Michael Stoler Real Estate Report

Can you imagine, a hotel room in Times Square in newly renovated hotel from $70 if you book by February 29th, 2012

2012-02-25T17:26:00.000-05:00

Thousands of new hotel rooms have been built in Manhattan and the Brooklyn and Queens over the past two years. A number of hotels including the Grand Hyatt, Waldorf and Marriott Marquis have undergone multi million dollar renovation.

The famed Milford Plaza Hotel in the heart of Times Square is undergoing an extensive $140 million renovation of the 1,300 room hotel.

To celebrate the exciting unveiling of The Milford’s Newly Renovated Guest Rooms, book your NYC Hotel Reservation before February 29, 2012 and enjoy Newly Renovated Guest Rooms at Discounted Hotel Room Rates from only $70.00, plus a “New York Eat & Play Card” that will save you more than $100.00 a day on exciting NYC Activities, Dining, Nightlife and more. Book by February 29, 2012 and stay through New Year’s Eve December 2012.

BuildingNY: Dr. Richard M. Joel, president, Yeshiva University

2012-02-25T16:56:00.000-05:00

His name is Richard Joel. He is the President of Yeshiva University. The Bronx born native previously served as the head of Hillel and has a career that expands from Benjamin Cardova School of Law, The Office of the Bronx District Attorney. Gain insight on the life of this individual when he is interviewed by Michael Stoler on Building New York-New York Life Stories. The show debuts on Monday, February 27th at 10:30 AM, 4:30 PM and 10:30 PM, Wednesday at 5:30 AM, Thursday at 11:30 PM, Saturday at 12 Noon and 12:30 AM and Sunday at 6 PM. The show airs on CUNY TV in New York City and is available on The Internet.

Investors bullish on the ownership of residential rental apartments

2012-02-24T09:21:00.000-05:00

The New York City rental apartment market continues to be the favored asset class by investors. Last year, hundreds of investors from around the world purchased residential apartments in New York City. Real estate investment trusts, REITs, especially Denver based UDR as well as Equity Residential and Archstone were active investors. In January, the investment advisor to the Kuwait social security system joined the ranks of purchasers acquiring the recently completed apartment house on Cooper Square paying over $925,000 per unit.

Real Capital Analytics, "2011 Year in Review" report noted for the nation that the fourth quarter of 2011 netted $16.6 billion in sales, the highest quarterly volume since 2007. This marked a 16 percent increase from the previous quarter and a 24 percent increase from the fourth quarter apartment sales in 2010.

Locally, investors remained interest in residential rental apartments in Manhattan, Brooklyn and Queens.

Massey Knakal Realty Services reported that the dollar volume of Manhattan elevatored apartment buildings was $2.39 billion an increase of 188% from 2010. In 2011, a total of 37 properties sold, an increase of 85% from 2010. Cap rates averaged 4.45% in 2011 down from 2010; while gross rent multiple was up significantly from 12.74 times to 14.90 in 2011. The average sales price per apartment was up 30% from 2010 to $ 570 per square foot.

Ariel Property Advisors reported that multifamily sales in the Big Apple exhibited strong growth. There were 436 transactions consisting of 589 buildings totaling, $4.23 billion in gross considerations. This represents an 11% increase in transaction volumes, a 33% increase in the number of buildings sold and a 43% increase in the dollar volume compared to 2010.

Ariel reported that during 2011, a total of 36 transactions were sold in the boroughs for $20 million or higher. This is more than double the number of transactions of 2010 that took place at higher pricing. Institutional sales accounted for 57% of the New York City volume in 2011, versus 40% in the prior year.

Terra CRG reported that investment sales in the Borough of Brooklyn, reached $1.8 billion, an 86% increase in dollar volume from the prior year. Sales of multifamily apartment buildings represented 46% of the dollar volume in 2011 with 388 transactions totaling approximately $878 million.

Commercial sales in the chic Williamsburg/Greenpoint region showed the strongest results in Brooklyn with a total consideration of $379 million, almost doubling from the previous year. Multifamily sales in this region represented the largest volume at approximately $159 million.

Ariel reported that sales in the Borough of Queens was the least active of markets with transactions and building volume showing modest declines compared to 2010. However, other metrics were up as dollar volume increased a healthy 25% and prices were up based upon cap rates and gross rent multiples.

The Stoler Report: "The 'Hot' Residential Market in New York City"

2012-02-22T12:47:00.000-05:00

The residential market in New York City is hot as a pistol. This week on The Stoler Report, hear from four real estate leaders provide their insight on the state of the residential market in New York City. My guests include Steve Kenny, Bank of America Merrill Lynch, David Kramer, The Hudson Companies, Joseph McMillan, DDG Partners and Ofer Yardeni, Stonehenge Partners. The show will air on Wednesday, February 22nd at 8:30 AM, 2:30 PM & 10:30 PM, Friday at 5:30 AM, Saturday at 12 Midnight and Sunday at 10:30 AM on CUNY TV

REITs Outperform S & P in 2011, with projection of 10-12 percent in 2012

2012-02-22T09:19:00.001-05:00

Local investors have the opportunity to own a piece of New York City real estate as well as commercial real estate around the nation if they invest in share of a real estate investment trust. In addition to ownership, REIT investment has provided excellent investment returns and capital appreciation.

The National Association of Real Estate Investment Trusts (NAREIT) reported that the total returns of listed U.S. equity REITs were approximately four times those of the broader stock market in 2011. NAREIT said that the total return of the FTSE NAREIT All Equity REITs Index was up 8.28 percent for 2011 and the NAREIT All REITs Index, which includes both equity and mortgage REITs, was up 7.28 percent, compared to 2.11 percent gain for the S & P 500. Much of the REITs performance advantage has come from the stocks' dividend payout, since almost all of the REITs taxable income is paid to shareholders as dividends.

REIT's outperformed the S & P 500 for the third straight year in 2011.

The dividend yield of the FTSE NAREIT All Equity REITs Index at December 31, 2011 was 3.82 percent and the dividend yield on the FTSE NAREIT ALL REITs Index was 4.83 percent, compared to 2.22 percent for the S & P 500.

A number of REIT market sectors delivered double digit gains in 2011.

J.P. Morgan North American Research reported that the Self Storage sector posted the largest total return for the full year at 35.7 percent. Regional Malls and Manufactured Housing followed behind at 20.5% and 20.4% total returns, respectively, driven by the stronger consumer, while Industrial was down by 5 percent and Lodging REITS down by 13 percent.

Returns by property type for the year recorded the following returns for 2011:

Property Type Total return for 2011

Self Storage 35.7%
Regional Mall 20.5%
Manufactured Housing 20.4%
Multifamily 15.3%
Health Care 13.8%
Triple Net Lease 6.5%
Office -0.3%
Strip Center -1.7%
Industrial -5.0%
Lodging -13.1%

REITs raised $51.3 billion in initial, debt and equity capital offerings in 2011. A total of $35.2 billion was raised in secondary equity common and preferred share offerings; $13.8 billion was raised in unsecured debt offerings and $2.3 billion was raised in Initial Public Offerings.

During 2001 a total of eight IPO's were completed, which included:

- American Assets Trust
- Summit Hotel Properties
- Preferred Apartment Communities
- STAG Industrial
- RLJ Lodging Trust
- AG Mortgage Investment Trust
- Apollo Residential Mortgage
- American Capital Mortgage Investment Corp.
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J. P. Morgan North American Equity Research forecasts REITs should generate 10-12% total return in 2012, driven by dividends amounting to almost 4% (3.7% current yield plus growth in dividends over the course of the year) and price appreciation of 6-7%. The REIT group's 2011 total return of 8.7% marked the third straight year of outperformance relative to the S & P 500. While the S & P may do better than REITs in 2012 (the J.P. Morgan strategy team is bullish), the firm thinks that the risk/return profile is nonetheless attractive.

A number of factors shape J.P. Morgan's view, including the following:

- Positive core growth rates across the board.
- The low interest rate environment continues to be positive
- Bottom-line earnings growth remains solid and intact.
- The firm expectation of strong dividend growth continues to materialize.
- Private market transactions continue to support REIT valuations.

More than 50 percent of the banks, which failed in 2011, a result of troubled real estate loans

2012-02-21T09:18:00.000-05:00

A total of 92 banks failed during 2011, a decline from the previous year, the number remains high. A total of 157 banks failed in 2010, 140 in 2009 and 25 in 2008. The total losses to the FDIC Deposit Insurance Fund for 2011 bank failures were approximately $7.2 billion. In more than 50 percent of these instances, the culprit of the failure were loans for commercial and residential real estate

The states of Georgia and Florida accounted for almost 40% of last years banking failures with 23 failures in Georgia followed by 13 in Florida.

A total of seven banks, which failed, had total assets of over $1 billion at the time of closing. The largest bank failure of 2011 was Superior Bank of Alabama, which had $3 billion in total assets.

Bank failures occurred in 28 different states. To the surprise of many, Nevada, which has seen one of the greatest declines in real estate values of any state since 2008, had only one bank failure in 2011.

Plunging real estate values and foreclosures have fueled the baking crisis. During 2011, there were 2.7 million foreclosure filings.

Only one bank failed in the tri-state region in 2011, First State Bank of Cranford, New Jersey with assets of $204 million was closed in October 2011.

First State Bank was a commercial bank founded in 2002 by a group of local businessmen, who took the bank public in 2008.

A total seven banks were closed during the month of January 2012. Two banks were closed in Tennessee, which previously not had a single bank failure since 2002.

The closing of Tennessee Commerce Bank, located in Franklin, Tennessee with $1.2 billion in assets is the largest banking failure of the year. Tennessee Commerce Bank was started in 2000 with only $9.3 million in assets expanding its assets by focusing on business lending and aggressively expanding its loan portfolio.

The FDIC problem bank list as of September 30, 2011 had a total of 844 financial institutions. Calculated Risk Unofficial Problem Bank list at the end of the year listed 974 institutions.

Financial institutions on the Problem Bank list in Tri state region including Manhattan based Abacus Federal, Amalgamated Bank and Carver Federal Savings Bank, and Community Federal Savings Bank of Woodhaven, Queens.

Two banks from Brooklyn were listed included First American International Bank and Brooklyn Federal Savings Bank, which were acquired by Investors Bank in January of 2012.

A number of Long Island based institutions were listed including Empire National of Islandia, First Central Savings of Glen Cove, Hanover Community Bank of Garden City Park, Madison National Bank of Merrick and The Suffolk County National Bank, Bank of Riverhead of Riverhead, New York.

Three institutions were listed on New Jersey including Amboy Bank, BNB Bank of Fort Lee, City National Bank of New Jersey based in Newark and Grand National Bank of Hamilton, New Jersey.

The Stoler Report: The Investment Market in New York City

2012-02-21T09:13:00.000-05:00

This week on the Stoler Report, hear from four investment sales executives provide their insight on the State of the Investment Market in New York City. My guests include, Shimon Shkury, Ariel Property Advisors, Ofer Cohen, Terra CRG, J.D. Parker, Marcus & Millichap and Ronald Solarz, Brookfield Financial. The show debuts on Tuesday, February 21st at 11 PM, and will be re-broadcasted on Wednesday at 8:30 AM, 2:30 PM & 10:30 PM, Saturday at 12 Midnight and Sunday at 10:30 AM on CUNY TV. View the show now on the Internet

BuildingNY: Phil Suarez, Suarez Restaurants

2012-02-17T09:30:00.000-05:00

His name is Phil Suarez, he is a leader in advertising and is the chairman & ceo of Suarez Restaurants, partner with the legendary Chef Jean-Georges Vongerichten. Gain insight on his very interesting life of the Manhattan born business man. The show debuts on Monday, February 20th at 10:30 AM, 4:30 PM and 10:30 PM, Wed at 5:30 AM, Thursday at 11:30 PM, Saturday at 12 Noon and 12:30 AM and Sunday at 6 PM. The show airs on CUNY TV, Channel 75 in New York City and on the Internet

New York's newest burger chain growing by leaps and bounds with new competition from the midwest

2012-02-15T09:13:00.000-05:00

It was only last June when Denver based burger chain SmashBurger opened its first location in New York City, its first outpost in Brooklyn at Dekalb Avenue and Flatbush Avenue. Later this year, the chain will open an outpost in Hicksville, Long Island. Its footprint has reached the Garden State of New Jersey with seven locations and at least three more before the end of 2012.

The company ended the year with 143 locations nationwide, representing 55 percent new growth for the year. 2011 the company grew by 55% in unit growth, with the opening of 51 new units last year, including expansion into twelve new markets.

The company's unit growth was supported by a number of "best burger" awards around the country.

In 2011, Smashburger also was recognized with a number of prominent industry awards, including being named 'America's Most Promising Company' by Forbes magazine, ranking number 99 on the annual Inc. 500 list of the nation's fastest-growing private companies and receiving the 2011 International Council of Shopping Centers 'Hot Retailer Award.'

In January, Steak 'n Shake, famous for steak burgers, opened its first location, its Signature location in New York City right next to Ed Sullivan Theater, at 1695 Broadway.

The Midwest based company with over 500 stores around the nation was founded in February 1934 in Normal, Illinois. The company was owned by the New York City steakhouse company Longchamps, Inc. from 1969 to 1971. Henry Lustig, who was financed by his brother in law, the famous gambler of "Boardwalk Empire" Arnold Rothstein in 1919, established the original Longchamps restaurant. Their first location, at 78th Street and Madison Avenue, was in property owned by Mr. Rothstein. From 1935 to 1940 Longchamps opened seven new restaurants including two on Broadway, one at Lexington Avenue and 42nd Street and one in the Empire State Building. The famed Riese Company who closed all of the locations into other restaurants with the final store closing in 1975 in New York City acquired Longchamps. Today, Steak 'n Shake are owned by San Antonio, Texas based Biglari Holdings Inc., which owns 413 of the 490 locations around the nation.

The Stoler Report: Affordable Housing in New York City

2012-02-14T11:31:00.000-05:00

This week on The Stoler Report find out what is happening in the affordable housing in New York City. My guests on this broadcast include Maurice Coleman, Bank of America Merrill Lynch, Paul Freitag, Jonathan Rose Companies, Daniel Moritz, The Arker Companies and Vincent Riso, The Briarwood Organization. The show debuts on Tuesday, February 14th at 11 PM

Strong residential rental market fueled by Freddie Mac & Fannie Mae Financing

2012-02-14T09:12:00.000-05:00

One of the most sought out asset class of investors is multi family rental properties. One of the most active lenders for this asset class was Government Sponsored Enterprises, Fannie Mae and Freddie Mac who increased their multifamily lending in 2011 to $44.7 billion, marking double-digit increases.

Fannie Mae provided $24.4 billion of multifamily debt financing in 2011, a 44% increased from $16.9 billion in 2010. Freddie Mac financing rose by 32% increasing to $20.3 billion from $15.4 billion.

David Brickman, SVP at Freddie Mac said "Looking ahead, we expect robust growth in the multifamily market. The outlook is very positive due to solid fundamentals, demographics, low interest rates and strong capital flows into the sector."

Housing Wire reported that refinance represented approximately 48% of Freddie's loan purchase or credit enhancements, with about 35% acquisitions.

About 98% of Fannie Mae's business came from its delegated underwriting and servicing (DUS) platform, which relies on a level of shared risk with lenders. The top lenders last year included Wells Fargo, Walker & Dunlop and Beech Street Capital.

Locally financial institutions were active lenders for multifamily in the region.

New York Community Bank reported that multi family loans represented $1.6 billion and $5.8 billion, respectively, of loans originated in the current three and twelve periods, while commercial real estate loans represented $513.1 million, and $2.4 billion respectively.

At December 31, 2011, multi family loans represented $17.4 billion, or 68.3% of total loans held for investment, reflecting a $162.1 million increased from September 30th balance and a $630.8 million increase from the balance of December 31, 2010.

Investors Bancorp reported for the year ended December 31, 2011, it originated $846.7 million in multifamily loans with total multi family loans at $1.82 billion. At December 31, 2011, total loans were $8.89 billion and included $5.03 billion in residential loans, $1.82 billion in multi-family loans, $1.42 billion in commercial real estate loans, $277.6 million in construction loans, $242.2 million in consumer and other loans and $106.3 million in commercial and industrial loans.

Signature Bank, reported that Loans, excluding loans held for sale, expanded $407.2 million, or 6.3 percent, during the 2011 fourth quarter to $6.85 billion, versus $6.44 billion at September 30, 2011. Average loans, excluding loans held for sale, reached $6.65 billion in the 2011 fourth quarter, growing $386.6 million, or 6.2 percent, from the 2011 third quarter and $1.65 billion, or 32.9 percent, from the fourth quarter of 2010. The increase in loans for the quarter and the year was primarily driven by growth in commercial real estate and multi-family loans underwritten within the Bank's stringent standards.

Dime Community Bancshares, reported Real estate loans increased $26.1 million during the most recent quarter. Real estate loan originations were $204.0 million during the most recent quarter, at an average rate of 4.22%. Loan amortization and satisfactions totaled $164.2 million, or 19.0% of the average portfolio balance on an annualized basis. The average rate on amortized or satisfied loan balances during the most recent quarter was 6.02%. The loan pipeline stood at $114.2 million at December 31, 2011, with a weighted average rate of 4.21%.

Flushing Financial Corporation, reported that "Loan originations increased to $127.9 million for the three months ended December 31, 2011 from $105.9 million for the three months ended September 30, 2011. We continue to see an increase in loan demand as loan applications in process totaled $194.4 million at December 31, 2011.. We continue to focus on originating multi-family mortgage loans. During the fourth quarter of 2011, the total originations of multi-family mortgage loans increased $43.7 million to $87.5 million from the comparable prior year period, while the combined total of commercial real estate and construction loan originations was reduced to $0.5 million for the fourth quarter of 2011 from $4.6 million for the comparable prior year period. As a result, total net loans decreased $0.9 million from September 30, 2011 to $3,198.5 million at December 31, 2011.

