wrote in a blog post at the time of the deal.


Lightspeed Venture Partners

Jeremy Liew is a partner at Lightspeed Venture Partners who found hot startups like Snapchat and Whisper before everyone else.Lightspeed

Projected value at $16 a share: $1.38 billion

Class A shares: 43,314,760
Class B shares: 43,314,760

Lightstpeed's Barry Eggers first heard about Snapchat from his daughter. Jeremy Liew sent Spiegel a message on Facebook about meeting up, right at the time when the company was about to run out out of money to pay the server bills. Liew flew to LA and wrote Snapchat its very first check.


Timothy Sehn

Projected value at $16 a share: $108 million

Class A shares: 3,373,332
Class B shares: 3,373,332

Since joining in 2013, Timothy Sehn grew Snapchat's software engineering team by more than 10x. Before joining Snapchat as its VP of Engineering, Sehn spent over a decade at Amazon, where he started as a software developer intern and left as an engineering director.


Michael Lynton

Projected value at $16 a share: $48.3 million

Class A shares: 1,509,820
Class B shares: 1,509,820

Former Sony Entertainment CEO Michael Lynton stepped down from his position to focus on another role as Chairman of Snap Inc. Lynton has been a trusted adviser to Snap's Evan Spiegel and on the board of Snapchat's parent company since 2013.


Imran Khan

Imran Khan, Chief Strategy Office of Snapchat, speaks the Financo CEO Forum 2016 on January 18, 2016 in New York City.Dave Kotinsky/Getty Images

Projected value at $16 a share: $45.4 million

Class A shares: 1,418,868
Class B shares: 1,418,868

Imran Khan jumped from the banking world to the tech world in January 2015 when he joined Snap as its Chief Strategy Officer. His connections have already helped Snap get a $200 million investment from Alibaba — he was the lead banker for the Chinese retail company's IPO — and Snap raised an additional $1.8 billion in May 2016. One of Spiegel's direct reports, Khan's main job at Snap is to lead its strategy and help chart its path to IPO. 

Snapchat Started Selling Its Camera Glasses Online

Until now, the only way to buy Snapchat's Spectacles has been through yellow vending machines that appear unannounced in random cities for 24 hours.

Snapchat's "Snapbot" vending machines are going on hiatus while the company starts selling its Spectacles online.

Starting Monday, Snapchat will also sell its camera-equipped sunglasses on its website. Anyone in the US can order a pair of the $130 glasses, which record 10-second video clips and connect to the Snapchat app.

Snapchat maker Snap Inc. is also shutting down its Spectacles pop-up store in New York City that's been open since late November. A spokesperson confirmed that the company's "Snapbot" vending machines will continue to appear throughout the US after going on a "brief" hiatus.

Snap made a big splash with the unexpected debut of Spectacles last fall. The product garnered long lines during the weeks leading up to the holidays, and pairs were quickly resold online for thousands of dollars. Demand has since slowed, and Snap likely feels confident that it can finally fulfill online orders.

Spectacles represent Snap's first hardware effort to rebrand itself as a "camera company" ahead of its $22 billion public offering in March. Snap said it had planned to "significantly broaden the distribution of Spectacles" in its IPO paperwork earlier this month, although the product "has not generated significant revenue" yet.

Removing Garbage Cans Led To More Trash On The Tracks and Tack Fires

For those who thought removing subway station garbage cans as a means to decrease litter and rats seemed counterintuitive, you were right. The Post looks at how things have fared since the MTA took out cans in 39 stations in 2012, and since this tactic was nixed by the state Comptroller’s Office in 2015. Despite the latter attempt to course correct, a new state report shows that the situation is still just as bad in many stations, with the amount of litter on the upswing and an increased number of track fires.

As 6sqft previously reported, “This past May the MTA recorded 50,436 subway delays, 697 of which were caused by track fires that could have been ignited by the 40 tons of trash that are removed from the system every day.” The build up of garbage isn’t exactly rocket science; with nowhere to dispose of their waste, subway riders end up leaving things like coffee cups and newspapers on benches and stairways or throwing it onto the tracks.

In response, state Comptroller Thomas DiNapoli said, “The clearest progress in the MTA’s pilot program so far is that they’ve returned garbage cans to some of the stations,” referencing the seven stations where they were replaced on the mezzanine level when track fires there had “become rampant.” However, there are still no garbage cans in high-trafficked stations like the Eighth Street stop on the R line in Manhattan, Flushing-Main Street stop on the 7 line in Queens, and all the above-ground stops on the J, M and Z lines in Brooklyn and Queens. And the MTA doesn’t have a system in place for alerting riders about which stations don’t have trash cans.

“Five years after they started this experiment, there’s still no evidence that it’s benefited riders by reducing trash or rats in stations,” DiNapoli continued, despite the MTA’s assertations that workers have had to pick up less trash in those stations targeted by the initiative. The agency also cites the success of their “Operation Trash Sweep.” Under the three-phase initiative, the agency employed a more vigorous cleaning schedule, instituted a system-wide cleaning blitz during which all 469 stations were completely cleaned over just two weeks, and, most recently, tested individually-operated Mobile Vacs that allow workers to quickly suck up trash. MTA spokesman Kevin Ortiz said track fires decreased at the targeted stations by 41 percent since the Sweep began.

Meg Ryan's Stunning SoHo Loft Just Came To Market For $10.9M

Fresh off a cover feature in the holy tome of celebrity interiors, the impeccable Soho loft of actress Meg Ryan has hit the market for $10.9 million. Ryan purchased the apartment from fellow celeb Hank Azaria in 2014—and he from artist Cindy Sherman—dropping $8 million on the 4,100-square-foot abode on Mercer Street. The classic loft was fine in its own right when Ryan moved in, but its been elevated with a gut renovation by architect Joel Barkley and designer Monique Gibson.