Astoria Financial Corp reported that the combined multi-family/CRE portfolio remained essentially unchanged from September 30, 2011 and totaled $2.3 billion at December 31, 2011 compared to $3.0 billion at December 31, 2010. For the quarter and year ended December 31, 2011, multi-family/CRE loan originations totaled $202.9 million and $204.0 million, respectively. There was no multi-family/CRE loans originated in 2010. Multi-family/CRE loan prepayments for the quarter and year ended December 31, 2011 totaled $182.3 million and $684.8 million, respectively, compared to $112.5 million and $299.0 million for the comparable 2010 periods.

Investors bullish on New York City Commercial Real Estate

2012-02-13T09:12:00.002-05:00

Local and foreign investor's especially real estate investment trusts were bullish on New York City commercial real estate in 2011. Investment activities exceed the combined total sales volume achieved in all of 2009 and 2010. Jones Lang LaSalle (JLL) reported that sales volume in 2011 for closed transactions over $10 million totaled $23 billion (with $27.3 billion closed and under contract) well above the $12.5 billion which closed in 2010. Cushman & Wakefield reported that the property sales closed in Manhattan is the third highest total on record, exceeded only by 2006 and 2007. By year end, C & W reported that $25.8 billion in sales were completed with $3.1 billion currently under contract. This represents an increase of 88 percent.

Investors were very interested in the ownership of Class A office buildings, with sales of this asset class accounting for more than $9.4 billion or 37 percent of the total property sales in 2011, followed by other office space at more than $3.8 billion. Real Estate Investment Trusts (REITs) and investors purchased more than $3.6 billion in hotels, with land and development sites at nearly $3.6 billion and multifamily at nearly $3.4 billion. Sales of hotels and multifamily properties had the largest year over year percentage increase in sales, with 158 percent for hotel and 145 percent for multifamily.

Institutional investors ranked number one in total acquisitions in 2011, accounting for 36 percent of total sales, followed by real estate investment trusts (REITs) at 26 percent, private capital at 26 percent, and foreign investors at 9 percent.

A significant component of the sales was a surge in recapitalization of properties, which accounted for $9.1 billion or 35 percent of total sales.

Jones Lang LaSalle reported that recent Midtown Manhattan office buildings sales include the recapitalization of the 1.2 million square foot, Park Avenue Plaza, at 55 East 42nd Street at Park Avenue between 52nd and 53rd Streets for $569 million, or $935 per square foot (imputed value); the sale of 10 East 53rd Street (under contract) for $265 million or $683 per square foot; and the commercial condominium sale of six floors at 3 Columbus Circle (under contract) for $144 million, or $672 per square foot.

The fourth quarter of 2011 had notable sales in Midtown South and the meat packing area; including the sale of 29-35 Ninth Avenue (under contract) for $81 million, or $941 per square foot and 430 West 14th Street for $65 million or $1,060 per square foot. A notable sale in lower Manhattan in the financial district was the sale of 33 Maiden Lane (under contract) for $301 million, or $321 per square foot.

Investors continue to have an interest in development sites with the sale in the fourth quarter of 516-520 Fifth Avenue, an assemblage on Fifth Avenue and 43rd Street with 295,000 buildable square feet, for $132 million, or $447 per buildable square foot, and 400 Park Avenue South, one of the last remaining parcels on the Avenue, sold for $134 million, or $321 per buildable square foot.

During the fourth quarter in addition to the properties noted above, other significant sales in Manhattan included:

• the purchase by RXR Realty of the 700,000 square foot mixed use retail and office building at 620 Sixth Avenue for $500 million or $714 per square foot.
• The purchase by Rockwood Capital of the Class A office building at 140 East 45th Street (2 Grand Central Tower) for $401 million or $667 per square foot
• The purchase by TIAA-CREF of the office building at 475 Fifth Avenue for $144 million, or $514 per square foot
• The purchase by the Feil Organization and Savanna Investment at 360 West 31st Street (21 Penn Plaza) for $137.5 million or $375 per square foot.
• The purchase of the office tower at 70 Pine Street by Metro Loft, Ron Bruckner for $205 million or $186 per square foot.

In Jersey City, considered by many as the sixth borough, Canadian financial service firm, Manulife Financial purchased the 748,000 square foot office tower Exchange Place Center for $285 million or $381 per square foot. Brookfield Office Properties, sold the 1.1 million square foot, high rise office tower Newport Tower to the Multi-Employer Property Trust for $377.5 million or $343 per square foot.

Canadian real estate investment trust H & R REIT, purchased Two Gotham Center a newly completed office Tower in Long Island City. The REIT paid $415.5 million for the 661,000 square foot building or $628 per square foot.

Two prominent hotel sales in the fourth quarter included the purchase by Andre Balazs of the 145 room, Cooper Square Hotel for $90 million or $620,690 per room; and the purchased by real estate investment trust, LaSalle Hotel Properties of the 934 room, Park Central Hotel for $396.2 million or $424,197 per room.

BuildingNY: Cantor Joseph Malovany, Fifth Avenue Synagogue

2012-02-11T14:52:00.000-05:00

This week on Building New York-New York Life Stories, Michael Stoler profiles the life of Cantor Joseph Malovany, cantor of the Fifth AVenue synagogue, and consider by many as the Jewish Pavoritti. The show will debut on Monday, February 13th at 10:30 AM, 4:30 PM & 10:30 PM, Wednesday at 5:30 AM, Thursday at 11:30 PM, Saturday at 12 Noon & 12:30 AM and Sunday at 6 PM,airing on CUNY TV. The show is also available on the Internet at Youtube and the Michael Stoler Real Estate Report

Investors bullish to own hospitality assets

2012-02-08T08:40:00.000-05:00

Jones Lang LaSalle Hotels, Hotel Investment Outlook reported that the pace of hotel real estate investment in the Americas reached a four year high, as transaction volume swelled to $15.2 billion, a 24 percent increase over 2010.

JLL expects America's hotel transaction volume in 2012 will at least match 2011 levels with an estimated $15 billion in transactions, as relatively healthy operating fundamentals and an abundance of equity capital continue to drive demand for acquisitions.

JLL reported that the volume of hotel transactions in New York reached at all time record high in 2011. Eighteen transactions, comprising $3.5 billion in assets traded, representing a 150 percent increase over 2010 volume.

Approximately 50 percent of the acquisition volume was driven by real estate investment trust.

Over the past few months, a number of hospitality assets have been sold in Manhattan.

On February 1st, another real estate investment trust, FelCor Lodging Trust announce the acquisition of the landmark Knickerbocker Hotel. FelCor formed a joint venture owning 95 percent of the venture with an affiliate of Highgate holdings for the property located at Broadway and 42nd Street. The four star hotel will feature approximately 330 guest rooms. FelCor reported that the purchase price reflects a 30 percent discount per square foot, compared to recent similar transactions, and is meaningfully below replacement cost. The redevelopment cost is approximately $697,000 per key.

In December, Chesapeake Lodging Trust, closed on the acquisition on the newly developed, 122 room Holiday Inn New York City Midtown-31st Street located between Fifth Avenue and Broadway. The REIT paid $52.2 million, or approximately $428,000 per key.

On January 31st, Chesapeake announced it had entered into a definitive agreement to acquire the 185 room Hyatt Place New York Midtown South, for a purchase price of $76.5 million, or approximately $414,000 per key. The hotel is currently under development at 52-54 West 36th Street, between Fifth and Sixth Avenue.

The Wall Street Journal reported that Accor SA, plans to sell by end of January or in February, its 480 room, Novotell New York Times Square Hotel, located at 226 West 52nd Street. The purchaser has been identified a partnership of Apollo Global Management and Chartres Lodging Group for approximately $91 million. As part of the deal, the purchases have agreed to spend approximately $86 million on a major renovation of the hotel.

On January 3rd, LaSalle Hotel Properties, a real estate investment trust announced that it acquired The Park Central Hotel in New York City for $396.2 million. The 934-room, urban, full service hotel is located on Seventh Avenue, between West 55th and West 56th Streets, in midtown Manhattan.

In October 2010, LaSalle acquired the leasehold interest in Hotel Roger Williams for $90 million, plus approximately $4.5 million of additional cost for the 193-room hotel located at the corner of Madison and 31st Street, or $489,637 per key.

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In November, real estate investment firm Westport Capital Partners LLC, sold the 145 room Cooper Square Hotel to Andre Balazs Properties. According to the trade the property sold for $91 million, or $627,586 per key. The property is under a long term land lease.

Last October, Marriott International purchased the 220,000-office tower, known as the Clock Tower at 5 Madison Avenue for $165 million dollars. Marriott plans to convert the tower into a new hotel, named EDITION, a luxury lifestyle hotel brand created in partnership with Ian Schrager.

Arne Sorenson, Marriott's president & CEO, said, "New York is one of the most important destinations in the world, and we are delighted to have secured the Clock Tower as a singular, iconic structure that will become a flagship for the EDITION brand and one of New York's most compelling places to stay. We are thrilled to add the Clock Tower building to our Edition portfolio.

Some of Manhattan's newest hotels have been selected as "Best Hotels in New York City" by U.S. News and World Report.

Captella Hotels and Resorts, New York City flagship "The Setai Fifth Avenue" which opened in November 2010 was named the Best Hotel in New York City.

The U.S. News 2012 Best Hotels in New York City ranked the top ten as follows:

1.The Setai Fifth Avenue
2.The Peninsula, New York Fifth Avenue
3.The Ritz Carlton New York, Central Park
4.Four Seasons Hotel New York
5.The St. Regis New York
6.Trump International Hotel & Tower, New York-Columbus Circle
7.Mandarin Oriental, New York
8.The Carlyle, A Rosewood Hotel
9.The Mark, Madison Avenue
10.Hotel Plaza Athenee

The Stoler Report: "Banking Executives' Perspective on the Market"

2012-02-07T16:55:00.000-05:00

This week on The Stoler Report, gain insight on the state of banking in the region. This week, Michael Stoler panel includes four prominent bankers to provide their insight on the state of the financing market. Mr. Stoler's guests include Kevin Cummings, Investors Bank, Gino Martocci, M & T Bank, Vincent Palagiano, Dime Savings BAnk of Williamsburgh and Jason Pendergist of Chase Commercial Term Lending. The show debuts on Tuesday, February 7th at 11 PM on CUNY TV, and can be viewed also on the Internet

New York State Credit Unions Growth surpasses the nation in 2011

2012-02-07T08:39:00.000-05:00

Credit Unions in New York State and especially in the metropolitan region are experiencing growth that's well beyond the national average as more New Yorkers use them for financial services instead of banks.

The Credit Union Association of New York released third quarter statistics showing that assets grew by 6.48 percent statewide, compared to 4.97 percent nationwide average.

Annual growth for shares and loans represented 6.82 percent and 4.16 percent also surpassing the national average.

New York State credit unions originated $3.3 billion in first mortgages through the end of September 2011, which is 5.8 percent higher from the same time last year. Total loans rose 4.1 percent, from $30.6 billon to $31.9 billion.

Membership in New York State Credit Unions increased by roughly 100,000 people to 4.6 million grew by 2.07 percent, compared to the national average of 0.65 percent.

Credit Unions in New York State have a combined $56 billion in assets, and serve 4.5 million.

The most active credit unions providing real estate financing include Manhattan based Progressive Credit Union, Melrose Federal Credit Union and Long Island largest credit union Bethpage Federal Credit Union.

Credit Union Times reported in November, that The $4.2 billion Bethpage Federal Credit Union, booked more than $1 billion in mortgage loans in both 2009 and 2010 was on track to do the same in 2011, according to Michele Dean, senior vice president for lending. .

In November Bethpage, Long Island's Largest credit union announced that it has surpassed $124 million in loans funded for October 2011, over $100 million of which was funded for mortgage loans. The credit union also received an additional 869 application for mortgage loans for $241 million in October, the credit unions'; highest volume month of the year.

As of October 31st, Bethpage's business lending and commercial real estate portfolio grew to $259 million, a 77 percent increase compared to the same time last year.

Bethpage and the other local credit unions have provided financing for traditional commercial real estate including construction and permanent financing for college dormitories, rental and condominium apartment buildings, hotels and restaurants.

Investing in U.S. Real Estate-timing is everything

2012-02-06T08:39:00.002-05:00

Investors from around the world especially investors from the State of Israel continue to be interested in purchasing commercial real estate in the United States. In the wacky world of commercial real estate timing is everything and you have some winners and losers.

Earlier this month, Elibt Imaging, controlled by Israeli businessman Motti Zisser announced that it had signed an agreement to sell, through its EPN Group, 47 shopping centers the company had acquired over the past three years throughout the United States to a joint venture of Blackstone LP and DDR Corporation for $1.428 billion. The Israeli website ynetnews.com reported that Elbit is expected to a $220 million profit from the selloff.

After the sale EPN will still own two properties in the U.S. at a value of $43 million and a $14 million debt attributable to the properties.

While this Israeli company earned a significant profit investing in the U.S. a number of other investors from the State of Israeli have not gained a profit. Ynetnews.com reported that Africa Israel Investments subsidiary AFI USA announced on January 16th that the company had completed the sale of its rights over the Clock Tower Building in the Madison Square section of Manhattan. The company sold the property for $165 million. AFI purchased the building in 2007 for $200 million.

A few years ago IDB Holdings controlled by Nochi Dankner purchased the former HSBC Building at 452 Fifth Avenue. The company has made significant renovations to the office tower and former banking floor on the ground floor. New tenants have signed leases for the office and Staples as well as Panera Bread will be moving into the ground floor.

IDB Holding and Yitzhak Tshuva's Elad Properties made an investment decision a few years ago to invest in Las Vegas, Nevada. Elad bought the 35 acre lot, occupied by the historic New Frontier Casino for $1.24 billion in early 2007. Globes reported that IDB Holding reported a 150 million shekel write off on the Plaza Casino and Hotel project, due to the drop in value of the land, and IDB's partner, Elad properties has made a write off in the same amount. As a report, the company reported a loss of $91 million for the third quarter; triple its $30 million loss for the corresponding quarter of 2010.

Globes reported that Elad operates in North America through several subsidiaries, which own properties in New York (The Plaza Hotel), Florida, Las Vegas and Canada. The company lost a cumulative $500 million in 2008 to 2010.

Nevertheless, even though we have had winners and losers by these and other investors in this market, each and every day investors from the middle east continue to explore opportunities to own real estate in the Big Apple

BuildingNY: Alan Fishman, Ladder Capital

2012-02-05T15:06:00.000-05:00

His name is Alan Fishman. He is the chairman of Ladder Capital and Beech Street Financial. He is a Brooklyn born business leader who served as the president of Independence Savings Bank. Gain insight on his very interesting life when he is interviewed by Michael Stoler on Building New York-New York Life Stories. The show debuts on Monday, February 6th at 10:30AM, 4:30PM & 10:30 PM, Wednesday at 5:30AM, Thursday at 11:30 PM, Saturday at 12:00 Noon and 12:30 AM and Sunday at 6 PM. The show airs on CUNY TV, Channel 75 in New York City. The show is also available on Internet at YouTube, and Stoler Report.

The Stoler Report: The Office Market in New York City

2012-02-01T09:02:00.000-05:00

This week on the Stoler Report, hear from four real estate executives provide insight on the state of the office market in New York City. My guests include, Richard Bernstein, Cassidy Turley, David Falk, Newmark Knight Frank, Paul Myers, CB Richard Ellis, and Franklin Speyer, Cushman & Wakefield. The show debuted on Tuesday, January 31st at 11 PM, and is re-broadcasted on Wednesday at 8:30 AM, 2:30 PM & 10:30 PM, Friday at 5:30 AM, Saturday at 12 Midnight and Sunday at 10:30 AM, airing on CUNY TV.

Capital Confidence Barometer-Global real estate & hospitality survey-things are looking up

2012-01-31T01:51:00.000-05:00

This fall, Ernst & Young in conjunction with the Economist Intelligence Unit conducted the fifth semiannual Capital Confidence Barometer survey of senior executives from large companies around the world.

Ernst & Young's Real Estate and Hospitality Group analyzed the survey results specifically focusing on responses from real estate and hospitality companies (REH). Below are some of the key findings;

• Real estate transactions levels severely declined in the late summer of 2011, primarily due to the increasing inability to acquire capital and the effective shutdown of the CMBS market limited the number of transactions to levels not seen since 2009. However, despite the slowdown, 72% of the real estate and hospitality companies surveyed said they felt the global economy was either stable or improving and were positioning their companies for growth
• More companies are planning to pay down debt. Approximately 66% of the REH companies with excess cash will focus their efforts on growth, both organic and inorganic, while 28% are focusing on deleveraging their balance sheets by paying down debt.
• With high cash balances and a growing aversion to leverage, 53% of REH companies plan to use cash or non-cash equity as their primary funding sources for deals. Those planning to use debt for acquisitions are more likely to use less debt than in previous years.
• As of October 2011, the outlook for fund-raising and investment activity among REH companies is improving as compared with April 2011. The percentage of companies increased from 16% to 32%, and the percentage likely to invest capital increased from 26% to 34%. At the same time, REH companies indicated that 66% intended on acquiring assets in the next 12 months.
• As emerging markets have become the clear leaders in areas of job, income and credit growth, enthusiasm for real estate investing remains strong, particularly in Asia Pacific and Latin America.
• Investment in North America and Western Europe remain attractive investment areas for those seeking core to value-add returns.
• Real Estate and hospitality companies are trying to enhance shareholder value by refinancing and divesting underperforming assets. The cost of debt is near historic lows, yet the ability to acquire debt from lenders remains challenging. As of October 2011, 31% of REH companies want to refinance and 34% want to divest assets; however, uncertainty abounds in the likelihood of execution.
• Growth and deal volume may also benefit from valuation expectations as 78% of REH companies believe asset valuations will remain at current levels or increase in the next twelve months.
• Finally, as companies look to invest over the next 12 months, they are performing look back analysis on recent deals for lessons learned; risks identified that have inhibited expected returns include unforeseen liabilities, such as taxes, human resources and other contractual issues.

More and more companies expand solar power for their properties in the State of New Jersey

2012-01-30T01:50:00.000-05:00

Kimco Realty Corporation, a NYSE traded, Real Estate Investment trust, that owns and operates North America's largest portfolio of neighborhood and community shopping centers is also a leader in positive environment impact via the use of solar energy.

Earlier this month, Kimco announced that the company has installed photovoltaic (PV) solar energy arrays at its retail properties in Bridgewater and Edgewater, New Jersey. The properties include the 242,000 square foot shopping center the Bridgewater Promenade located at the intersection of Route 28 and Interstate 287, and the 423,000 square foot, shopping complex, Edgewater Commons, located at New River Road in Edgewater, New Jersey, owned in partnership with an entity of Prudential Real Estate Investors.

The installation of these two retail properties, brings the company's portfolio of solar power enters in the state of New Jersey to six.

The two PV systems will generate an estimated 1.3 million kilowatts of zero-emission power per year, and are estimated to meet 60 - 80 percent of the annual energy needs of several major retailers in the centers. Kimco has over three megawatts of energy production capacity across its six solar-enabled properties in New Jersey, equivalent to the average usage of 300 households.

Under Kimco's corporate responsibility program, the company is pursuing initiatives at its shopping centers that provide a positive environmental impact while reducing costs or generating additional income.

"Responsible initiatives like Kimco's solar power systems deliver measurable cost savings to our tenants and an environmental benefit to our communities. These efforts resonate positively with our retailers and shoppers, and are increasingly important to our investors," says Michael Pappagallo, chief operating officer for the company.

Kimco is a member of the U.S. Department of Energy's Commercial Real Estate Alliance which promotes technology to reduce the energy consumption and greenhouse gas emissions of the commercial real estate market.

New Jersey based retailer Toys "R" US has been very active in solar power. Last August, the company turned on the largest solar rooftop installation in North America. The retailer installed a 5.38 megawatt system on the top of a distribution center in Flanders, New Jersey, which is expected to lower electric bills at the facility by 72 percent. The project covered 70 percent of the nearly 1.3 million square foot rook with United Solar ultra lightweight UniSolar brand photovoltaic panels. More than 37,000 solar panels were used in the project. It is estimated that the company will save an estimated $366,000 a year in utility costs with an estimated cumulative savings of $7 million over 20 years.

Last year, Hartz Mountain Industries one of the largest owners of commercial real estate in the State of New Jersey was the recipient of two awards for its energy efficiency practices. These awards were presented to the company from the Building Owners and Managers Association International New Jersey chapter for the company's energy reduction achievement at five of its commercial buildings located at 200 and 400 Plaza Drive in Secaucus, 707 Broad Street in Newark, 15 Exchange Place and 90 Hudson Street in Jersey City. The second award was for the company's development of a solar energy program that will have a capacity of 15 MW of power by the end of 2011.

The energy reduction at the five Hartz Mountain building resulted in an annual savings of $262,243 with an overall consumption reduction of 13 percent.

The State of New Jersey is very active with the implementation of solar energy. The New Jersey Clean Energy program is a statewide program that offers financial incentives, program and services for New Jersey residents, business owners and local governments to help them save energy, money and the environment.

The state has more than 10,000 solar installations and is one of the largest and fastest growing solar energy markets in the United States. New Jersey is second in the nation in both installed solar capacity and number of installations; only California has more.

BuildingNY: Fred Schwartz, philanthropist and former owner of "The Fur V...

2012-01-28T17:58:00.000-05:00

His name is Fred Schwartz. He is a Bronx born, City College Graduate who developed a unique marketing approach to selling fur coats. He is the co-founder of The Fur Vault and known as Fred The Furrier. Gain insight on this business man and philanthrophist when he is interviewed by Michael Stoler on Building New York, New York Life Stories. The show debuts on Monday, January 30th at 10:30 AM, 4:30 PM and 10:30 PM, Wednesday at 5:30 AM, Thursday, 11:30 PM, Saturday at 12 Noon and Saturday night at 12:30 AM and Sunday at 6 PM. Airing on Cuny TV. The show is available now on the Internet at YouTube and other sites.

The Stoler Report: What's Happening in Newark?

2012-01-25T10:52:00.000-05:00

This week on The Stoler Report, gain insight on the state of the market in Newark, New Jersey. Hear from four prominent business leaders discuss "What is happening in Newark?". My guests include, Angelo Genova, Genova Burns Giantomasi, Richard Tucker, Tucker Development, Jeff Vanderbeek, Devils Arena Entertainment and Adam Zipkin, City of Newark. The show debuted on Tuesday, January 24th at 11 PM, Wednesday at 8:30 AM, 2:30 PM & 10:30 PM, Friday at 5:30 AM, Saturday at 12 Midnight and Sunday at 6 PM, airing on CUNY TV, Channel 75

Hospitality Industry booming around the nation and in the Big Apple

2012-01-25T01:49:00.000-05:00

Hotels will continue to see strong growth in 2012, primarily driven by higher occupancy, increased rate and strong, steady demand for hotel rooms, according to TravelClick's December 2011 North American Hospitality Review (NAHR). The NAHR is based on actual hotel bookings from Q4 2011 through Q3 2012.

The TravelClick North American Hospitality Review is based on reservation and committed group sales data by hotel companies participating in TravelClick's MarketVision Demand Position Product. The data is collected in 25 major North American Markets.

NAHR reports that over the next twelve months, committed occupancy is up 3 percent year-over-year; average daily rate (ADR) is up 3.6 percent; and revenue per available room (RevPAR), the top-line indicator, is tracking ahead by 5.3 percent.

Tim Hart, EVP, TravelClick, said "As we enter 2012, TravelClick data shows a 'slow and steady' increase in hotel performance. The business travel segment continues to be strong and group business shows slow but positive occupancy gains. Overall occupancy has consistently improved over the past 26 consecutive months and as demand begins to plateau, hotels need to increase rates to leverage increasing demand and maximize revenue."

The first quarter of 2012 will see a 6.6 percent gain in RevPAR, which is driven by a strong transient segment - individual business and leisure travelers. January and March prove to be key months in the first quarter of 2012, with 8.4 percent and 9.2 percent increases in RevPAR. Overall occupancy in the first quarter is expected to increase 2.5 percent and ADR is expected to increase 3.2 percent. While group commitments for this period are set to increase 1.8 percent, average daily rates will decrease by 1.4 percent for this segment.

Overall, Q4 2011 shows a 5 percent RevPAR gain compared to Q4 2010, which is the slowest growth of any quarter in 2011. Throughout November 2011, RevPAR increased 6.8 percent over last year with a 2.5 percent increase in committed occupancy and a 4.3 percent increase in ADR. In December, hotels experienced moderate gains in occupancy, ADR and RevPAR, up 2.6 percent, 3 percent and 5.2 percent, respectively.

Smith Travel Research (STR) reported that the U.S. hotel industry experienced increases in all three key performance metrics for the week ending December 31, 2011.

In year-over-year comparisons for the week, occupancy rose 3.4 percent to 49.0 percent, average daily rate increased 4.3 percent to US$107.56 and revenue per available room finished the week with an increase of 7.8 percent to US$52.69.

According to the Deloitte annual business travel survey, corporate travel is expected to fuel growth in the hospitality industry in 2012.

Eighty-five percent of the business travelers surveyed by Deloitte said they expected to take the same amount of business trips or more in 2012 when compared to 2011.

Younger respondents, aged 18-44, are expected to take more trips in the upcoming year, with 27.1% responding that they will travel more frequently in 2012 opposed to the 16.1% of business travelers in the 45+ age group that reported they will travel more frequently.

Despite the variations in hotel preferences among business travelers, there's one thing many do agree upon. Sixty-one percent of those surveyed said they expect more from hotels in regards to services and amenities given that hotel prices have increased.

Amenities such as free breakfast and Wi-Fi are becoming more and more expected, he said. In fact, 77.3% of respondents believe that complimentary Internet is important to them.

The report indicated that the outlook for 2012 still is good in the United States from a business traveler point of view.

The STR recently released Trend Report, reported that New York City hotels and the NYC market are the most requested, and the more than 6% supply growth for the metro area in 2011 probably is not going to diminish in 2012. A total of 39 hotels from New York City were in the top 50 most requested listed hotels.

The brands most often used in the Trend report point at the direction of development in 2012 and 2013 for upper-midscale hotels.

This winter, a number of upper-midscale hotels will hotel in New York City. In Lower Manhattan, specifically Battery Park City will welcome the Conrad New York. This 463 suite hotel, the first Conrad in the City will feature a light filled hotel with a dramatic 15 story atrium and a green rooftop, complete with a bar and herb garden overlooking the Hudson River. The hotel with more than 32,000 square feet of event space and catering by Danny Meyer's Union Square Events will feature Atrio and Blue Smoke.

In the up and coming area north of Madison Square Park is the location of the NoMad. The NoMad will provide Parisian-inspired accommodation incorporating 168 guestrooms that overlook the Empire State and Flatiron Buildings. The hotel is located at 1170 Broadway, at the Corner of Broadway at 28th Street.

New York City's first gay hotel, The Out-NYC is due to open in Hells Kitchen in the first quarter of 2012. The self-described "gay urban resort" at 510 West 42nd Street, is located a short distance from the newly opened Yotel. The Out-NYC will feature 105 upscale rooms. There's also a 5,000 square foot wellness center, as well as the XL Nightclub.

New York City welcomes another coffee roaster and retailer

2012-01-24T01:48:00.000-05:00

Millions of New Yorker's start there day with a cup of Java. This winter, another West Coast coffee roaster, Handsome Coffee Roaster will open a coffee bar in Manhattan.

Handsome Coffee Roaster coffee beans have been available around the nation and in New York. Hipsters in the Williamsburg section of Brooklyn were able to enjoy a cup of Handsome at Marlow & Son, located at 81 Broadway. Students and faculty at NYU, NY Law and jury duty personnel have been able to enjoy a 20% discount on the purchase of a cup of Handsome at RBC New York. Located at 71 Worth Street in Lower Manhattan.

Handsome Coffee Roasters have teamed with Proprietors LLC, a hospitality firm responsible for Death & Company, Bar & Kitchen, and the cocktail programs for Stella Rosa and Rosa Mexicana.

The Handsome Coffee Roaster location in Manhattan will be located at 90 Broad Street, at Handsome Coffee Roasters at Demi Monde, the coffee and cocktail bar in the Financial District of Lower Manhattan.

On Labor Day in 2009, Stumptown Coffee Roasters opened its first outpost in Manhattan within the hop Ace Hotel located at 18 West 29th Street off Broadway. Stumptown arrived on the New York scene in 2008, when Duane Sorenson, the company owners and fonder, opened its roasting plant in the Red Hook section of Brooklyn.

Earlier this month, the New York Observer reported that planned to open its second location in Manhattan, a flagship planned at 30 West 8th Street in the Village. The location will be the company's first standalone location in New York, and its largest outlet of its ten locations.

New York City has another great location for Pret A Manger. Pret opened in London in 1986 and arrived in America in July 2000, opening its first store just down from the New York Stock Exchange in Lower Manhattan. The company presently has over 250 Pret shops most of them in the United Kingdom. The company opened in Washington, DC in January 2009 and Chicago in September 2010.

Earlier this month, its exclusive retail leasing agent in Manhattan announced two new long term retail leases, bringing the number of 33. The company's newest locations are located at 1 Astor Place in the Village, and 350 Hudson Street, in Hudson Square in West SoHo.

BuildingNY: David Jones, Pres. Community Service Society of New York

2012-01-23T17:07:00.000-05:00

His name is David Jones. He is the President & CEO, of the Community Services Society of New York. Gain insight on his very interesting life in his interview on Building New York-New York Life Stories. This show debut on Monday, January 23rd, at 10:30 AM, 4:30 PM & 10:30 P, Wednesday at 5:30 AM, Thursday at 11:30 PM, Saturday at 12 Noon & 12:30 AM, Sunday at 6 PM. The show airs on CUNY TV, Channel 75 in New York City and is available on the Internet and YouTube as well as CUNY TV.

The vanishing retailers from the Big Apple and the tri-state region

2012-01-23T01:47:00.000-05:00

The face of retail has changed over the past decade. Each and every year, new retailers enter the market and others cease to operate. The most prominent causalities of 2011 were the closure of Border's, Syms and Filene's Basement. In addition, the nation retail scene experienced the closure of hundred's of Blockbuster Video, Harry & David to name a few.

New York City and the tri-state region is the home of retailing in the U.S. During the past thirty to forty years many of the world's most prominent retailers, especially department stores and apparel retailers have ceased to operate in the tri-state region.

Herald Square the home of Macy's was once the home of department stores, which included Gimbel's at the corner of 33rd Street and Broadway. A block away, the parent of Gimbel's, Saks 34th Street, the lower priced outpost of Saks Fifth Avenue operated replaced by EJ Korvette's. Korvette's was founded by and named for eight Jewish Korean War Veterans flagship was located on the corner of Fifth Avenue and 47th Street. A few blocks away from Macy's on 34th Street between 5th and 6th Avenue was Orbach's. A few doors west of Orbach's was the home of upscale fashion retailer, Franklin Simon. On the corner of 5th Avenue and 34th Street, at the present home of the Graduate Center of the City University, and the home of CUNY TV, where my television shows are produced was the home of B. Altman.

Traveling up on Fifth Avenue at the corner of 42nd Street was Stern Brothers, just a block away from Roger's Peet, which today is the home of the Hyatt Andaz at the corner of 41st Street. Across from St. Patrick's Cathedral was the home of Best & Co, which is now the home of Olympic Towers. At the corner on 57th Street at the present site of Donald Trump's world headquarters was the home of Bonwit Teller.

Today, one of the most active retailing markets in Manhattan is Union Square, the home of Nordstrom Rack. At the corner of 14th Street at the corner of Park Avenue South was the home of S. Klein, also known as S.Klein on the Square. Before, the creation of the vertical retailer at 4 Union Square is Vornado Realty Trust property which is the home of Whole Foods, DSW, Forever 21, Jamba Juice and until the beginning of this month, Filene's Basement. This property was the home of May's Department Store, replaced after it ceased operations as Caldor's another defunct retailers.

Across the street from Bloomingdale's is the home of Bloomberg LP, and the luxury residential condominium tower One Beacon Court. In its previous life this site was the home of Alexander's Department Store.

There has been a resurgence of retailing Downtown Brooklyn with a Target at the corner of Atlantic Avenue and Flatbush Avenue. A few blocks away were the home of the headquarters of Abraham & Straus, replaced today by Macy's.

Shoe retailers maintained their prime locations in New York City. These defunct shoe retailers included Chandlers, Fayva, Flagg Brothers, Kinney, Hanover Shoes's, Shoe Town, Thom McAn.

One must not forget the electronic retailers and record (yes long playing records, replaced by tape and cd's) that were once the dominant players in market. Gone is the legendary, "Crazy Eddie-who's prices were insane. No one could forget 47th Photo and Electronics, Sam Goody's and last but not least Circuit City. Gone are Comp USA, Newmark & Lewis, Brick Church Appliance/TV and the Sharper Image.

The suburbs of New York City were the home of discount department stores, furniture, home improvement, sports and athletic stores and toy stores. Gone is Jamesway, Woolworth, KB Toys, Two Guy's, Herman's World of Sporting Goods, Tower Records, Linen's & Things, Fortunoff, Lechters Housewares, Levitz, Huffman Koos, Bombay Company, Castro Convertible.

As we begin the New Year few will predict those retailers who will leave the scene in 2012. If one was wagering, some might predict the closure of Sears, K-Mart, and perhaps Barnes & Noble. You will have to wait for twelve months to read my latest update on the state of retail

BuildingNY: Edward J. Minskoff, Pres., Edward J. Minskoff Equities, Inc.

2012-01-22T12:37:00.000-05:00

His name is Edward J. Minskoff. He is the chairman & ceo of Edward J. Minskoff Companies. He is a developer of New York City. Gain insight on his life when he is profiled by Michael Stoler on Building New York-New York Life Stories.

BuildingNY: Jeffrey Levine, Levine Builders

2012-01-21T10:18:00.000-05:00

His name is Jeff Levine. He is the Brooklyn born chairman & ceo of Levine Builders and Douglaston Development. Gain insight on his very interesting life who has developed properties all over the city. The show can be viewed on the Internet at YouTube and Stoler Report

How much lower can it go, 30 year fixed-rate mortgage hits new low

2012-01-20T09:39:00.002-05:00

Industry experts are wondering how much lower can interest rates decline. On Thursday, January 19th, Freddie Mac released the results of its primary mortgage rate survey, showing average mortgage rates, announced that the 30 year, fixed rate mortgage fell to 3.88, hitting a new loan and marking its seventh consecutive week below 4 percent. The new rate of 3.88% for the 30 year fixed rate mortgage compares to a rate of 3.89% a week earlier and 4.74% last year.

Rates have hit record lows for the last three weeks. The 30 year fixed mortgage has been at or below 4.00% since the beginning of November.

The 15 year fixed rate mortgage inched up hitting 3.17% up from 3.16% the previous week and down from 4.05% last year. The five year adjustable rate mortgage averaged 2.82%, compared to 3.69% a year ago.

The one year Treasury indexed adjustable rate mortgage was 2.74% down from 2.76% last week and 3.25% last year.

The average rates don’t include extra fees, known as points for loan origination, which most borrowers must pay to get lower rates.

Bankrate.com’s weekly national survey of mortgage rates reported higher interest rates than the Freddie Mac survey. Mortgage rates were little changed this week, with the average 30 year mortgage rate holding at the record low of 4.18% for the third consecutive week. The average 30 year fixed mortgage has an average of 0.35 discount and origination points.

The average 15 year fixed rate mortgage inched up from last week’s record, to 3.39 percent, while the jumbo 30 year fixed mortgage set another new low of 4.58 percent. The average 3 year and 5 year adjustable mortgage rates bounced off last week’s record low, rising to 3.29 percent and 3.06 percent, respectively.

The last time mortgage rates were above 6 percent was in November 2008. At that time, the average 30 year fixed rate was 6.33 percent, meaning a $200,000 loan would have carried a monthly payment of $1,241.86. With the average rate today at 4.18 percent, the monthly payment for the same mortgage loan would be $975.70, a difference of $266 per month for anyone refinancing now.