Ryan’s no stranger to redesigning spaces. The When Harry Met Sally actress told Architectural Digest that the loft is the ninth home she’s renovated. “I know it sounds crazy to most people, the idea of renovating that many houses. But I love renovating,“ she said. “I think it’s tied to living the actor’s life. As an actor, you are so rarely in control. [W]ith decorating I am in control; it’s a chance for me to bring my vision into the world.” She does it so often, in fact, that her son Jack has a name for it: the Megan-ize effect.

The Megan-ize effect is on full display on Mercer Street, where brooding hues and antique finishes meet. The apartment is a classic loft in that it has a flowing yet funky layout suspended by seven architectural columns. The keyed elevator opens up onto a 40-foot entry hall with five windows overlooking Mercer Street on one side, and a set of high gloss black french doors that lead into the living area on the other. A separate formal dining area with a marble mantled decorative fireplace can be found behind another set of french doors at the far end of the living room.

The loft’s kitchen includes custom cabinetry by Fine Woodwork, marble shelving and countertops, subway tile, and tons of built-in shelving. The appliances are what one would expect: a six-burner Viking range with a grill, two stainless steel refrigerators, and a Bosch dishwasher.

The master bedroom is found off of the formal dining room, and doesn’t include the oversized walk-in closet that has become so desired, but has eight smaller closets as well as a massive en suite bathroom with a free-standing tub designed by Water Monopoly and vanities by Urban Archaeology. The two additional bedrooms are smaller, each with their own bath. A media room can be found off of the living room.

Welcome To The Team!

Welcome To The Team!

Jaclyn B. Treinkman

Licensed Associate Real Estate Broker

jtreinkman@compass.com

M: 646.678.1889

For Jaclyn Treinkman, New York City real estate is a natural fit. She hails from a family of shrewd real estate investors and agents, and her parents are NYC natives. "Both of my parents are from the city, and my grandparents lived in the Village my whole life," she explains. 

With that solid base of city and real estate know-how, Jaclyn is devoted to thoroughly educating clients and calmly guiding them through the challenging New York real estate landscape. That means being accessible 24/7 and always striving to be the hardest working agent around. 

Former roles in ad sales and hospitality have honed Jaclyn's marketing savvy and elite customer service skills, but at its core, her hands-on approach is all about getting to know people's wants and needs, and matching them with the perfect New York City home. Known for her perseverance and meticulous nature, she gives 100 percent to every client interaction and prides herself on the long list of clients who have become close friends. 

A graduate of Penn State University, Jaclyn is an artist and maker at heart. In her free time, you'll find her indulging her passion for painting, travel, and flea markets.

Yellen Says More Interest-Rate Hikes Might Be Coming

Federal Reserve Chair Janet Yellen said more interest-rate increases will be appropriate if the U.S. economy meets the central bank’s outlook of gradually rising inflation and tightening labor markets.

“At our upcoming meetings, the committee will evaluate whether employment and inflation are continuing to evolve in line with these expectations, in which case a further adjustment of the federal funds rate would likely be appropriate,” she told the Senate Banking Committee in prepared remarks Tuesday.

Yellen’s semiannual report on monetary policy is her first since Donald Trump became president vowing to boost U.S. growth, which could push the Federal Open Market Committee to pick up the pace of rate hikes if such steps fan higher inflation. She reiterated that falling behind on inflation could harm to the economy and possible cut short the expansion.

“Waiting too long to remove accommodation would be unwise, potentially requiring the FOMC to eventually raise rates rapidly, which could risk disrupting financial markets and pushing the economy into recession,” she added.

Read Yellen’s Opening Statement

Yellen gave no indication of the timing of the next hike in her prepared remarks. Investors see about a 34 percent chance of an increase at the next meeting of the FOMC on March 14-15, up from about 30 percent before she spoke. Treasuries fell, U.S. stocks pared losses and the dollar rose.

The Fed, which has only raised rates twice since the recovery began in 2009, has penciled in three quarter-point rate increases in 2017, as the economy closes in on the central bank’s goals for maximum employment and 2 percent inflation.

Moderate Growth

Yellen said the Fed panel’s outlook for a “moderate pace” of growth is based on continued stimulative monetary policy, and a pick-up in global activity. She did not mention Trump administration proposals as a key element in the central bank’s forecast.

In response to questioning, Yellen said Fed policy makers will be discussing in coming months their strategy for the balance sheet, which swelled to about $4.5 trillion after the crisis from less than $900 billion in 2006 as the central bank sought to hold down long-term market rates.

She said she expects the balance sheet to end up being “substantially smaller” than it is now, with policy makers wanting to shrink in an “orderly and predictable way.” The Fed doesn’t want to use the balance sheet as an active policy tool and it should eventually be comprised primarily of U.S. Treasuries, she said.

On the economy, she said in her opening statement that consumer spending has continued to rise at a “healthy pace,” supported by gains in household income and wealth, favorable sentiment and low rates. The recent rise in mortgage rates “may impart some restraint” on housing markets, she said.

The Fed chief said changes in fiscal and economic policies could affect the outlook, though she declined to speculate how, adding that it’s “too early to know” what policy changes will be put in place. She urged lawmakers to focus on investments that would improve living standards and raise productivity while noting that she hoped any changes would keep fiscal accounts “on a sustainable trajectory.”

Reform Push

Trump’s victory could expose the U.S. central bank to reforms favored by his Republican party, which still controls both chambers of Congress. Yellen could previously rely on President Barack Obama, a Democrat, to shield with his veto any perceived encroachment on Fed independence.

The shift in power may force her to engage more with lawmakers than in the past. Republicans want to roll back post-crisis banking regulations enshrined in the Dodd-Frank Act, arguing it hurts growth by making credit scarce for small businesses. While Yellen did not mention financial regulation in her remarks, lawmakers had many questions on the issue as the hearing progressed.

In his opening remarks at the hearing, Senate Banking Committee Chairman Mike Crapo said “it is time to reassess what is working and what is not” with financial regulations, which need to “strike the proper balance” between the safety of the system and economic growth.