With record low interest rates, mortgage applications last week surged 23 percent on the strength of borrowers seeking to refinance, said the Mortgage Bankers Association. The MBA’s Refinance Index increased 26.4 percent from the previous week to its highest level since August 8, 2011. It’s Purchase Index, measuring mortgage applications for home purchases, surged 10.3 percent. The group’s combined Market Composite Index registered the 23 percent jump.

Builder confidence showed an improving sign for the housing market. The new home builder confidence rate rose for the fourth straight month to the highest level since 2007.

The economy and consumer apprehension hamper New York City residential sales

2012-01-20T01:46:00.000-05:00

The Real Estate Board of New York (REBNY) reported that New York City home prices and sales citywide declined since the same time last year reflecting the struggling economy and consumer apprehension according to the Fourth Quarter 2011 Residential Sales Report. The average sales price of a New York Cit home decreased by 6 percent in the fourth quarter to $694, 000 and the number of sales 12 percent compared to the fourth quarter of 2010.

Year on year, the average price of a home in Manhattan was down 11% to $1,285,000. The sale of Manhattan apartments of $5 million and over to total Manhattan apartment sales were down18 percent year over year. Sales prices in Brooklyn, Queens and the Bronx all declined by one percent to $539,000, $397,000 and $350,000 respectively.

The average sales price of an apartment in the City during the fourth quarter was $821,000 an 8% declined year over year. The average price of an apartment in Manhattan in the fourth quarter was $1,240,000; a 10% decrease from the fourth quarter 2010. Sales prices for an apartment in Brooklyn increased 2% from the previous fourth quarter rising to $489,000; while the average price of an apartment in Queens declined 4% on year to $272,000.

Despite overall losses in sales prices and volume, the Boroughs of Brooklyn and Queens recognized significant gains in condominium value. Fueling the increases in Brooklyn was predominately due to the sales in the hip Williamsburg section where the fourth quarter average price of a condominium was 25 percent higher than the average price in the fourth quarter of 2010. The average sale price of a condominium in Brooklyn was up 11% from last year to $596,000.

While the average sales price rose by 25 percent in Williamsburg as compared to the fourth quarter, sales of condominium declined in the fourth quarter of 2011. There were 124 condominium sales in Williamsburg during the fourth quarter of 2011; this is a 43% decrease from the last quarter and 34% fewer than the fourth quarter of 2010. The fourth quarter average price for a condominium was $697,000, an increase of 5% higher than the last quarter and 25% greater than the average price in the fourth quarter of 2010.

Sales prices rose in Queens, primarily due to the sales on of condominiums in Flushing. There were 68 condominium sales in Flushing in the fourth quarter; 27% less than the last quarter but 5% improvement to the fourth quarter of last year. The average price of a condo in Flushing was $478,000; an increase of 3% over the previous quarter and a thirty percent increase greater than the fourth quarter of 2010. The condominium sales prices in Queens were up 6% to $450,000.

The average sale price of a condominium in New York City in the fourth quarter decline 4% compared to last years fourth quarter to $1,043,000. The average price in Manhattan decreased 11% to $1,498.000. Brooklyn, the future home of the Brooklyn Nets in the Barclay Center increased by 11% year on year to $596,000. Prices rose in Queens, with the average sales price of a condo rising 6% to $450,000.

The average sales price of a condominium in Midtown West during the fourth quarter decreased 12% compared to the last quarter and 27% compared to the fourth quarter of last year to $1,295,000. A total of 120 sales were registered in Midtown West for the quarter, which was 44% fewer than the third quarter of 2011 and 10% fewer than the fourth quarter of last year.

The sales volume of cooperative units was dismal in the Upper East Side which declined in the fourth quarter to 322 units, which was a 32% decreased compared to the number of coop sales in the neighborhood last quarter and 11% decreased compared to the fourth quarter of 2010. The average cooperative sales price in the Upper East Side was $1,714,000 which was 1% lower than the third quarter of 2011 and 8% greater than the fourth quarter of 2010.

Sales of cooperative units were soft for the quarter and the year. The average sales price of a cooperative unit in New York City fell 7% to $663,000 in the fourth quarter of 2011 compared to the fourth quarter in 2010. The average sales price of a coop unit in Manhattan decreased 5% to $1,049,000. Sales price rose by 1% in Brooklyn to $358,000; while average sales price in Queens was down by 5% to $212,000.

U U.S. remains the most mature commercial real estate market in the Americas

2012-01-19T01:45:00.000-05:00

The consulting and accounting firm of Deloitte recently issued a reported titled "Americas Commercial Real Estate Market". The report notes that the United State dominates the Americas commercial real estate (CRE) market with respect to legislative scope, capital markets maturity, and transaction flow. However, following the 2008-2009 recession and emergence of Latin American countries as the Americas growth engine, investors' interest in Brazil and Mexico has increased. Two major real estate companies Equity International and Kimco Real Estate have extensive holdings in these two countries.

Deloitte reports that U.S. remains the most mature commercial real estate market and will continue to experience increased investment, as the economy gradually recovers and investors target attractive opportunities.

Jones Lang LaSalle Global Real Estate Transparency Index 2010 shows that Canadian and U.S. CRE markets lead the Americas in regulatory and information transparency. Public CRE companies are typically organized as real estate investment trusts (REITs), which are eligible for tax benefits if certain criteria are met.

U.S. CRE deal volume rose 140.7 percent year over year to $112.5 billion in 2010 with office properties reporting the highest volume. Most transactions were for high quality assets, especially those with stable rent rolls in top-tier cities, whereas only a few deals involved low-end properties in tertiary markets. REITs drove transaction activity in 2010 with acquisitions of $24.7 billion in property values and a 20.7 percent market share of total transactions, up from 6 percent in 2009. Further, distressed property transactions climbed 273.4 percent year over year to $23.9 billion or 21.2 percent of the total U.S. commercial real estate sales up 9.0 percent in 2009, driven by improved financing conditions. While CRE transaction activity is expected to grow, a broad based recovery will depend on a pick up in "non-trophy" asset sales.

In the past year, with the increased investor demand drove in the U.S. commercial real estate lending, this resulted in higher loan sales, amid varied financing options. Lender's balance sheets strengthened due to loan modifications and extensions and fewer write-offs, through the "amend and extend" strategy. In addition, improved property fundamentals led to lower delinquency and default rates and improved loan quality. Life insurance companies led commercial mortgage originations (volume growth of 168.8 percent) followed by government sponsored entities (GSEs) Fannie Mae and Freddie Mac. In addition, the collateralized mortgage backed securities market (coined as CMBS 2.0) showed signs of recovery with 2010 issuance of $15 billion, which was expected to triple to $47 billion in 2011 (which probably reached $30 billion at year end). However, high debt maturities remain a concern, with nearly $1.7 trillion due during 2011-2015 (60 percent of which is potentially "underwater"). Prospects for a broad CRE market recovery likely will be enhanced when lenders resume loan originations for "non-trophy" assets and refinancing options increase to stabilized debt maturities.

New York City Metro market ranked in number one position of Top Americas' markets by deal value for the twelve month period March 2010 through March 2011, with total volume of $20.8 billion, led by $9.627 billion of deals in the office market; followed by $4.082 billion in apartment: $2,064 billion of retail; $2,481 in hospitality asset and $975 million in industrial sales.

Investment transactions in the Washington, D.C. metro ranked in second position, followed by San Francisco, Los Angeles and Chicago.

BuildingNY: Thomas Von Essen, former Fire Commissioner of The City of Ne...

2012-01-18T14:09:00.000-05:00

This week on Building New York-New York Life Stories, Michael Stoler profiles the life of Thomas Von Essen, the 30th Fire Commissioner of the City of New York. The show aired on Monday, January 16th at 10:30 AM, 2:30 PM and 10:30 PM, Wednesday at 5:30 AM, Thursday at 11:30 PM, Saturday at 12 Noon and 12:30 AM with a final airing on Sunday at 6 PM. The show airs on CUNY TV, Channel 75 in New York City and is available on the Internet at YouTube, iTunes and Stoler Report

The Stoler Report: Industry Leaders' Outlook for 2012? Pt. 2 of 2

2012-01-17T08:48:00.000-05:00

This week on Stoler Report, watch the second part of my broadcast entitled "Business Leaders Outlook for 2012". My guests include Richard Baker, James Kuhn, Joseph Ficalora and Lee Neibart. The show airs at 11 PM on Tuesday, Wednesday at 8:30 AM, 2:30 PM and 10:30 PM, Friday at 5:30 AM, Saturday at 12 Midnight and Sunday at 10:30 AM. The show airs on CUNY TV, Channel 75 in New York City and is available on the Internet

Beige Book: Economic activity for nation expands at a moderate pace

2012-01-17T01:43:00.000-05:00

On Wednesday, January 11th, the twelve Federal Reserve Districts released the latest "The Beige Book" suggesting that the national economic activity expanded at a modest to moderate pace during the reporting period of late November through December.

Seven Districts characterized growth as modest; of the remaining five, New York and Chicago noted a pickup in the pace of growth, Dallas and San Francisco reported moderate growth, and Richmond indicated that activity flattened or improved slightly.

Consumer spending picked up in most Districts, reflecting significant gains in holiday retail sales compared with last year's season, and activity in the travel and tourism sector expanded in most areas. Demand strengthened further for non financial services, including professional and transportation services.

Activity stayed sluggish in residential real estate markets and conditions in commercial real estate markets remained somewhat soft overall but showed signs of ongoing improvement in several Districts.

Reports from financial institutions generally indicated a slight uptick in loan demand by businesses, along with improvements in overall credit quality.

Upward price pressures and price increases remained quite limited for most categories of final goods and services, as the effects of prior increases in the costs of selected inputs have eased. Upward wage pressures were modest overall, although a few Districts noted substantial compensation increases for workers with specialized skills in selected sectors and regions.

Consumer Spending and Tourism

Reports on consumer spending were favorable in general. Most Districts reported that holiday retail sales were up noticeably over last year's season, with New York and Dallas describing sales as "brisk" and "robust," respectively. Consumer spending and confidence generally was characterized as firmer than in recent reporting periods. Items identified as the strongest holiday sellers by various Districts included consumer electronics and jewelry, and Chicago noted that luxury items in general sold well during the holiday season.

By contrast, many Districts reported weak sales and excess inventories of warm clothing, due to unusually mild weather. Retail inventories more broadly were reported to be at or near desired levels, consistent with retailers' sales expectations. Boston, New York, and Minneapolis noted exceptional growth in Internet sales for selected items.

Sales of new automobiles continued to pick up in most Districts. Among the more favorable reports, Atlanta noted that the pace of auto sales in and strong demand and sales were reported as well by New York, Philadelphia, Cleveland, and Minneapolis.

Reports from most Districts pointed to solid gains or high levels of travel and tourist activity, with pickups evident in both the business and leisure segments. Tourism activity was reported to be above the levels from twelve months earlier by Boston, New York, Richmond, and Atlanta, and Boston contacts expect double-digit growth in hotel revenues in 2012.

Nonfinancial Services

Demand generally strengthened further for nonfinancial services. Providers of professional and business services such as consulting, advertising, engineering, and legal services expanded their activities according to Boston, Richmond, St. Louis, and Minneapolis.

Manufacturing

Manufacturing activity expanded in most Districts, generally continuing its steady overall expansion or, in the case of Atlanta, reversing a slowdown in prior periods. For the sector as a whole, further growth or improved conditions were reported by almost all Districts, except for Cleveland, Richmond, and Dallas, which reported that activity was largely stable or mixed, and Kansas City, which noted a slight decline.
Real Estate and Construction

Activity in residential real estate markets largely held steady at very low levels, with the exception of further increases in the construction of multifamily residences.
The pace of single-family home sales remained quite sluggish throughout the country, although the Dallas District reported a modest increase over the prior reporting period. Some Districts, such as Boston and Atlanta, noted that home sales exceeded levels from twelve months earlier, but mainly because the earlier levels reflected a substantial drop following the expiration of the homebuyers' tax credit in mid-2010.

Prices were largely stable on a short-term basis in most areas but in many instances were below their levels from twelve months earlier.

In contrast to the soft market for single-family residences, the market for rental units tightened in some areas such as the New York and Richmond Districts, and construction of multifamily residences rose in the Boston, Philadelphia, Chicago, Kansas City, and Dallas Districts.

Demand for nonresidential real estate remained somewhat soft overall but improved in a number of Districts. Vacancy rates and other indicators in markets for office space were largely unchanged in the major metropolitan markets in the Boston, Philadelphia, Cleveland, Richmond, and St. Louis Districts.

By contrast, New York reported that demand for office space "picked up in late 2011," causing vacancy rates to edge down and asking rents to rise.

Minneapolis, Kansas City, Dallas, San Francisco, Atlanta, and Chicago all reported stronger demand for commercial real estate compared with earlier in 2011, and the latter two Districts also noted a pickup in nonresidential construction activity. Cleveland and Chicago reported that the strongest demand and most extensive construction activity has been for industrial and health-care facilities, while Minneapolis highlighted growing demand for industrial space and San Francisco stressed growing demand emanating from the information technology sector.

Banking and Finance

lending activity edged up overall, primarily due to increased loan demand by businesses. Most Districts that commented on lending activity indicated little or no change in overall loan demand, but the remaining Districts identified increases rather than decreases.

New York reported a pronounced increase in demand for commercial mortgages, and Cleveland also noted increased demand in this category. Both Dallas and San Francisco noted a slight uptick in commercial and industrial lending.

Consumer lending was largely flat compared with the prior reporting period, although auto loans rose in Cleveland. New York, Philadelphia, and Cleveland reported demand growth or continued strength for refinancing of residential mortgages.

Lending standards were largely unchanged across all lending categories. However, New York reported slight tightening for commercial and industrial loans. Moreover, a few reports highlighted that small businesses continued to struggle with credit access through banks.

In the Atlanta District, some small businesses have turned to nonbank institutions for financing, and in the Chicago District some manufacturers have been financing loans to their suppliers from retained earnings. Credit quality improved in many Districts: New York reported a decline in delinquency rates for all loan categories, while Philadelphia, Richmond, Kansas City, Dallas, and San Francisco all reported general improvement in loan quality.

Prices and Wages

Upward price pressures and price increases were very limited during the reporting period. Reports from various Districts, indicated that upward price pressures from rising commodity and input prices have eased substantially, with Boston noting that "even food prices have ceased rising."

Wage pressures remained modest overall. The combination of limited permanent hiring in most sectors and numerous active job seekers has continued to keep a lid on general wage increases.

However, reports from a few Districts highlighted significant supply constraints and in some cases large compensation increases for workers with specialized skills in selected sectors, including the energy sector in the Dallas District and the technology sector in the San Francisco District
Increases in the costs of employee health benefits continued to put significant upward pressure on overall compensation costs, although some employers in the Philadelphia District reported significant rollbacks from past increases.

Findings for The Beige Book for the Second District-New York

The Second District's economy has grown at a somewhat faster pace since the last report, led by brisk holiday-season spending. Labor market conditions, as well as prices, have remained generally stable. Manufacturers report modestly improved general business conditions and steady employment since the last report, along with increased optimism about the near-term outlook.

Retailers generally characterize holiday season spending as robust, particularly in the final days before Christmas and right after. Auto dealers report that sales have remained strong since the last report.

Tourism activity has held steady at a high level.

Conditions have generally remained stable in the housing market, though the rental market has continued to improve. Commercial real estate markets have been stable to moderately stronger in late 2011. Finally, bankers report increased loan demand, steady to somewhat tighter credit standards, and lower delinquency rates across the board.
Consumer Spending

Retailers generally characterize holiday-season spending as strong and most report that sales were on or above plan. A trade association survey of retailers across New York State points to robust spending, particularly in the final week before Christmas and on the day after; most contacts indicated that sales were at least as strong as in 2010, led by electronics--particularly video games and consoles.

Contacts note that unseasonably mild weather hampered sales of outerwear and other seasonal apparel. A number of contacts also note exceptional strength in on-line sales, with some reporting year-over-year gains in excess of 40 percent. Retail prices are reported to be generally stable.

Auto dealers in upstate New York report that sales activity continued to be robust in November and early December, running well ahead of comparable 2010 levels--particularly for used vehicles.

Consumer confidence has rebounded from its October lows. The Conference Board's survey of residents of the Middle Atlantic States (NY, NJ, PA) shows consumer confidence rising sharply in both November and December, back up to the levels seen last spring. Results from Siena College's November survey of New York State residents (latest available) shows consumer confidence rebounding moderately. In my discussions with restaurant owners and operators, revenues have been at highest levels in the past twenty four months. Consumers are spending more on leisure activities including dining out.

Tourism activity has held generally steady at a strong level since the last report. New York City hotels report that occupancy rates continued to run at just over 85 percent in November and the first few weeks of December--up moderately from a year earlier.

With record tourism of over 50 million individuals to New York City, tourism levels are returning to pre recession times. Most hotels in New York City had occupancy in excess of 90% for the first three weeks of December, and rates are well in excess of 2010 levels. Room rates have risen by at least fifteen to twenty five percent for the majority of hotels in New York. Even though more than 16,000 rooms have been added to the inventory of rooms, occupancy, and average daily rates are reaching projections. Visitors are traveling to the Brooklyn and Queens in search of new hotels at lower rates than Manhattan. The market continues to be quite vibrant and the outlook is positive for the hospitality industry.

Room rates were up 2-3 percent from a year earlier, and total revenues per room were up about 6 percent, though total revenues in the local hospitality industry are up considerably more due to an increased number of hotel rooms.

On a more negative note, though, Broadway theaters report that attendance continued to run roughly 5 percent below year-ago levels in December, while revenues fell below comparable 2010 levels for the first time since the August hurricane.

Construction and Real Estate

Residential rental markets continue to strengthen, while real estate sales have shown little change since the last report and new development activity continues to be sluggish.

New York City's rental market remains tight: rents continue to rise, as the inventory of available units remains lean. Residential rents have risen to 2007 levels. Landlords are no longer offering concessions of free rent and in certain instances; tenants have to pay non-refundable deposits to secure apartments.

Manhattan co-op and condo prices were little changed in the fourth quarter, while sales activity slowed from its fairly brisk third quarter pace.

The Real Estate Board of New York (REBNY) reported that New York City home prices and sales citywide declined since the same time last year reflecting the struggling economy and consumer apprehension according to the Fourth Quarter 2011 Residential Sales Report. The average sales price of a New York Cit home decreased by 6 percent in the fourth quarter to $694, 000 and the number of sales 12 percent compared to the fourth quarter of 2010.

Manhattan co-op and condo prices were little changed in the fourth quarter, while sales activity slowed from its fairly brisk third quarter pace. Market conditions were reported to be similar in Brooklyn but a bit softer in the other boroughs and on Long Island.

On a more positive note, one industry expert in New Jersey sees improved fundamentals in the housing market and foresees a pickup in market conditions in 2012. Real estate contacts in other parts of the District also note some increase in optimism among developers.

A number of new residential apartment buildings are in various stages of construction in New York City, and nearby New Jersey. Lenders are willing to provide financing for the construction of rental apartment properties for well capitalized borrowers. In certain instances construction financing has been provided for well planned condominium developments in Manhattan, Brooklyn and Queens.

Commercial real estate markets have been steady to somewhat stronger since the last report. New York City's office market has picked up in late 2011, with office vacancy rates edging down and asking rents rising. Leasing activity in 2011 was at one of the highest levels in the past three years. The pace of leasing has slowed down in the fourth quarter in New York
There were also modest signs of improvement in Westchester and Fairfield counties and in the Albany area, whereas office markets in northern New Jersey and western New York State appear to have slackened modestly. Industrial leasing markets were generally steady overall: conditions firmed in Long Island but showed some signs of softening across upstate New York; in the rest of the District, conditions were little changed.

Other Business Activity

A major New York City employment agency reports that hiring activity has slowed somewhat since October, particularly in the financial services sector, but notes that it is difficult to gauge the underlying climate during this typically slow season.

Contacts at major retail chains indicated that they hired more seasonal workers this year than last. More broadly, both manufacturers and service-sector firms continue to report that employment levels at their firms remain steady, on average, though a growing number of manufacturing contacts across New York State plan to hire more workers in the months ahead.
Manufacturers across New York State report that general business conditions improved since the last report, and respondents have grown considerably more optimistic about the near-term outlook. Both manufacturers and other firms report that their selling prices remain flat, though a growing number expect to raise prices in the months ahead.

Financial Developments

Bankers report an increase in demand for all loan categories except consumer loans, where demand held steady. The increase was most prevalent for commercial mortgages where four times as many bankers reported rising than falling demand. Respondents also indicate widespread increases in demand for refinancing. Bankers' responses suggest some tightening of credit standards for commercial and industrial loans, but no change for the other loan categories. No banker reported an easing of standards in any category. Respondents note a decrease in spreads of loan rates over costs of funds for all loan categories. Bankers also indicate widespread decreases in the average deposit rate. Delinquency rates are reported to have decreased for all loan categories. The improvement was most prevalent in commercial and industrial loans, where nearly three times as many respondents reported lower than higher delinquencies.

BuildingNY: Alair Townsend

2012-01-15T13:26:00.000-05:00

Alair Townsend, is the former publisher of Crains New York Business. She has dedicated her life to New York City. Gain insight on her life when she is profiled by Michael Stoler on Building New York-New York Life Stories. The show is available on the Internet

New York City, the most expensive U.S. commercial office real estate market

2012-01-13T14:39:00.001-05:00

In December, The Building Owners and Managers Association (BOMA) International, released its "2011 Experience Exchange Report", which provides an annual analysis of the office building operating income and expense data for approximately 940 million square feet of office space in more than 6,500 buildings in 278 different markets.

Few people would be surprised to learn that New York City is the most expensive U.S. cities, based on total rental income with rental income of $48.27 per square foot. Ranking in second position is Washington, D.C, at $42.63 psf.

BOMA reports that total rental income includes rental income from office, retail, and other space, which includes storage areas. Amid the economic downturn in the economy and real estate markets, few markets demonstrated significant increases in rental income. Among the most expensive cities, only New York and San Francisco showed increases in rental income.

The Big Apple, ranked in number one position in the most expensive cities on the basis of total operating and fixed expenses at $21.44 per square foot. Once again, Washington, D.C. ranked in second position with operating expenses at $16.86 psf.

It is surprising to learn that three cities in the Garden State of New Jersey ranked in the top ten most expensive operating expenses. Morristown, New Jersey, ranked in fourth position as the most expensive operating costs at $14.67 psf; City of Plainfield in eighth position at $12.83 psf and Newark registered in tenth position at $12.46 per square foot.

Total operating expenses includes all expenses incurred to operate office buildings, including utilities, repairs/maintenance, cleaning, administrative, security and roads and grounds. Fixed expenses include real estate taxes, property taxes and insurance.

Exhibit I - Most expensive U.S. cities, based on total rental income:

1. New York City $48.27 psf
2. Washington, D.C. $42.63 psf
3. Santa Mateo, CA $41.61 psf
4. Santa Monica, CA $36.57 psf
5. San Francisco, CA $34.86 psf
6. Boston, Mass $31.15 psf
7. San Jose, CA $30.15 psf
8. Los Angeles, CA $30.35 psf
9. West Palm Beach, Fla $27.71 psf
10. Chicago, Ill $25.20 psf

Exhibit II - Most expensive cites on the total operating and fixed expenses

1. New York City $21.44 psf
2. Washington, D.C. $16.86 psf
3. Boston, Mass $15.16 psf
4. Morristown, NJ $14.67 psf
5. San Francisco, CA $14.33 psf
6. Miami, Fla $12.87 psf
7. Santa Monica, CA $12.84 psf
8. Plainfield, NJ $12.83 psf
9. Chicago & Los Angeles $12.49 psf
10. Newark, NJ $12.46 psf

New Year brings record low mortgage rates

2012-01-13T11:58:00.000-05:00

In November 2008, mortgage applicants were satisfied if they could secure a mortgage at a rate of 6.33%. Fast forward three years, when the rate has been reduced to less than 4 percent. On Thursday, January 12th, fixed mortgage rates fell to a record low, offering a great opportunity for those who plan to refinance their home mortgage or purchase a home.

Freddie Mac reported that the average rate on the 30 year fixed mortgage fell to 3.89, the lowest rate since recording of mortgage rates to the 1950’s. Last year at this time the 30 year fixed rate mortgage average 4.71 percent.

The average for the 30 year fixed rate mortgage rate has been below 4 percent for six consecutive weeks.

The 15 year fixed rate mortgage this week averaged 3.16 percent with an average 0.8 point fee, as compared to 4.08 percent a year ago at this time.

The 5 year Treasury adjustable rate mortgage (ARM) averaged 2.82 percent, compared to a rate of 3.72 percent a year ago.

The rate for the one year Treasury adjustable rate mortgage average 2.76 percent compared to 3.23 percent last year.

The last time mortgage rates were above 6 percent was in November 2008. At that time, the average 30 year fixed rate was 6.33 percent.

On Wednesday, the National Association of Homebuyers reported that the 30 year, fixed rate home loan and the government’s mortgage interest tax deduction are popular home buying incentives for Americans.

The results show 75% of the respondents believes it’s reasonable for the government to offer a tax incentive to promote homeownership. Two thirds of those surveyed support the idea of the federal government helping homeowners afford a long term mortgage, while 73% oppose the elimination of the mortgage interest deduction.

Lower mortgage rates have not helped home prices around the nation. Lender Processing Services Inc, Home Price Index Report noted that home prices nationally fell 0.8 percent in October to levels not seen since 2002.

The national average home price for transactions during October 2011 was $200,000, marking the fifth consecutive month of prices falling. The October national average price is down 2.7 percent form the average at the beginning of 2011.

Earlier this week, HousingWire.com reported that new and existing home sales increased year over year in December, while home prices continued to plummet, hitting levels of affordability not experienced since 1971.

In is December Housing Scorecard report, the administration said median income families on average had double the funds needed to cover the cost of a home, but purchase demand remained relatively malaise as home prices continued to drop.

With residential rents at record highs-enter a lottery to secure a newly constructed affordable apartment in Clinton section of Manhattan

2012-01-12T09:04:00.000-05:00

As we enter 2012, residential rents in Manhattan as well as the other boroughs have reached record highs. Vacancy rates are down to record lows and residents of New York City are having difficult in securing an affordable rental apartment.

One way to secure an apartment might be to enter the New York Powerball lottery. Another alternative is to send in an application by February 20th to be selected by a lottery to secure a brand new apartment in Manhattan.

A total of ninety six (96) households have the opportunity to secure a newly constructed rental apartment adjacent to the Two Trees Management, newly completed Mercedes House in the Clinton section of Manhattan.

West 53/54 Street Apartments Phase 2 is now accepting applications for 96 affordable rental apartments under construction on West 54th Street, between Tenth and Eleventh Avenue, in the Clinton section of Manhattan.

This building is being constructed through the Inclusionary Housing Program of the New York City’s Department of Housing Preservation and Development and the 80/20 Housing Program of the New York State Homes and Community Renewal.

A total of 15 studio, 50 one bedroom, 27 two bedroom and 4 three bedroom apartments are available to households ranging in size from one to six persons. Monthly rents for the studios range from $508 to $653; one bedroom from $547 to $703; two bedrooms $669 to $855 and three bedrooms from $768 to $984. The total gross annual income for household sizes range from a minimum of $19,920 to $48,150.

Applicants will be required to meet income, household size and additional criteria.

To request an application, mail a POSTCARD including your name and full address to: West 53/54 Street Apartments Phase 2; 1357 Broadway, Box 410, New York, NY 10018, or Download an application from www.w5354phase2.com.

Completed applications must be returned by regular mail and must be postmarked by February 20, 2012.

Applications will be selected by lottery. Preference for the apartments will be given to residents of Manhattan Community Board #4; mobility-impaired persons; visual and/or hearing impaired persons and City of New York municipal employees. Preference for all units will go to New York City residents.

No broker’s or application fee should be paid to anyone regarding these applications.

The Stoler Report: Industry Leaders' Outlook for 2012? Pt. 1 of 2

2012-01-10T18:40:00.000-05:00

This week on The Stoler Report, hear from four real estate executives provide their insight on the "Outlook for 2012", part I. Must guests on the broadcasts include Richard Baker, Hudson Bay, Joseph Ficalora, New York Community Bank, James Kuhn, Newmark Knight Frank and Lee Neibart, AREA Property Partners. The show debuts on Tuesday, January 10th at 11 PM and will be re-broadcasted on Wednesday at 8:30 AM, 2:30 PM & 10:30 PM, Friday at 5:30 AM, Saturday at 12 Midnight and Sunday at 10:30 AM, airing on CUNY TV, Channel 75 in New York City

Research firm reports medium to upper income earners feeling better about the economy resulting in growth in retail

2012-01-10T14:37:00.000-05:00

While thousands of individuals have been protesting in "Occupy Wall Street" and other "Occupy Cities" around the nation, it may come as a surprise that researcher report revealed that medium to upper crust Americans are feeling better about the economy.

This fall, research firm Ipsos Mendelshohn completed a two month project on the medium to upper crust and found that people making at least $100,000 are feeling better about the economy. The 2011 Ipsos Mendelsohn Affluent Survey, released this fall and based on responses from more than 14,400 affluent adults.

The research firm defines affluent's as those living in households with at least $100,000 in household income. The U.S. government surveys reveal that affluents account for about 60% of U.S. household income and hold approximately 70% of U.S. net worth. The affluent are comprised of roughly 58.5 million adults living in 24.5 million households. Demographically, affluents tend to be married, white, highly educated, and employed in professional and managerial fields. They average nearly $200,000 in annual household income, and fall just short of $1 million in average net worth.

Affluents still feel the impact of the recession that began in 2008, in their lives and in their outlooks for America. Despite the "official" conclusion that the recession ended in June 2009, affluents tend to disagree. As of August 2011, only about one-fifth of affluents felt the recession was over for their family or their employer, and fewer than one in 10 felt that it was over for the U.S. as a whole. In fact, when asked affluents to project when the recession would likely end, the most common answer was 2013 or later.

One of the lingering effects of the prolonged economic downturn has been to heighten the affluents' already strong value orientation, which is rooted in their modest upbringings, and has created a sense of marketplace pragmatism that runs deep in the affluent consumer psyche. Today's ongoing economic turmoil has only served to intensify that value orientation. For example:

* 78% agree that "when it comes to quality, you get what you pay for."
* 71% agree that "good value for the money is more important than price."
* Only 18% agree with the statement, "I tend to buy based on price, not quality."

Their value orientation and mainstream shopping sensibilities are apparent in their choice of retail stores. The most widely shopped retail outlets are Home Depot, Target, and Wal-Mart, and few of the top 20 stores could be considered high-end or luxury. Of course, shopping in luxury retail outlets is more common if we examine those with even higher income (such as those with $250,000 or more in household income, for example), but even those elite individuals are still more likely to visit mainstream outlets.

Ipsos Mendelssohn's study, found that optimism is no longer falling, and that the especially affluent is the top fifth is doing better and better now.

The research study report indicated that travel as well as luxury products are important to these higher income earners. Ninety percent of affluent consumers surveyed said small indulgences can be just as meaningful as high end products. Over half said a luxury is the same thing as a treat. "That is a new component in the evolution of luxury".

Approximately 35 percent of affluent consumers are optimistic about the U.S. economy. This is an increase from about 30 percent in July 2011, according to Ipsos Mendelsohn.

Additionally, 45 percent of respondents said they believe the economy will stabilize in 2013 or later. Only 15 percent felt that the economy would never stabilize.

Of the affluent consumers earning more than $250,000 in household income, 57 percent said that they would be better off in the upcoming 12 months than they have been in the past.

Also, 34 percent of respondents with more than $100,000 in household income plan to spend more in 2012 if the economy improves. For consumers making more than $250,000, 42 percent plan to spend more.

When asked in which categories consumers have spent more on in the past year, computers and electronics, automobiles, watches and jewelry and personal travel were the most-mentioned industries.

However, in the upcoming six months, affluent consumers plan to spend the most on luxury brands and services related to vacations and personal travel as well as computers and electronics.

Ipsos Mendelsohn asked consumers a number of open-ended questions to gauge their definition of luxury and daily spending habits.

The survey found that 65 percent of affluent consumers feel that the definition of luxury has changed over the past five years.

A major trend found among the affluent consumers is that they are just as happy rewarding themselves with small luxury indulgences as they are buying big-ticket items.

For example, 92 percent of respondents agreed that "small indulgences can be just as meaningful as purchasing a high-end luxury product."

Ipsos coined these small luxury indulgences "treats," and found that 73 percent of respondents treat or reward themselves at least once a month.

These treats included things like a high-end spa pedicure, an expensive glass of wine at dinner or tickets to a sporting event or live show.

To leverage this idea of small, intimate luxuries, marketers should focus on feeding the affluent consumer's craving for a reward.

"We really see luxury, especially smaller, intimate treats, as fueling a person's desire and satisfying their psychological feeling of 'I deserve,'" Stephen Krause, Chief Research, said. "They don't talk about status symbols or brands as badges.

"It is about a much more personal, psychological, self-esteem enhancing idea," he said. "Talking about how this is something they deserve is a good choice for marketers.

Two-thirds of affluent respondents said they define luxury differently than they did, say, five years ago. For instance, affluent consumers no longer think value pricing hurts a luxury brand's cachet. said 90% of affluents admitted to going out of their way to find the best price. "Fewer than half said true luxury is worth any additional cost and fewer than half also said true luxury does not go on sale, and even fewer said when a luxury product goes on it sale it lessens the perception of luxury. So consumers are bringing a very strong value orientation even to highest-ticket items."

The takeaway, is that personal meaning in luxury is intertwined with the brands and their meanings. "There is a strong sense that luxury is not stereotypical, but personal. Back in 2005 or 2006, there was a more shared sense of what luxury is, but today it's much more personal and idiosyncratic. It's about a feeling of 'I deserve' more than anything. And rarely were they talking about how it appears to others; it's much more about self-gratification."

Looking forward, there are reasons for optimism, according to Mr. Kraus, said at the high end, across 15 categories, there is a positive gap in terms of purchase interest. "People said they'd be more interested [in buying luxury products], not less, we're seeing 5 or more percentage points across every category. At the very high end, among those who make $250,000 or more, the gaps average about 20 percentage points. The firm says 70% of affluents and 60% of non-affluents plan to buy luxury in the next year. Fewer than one in five affluents and one in ten non-affluents said they have no interest and don't buy luxury.

PwC Fourth Quarter Real Estate Investor Survey-Investors bullish on office and apartment sector

2012-01-09T14:36:00.001-05:00

As the year was coming to a close, the accounting and consulting firm of PwC reported that commercial real estate investors continue to seek buying opportunities with the office market gaining increasing interest, despite a mixed bag of improving commercial real estate fundamentals.

According to the report, buying opportunities beyond the core markets remain tricky due to a protracted recovery outlook for both the U.S. and many secondary markets. Surveyed investors cite that commercial real estate continues to offer attractive yields compared to alternative investment vehicles. In the office sector, investors are bullish regarding their prospects for tenant retention and expect office rent growth in many markets in the coming year.

Local and foreign investors continue to be bullish on the ownership of office property. Canadian investors ranked number one as the most active investors purchasing commercial real estate in the U.S. This was evident in December, when Canadian based financial services company; Manulife Financial purchased the 30 story office tower at 10 Exchange Place in Jersey City. The company paid $285 million or $381 per square foot for the 748,005 square foot tower. During this calendar year, there has been $1 billion of sales in four office sales in Jersey City.

During the same week as the sale of the tower in Jersey City, Toronto based, publicly-traded Brookfield Office, sold the 40 story 53 State Street, a skyscraper located in the hart of Boston's financial district, to UBS for $610 million.

Mitch Roschelle, partner, U.S. real estate advisory practice leader, PwC. said "The bullishness on the part of investors in the office sector comes as more office tenants are staying put and prospects for rent growth are improving. Looking ahead to 2012, our report suggests that investing in U.S. commercial real estate is an attractive play and will gain increasing global attention due to its hard asset nature and current income-producing characteristic, along with its total return potential."