Trump’s opportunity to influence regulatory policy improved last week when Fed Governor Daniel Tarullo, who oversees bank regulation, announced his departure in early April. It also means that Trump can fill three of the seven Fed Board seats, where there are two existing vacancies, while Yellen’s own term as chair ends in February 2018.

Yellen gave an upbeat description of the labor market saying gains in recent years “have been widespread.” The unemployment stood at 4.8 percent in January.

The personal consumption expenditures price index, the Fed’s preferred price benchmark, rose 1.6 percent in the 12 months through December.

High Line Co-Founder Say Park Failed Residents Of Chelsea

When Robert Hammond first conceived of turning a disused elevated railway on Manhattan’s West Side into a high-design “linear park,” he thought it would attract maybe 300,000 visitors a year. He and co-founder Joshua David didn’t really think about what the High Line could do to the neighborhood, apart from adding a little extra breathing room.

“This was right after 9/11,” Hammond says almost two decades later, sitting in his glassy office perched above the now-famous planked pathway. On a February afternoon, walkers are admiring views of the Hudson River and park greenery hushed grey by winter. “People were worried about buildings falling apart, and whether the stock exchange would leave town,” he says. “New York’s future was not guaranteed.”

In 2016, seven years after it opened, nearly 8 million bodies would flock to the High Line—that’s more visitors than to any other destination in New York City. With those visitors came riches the park’s founders never predicted: Between the glossy condos, eateries, and museums that have flowered around its steel girders, the High Line is set to generate about $1 billion in tax revenues to the city over the next 20 years.

“Instead of asking what the design should look like, I wish we’d asked, ‘What can we do for you?’ People have bigger problems than design.”

By these measures, the High Line is a runaway success. But by one critical metric, it is not. Locals aren’t the ones overloading the park, nor are locals all benefiting from its economic windfall. The High Line is bookended by two large public housing projects; nearly one third of residents in its neighborhood, Chelsea, are people of color. Yet anyone who’s ever strolled among the High Line’s native plants and cold-brew vendors knows its foot traffic is, as a recent City University of New York study found, “overwhelmingly white.” And most visitors are tourists, not locals.

“We were from the community. We wanted to do it for the neighborhood,” says Hammond, who is now the executive director of Friends of the High Line, the nonprofit that funds, maintains, programs, and built the space (New York City owns it, and the parks department helps manage it). “Ultimately, we failed.”

Now he’s course-correcting. Hammond is striving to bring in more diverse park-goers to the High Line’s narrow pathways, and to new public spaces around America. On top of changes to how FHL engages with neighbors, Hammond has founded the High Line Network, a coalition of designers and planners building “adaptive reuse” parks in the High Line mold. Leaders from 17 projects at different stages of life in the U.S. and Canada—think Atlanta’s rails-to-trail BeltLineDallas’ highway cap park, and the 51-mile L.A. River overhaul—have been meeting over the past year to share insights on how to turn disused infrastructure into bustling public amenities.

A lot of the conversation focuses on nuts-and-bolts topics, like capital financing and marketing strategies, attendees say. But at every convening (there have been four since June, in New York, D.C., Toronto, and Houston), Hammond and others have opened up the question of equity—“sort of like a Trojan Horse,” he says—and driven at it hard, to figure out strategies for keeping public parks inclusive.

It’s harder than it should be, and the stakes are much higher than visitor statistics. The network of project leaders is tackling a long overdue conversation about how to improve neglected neighborhoods, without pushing away the very people they intend to serve.

The ugly side of “adaptive reuse”

As American downtowns repopulate and densify, green space is at more and more of a premium. Very few open lots that could be turned into parks remain around urban cores; often, land that becomes available holds remnants of the industrial past. That’s why so many of these “adaptive reuse” projects—with sleek aesthetics that often highlight, rather than hide, the old highway/flood channel/railway—are getting built.

Meanwhile, city governments rarely have room in their budgets, or even imaginations, to redevelop those tracts on their own. It’s largely up to private funders to bankroll these projects—and it’s mostly private individuals who dream them up. From an investor standpoint, the High Line’s stunning successes make these projects no-brainers to back: Green space draws new businesses and dwellings. There’s big redevelopment money to be made. So they partner with city governments, hungry for a heftier tax base, to do it.

But these obsolete bits of infrastructure generally have people living near them, and often, they are park-poor, low-income communities of color, forgotten in the shadows of that very strip of concrete or steel. This is true for many of the 17 projects involved in the High Line Network. Planners and designers—who are usually white—may try to engage residents in dialogue; often, they fail.

During the High Line’s planning stages, Hammond and David set up offices inside a local community agency in order to make themselves accessible to public housing tenants, and solicit their opinions on design. But the questions they asked at their “input meetings” were essentially binary: Blue paint, or green paint? Stairs on the left or the right? They rarely got to the heart of what really mattered.

“Instead of asking what the design should look like, I wish we’d asked, ‘What can we do for you?’” says Hammond. “Because people have bigger problems than design.”

His organization finally did launch a series of “listening sessions” with public housing tenants in 2011. What people really needed were jobs, Hammond says, and a more affordable cost of living. Residents also said they staying away from the High Line for three main reasons: They didn’t feel it was built for them; they didn’t see people who looked like them using it; and they didn’t like the park’s mulch-heavy programming.

Those findings led to the several new initiatives. In 2012, FHL launched a suite of paid jobs-training programs aimed at local teenagers, focused on environmental stewardship, arts programming, and educating younger kids. The organization also started to partner with the Elliot-Chelsea and Fulton Houses, the two public housing projects, to develop their programming schedule. That’s how “¡ARRIBA!”, a summer series of Latin dance parties got started—a resident thought it up, and it’s been a big hit. Friends of the High Line also started putting on occasional events within the public housing campuses themselves, avoiding the swarms of tourists.

But there’s a lot the High Line could have done before it opened that it can’t make up for now. Its designers might have paid stronger attention to a few basic principles of attractive public spaces, and specifically those that attract low-income and minority park-users. “The more open and visible a place is, the more easily you transition into it,” says Alexander Reichl, a professor of urban studies at Queens College who has studied social mixing patterns at the High Line. The High Line’s elevated structure naturally preempts street-level walk-ins, but its designers also chose to put in very few staircase entry points, further limiting access.