The fourth quarter survey findings indicate that office markets that have a strong tech or energy sector tenants are piquing investor interest. At the same time, government cutbacks are making some investors hesitant about government -dependent cities, such as Washington DC. Average office rent growth assumptions reported by surveyed investors this quarter show promise for many office markets in the coming year, led by San Francisco (5.75 percent), New York (5.21 percent) and the Pacific Northwest (4.17 percent).

According to survey findings, the apartment sector is nearly fully recovered, driven by low vacancy levels in apartments and a continued shift towards renting versus buying homes. This strong improvement in fundamentals, low vacancy and a historically low rate of home ownership, pave the way for development of rental apartments. Construction financing remains somewhat available and low interest rates create an additional incentive for developers to start projects sooner than later.

A number of new rental and even condominium developments are in various phases of construction in Manhattan, Brooklyn, Queens and nearby New Jersey. Major money center banks including Bank of America Merrill Lynch, JP Morgan Chase , M & T Bank, Capital One Bank, TD Bank and Wells Fargo provided more than $2 billion in construction financing for developments in 2011.

Investors including some of the largest real estate investment trusts continue to be very interested in purchasing and developing new residential properties around the nation and especially in the tri-state region. In 2011, Denver based UDR was one of the most active purchasers in Manhattan, purchasing, apartment buildings in Lower Manhattan, Chelsea, and Murray Hill. Harry Alcook, SVP at UDR, was reporting saying "If you were to say $1.5 billion to $1.8 billion in New York City is a reasonable target over the next couple of years that is probably the right kind of number."

"Surveyed investors continue to view the apartment sector as an attractive play in delivering steady cash flows driven by solid rental demand and rising rents," stated Susan Smith, editor-in-chief of PwC's quarterly survey. "As a result, investors view this sector as a hotbed for further investment activity. While government-sponsored entities Fannie Mae and Freddie Mac have historically propelled sales activity in this sector as the primary sources of debt, stellar apartment market fundamentals are attracting debt capital from other sources, such as banks and life companies, increasing the competitiveness among lenders and buyers."

Fantastic Hotel Deals offered for New York Hotels

2012-01-08T14:36:00.002-05:00

More than 50 million visitors traveled to New York City in 2011, spending time at the Big Apple hotels. The website NewYorkology.com reports that eight New York City Hotels are kicking off the City's first "Hotel Week" from January 6 to January 15 with hotel rooms at $100, $200 and $250 per night.

Many of these hotels are recently opened to visitors providing great amenities in many of the cities most chic neighborhoods.

The $100 rates will be available at The Pod Hotel at 230 East 51st, The Hotel @ Times Square located at 59 West 46th Street; , nyma, The New York Manhattan Hotel at 6 West 32nd Street and the Z Hotel at 11-01 43rd Avenue in Long Island City in Queens.

The $200 room rate will be available at the Andaz Wall Street at 75 Wall Street in Lower Manhattan and Hyatt 48 Lexington at 517 Lexington Avenue, while the $250 rates will be on offer at the Gansevoort Meatpacking and the Gansevoort Park Avenue NYC.

The deal is subject to availability and guests must mention "hotel week", when booking by phone or online.

NYC & Company, the city's official tourism marketing group announced that twenty luxury class hotels in Manhattan are offering a third night free in January and February as part of the Signature Collection Third Night promotion.

Guests will get a third night free after paying for two consecutive nights between January 2 and February 29. Upon check in guests will also get a Key to Madison Avenue card with more than 70 offers to boutiques, spas, restaurants and art galleries including VIP services and free gifts. The NYC & Co. offer code is required when booking.

The participating hotels in are located throughout the city which include:

The Carlyle
The Chatwal
Plaza Athenee
Jumeirah Essex House
The Lowes Regency
The London NYC
Mandarin Oriental
New York Palace
The Peninsula
The Pierre
The Plaza
Ritz-Carlton, Battery Park
Ritz-Carlton, Central park
The Setai, Fifth Avenue
Sherry-Netherland
St. Regis Hotel
Surrey Hotel
Trump International Hotel
Trump Soho
Waldorf Towers

Another special promotion is being offering in honor of all military personnel and veterans, New York's Hotel Pennsylvania is offering a special Salute to Military & Veterans promotion of 'stay two nights and receive the third night free' for stays now through April 15th, 2012 .

The package provides all personnel that stay two consecutive nights within one of our Penn 5000 accommodations will receive a third consecutive night free at the Hotel and complimentary continental breakfast served in our Penn 5000 Lounge, featuring 24-hour coffee/tea service, computers with complimentary high-speed Internet and daily newspaper.

BuildingNY: Herb Cohen, author, "You Can Negotiate Anything," Pt. 2 of 2

2012-01-06T09:21:00.000-05:00

This Monday, January 9th, 2012, watch the second part of the interview profiling the life of Herb Cohen, world renown negotiator, and author of You Can Negotiate Anything, translated into 37 languages, when he appears as a guest on Michael Stoler's, weekly interview program, Building New York-New York Life Stories. The show airs on Monday at 10:30AM, 2:30 PM & 10:30 PM. Wed at 5:30 Am, Thursday at 11:30 PM, Saturday at 12 Noon and 12:30 AM and Sunday at 6 PM. The show airs on CUNY TV, Channel 75 in New YOrk City

Research organization projected restaurants to serve 100 Million New Year's Weekend

2012-01-05T05:38:00.001-05:00

Did you dine out or order delivery from a restaurant on New Years Eve? The National Restaurant Association estimated that 100 million Americans planed to celebrate the New Year by going out to a restaurant or bar, or order restaurant takeout or delivery.

Hudson Riehle, senior vice president National Restaurant Association "New Year's is traditionally one of the most popular times of the year to dine out. This year, we expect to see a welcomed bump in customer traffic both on- and off-premises as we ring in the New Year."

The survey shows that one in five consumers (20 percent) plan to go out to a restaurant or bar on New Year's Eve, and 22 percent say they plan to order restaurant takeout or delivery on that day. On New Year's Day, 12 percent plan to dine out and 16 percent say they plan to order takeout or delivery from a restaurant.

In addition, 10 percent of consumers say they planed to dine out on Christmas Eve, 8 percent planed to dine out on Christmas Day, and 4 percent planed to do so on the start of Hanukkah (Dec. 20). Fifty percent say they planed to share a special meal with family or friends at a restaurant during the holidays.

New Jersey, New York Leads Nation in the top five Highest Average Mortgage Down Payment

2012-01-04T05:37:00.001-05:00

With the current trend that fewer consumers being able to purchase a new home or apartment, LendingTree.com, released data highlighting the average down payments on residential real estate purchases for all 50 states and Washington D.C.

The Garden State of New Jersey leads the country with the highest average down payment of 13.76%. The locations rounding out the Top Five for highest down payments including Washington D.C. (13.54%), New York (13.51%), Hawaii (13.37%) and California (13.25%). Overall, the average down payment for all states is 12.29%.

The study comes on the heels of a federal proposal that would require homebuyers to pay at least 20 percent of the down payment when purchasing a house.

The risk retention requirements, including asking homebuyers to pay 20 percent down, are intended to help address problems in the markets that sell residential, commercial and other loans. It intends to address problems by requiring that organizations that sell securities retain an economic interest in the credit risk of the assets they combine and sell, according to the proposed rules from the regulating agencies.

Mortgage Bankers Association CEO John Courson warns that the 20 percent down payment requirement would further damage already sluggish housing demand. "We believe that such a narrow construct of the risk retention exemption would limit mortgage opportunities for qualified borrowers more than it would reduce the number of problem loans," Courson said.

Ron Phipps, president of the National Association of Realtors, said the new rules will further restrict mortgage credit and housing recovery overall. "Adding unnecessarily high minimum down payment requirements will only exclude hundreds of thousands of buyers from home ownership, despite their creditworthiness and proven ability to afford the monthly payment, because of the dramatic increase in the wealth required to purchase a home,"

Doug Lebda, CEO of LendingTree, said. "If Federal regulators were to adopt the proposed 20 percent down payment requirement, a majority of borrowers wouldn't be able to meet the standard given the findings in this report," "The proposed rule is part of a larger set of requirements that would exempt qualified borrowers from risk retention requirements and would have access to the lowest rates available. While this rule has yet to be put into effect, borrowers should be aware of the possibility and plan for future home loan needs.

The report finds that the Garden State has a low loan-to-value ratio lower that the national average and also has a higher average home price than most other states. New Jersey falls into the higher end of the spectrum in terms of debt to income ratios.

The Stoler Report: REIT Executives' Outlook for 2012

2012-01-03T17:22:00.000-05:00

This week on The Stoler Report, hear from four REIT executives provide their insight on their outlook for 2012. My guests include Ken Bernstein, Acadia Realty Trust, Patrick Calan, i Liberty, Michael Pappagallo, Kimco Realty and Neil Shah, Hersha Hospitality. The show debuts on Tuesday, January 3, 2012 at 11 PM on CUNY TV, Channel 75. The show will be re-broadcasted on Wednesday at 8:30 AM, 2:30 PM & 10:30 PM, Friday at 5:30 AM, Saturday at 12 Midnight & Sunday at 10:30 AM. The show can be viewed on the Internet

Battle of the Burgers

2012-01-03T05:33:00.001-05:00

It looks like two major celebrity operators and chefs as well as others in the ever growing world of new restaurants are competing neck to neck in the hamburger business.

Chef, restaurateur and celebrity television personality Bobby Flay held the ribbon cutting on Monday, December 5th of his latest Bobby's Burger Place. Bobby's newest location opened at Roosevelt Field in Garden City. In 2008, his first "Bobby's Burger Palace" opened at the Smith Haven Mall in Long Island.

Next year, Mr. Flay will have direct competition less than one mile from Roosevelt Field, when Danny Meyer's Union Square Hospitality will be opening its first Shack Shake at The Gallery at Westbury Plaza, at 900 Old Country Road, off the Meadowbrook State Parkway a 330,000 square foot mall on Old Country Road between The Mall at The Source and Roosevelt Field Mall.

Last June, Denver based burger chain SmashBurger opened its first New York outpost at DeKalb Avenue and Flatbush Avenue in Downtown Brooklyn. This was the chain's 106th store, but the first in New York. Eater.com, reported that founder Tom Ryan, said, the chain is looking to expand in all directions: Brooklyn, Long Island, Westchester, and real estate willing, Manhattan. In February, the company opened its first airport location in Terminal C3 at Newark International Airport.

In 2010, Smashburger signed an agreement with ISK Systems, LLC, to operate 20 restaurants in Long Island. According to the Smashburger corporate web site, its first location at 180 Old Country Road in Hicksville, Long Island is scheduled to open soon.

Last month, Forbes declared Smashburger, the country's "most promising" company, which they award to "privately held up and comers with compelling business models, strong management teams, notable customers, strategic partners and precious investment capital.

Smashburger will have formable competition when Shake Shack, opens its fist Brooklyn location at the Fulton Street Mall, at 409 Fulton Street at the corner of Willoughby and Adams Street in Downtown, Brooklyn.

Fabian Rosario and his partner John Harris signed an agreement to open three Elevation Burger restaurants throughout New York City. The first location of the organic, better for you burger at a reasonable price' burger opened in January, 2011 at 103 West 14th Street in Union Square.

In February 2010, Elevation Burger signed a seen unit multi unit franchising deal with Daniel Magnus, former publisher of Metro New York to open locations in Westchester County and Fairfield County, Connecticut.

Earlier this year, the company's second location at 175 South Ridge Street in Rye Brook, Westchester County, New York and a planned opened next year at Westchester's Ridge Hill, One Ridge Hill Boulevard in Yonkers.

Stephen Hanson is the founder at president of BR Guest Hospitality. In 2007, Starwood Capital Group and B.R. Guest, Inc. announced the completed the formation of a new partnership to build a global portfolio of restaurants. In November of 2009, the first Bill's Bar and Burger Meatpacking District opened at 22 Ninth Avenue, in the former Hog Pit space at West 13th Street. In September, 2010, Bill's Bar and Burger opened its bi-level, 11,000 square foot location in the former Tuscan Square at Rockefeller Center at 16 West 51st Street. The third location recently opened at Harrah's Resort in Atlantic City.

In order to enjoy all of these new burger locations and remain healthy, one might suggest another retail operation to be nearby location; preferable a health club and spa.

Foreign Investors bullish to invest in U.S. commercial real estate

2012-01-02T10:02:00.001-05:00

On New Year’s Day, the Association of Foreign Investors in Real Estate (AFIRE) announced the results of its 20th annual survey of its members reporting that investment in the United States remains the country offering the most stable and secure option for their real estate investment dollars. AFIRE reported that improvement in rent and occupancy growth and the repeal of a 1980 foreign investment tax (FIRPTA) would have the strongest impact on their investment decisions to grow their investment in U.S. real estate. While 60% of survey respondents say they plan to increase their investment in U.S. real estate in 2012, that number is down from 72% last year.

Should the U.S. government continue to penalize foreign investors with FIRPTA, it’s possible that commercial properties could look more attractive as the months go by.

James Fetgatter, CEO of AFIRE said, “Foreign real estate investors have made clear there is considerable pent up demand for the U.S. real estate awaiting better real estate fundamentals and relief from FIRPTA regulations. If the investment environment improves, the U.S. is posed to return to its “safe haven” status.”

Although the U.S retains its perennial top position as providing the best opportunity for capital appreciation, its first place score shrank from 64.7% in last year’s survey to 42.2% this year, with Brazil closing the gap in second place with 18.6% of the votes.

Brazil and its largest city, Sao Paulo, have emerged among the global leaders in this year’s survey. Brazil jumped from fourth place in last year’s survey, to be named the second best country for capital appreciation, pushing China into third position. Sao Paulo rose from 26th place to be named investors’ fourth global city for real estate investment dollars in 2012.

Foreign investors continue to be bullish on investment in New York City remaining in number one in top cities for foreign investment. London moved into second place from third place in last year’s survey. Washington, D.C. ranked in third slot (last year in second place) with Sao Paulo in fourth (from 26th place in last year) and San Francisco in fifth position from number 10 in 2011.

AFIRE respondents identified top 25 emerging countries, being considered for investment, ranking Brazil in first position, followed by China, Turkey, India and Vietnam in fifth position.

Appearing from the first time in the ranking are Columbia (tied in tenth position), Hungary (tied for twentieth position) and Qatar tied for 17th position.

For the second year, New York City has been named investors’ number one U.S. City for their real estate investment. Washington, D.C. continued to rank in second slot, followed by San Francisco, Boston and Los Angeles.

Foreign investors concur with domestic investors noting that his year they would most likely invest in multi family apartment buildings, the fourth consecutive year multifamily topped the lost.

Investment in warehouse and distribution centers ranked in second position, up from fifth slot in 2011. With recovery in the office market, foreign investors ranked office asset investment to third position, from number 4 in last year’s survey. Investment in retail properties slopped to fourth ranking down from number two. The red hot hospitality industry which has nearly improved to it’s 2007 levels in 2011 statistic, ranked in fifth position, down from number three last year.

Pension funds and sovereign wealth fund club joint venture investments

2012-01-02T05:35:00.001-05:00

The Asset.com reports that Large pension funds and sovereign wealth funds (SWFs) are now undertaking property investments through joint venture (JV) style arrangements or what is loosely-termed as a "club style" fund vehicle.

The club style model essentially means a small group of two to four institutional investors pooling their assets together in a property fund that is specifically designed to meet their investment requirements.

By using a club style arrangement, these larger investors, typically pension funds and SWFs, are attempting to reduce the risk of their funds running into liquidity problems and similar issues since these investors are very liquid institutions that invest for the long term.

The way the club style model works: three or four institutional investors make big ticket investments running into hundreds of millions of dollars into a fund that is packaged and managed by a specialist property fund manager, that is also a co-investor in the fund. A board or investment committee made up of representatives of the investors and the fund manager performs the oversight function.

In the club style JVs, the long-term nature of the investments makes redemption facilities academic so that investors or JV partners have to be prepared to invest for the long haul. Generally, a long-term investment in today's real estate market means about five to seven years depending on the type of vehicle.

Another key difference is that the club style model has only one fund manager centered on a specific asset class, a specialist sector or the property market.

One such specialist fund manager is the Goodman Group, which focuses on logistics and warehousing developments in Australia, Asia and Europe.

Known as Australia's largest industrial real estate investment trust, it used a club style arrangement to package a US$1.43 billion fund that acquired the ING Industrial Fund (IIF), owner and manager of over 60 industrial and business park sites in that country, in a deal that was closed on March 31 2011. The fund members included the Canada Pension Plan Investment Board (or CPPIB, a Canadian pension fund), Algemene Pensioen Groep NV (or APG, a Dutch pension fund), and China Investment Corporation (or CIC, China's sovereign wealth fund). Goodman is the fund manager and also a co-investor in IIF with a 20% stake in the fund.

In June 2011, the firm announced the acquisition by CPPIB of its 50% interest in the Hong Kong Interlink Project, a development project currently being undertaken on a 50/50 basis between the Group's Hong Kong Logistics Fund and Goodman.

In June 2010, Goodman announced a US$1.3 billion joint venture with CB Richard Ellis Realty Trust for two new vehicles, one in Britain and the other in continental Europe, focusing on buying and investing industrial warehouses and distribution hubs. The firm's existing European businesses own warehouses for Louis Vuitton and DHL.

BuildingNY: Herb Cohen, author, "You Can Negotiate Anything," Pt. 1 of 2

2011-12-31T17:29:00.000-05:00

His name is Herb Cohen, considered the world's leading Negotiator. He is the man who has negotiated business, conflicts with hostages and world leaders. Gain insight on the life of the Man who had a best selling New York Times book, printed into 33 languages on the art of negotiation. Michael Stoler Profiles the life of Herb Cohen, in part 1 of his interview on Building New York-New York Life Stories.