“The question we're constantly challenging ourselves on is: Who is this project really for?”

There are also no areas for open play, and a long list of posted rules: No “throwing objects” (including, say, a ball), no rollerblades, bikes, or skateboards. It stands to reason that the park would need to prohibit these activities within its narrow confines, but research shows that these kinds of common recreations draw people of color in particular to parks. “How much can you do with an elevated park space?” says Miguel Acevedo, director of the Fulton House Tenants Association. He says he doesn’t fault FHL, given how much they’ve reached out to his community in recent years. Still, “our residents don’t feel it’s a park that is available to them.”

Perhaps more critically, Friends of the High Line could have worked harder from the start to advocate for affordable housing. Hammond likes to say that his park gets too much credit and too much blame for Chelsea’s explosive makeover—city zoning codes were already changing to support redevelopment in the mid-2000s. But the fact is, the High Line has become a symbol of the “new” New York, a city of profound inequality. Luxury high-rises and catwalk clothiers have taken the place of Chelsea’s old bodegas and butchers; neighborhood income disparities are among the city’s most extreme. People can’t afford to shop nearby, and the prospect of shouldering a market-rate rental is laughable. Even though public housing costs haven’t increased for public housing tenants, displacement anxieties are running high.

“The scariest thing is being in this kind of district—especially with the kind of president we have today,” says Acevedo. He could see public housing in Chelsea targeted for redevelopment. “With NYCHA in a large deficit, too, it’s very serious.”

Acevedo wishes that FHL had pushed the city harder to keep more of the land values that the High Line created for affordable housing and public services; although a zoning amendment approved in 2005 did encourage some low- and middle-income rate units to be built, it wasn’t nearly enough. Hammond agrees. “There could have been more government action through zoning changes,” he says. (He also wishes he’d gotten the city to use more tax revenues to fund his own organization.)

But that’s just it: in hindsight, it might be obvious, but few could have anticipated the High Line’s downright gravitational pull on tourists and developers. For new projects that are modeled after it, however, it’s not too late to plan around the social problems that accompany economic success. Hence, the High Line Network. “I want to make sure other people don’t make the mistakes we did, and learn how to deal with these issues,” says Hammond. “We certainly don’t have all the answers.”

The equitable redevelopment toolkit

Other projects in the High Line Network are paying much more than lip service to equity concerns. Washington, D.C.’s 11th Street Bridge Park is national leader on this topic. That $45 million project is making a park out of an old highway bridge spanning the Anacostia River, touching one of the poorest sections of the District. There are sure to be dramatic increases in home values there, and displacement is a real risk. So project leaders are moving ahead of time.

“The question we're constantly challenging ourselves on—with staff and publicly—is, who is this really for?” says Scott Kratz, the project’s director. “For us, before we even engaged a single architect or engineer, we had 200 meeting meetings where we asked: ‘Is this even something you want?’ Going out and getting permission, and then having the community shaping every aspect, has been critical.”

Not everyone would agree that the park will be good for long-time residents. But the most important test will be whether the project can successfully mitigate displacement ahead of time—and so far, the organizers are putting money where their mouth is. In 2015, Kratz and his team released a set of equitable development goals, generated by a working group of local stakeholders. They included neighborhood hiring targets for construction and operations, a strategy to help nearby businesses serve the park, and plans for a land trust to buy up disused properties for future housing projects. The Bridge Park’s organizers have raised $1.5 million so far to implement those goals, including the land trust, which it’s setting up with a nonprofit housing developer. A $50 million investment by the Local Initiatives Support Corporation will further anchor its equity work.

Kratz points to Atlanta’s BeltLine as another leader in keeping affordable housing and equity at the top of their priority list. That $2.8 billion project will turn 22 miles of rusting freight rails into a ribbon of trails, parks, and transit-friendly developments connecting 45 neighborhoods. Special bond measures have created tens of millions of dollars to incentivize affordable housing developments, and several hundred below-market-rate units have already been built.

But it’s a massive project, with unique challenges for each of the enclaves it reaches. Ryan Gravel, the urban planner who first conceived and proposed the BeltLine concept, stepped down from the project’s steering board in September 2016 over concerns about affordability promises not being kept. Funds generated by additional proposed bonds, for example, would only be “a drop in the bucket when compared to the need,” Gravel wrote in his resignation letter, signed by another board member who also stepped down. Gravel figured he’d do better from the outside with his new focus—advocating for equitable development.  

“If you care about the places you’re working in, then you have to be talking about this,” he says. “Because in a growing economy, if you’re building a greenway trail or a transit station or improving a school, it will drive up land values.”

The answer is not not to build parks and other improvements, Gravel says, or to hold neglected places back. The problems are essentially financial, and there are ways to fix them, whether it’s traditional tax credits, (which are already hurting under Trump), subsidies to renters, inclusive zoning, land value capture, or clearing paths in zoning codes for snug accommodations like accessory dwelling units or tiny homes.

Not every tool is right for every city. But tools do exist. “It’s mostly about finding the will,” says Gravel. “That comes from leadership. But the public also needs to say this is important, and needs to demand that we do better.”

Even though he’s no longer officially part of the BeltLine’s development, Gravel has still been attending the High Line Network meetings. He’s been pleased to hear other cities talking openly about equity: The $1.3 billion L.A. River revitalization project is feeling a lot of pressure from housing advocates in Frog Town; New York City’s Lowline—the world’s first underground park—is working hard to engage longtime Lower East Siders in its design. Hammond is proud to report steady changes in the High Line’s visitor make-up: In 2015, 44 percent of park-users who hailed from New York City were people of color, up 20 points from 2010. However, tourists still dominate the space.

The High Line Network should help keep its many ambitious projects accountable to their equity promises, and that is a good thing. Gentrification and displacement concerns arise with almost any new development in this era of city-building, but when it comes to turning certain corners of forgotten neighborhoods into beautiful parks, these anxieties can be especially painful—after all, public spaces are supposed to be for everyone.