BuildingNY: Carl Weisbrod, pres., Trinity Real Estate

2011-12-31T15:54:00.000-05:00

His name is Carl Weisbrod. He is the past president of Trinity Real Estate and the Alliance for Downtown New York. He is a career public servant who has spent his entire life working in the public service helping in the growth of New York City. Gain insight on his life when he is interviewed by Michael Stoler on Building New York-New York Life Stories.

BuildingNY: Emily Youssouf, pres. NYC Housing Development Corp.

2011-12-31T15:52:00.000-05:00

Her name is Emily Youseff. She served as the president of the New York City Housing Development Corporation. Gain insight on her life when she is interviewed by Michael Stoler on Building New York, New York Life Stories.

Fantastic Hotel Deals offered for New York Hotels

2011-12-31T14:40:00.001-05:00

More than 50 million visitors traveled to New York City in 2011, spending time at the Big Apple hotels. The website NewYorkology.com reports that eight New York City Hotels are kicking off the City’s first “Hotel Week” from January 6 to January 15 with hotel rooms at $100, $200 and $250 per night.

Many of these hotels are recently opened to visitors providing great amenities in many of the cities most chic neighborhoods.

The $100 rates will be available at The Pod Hotel at 230 East 51st, The Hotel @ Times Square located at 59 West 46th Street; , nyma, The New York Manhattan Hotel at 6 West 32nd Street and the Z Hotel at 11-01 43rd Avenue in Long Island City in Queens.

The $200 room rate will be available at the Andaz Wall Street at 75 Wall Street in Lower Manhattan and Hyatt 48 Lexington at 517 Lexington Avenue, while the $250 rates will be on offer at the Gansevoort Meatpacking and the Gansevoort Park Avenue NYC.

The deal is subject to availability and guests must mention “hotel week”, when booking by phone or online.

NYC & Company, the city’s official tourism marketing group announced that twenty luxury class hotels in Manhattan are offering a third night free in January and February as part of the Signature Collection Third Night promotion.

Guests will get a third night free after paying for two consecutive nights between January 2 and February 29. Upon check in guests will also get a Key to Madison Avenue card with more than 70 offers to boutiques, spas, restaurants and art galleries including VIP services and free gifts. The NYC & Co. offer code is required when booking.

The participating hotels in are located throughout the city which include:

The Carlyle
The Chatwal
Plaza Athenee
Jumeirah Essex House
The Lowes Regency
The London NYC
Mandarin Oriental
New York Palace
The Peninsula
The Pierre
The Plaza
Ritz-Carlton, Battery Park
Ritz-Carlton, Central park
The Setai, Fifth Avenue
Sherry-Netherland
St. Regis Hotel
Surrey Hotel
Trump International Hotel
Trump Soho
Waldorf Towers

Real estate roundtable leaders see conditions "worse than a year ago and predict a decline in the coming year".

2011-12-28T15:14:00.000-05:00

The Real Estate Roundtable brings together leaders of the nation's publicly-held and privately owned real estate ownership, development, lending and management firms with the leaders of national real estate trade associations to jointly address key national policy issues relating to real estate and the overall economy.

Reflecting concerns about the pace of economic recovery, Washington's ability to address fiscal and tax policy challenges, a host of new regulatory requirements, and the long-term European debt situation, The Real Estate Roundtable's latest "Fall 2011 Sentiment Index" of commercial real estate executives slid for the second quarter in a row; with far more respondents now registering concern about the market conditions, hitting its lowest point since the fall of 2009. For the first time in two years, a significant portion of the respondents see conditions as worse than a year ago and predict a decline in the coming year.

"For much of the past year, we have been concerned about the uneven, or 'bifurcated,' nature of the commercial real estate recovery and have focused on policy ideas to foster job growth and broaden this recovery beyond the urban 'gateway' markets," said Roundtable President and CEO Jeffrey D. DeBoer. "Now, amid tremendous uncertainty on an array of federal policy issues; from deficit cutting and tax reform, to Dodd-Frank regulations, and potential housing market fixes expectations are being dialed back considerably, and commercial real estate fundamentals are again under pressure, even in areas that had recovered significantly in terms of property values, pricing and access to credit and capital," he explained.

Roundtable Chairman Daniel M. Neidich of Dune Real Estate Partners, said, "The report confirms that U.S. commercial real estate markets remain under significant pressure, and are highly sensitive to political and economic developments, both here and abroad. Fostering a broader recovery in commercial real estate markets still depends on an improved jobs picture, but we won't see significant improvement in this area until confidence is restored and there's a more positive climate for job creation; and that means reducing some of the tremendous uncertainty weighing on businesses and consumers."

"The other piece of the puzzle," DeBoer continued, "is ensuring adequate access to capital and credit. We would particularly welcome policy proposals leading to increased foreign investment in the U.S. - including more streamlined visa procedures to boost business and leisure travel, and tax reforms to encourage foreign equity investment in commercial real estate. The Roundtable has testified in Congress, our industry needs a capital infusion of roughly $1 trillion in order to rebalance loans that are 'underwater' and to facilitate refinancing of mortgage loans coming due."

The percentage of survey respondents who said debt availability is "much better" today vs. one year ago shrank from 36 percent in Q3 to only 6 percent in the latest survey. There was a corresponding spike from 2 percent in Q3 to 26 percent in Q4 in the percentage of respondents who said debt availability today is "somewhat worse" than it was one year ago. Looking ahead, more respondents in the Q4 survey said they expect debt availability to be about the same or somewhat worse next fall.

The crisis in Europe has caused concern by respondents with many noting that debt financing has become harder to find with the onset of the European credit crisis.

Due to the slow down in the issuance of new collateralized mortgage backed securities, many respondents felt that "CMBS market is dead. They're still quoting, but they're 200 basis points wide of other options. Unless you desperately need to get a 65 percent loan to value, you're not going to take what they're offering."

While the CMBS market has slowed down in the city, commercial banks have been active in providing debt financing for major new construction projects in New York City. Also very active in providing financing this year are insurance companies led by Met Life, Prudential Mortgage Capital, Northwestern Mutual and New York Life as well as the Bank of China.

On the equity side, 77 percent of Q3 survey respondents said conditions "today" are at least somewhat better than one year ago. In the latest survey, only 40 percent of respondents characterized current conditions as "somewhat" as or "much" better than one year earlier. As for future conditions, 14 percent more Q4 survey respondents expect equity availability one year from now to be "about the same."

Although a majority of survey respondents said asset values had risen over the past year - particularly for top-quality assets in urban gateway markets almost half now expect pricing to remain flat in the coming year. Some say pricing has even softened for core assets in top markets, such as New York and Washington D.C.

Investment sales brokers have reported that prices for commercial office buildings have been reduced over the past ninety days due to the current economic climate. One prominent owner of office buildings, who preferred to remain anomalous, told me "We went to contract on a major purchase and dropped our prices by 15 percent due to the current economic climate.

The next Sentiment Survey report will be released in February 2012.

Free Taxi, Livery & Transit Rides this holiday season-available on New Years Eve

2011-12-24T14:28:00.002-05:00

Thousands of free taxi, livery cab and transit rides were distributed this holiday season as part of “You the Man” campaign, reminding New Yorkers to celebrate responsible and plan for a designated driver.

The NYC Department of Transportation working in partnership with Johnnie Walker is handling out 4,000 single ride Metro Cards and 1,500, $15 debit cards to use in the city’s taxicabs, participating livery car services, MTA, PATH, NJ Transit or other ticketing machines.

Free vouchers have been handled out throughout the holiday season and more free cards will be handed out on December 31st, New Year’s Eve at 5 P.M on the Upper East Side at Second Avenue and 86th Street and in Harlem at Broadway and 125th Street.

BuildingNY: Joseph Ficalora, chairman & pres., New York Community Bancorp

2011-12-23T09:25:00.000-05:00

His name is Joseph Ficalora. He is the President & CEO of New York Community Bank, the $41 billion bancorp. Gain insight on his life when he is interviewed by Michael Stoler on Building New York-New York Life Stories.

BuildingNY: Zane Tankel

2011-12-23T09:19:00.000-05:00

His name is Zane Tankel. He is one of the largest Applebee's owners in the world. He is the owner of the highest grossing Applebee's in Times Square. Gain insight on his life when he is profiled by Michael Stoler on Building New York-New York Life Stories.

Continued growth planned for NYC hospitality Industry

2011-12-21T07:11:00.001-05:00

NYC & New York City's official marketing, tourism and partnership organization reported that the end of 2011 brings to a close the most vibrant and active period in new hotel development the city has seen. Between January 2006 and December 2011, the city experienced the most rapid and successful hotel building boom on record. In the two decades proceeding this period, the average annual increase in net inventory was a mere 1.1%. The year over year net gains over the past few years were +2.7% (2008 vs. 2007), +5.8% (2009 vs. 2008), and +5.0% (2010 vs. 2009). In 2011, the net increase in room inventory averaged over 5%.

The research firm of PKF Hospitality Hotel Horizons reported that revenue per available room rate in the U.S. will increase by 8.1 percent in 2011, and rise another 6.2 percent in 2011.

The firm's optimistic outlook for lodging performance in 2012 is rooted in the economic forecasts of Moody's Analytics. John Corgel Senior Advisor to PKF-HR, said, "real personal income is projected to rise, and most important elements of the nation's Gross Domestic Product (consumer spending and business investment) are anticipated to grow. Most encouraging is the recent positive news regarding employment. A brightening of the employment scene supports the floor on our forecasts of hotel performance."

With the developments outlined in this report, the city is expected to reach almost 90,000 rooms in active inventory by the end of 2011, a 24% increase in accommodations since 2006. Through October 2011 the city's hotels averaged occupancy rates well above the national average and should finish the year with an annual occupancy rate of 85%. Room demand has remained extremely strong, averaging 2.2 million room nights sold per month.

A number of notable new and unique hotels opening in Manhattan, Brooklyn and Long Island City this year.

Brooklyn, the nation's fourth largest city welcomed the opening of a number of new hotels this year. On November 1st, the 64 room, Hotel Williamsburg, located at 160 North 12th Street welcomed its first visitors. In July, the borough welcomed its first Fairfield Inn & Suites New York Brooklyn, the 135 room property at 181 3rd Avenue. Last year, the first aloft Hotel opened in Harlem and this year, Downtown Brooklyn, welcomed the 176 room, aloft New York Brooklyn, at 216 Duffield Street. In May, the 48 room, Union Hotel, opened at 611 Degraw Street.

Major residential and commercial office developments are planned for the Hudson Yards and the High Line, which well the 56 room, Hotel Americano, at 518 West 27th Street in September. In June, Manhattan's second Dream hotel, the 316 room, hotel located in the former Covenant House opened at 346 West 17th Street.

Midtown Manhattan, welcome, the 116 room, Hyatt 48Lex, at 517 Lexington Avenue.

Times Square and 42nd Street, welcomed one of the largest new hotels, the 669 Yotel New York Times Square West, at 42nd Street and 10th Avenue.

Thousands of residential rental and condominium apartments are in various stages of development in Long Island City. This summer, the 100 room, Z NYC hotel, opened at 11-01 43rd Avenue and earlier in the year, the 91 room Four Points by Sheraton Long Island City at 27-05 39th Avenue.

In February, the 253 room, Mondrian Soho opened at 9 Crosby Street followed in June by the 55 room, The Nolitan at 30 Kenmare Street.

Before year-end, both the 463 room Conrad New York in Battery Park City and Manhattan's first TRYP New York City Times Square, located at 345 West 35th Street, between 8th and 9th Avenue (173 rooms) are opening.

The pipeline of new developments reports approximately 40 projects with openings slated for the next 30 months.

Currently on the horizon are new projects for Chelsea/Meatpacking District, Lower Manhattan, Madison Square Park, near the United Nations, and along the piers in Brooklyn. Included in this future we will be watching for Ian Schrager's return to NYC development with the Public Hotel. Additionally a number of projects that were put on hold during the downturn are being reactivated. The Starwood Capital Group LLC has taken over the development contract for a new hotel on West 53rd Street across from MoMA. A project to bring a Hampton Inn on Pearl Street in lower Manhattan has restarted and other mid-scale and upscale properties are being developed in mid-town. Marriott International also has a number of projects in development for late 2013. In additional to new buildings, the company is looking a landmark sites for the new Edition lifestyle brand.

Recent analyses by NYC & Company and STR highlight a key dynamic in the new development: the expansion of hotel properties throughout the five boroughs of the city. On average over the period 2006-2011, 42% of the new properties have been built in neighborhoods and business districts outside Manhattan; this represents approximately 7,200 additional hotel rooms in Queens, Brooklyn, the Bronx, and Staten Island.

The Stoler Report: What's Happening in New Jersey?

2011-12-20T17:06:00.000-05:00

This week on The Stoler Report, find out what is happening in the State of New Jersey. My guests include, Carl Goldberg, Roseland Property Company, Allen Goldman, SJP Residential, Michael Seeve, Mountain Development Corp and Emanuel Stern. The show airs on Tuesday at 11 PM, Wednesday at 8:30 AM, 2:30 PM & 10:30 PM, Friday at 5:30 AM, Saturday at 12 Midnight & Sunday at 10:30 AM on CUNY TV in New York City and on the Internet.

New York City remains in first place as most expensive parking district in North America

2011-12-20T07:11:00.000-05:00

It's official New York City continues to maintain its first place slot as the most expensive parking district in North America according to Colliers International recently released annual parking rate survey.

The five most expensive parking districts (as represented by median rates) in the United States ranks Midtown Manhattan in number one slot at $541, followed by Lower Manhattan at $533 per month. Boston ranked in third position at $438, with San Francisco at $375 and Chicago at $289 per month.

For unreserved monthly parking Midtown Manhattan ranked in number one position world wide with a monthly rate of $1,200.

Nationally, monthly parking rates decreased marginally during the past 12 months, dropping by $0.34 or 0.2 percent. The overall U.S. median parking rate now averages $155.22 per month.

While Midtown Manhattan ranks as number one for monthly parking rate, the big apple ranked in 16 position for the world's top monthly parking rate. London-City district continued to be the world's most expense monthly parking rate at $1,083.59, followed by London West End at $1,014.32. Zurich ranked in third position at $822.5, followed by Tokyo, at $744.72 and Rome at $718.90. Downtown Manhattan ranked in 16th position at $ 533 per month.

Nationally, the most expensive daily parking rate was for Midtown Manhattan at $72 with a highest hourly rate of $40. The Median daily parking rate for Midtown Manhattan registered $41 an increase of 2.5% from 2010. The charge of $40 per daily day was registered for the highest daily parking rate in Downtown Manhattan with the highest hourly rate of $27 and the median daily parking rate of $30, a decrease of 3.2 percent.

Manhattan Office leasing market continues to be strong in November

2011-12-19T07:08:00.000-05:00

Manhattan office leasing market recorded a strong 2.13 million square feet of leasing activity in November, with two of three markets topping their respective five year monthly averages, according to CB Richard Ellis. Year to date leasing through the end of November equaled 25.35 million square feet.

In Midtown, leasing activity reached 1.24 million square feet, with average asking rent rising to $61.77. Jones Lang LaSalle reported that Class A office vacancy decreased in November to 11.1 percent, marking the lowest point since 2008. Major leases in Midtown were Credit Agricole lease renewal at 1301 Avenue of the America for 350,000 square feet. Two major law firms signed leases in Midtown, which included Morgan Lewis renewed and expanded lease for 200,000 square feet at 101 Park Avenue. One of the largest new transactions was by the law firm of Baker & McKenzie for 105,000 square feet at 452 Fifth Avenue, the former headquarters of HSBC bank.

Class A average asking rents in Midtown increased to $70.36 per square foot. The Plaza District retains the title of the highest priced submarket in Manhattan with asking rents of $79.79 per square foot, up 17 percent from the market bottom in the first quarter of 2010.

Once again, leasing was robust in Midtown South with 620,000 square feet of leasing, which was the highest monthly total since November 2007, and was fully double the five year monthly leasing activity. The market's total leasing activity through the end of November was the highest year to date total since 2001.

Jones Lang LaSalle reported that Midtown South remains the tightest office market in the country with an overall vacancy rate of 6.8 percent from 6.4 percent in October. The spike in vacancy rate corresponded with a sharp increase in Class A asking rents from $47.07 to $58.97 per square foot.

CB Richard Ellis reported that leasing activity in Lower Manhattan dropped to 270,000 square feet, which lagged the five year monthly average of 340,000 square feet by 21%.

Jones Lang reported that vacancy rate finished at 9.9 percent with Class B vacancy rate increasing to 11.9 percent. This increase in the Class B vacancy rate was mostly due to a large block of space coming back to the market in the Financial District. Upcoming space dispositions at the World Financial Center are likely to push vacancy rates higher in late 2012.

In Downtown Manhattan, class A asking rents rose to $42.31 per square foot with Class B rents finishing at $36.22 per square foot.

BuildingNY: Laurence Gluck, Chairman & CEO, Stellar Management

2011-12-18T16:52:00.000-05:00

This week on Building New York-New York Life Stories, Michael Stoler profiles the life of Laurence Gluck, Chairman & CEO, Stellar Management. The show will air on Monday at 10:30 AM, 4:30 PM and 10:30 PM, Wed at 5:30 AM, Thursday at 11:30 PM, Saturday at 12 Noon & 12:30 AM and Sunday at 6 PM. The show airs in New York City on CUNY TV, channel 75

Downtown Brooklyn to welcome Chicken Wing Chain and Shake Shack this week

2011-12-18T16:45:00.002-05:00

Can you imagine, more than 3 billion chicken wings have been sold since 1994 by Wingstop, the national chicken wing chain. On Monday, December 19th, Wingstop will open its second location in New York City, it’s 500th restaurant across the country and in Mexico, at 289 Livingston Street in Downtown Brooklyn.

The Richardson Texas Company was founded in 1994 with a single location in Garland, Texas and began franchising in 1997. The company opened its first franchise in December 2009, at 31-14 Steinway Street in the Astoria, section of Queens.

On Tuesday, Danny Meyer’s Shake Shack will open its seventh location and its first location in Brooklyn, a few blocks from Wingstop at 409 Fulton Street, at the corner of Willoughby Street and Adams Street.