Still, big challenges lie ahead, not least of which is the fact that the leaders of the projects in this network are themselves overwhelmingly white. Perhaps this is the most overlooked piece of the puzzle: A diverse set of voices should be at the design table from the get-go.

The same goes for the folks doing the pushback, according to Acevedo.

“I represent people who’ve been here 40 years, and this is all they have,” he says. “I’ll fight tooth and nail to protect them. But people like me, we need to make sure that the next generation knows: if you’re not part of the fight, you might not be living here in the future.”

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110 Third Avenue, Unit 10D


110 Third Avenue, Unit 10D

East Village, Manhattan

2 Bed  |  2 Bath  |  1,103 SqFt

Offered At $7,900 / mo.

Condo  |  Doorman  |  Gym  |  Roof Deck  


Enjoy open city views south and east from this corner unit with floor-to-ceiling windows.

This open and modern unit features upgraded quite soundproof windows as well as motorized blinds. The beautiful oak floors run throughout the entire apartment. The true chef style kitchen opens to the dinning area and living room which creates a downtown loft feel to the apartment. Perfectly located between Union Square and the East Village. With amenities such as a fully equipped fitness center, landscaped common rooftop terrace, Fresh Direct certified refrigerated storage, full time concierge, and bike storage, its a perfect a fit. 

 

One-third Of All Manhattan Apartment Leases In January Included Concessions

New York City residential landlords are continuing to rely on renters’ incentives to keep vacancies at bay, a trend that is expected to become more widespread throughout 2017.

The number of leases with concessions reached new highs in January, according to the monthly rental report from Douglas Elliman. In Manhattan, 31 percent of all new leases included some form of concession last month, nearly double what it was a year ago. In Brooklyn, 18 percent of leases had concessions, compared to just 5 percent last year.

“Landlords are trying to strike a balance and that means fine tuning rents to fit market conditions,” said Jonathan Miller, CEO of appraisal firm Miller Samuel and author of the report. He predicts landlords will use concessions even more aggressively in 2017.

“I don’t think we’re at the end of this — nothing is changing and there’s a lot of product coming in,” he said. “The rental market is going to get weaker before it gets stronger.”

In Manhattan, the vacancy rate fell slightly from 2.3 percent from 2.8 percent in January 2016. That’s a sign concessions are working, although they are “painful for landlords,” said Miller.

The borough’s median rental price, after concessions, was $3,259, essentially the same as January last year. Softening in the market continues to be particularly acute at the high end. The median rent of a Manhattan studio was $2,600, a negligible change from last year. But for three-bedrooms, the median price was $5,500, a drop of almost 7 percent. While non-doorman median rent went up 2.8 percent to hit $2,800, the median price for doorman rentals fell back 1.2 percent to $3,750.

Luxury rentals, which account for the top ten percent of the market fell again this month, dropping 5.5 percent year-over-year to a median price of $7,595.

In Brooklyn, the effects of vast amounts of luxury rental product is also being felt. The median rent in the borough was $2,702, after taking concessions into account. That’s a fall of 2.8 percent compared to January 2016, when median rent was $2,779. Just like in Manhattan, the lower end of the market held firm or saw modest gains. But the two-bedroom median rental price was $3,025, a fall of 4 percent year-over-year. For three-bedrooms, it was $3,318, a fall of 8 percent. The luxury market dropped just under one percent to $5,119.

“In the last six months in 2016, you started to see a run-up in Brooklyn in the use of concessions,” said Miller. “Even though the concessions are still less than in Manhattan, the amount of concessions tripled over the year, whereas in Manhattan it doubled.”

The market in northwest Queens continues to be “choppy,” according to Miller. The median rent fell 2.4 percent year-over-year to $2,700. Out of all the leases signed last month, 38 percent included concessions. The concessions are driven by the uptick in new development rentals, which had a market share of 34 percent last month, more than double what it was this time last year.

It Might Cost The City $28M To Clean Up Yesterday’s Storm

For fiscal year 2017, the city budgeted $88 million for snow removal and has already spent $26 million. But yesterday’s dump of the white stuff could bring that number up to $54 million. DNAinfo reports that Comptroller Scott Stringer estimates it could cost NYC taxpayers between $19.9 and $27.9 million to dig out from Winter Storm Niko, which is based on the average of $1.99 million per inch of snow that the city has paid over the past 14 years.

Though parts of Queens got close to eight inches of snow, Central Park saw only five and most of Brooklyn between five and seven. Taking a median of six inches, this leaves the city with enough money to dig out 24 more inches of snow before the end of the year based on the average of $1.99 per inch. However, in fiscal year 2016, it cost an average of $3.28 million per inch of snow, and in 2014, removal costs hit an all-time high of $130.6 million.

These costs come in addition to the $21 million the city spent purchasing new equipment like smaller salt spreaders and snow haulers to accommodate narrow streets in Queens and Staten Island, bringing the total number of pieces of snow equipment to 2,300. In a statement Stringer said, “It’s always important to remember that snowstorms cost money, and the more transparent we are about those costs, the better we’re able to budget in the future,” Stringer said in a statement.

Biggest Price Cuts On Luxury Units This Week

Price chops in the city’s ultra-luxury market are showing no signs of slowing down.

In total, 15 properties in the over-$10 million market saw a discount of more than 5 percent in the period between Jan. 31 and Feb 6, according to data provided by StreetEasy. 

The biggest reduction was at One Madison Park, where a two-floor condominium had its asking price slashed by a whopping $5.5 million, or 17 percent.

Here’s a look at the biggest price cuts in New York City’s luxury market last week:


23 East 22nd Street, 55/56

23 East 22nd Street, 55/56
Previous Price: $32 million
Current Price: $27 million ($4,070 per square foot)
Percentage Drop: 17 percent

This five-bedroom, five-bathroom “showcase” apartment at One Madison Park was first listed in May 2015, asking $37 million. It was pulled from the market just a few days later, and returned in April last year with a $32.5 million price tag. Last week, the apartment at the Related Companies, CIM Group and HFZ Capital Group-developed property was reduced by $5.5 million, or 17 percent.

The 6,620-square-foot apartment, offered as raw space only, spans across two full floors, according to the listing. If you do happen to have $27 million to spare, buying this apartment would put you in pretty close proximity to Rupert Murdoch. In 2014, the media mogul paid $57.3 million for the four floors above this particular pad, including a triplex penthouse and a three-bedroom on the 57th floor. He listed the penthouse for $72 million in 2015, but yanked it from the market a year later.

CORE’s Jim St. Andre has the listing. He wasn’t available for comment.


151 East 58th Street, 47A

151 East 58th Street, 47A
Previous Price: $13.9 million
Current Price: $12 million ($3,922 per square foot)
Percentage Drop: 14 percent

The owner of this One Beacon Court condo is Scott Kurnit, chair of shopping website Keep.com. But if this recent discount is anything to go by, he may be keeping this 3,000-square-foot home.

Kurnit put the pad up for sale last November with a $13.9 million asking price. Last week, $2 million, or 14 percent, was lopped off the asking price.

The three-bedroom, three-bathroom apartment has floor-to-ceiling windows, 11-foot-high ceilings, custom flooring, views of the city and Central Park, a kitchen outfitted with top-of-line appliances and custom closet spaces.

The Vornado Realty Trust-developed building is also home to another notable price reduction. Billionaire hedge funder Steven Cohen has been trying to find a buyer for his apartment there since 2013. Its asking price has been dropped from $115 million down to $72 million over the years.

Compass’ Victoria Shtainer and Gabriel Zapata have the listing. The brokers could not be reached for comment.


535 West End Avenue, HiFlr

535 West End Avenue “Hiflr” 
Previous Price: $22.7 million
Current Price: $20 million ($2,366 per square foot)
Percentage Drop: 12 percent

This high-floor apartment — as it’s known for privacy reasons — spans 8,450 square feet across seven bedrooms and seven bathrooms, and features custom herringbone hardwood floors, a corner library, a formal dining room and a butler’s pantry. First listed in August last year, according to StreetEasy, the apartment at the Extell Development building was slashed by $2.7 million last week.

Adam Modlin of the Modlin Group has the listing. He declined to comment.


56 East 66th Street

56 East 66th Street
Previous Price: $17.9 million
Current Price: $16 million
Percentage Drop: 11 percent

This 8,000 square foot townhouse has eight apartments across five floors. It could, however, be turned into a single-family mansion with a limestone facade, six bedrooms, five bathrooms and an eat-in kitchen. There’s also potential for fireplaces, a “dramatic” open staircase, a private garden and an elevator, according to the listing.

Built in 1905, the townhouse was on the market for $17.9 million in October, but was dropped down to $15.9 million. It’s claim to 15 minutes of fame? Andy Warhol lived close by at number 57.

The current owner used an LLC to buy it for $14 million in 2015, records show.

Lisa Simonsen and Kristin Lukic of Douglas Elliman have the listing. Neither brokers were available for comment.


720 Park Avenue, #23C

720 Park Avenue, 23C
Previous Price: $22.5 million
Current Price: $20.1 million
Percentage Drop: 11 percent

The chance to own a pad in one of the city’s most exclusive co-op buildings just got a little cheaper — but it’ll still set you back $20 million. Apartment 23C at 740 Park Avenue is a six-bedroom, six-bathroom duplex spanning nearly 7,000 on the second and third floors. The apartment is owned by Mark Magowan, the president of publishing house Vendome Press, and his wife Nina, according to the New York Times. They bought the apartment in 1986. It features a circular staircase, four reception rooms, a gourmet kitchen and breakfast room.

It’s not the first time a expensive pad at the building has been slashed in price. In November, hedge funder David Ganek cut the price of his place at 6/7A, where a young Jacqueline Bouvier lived with her parents in the 1930s, back to $29.5 million. It’s still on the market, according to StreetEasy.

The Trump boost has been helping lately, so I’m encouraged,” said Kirk Henckels, of Stribling, who has the listing with colleague Jennifer Callahan. “The ultra-luxury market has not been good for the last six months or more, but we had as many showings in the past ten days as the first ten days after it hit the market.”

$60 Iceberg Water

Harrods, the famous department store in London, is a cabinet of curiosities when it comes to luxury. Now it is preparing to launch Svalbarði “luxury water”, at £50 ($63) a bottle if there ever has been such a thing. 

The product was conceived by Jamal Qureshi, a Norwegian-American Wall Street businessman when he visited a remote Norwegian island in the Svalbard archipelago in 2013 and brought back melted iceberg water as a gift for his wife.

A few years later, he got an approval from the governor of Svalbard and now charters an icebreaker and harvests the icebergs in Kongsfjorden, 1,000 kilometers from the North Pole. Once 15 tons of ice is collected by the crew, it’s melted and bottled by hand. The company says that only micron filters and UV light are used to preserve the water’s natural composition and pure taste. The water is almost entirely mineral free, with no nitrates or pollutants.

There are two expeditions per year, producing 13,000 bottles each time. Each batch will be sold as a limited edition.

The aerial view of Svalbard.

The 750ml bottle looks more like a bottle of wine than water. The mint-colored ring around the top symbolizes the polar rings and the wooden bottle top symbolizes drift wood.

Harrods was chosen as the first store to stock this product and the global launch is scheduled for February 15.

If you’re looking for something unusual other than packets of tea or chocolates on your next visit to the Harrods Food Hall, the Svalbarði water is certainly uncommon. Can a bottle of water be worth £50 ($63)? That’s for you to try and decide.

Svalbarði will be exclusive to Harrods for now but can be shipped worldwide.

Samantha Bee Gets New $3.7M Riverside Drive Co-op

Now that political commentator Samantha Bee is into her second season hosting “Full Frontal” it looks like she wants to put down some permanent roots near the show’s west side studio at CBS. According to city records, she and her husband, fellow comedian Jason Jones, dropped $3.7 million on a somewhat basic Riverside Drive co-op.

The top-floor home home has lovely details like beamed ceilings, picture moldings, and hardwood floors. A bright living space is anchored by a marble mantle that was original to the Plaza Hotel. Through glass-paneled French doors is a less formal den, which features a custom walnut wall unit.

Directly adjacent to the living room is the dining area, which is open to the eat-in kitchen.  Here you’ll find granite counters, a large island with a table attachment, high-end appliances, and a farmhouse sink.

Glass-paned French pocket doors lead to the other wing where there are four bedrooms–perfect since Bee and Jones have three children. The master has another custom built-in walnut wall of cabinetry and its own half bath.

It appears that the co-op is move-in ready, so Bee will have plenty of time to work on her Not the White House Correspondents’ Dinner.

Most Beautiful NYC Homes To Hit The Market Last Week

Every week, Curbed covers dozens of market listings that vary in price, location, size, grandeur, quirkiness, and other distinct characteristics. If they managed to capture our attention, that means there’s definitely something special going on. But some of these homes are so lovely that they warrant a special kind of notoriety as some of the prettiest homes currently up for sale in New York City. And so, here it is: five listing that have that special "je ne sais quoi" that separates them from the rest. Happy gawking!

↑The brokerbabble calls this Williamsburg two-bedroom duplex “the ultimate loft space, a rarity these days,” which, okay, sure. The apartment itself is pretty nice, if not the ultimate loft space: it has positively enormous 18-foot ceilings, with exposed brick walls that hark back to the building’s past as a former factory, and pretty stellar views of Manhattan and Brooklyn.

↑Designed by Parish & Schroeder and built in 1898, this magnificent Upper East Side mansion, asking a whopping $45 million, has six bedrooms, more than seven bathrooms, two galleries, a wine cellar, solarium, and even a card room linked to the library via a secret passageway.

↑With striking details, a celebrity pedigree, and views of the Met, the park, and the Chrysler Building, this $4.295 million pre-war co-op is about as Upper East Side as it gets. It was also once the home of pioneering TV personality Julia Meade.

↑$35 million buys you this 10,000 square foot Upper East Side townhouse featuring “elegant yet comfortable modern day living.” That means six bedrooms, including a master suite with his- and hers- dressing areas; endless living spaces; a grand spiral staircase; eight and a half bathrooms; and a caretaker’s apartment on the cellar floor. The home also boasts a “lush” rooftop garden, centrally controlled sound, heat, and lighting systems.

↑A Chelsea townhouse that we’ve previously labeled one of Chelsea’s strangest homes, and the Wet and Wild ‘Pool House’ is now back on the market for the umpteenth time, and it’s asking $13.8 million for its quirky spread. So what makes this six-bedroom townhouse so over the top? Take for instance the the saltwater swimming pool in the middle of the living room, into which an 18-foot high waterfall drains, or think of the double height solarium that leads to a manicured garden, and there’s more...

Best Countries To Live In If You’re Super Rich

Even the super rich are feeling a bit down on America right now. So for anyone with a spare million or billion dollars who is looking for an escape route, the folks at Lotto Land have put together this handy-dandy infographic that shows the best places to live for the super rich.

The typical contenders are all there: Saudi Arabia, Australia and Norway all take top slots. But there are also few surprises thrown in like Bahrain, Canada, Brunei and even the United States in a few categories (we’re number 10 for purchasing power, wahoo?). Scandinavia swept the rug in the Better Life category, while the Middle East took most of the slots in the best tax rates for the rich bracket.

Overall, the best country for the super rich to live in is Australia, followed by Switzerland, Saudi Arabia, Norway, Denmark, Canada, New Zealand, Brunei, Bahrain and Germany. See below for all of the rankings.

De Blasio Pushes Again For New 2.5% ‘Mansion Tax’ On Sales Over $2M

Mayor De Blasio will renew his call for a “mansion tax” before this state Legislature in Albany today, reports Politico. In support of rent subsidies for 25,000 low-income senior citizens, the mayor has detailed a proposal that will raise the property transfer tax to 2.5 percent for any sale above $2 million. “We are asking for some basic tax fairness from the wealthiest New Yorkers so low-income seniors can afford their rent and continue to call the greatest city in the world their home,” the mayor said in a statement.

As Politico is quick to point out, the proposal is expected to struggle for Legislative support in the state capital. In 2015, the Mayor asked a similar tax be rolled into negotiations of the 421-a tax abatement that expired early last year, where sales over $1.75 million would be taxed 1 percent, and sales over $5 million would see a 1.5 percent tax. The increased rates would have provided another $200 million a year in revenue to be directed towards affordable housing initiatives, but the idea was rejected by state lawmakers.

As it stands, home sales over $1 million are subject to a 1 percent tax. The city’s Office of Management and Budget estimates 4,500 homes will sell for $2 million or more in the upcoming fiscal year, which would mean another $336 million in revenue for the city if the proposal were to be adopted.

Regardless, flop or not, the call alone will do a lot to enliven De Blasio’s supporters.

“DOA,” said one real estate official to Politico. “But it works for the mayor in terms of running for re-election and is a red meat issue for much of his base.”

Indeed, the mayor is up for re-election this year, and similar to his first campaign, he’s taken on affordable housing and income equality as his mantles. De Blasio also counts seniors as one of his most reliable voting blocs, many of whom have organized to support his previous housing proposals.

[Via Politico]

Map Reveals How Manhattan’s Working Population Moves From Home To Work In 24 Hours

Odds are if you’re reading this post right now, you’re probably at work in Midtown.

Created by Joey Cherdarchuk, “Breathing City” is a hypnotic visualization that tracks Manhattan’s working and resident population as they move from their home to their office.

To build the map, Cherdarchuk pulled population, employment, land use and building footprint data from the U.S. Census Bureau and New York City Planning, and plotted it against a breakdown, hour by hour, of what the Bureau of Labor Statistics deems a “typical” workday for the average American (“Manhattan probably has a different profile than the US average, but close enough,” he admits).  

Per Cherdarchuk, the roughly 1.5 million people living in Manhattan and 2 million people working in Manhattan were assigned the schedule. And as you’ll see ahead, New York is truly the city that never sleeps. 

Apartment or Townhouse: Which Was The Better Investment To Make Back In 2007?

Who’s getting the most bang for their buck: Manhattan’s townhouse investors — or those who went the apartment route?

Since 2007, townhouse prices in the borough increased significantly more than apartment prices, according to an annual decade report from Douglas Elliman. The median price of a townhouse last year was $4.9 million, compared to $3.1 million in 2007 — a jump of 59 percent. By comparison, condominiums and co-ops collectively had a median sale price of $1.1 million in 2016, an increase of 28 percent from the $860,000 median price in 2007.

While the figures look dramatic, it’s worth remembering that townhouses make up just 2.6 percent of total Manhattan residential sales.

“It’s a luxury niche market,” said Jonathan Miller, CEO of Miller Samuel and author of the report. “Whereas the apartment market is the market that’s expanding, particularly on the condo side.” Miller said the past decade was characterized by a significant uptick in new development and, up until the past year, an “insatiable demand” for high-end real estate.

The median price of a co-op last year was $771,000, a 14 percent jump from $675,000. For condos, the median sales price rose 58.5 percent between 2007 and 2016, going from just over $1 million to nearly $1.7 million in 2016. Over the past decade, the average price per square foot for apartments jumped significantly, going from $1,120 in 2007 to $1,771 in 2016.

There were 11,459 apartments sold last year, compared to 13,430 in 2007, an all-time record, according to Miller’s figures. Last year, 5,435 condos sold compared to 5150 in 2015, a jump of 5.5 percent year-over-year. However, the co-op sales numbers fell significantly, going from 6,805 to 6,024 between 2015 and 2016, a drop of 11.5 percent.

While overall sales for apartments have been drifting down since 2014, Miller said he expects the number to stabilize and potentially increase in 2017. He added the notion that rising interest rates will cool the market is an “incomplete” characterization.

For luxury townhouses, which is the upper 10 percent of all Manhattan townhouses, the median price was $19.3 million. That figure represented a 29 percent jump from $14.9 million in 2007.

For townhouses Downtown, the median sale price last year was $7.5 million, a 75 percent jump from $4.3 million in 2007. On the east side, the median price for townhouses was $8 million, a 15 percent jump from 2007. The median sale price on the west side last year was $7.1 million, a 52 percent jump from a decade ago.

Most townhouse sales occur in northern Manhattan, where the median price last year was $2.1 million, a 55 percent jump from the $1.3 million median price nearly a decade ago.

The Monthly Update - February 2017

With one month under our belts, we're seeing a brisk start to the new year, and all indicators are looking positive for a robust 2017 in the New York City real estate market.

Our new administration's plans to deregulate and cut taxes have Wall Street — and pretty much all other key economic indicators — predicting continued growth for business, and the Dow finally topped the much anticipated 20,000 mark in the last full week of January.

Gordon Gollob, managing director at Compass’s world headquarters in New York, said he’s seeing (dare we say it) "bidding wars" back on the table for apartments priced in the $2 million to $3 million range. Further solidifying the positive press we’ve been seeing recently, in the first week of January, the weekly luxury market report from Olshan Realty tracked 50 contracts signed at$4 million or higher, matching the record set back in 2014. But, as our market still pulls itself out of the doldrums of 2016, some wavering is to be expected, and the third week of January saw the lowest number contracts signed at $4 million or higher — only three more than the slowest third week of January on record. As the saying goes: Two steps forward, one step back.

While things do seem to be outpacing 2016, many in the industry still feel the current market climate is a shifting one and that only well-priced properties, marketed strongly and effectively, will reap the benefits being forecasted by the elite market indicators of the world.



 

 

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The Numbers
↑815

In Manhattan January saw 1,262 new properties come to the market, which is an increase over December's 447 new listings. 


Beautiful Apartments That Came To Market Last Week

Every week, Curbed covers dozens of market listings that vary in price, location, size, grandeur, quirkiness, and other distinct characteristics. If they managed to capture our attention, that means there’s definitely something special going on. But some of these homes are so lovely that they warrant a special kind of notoriety as some of the prettiest homes currently up for sale in New York City. And so, here it is: five listing that have that special "je ne sais quoi" that separates them from the rest. Happy gawking!

↑After several years off the market, one of the units in the American Express Carriage House—so known because it was built in 1866 as a stable for horses used by the American Express Company—has returned to the market, with a $4.75 million price tag. Exposed brick walls in the living room nod to the building’s history, though there are ultra-modern touches, like the chef’s kitchen, or a hallway “illuminated by artistic neon blue lights.”

↑This immaculate Upper East side co-op is so stylish it’s hard to imagine, you know, actually living there, but $8.5 million would get you the privilege. The listing doesn’t include a floor plan, so it’s not exactly clear what’s going on here, but what we do know is that there are the five bedrooms spanning across 3,825 square feet, and the apartment is dripping in pre-war details.

↑It may be thoroughly modern, but there’s nothing generic about this two-bedroom duplex loft, which has an dreamy rustic-industrial vibe going. Priced at $1.469 million and “pin-drop quiet,” the loft comes with plenty of covetable design elements.

↑A Brooklyn Heights co-op with a million-dollar view just hit the market asking shockingly less than that. This New York City anomaly is a one-bedroom, one-bathroom apartment within an Art Deco building and sports lovely views onto New York Harbor, the Manhattan skyline, and Brooklyn, all for just $840,000. The apartment itself isn’t too shabby either.

↑This charming early-20th-century home in Brooklyn’s Fiske Terrace-Midwood Park Historic District comes with six bedrooms a huge wraparound porch and gable roof with dormers. The original details include a mahogany-covered parlor, stained-glass windows, carved wood mantels, and a balcony off the master bedroom. It’s asking $2.48 million.