Last week, Brooklyn’s newest Five Guys Burgers and Fries, opened in Brooklyn. The Burger chain’s seventh location in Brooklyn at the corner of One Flatbush Avenue at the corner of Fulton Street.

Next year, Downtown Brooklyn will be home of Sugar and Plumm and American BBQ and Beer Company, at Muss Development site at 345 Adams Street, next to the New York Marriott Brooklyn Bridge and Morton’s steakhouse.

BuildingNY: David Burke, David Burke Companies

2011-12-18T10:46:00.000-05:00

His name is David Burke. He is a chef, restaurant operator and known as one of the nation's leading chefs. Gain insight on his life as he is profiled by Michael Stoler on Building New York-New York Life Stories

BuildingNY: Stephen Rosenberg, Chairman & CEO, Greystone & Co.

2011-12-18T10:45:00.000-05:00

His name is Stephen Rosenberg. He is the visionary leader behind Greystone. Gain insight on his life when he is interviewed by Michael Stoler on Building New York-New York Life Stories

BuildingNY: Steven Pozycki, SJP Properties

2011-12-16T17:22:00.000-05:00

His name is Steven J. Pozycki. He is the man responsible for 11 Times Square, and many projects in the State of New Jersey. Gain insight on his life when he is interviewed by Michael Stoler on Building New York-New York Life Stories.

BuildingNY: David Walentas

2011-12-16T17:21:00.000-05:00

His name is David Walentas, he is the visionary behind Dumbo. Gain insight on his life when he is profiled by Michael Stoler on Building New York-New York Life Stories.

Consulting firm survey predicts strong holiday shopping season

2011-12-16T07:04:00.000-05:00

In an independent survey commissioned this fall by Deloitte LLP, of 5,019 consumers revealed that the sluggish economy and rising household expenses are casting a chill over consumer confidence, but not enough to bring back the ghosts of recession according to the firms 26th annual survey of holiday spending intensions and trends.

While two-thirds (67 percent) of consumers expect the economy to stay the same or weaken next year, nearly three out of five (59 percent) will put aside economic worries and spend the same or more this holiday season.

Shoppers planning to spend less this year (42 percent) point to higher costs impacting their household budgets. Six out of 10 cite higher food prices (63 percent) and higher gas prices (60 percent) as reasons for spending less this year. Roughly half (49 percent) point to higher energy costs.

Alison Paulvice chairman and U.S. retail & distribution leader, Deloitte LLP. , said, "Lackluster employment growth, debt crises and stock market fluctuations have battered consumer confidence while inflation left many with lighter wallets this fall. Consumers will be conservative this holiday season, but remain resilient and maintain a more positive interest in holiday shopping than we witnessed during the recession."

With high prices leaving less in the household budget for other things, many consumers are re-evaluating gift-giving this year. Higher income households' gift spending will hold up while middle- and lower-income groups are paring back. Households earning $100,000 or more annually expect to trim a mere 2 percent off gift spending to shell out an average of $812 on gifts this holiday season compared with a 26 percent drop to $291 on gifts among those earning less than $100,000.

Consumers may make the gifts more personal as more shoppers skip gift cards and cash this year. Consumers planning to purchase gift cards (45 percent) fell 11 percentage points to unseat this category's seven-year reign at No.1 and elevate clothing (48 percent) to the top spot. The number who plan to hand out cash slid 7 percentage points to just one-quarter (25 percent) of respondents.

Deal-seekers are increasingly using online channels to get the most value. Nearly seven out of 10 (68 percent) of consumers plan to change the way they shop to save money, and more than half in this group (51 percent) will head online to find better prices. This represents a 10 percentage point jump from last year, while 46 percent plan to buy more items that qualify for free shipping.

Among shopping destinations, the Internet jumped 13 percentage points to join discount stores at the top of the list with nearly half (48 percent) of consumers planning to shop these two destinations for holiday gifts. While online interest climbed, discounters slid 10 percentage points from the 2010 survey.

More than half of consumers (53 percent) plan to begin shopping before Thanksgiving, but nearly three quarters (73 percent) intend to hold out until after this holiday to make the majority of their purchases.

Gen Y consumers are most likely to embrace the Black Friday tradition as more than four out of 10 (42 percent) 18-24 year old respondents plan to shop that day compared to an average of 24 percent among those age 25 and older. Nearly the same amount (37 percent) intends to partake in Cyber Monday shopping, compared with just 20 percent among those in older age groups.

Time to refinance your residential mortgage-with rates near all time lows

2011-12-15T16:19:00.002-05:00

There is no better time than now to refinance a residential mortgage with fixed mortgage rates dropping once again to record lows.

The average rate on the 30 year fixed mortgage fell to 3.94%, matching the all time low hit in early October, according to Freddie Mac’s weekly mortgage rate survey. This week rate is nearly one percent lower than last year when the rate was 4.83%. The Government Sponsored Enterprise, said that the 30 year, fixed rate mortgage is now in line with April, 1971 levels. Meanwhile, the 15 year fixed rate loans hit a new record low of 3.21%, surpassing the record set on October 6.

If you in the market for a five year adjustable rate mortgages, it plumbed hitting, 2.86% for the week down from 3.77% a year ago.

The one year adjustable rate mortgage fell back to January 1984 levels, with the rate hitting 2.81% as compared to 3.35% a year earlier.

Homebuyers can receive up to $80,000 in purchase assistance-a new opportunity for sustainable homeownership

2011-12-15T15:14:00.002-05:00

New York City residents have the opportunity through the NSP2 Buyer Assistance Program to help new homebuyers purchase 1 to 4 family homes and condominiums in selected areas of Brooklyn, Queens, and Staten Island.

Neighborhoods in certain areas of Brooklyn which include Bedford Stuyvesant, North Crown Heights/Prospect; Brownsville/Ocean Hill; Bushwick; and East New York/Starrett City. In Queens, the neighborhoods include: Kew Gardens/Woodhaven; Howard Beach/South Ozone Park; Jamaica; Bellerose/Rosedale; Jackson Heights; Elmhurst/Corona; and Rockaway. In Staten Island, the neighborhoods include: Saint George; Stapleton; Fox Hills; New Brighton; West Brighton; Port Richmond; Mariner's Harbor and Arlington.

Forgivable no interest loans of up to $80,000 will reduce the purchase price for Bank Owned, Short Sales or Vacant qualified properties. The goal of the program is to bring empty houses back to life through sustainable homeownership. One to four unit homes and condominium apartments qualify. A storefront with residential apartments above can qualify if buyer lives in the building and the total units are 4 or less. A home or residential property must been in foreclosure or vacant to qualify.

Families with household incomes with certain limits can qualify for this program with households ranging in size from one to eight persons. Household income limits are based upon the size of the households with a household of two can earn a minimum income of $45,850 and a maximum income of $78,600.

Owner occupancy is required and resale restrictions apply. To ensure long term stability and affordability, the program requires the buyer to occupy the home for 15 years, depending on the size of the forgivable loan.

Homes with 2 to 4 units have rental unit restrictions that will keep the apartments affordable to other working families. If one uses the program to purchase a 2 to 4 unit building, you must keep the residential rental units affordable over the required owner-occupancy period of 15 years.

NSP2 lenders in the program include Astoria Federal Savings & Loan Association, Bank of America, Capital One, Citibank, HSBC Bank, JP Morgan Chase and M & T Bank.

The program is administered by The New York Mortgage Coalition (NYMC) in partnership with Neighborhood Housing Services of New York City, New York City Department of Housing Preservation and Development and ten community based homeownership counseling agencies. The NYMC is a nonprofit collaboration of financial institutions and community housing agencies dedicated to helping low to moderate income families in New York, Long Island and Westchester County achieve the dream of responsible homeownership.

For information about the program visit the website at www.nymc.org/nsp2 or call (347) 479-1433.

Bank of China may rank as number one lender for Class A office properties in 2011

2011-12-15T15:08:00.002-05:00

If you would have asked real estate leaders at the beginning of the year, who they expected to provide a significant share of financing in 2011, many might have ranked institutional lenders in number one position.

The year started off strong for the Wall Street collateralized mortgage backed securities lenders (CMBS) providing much need financing for commercial real estate. Based upon the magnitude of financing during the first part of the year, most industry leaders expected these lenders would have provided more than $50 billion in financing.

Economy turmoil, troubles in Europe and Asia, down-grading by rating agencies as well as the state of the marketplace changed CMBS Lending 2.0 with a departure of many of the lenders in this marketplace.

To meet the demands of borrowers, a number of the major money center lenders which include Bank of America Merrill Lynch, J P Morgan Chase, Wells Fargo, US Bank and Deutsche Bank continue to provide financing for construction and class A office properties.

Yet, perhaps one of the most active lenders providing financing for New York City trophy assets is the Bank of China Limited. In the fall, the bank has provided close to $750 million in financing for two office buildings in Manhattan.

In September, the bank provided a $400 million first mortgage to a joint venture of J. P. Morgan Investment Management and L & L Holdings, for the 852,000 square foot International Toy Center at 200 Fifth Avenue, between West 23rd and West 24th Street. The seven year loan with an initial interest rate of 3.6 percent, allows the borrowers to extend the loan for a three year extension.

In November, the bank provided a $344.2 million, five year, $280 million first mortgage to a joint venture of SL Green Realty Corp. and The Moinian Group for the 1.1 million square foot, Class A, fully leased office tower at 180 Maiden Lane. The 41 story tower, constructed in 1984 is the corporate headquarters of American International Group and its Chartis Insurance subsidiary, as well as the law firm of Stroock Stroock & Lavan.

The Bank of China has been quite active in lending to SL Green Realty Corp. In April, Bank of China provided SL Green and The Moinian Group, a $250 million, five year loan on the newly renovated 3 Columbus Circle, the 26 story , 700,000 square foot, office building located at the corner of West 57th Street and Broadway and Eighth Avenue.

In January, 2010, a syndicate of banks lend by the Bank of China that included DekaBank and Landesbank Baden-Wurtenberg, provided SL Green and its joint venture partner, SITQ, a subsidiary of the Caisse de depot et placement du Quebec, a $475 million, five year, floating rate loan to refinance the former $625 million loan for the office building at 1515 Broadway, the home to Viacom International.

Late last year, Bank of China provided Brookfield Office Properties an $800 million loan to refinance, the 44 story, 1.8 million square foot office building at 245 Park Avenue, the home of J.P. Morgan Chase & Co and Major League Baseball.

The Bank of China entry into financing New York City trophy properties dates back to 2009, when it provided a $120 million loan to W. P. Carey & Co, for the 750,000 square foot office condominium component leased to the New York Times at their tower at 620 Eighth Avenue.

Discounts to people 60 and older aids to increase retailers sales

2011-12-13T11:05:00.000-05:00

As our baby boomers reach 60 years of age or retirement, many of the nation's retailers are featured new and improved discounts for this group of consumers.

The web site bradsdeals.com reports that more than one hundred nation organizations are offering discounts ranging from 5% to 35% regular prices.

Consumers have an opportunity to save while they dinning at Applebee's, Ben & Jerry's, Bennigan's, Boston Market, Burger King, Chili's, IHOP, Subway and Waffle House.

If you are interested in a cup of "java" or a donut, all you have to do is to visit, Burger King, Dunkin' Donut, Einstein Bagels, McDonald's or Krispy Kreme.

On certain days of the week discounts are offered for clothing purchases at Banana Republic, Bon Ton and Kohl's Department stores, Modell's Sporting Goods. You can even save if you purchase at the thrift shops of Goodwill Industries and the Salvation Army.

Rite Aid offers 10% on Tuesdays on all purchases and 10% off for prescriptions.

Local supermarkets which include Gristedes and Morton Williams offer 5 to 10 percent off for purchases made on Tuesdays.

If you want to travel by automobile nearly every national automobile rental chain is offering discounts ranging from 10 to 30 percent off. Discounts are offered for travel on Amtrak, and you can save if you take the bus and travel on Greyhound or Trailways.

A number of airlines are offering discounts if you are over 65 years of age for travelers on Alaska, American, Southwest, United and U.S. Airways.

Hotels all over the country are catering to the baby boomers offering savings of 10 to 20 percent for rooms at Best Western, Cambria and Comfort Suites, Econo Lodge, Hampton Inns & Suites, Holiday Inn, Hyatt and Intercontinental Hotels, Quality, Rodeway and Sleep Inns.

Movie chains which include AMC Theaters and Regal offer a savings of up to 30% off the price of a ticket. Even trips to U.S. National Parks and SeaWorld are offering savings to these consumers.

To keep this generation in good shape, Bally Total Fitness offers discounts of up to $100 off for memberships.

Even the cell phone operators which include AT & T and Verizon provide small discounts for consumers.

One can save a couple of dollars on a hair cut at Great Clips or Super Cuts.

Since many of these senior discounts are not advertised to the public, is to always ask a sales associate if that store provides a senior discount.

These savings help the consumer and have been an attractive way to increase sales by local and national retailers.

The Stoler Report: What's Happening on Long Island?

2011-12-12T13:58:00.000-05:00

This week on The Stoler Report, find out what is happening in Long Island. Hear from four prominent real estate leaders provide their insight on the state of the real estate market in Long Island. The show debuts on Tuesday at 11 PM, Wednesday at 8:30 AM, 2:30 PM and 10:30 PM, Friday at 5:30 AM, Saturday at 12 Midnight and Sunday at 10:30 AM. My guests include: John T. Adams, Michael Puntillo, Jr., David Scro and Jim Coughlan.

Enter the lottery for an affordable one bedroom cooperative in Brooklyn

2011-12-12T11:04:00.000-05:00

This holiday season, a total of 350 households of one to 2 persons have the opportunity to submit an application for the placement on the waiting list for a one-bedroom apartment at the Amalgamated Warbasse Houses.

The Amalgamated Warbasse Houses, Inc., is a Mitchell Lama Limited Profit Cooperative Housing Development supervised by the New York State Homes and Community Renewal. The Amalgamated Warbasse Houses is a development of five apartment buildings each with a total of 517 apartments. The complex is located in the Gravesend, Coney Island, Brighton Beach section of Brooklyn.

The first residents moved into the complex on July 14, 1964, by February 1965, a total of 2,585 families had moved into the complex. The complex includes outside parking for 1215 cars, a shopping center including a supermarket, pharmacy, bank and bakery. An elementary school, P.S. 303 was built by the city to accommodate the influx of children in the area.

Applicants will be selected by lottery for the purchase of a limited equity cooperative apartment. The purchase price, monthly carrying charges (rent) and maximum income limits after allowable deductions vary by apartment type and location and range. The one-bedroom apartments are available to households of one to two persons, with purchase price from $20, 633 to $30,950. The monthly carrying charges range from $574.94 to $918.54.

The maximum annual household income can range from $59,481 to $107,356.

If a household is selected by the lottery, preference for admission will be given to qualified veterans, to their spouses who served during time of war and reside in New York State.

Applicants will be required to demonstrate sufficient income and assets to pay equity and carrying charges. The head of household must be at least 18 years of age.
To request a lottery application and instructions, an applicant must send for an application to Election Services Corp, P.O. Box 209, Garden City, New York.

BuildingNY: Thomas Elghanayan, Chairman TF Cornerstone

2011-12-12T09:29:00.000-05:00

This week on Building New York-New York Life Stories, Michael Stoler profiles the life of Thomas Elghanayan, Chairman of TF Cornerstone. The show airs on Monday at 10:30 AM, 4:30 PM and 10:30 PM, Wed at 5:30 AM, Thursday at 11:30 PM, Saturday at 12 Noon & 12:30 AM and Sunday at 6 PM on CUNY TV and the Internet

BuildingNY: Dr. Herbert Pardes, President & CEO, Columbia Presbyterian H...

2011-12-09T17:22:00.000-05:00

His name is Dr. Herbert Pardes. He is the visionary former president & ceo of New York Presbyterian Health System. Gain insight on his life when he is interviewed by Michael Stoler on Building New York-New York Life Stories.

Federal Reserve latest Beige Book reveals economic activity increased at a slow to moderate pace.

2011-12-09T11:04:00.000-05:00

On November 30th, the Federal Reserve released its latest Beige Book, or its formal title "Summary of Commentary on Current Economic Conditions by the Federal Reserve, a snapshot of business conditions in each of the Federal Reserve's 12 regional banks.

The idea of the report is to detect trends in consumer spending, manufacturing and real estate, among other areas.

For the nation, overall economic activity increased at a slow to moderate pace since the previous report across all Federal Reserve Districts except St. Louis, which reported a decline in economic activity. Business service activity was flat to higher since the previous report. Overall bank lending increased slightly since the previous report, and home refinancing grew at a more rapid pace. Changes in credit standards and credit quality varied across Districts. Residential real estate activity generally remained sluggish, and commercial real estate activity remained lackluster across most of the nation. Single family home construction was weak and commercial construction was slow.

Consumer Spending and Tourism

District reports indicated that consumer spending increased modestly, on balance, during the reporting period.

Tourism showed signs of strength. New York and Atlanta described tourism as robust and strong. Strength in hotel bookings and occupancy were noted in Boston, New York, Richmond, Atlanta, Minneapolis, and San Francisco.

Banking and Finance

Overall bank lending activity increased slightly since the previous report. New York, reported increased loan demand.

In New York, bankers reported declining delinquency rates for commercial and industrial loans, but no change in delinquencies for other loan categories.

Real Estate and Construction

Overall residential real estate activity increased, but conditions were varied across Districts.

New York, Boston, Cleveland, and San Francisco reported flat activity at relatively low levels.

Single-family home construction remained weak, while multifamily construction picked up in New York, Philadelphia, Cleveland, Chicago, and Minneapolis. San Francisco remained "anemic," while St. Louis and Kansas City reported decreased activity.

Commercial real estate markets remained sluggish across most of the nation. Boston, New York, Chicago, Minneapolis, and San Francisco indicated roughly unchanged activity. Commercial construction was somewhat mixed. New York and Philadelphia noted generally weak conditions.

Summary of the findings for the Second District-New York Region

The report for the Second District of the Federal Reserve which includes New York region, reported that District's economy has continued to grow slowly since the last report, while the labor market has generally been stable. Consumer spending has continued to expand at a moderate pace: auto dealers report that sales were steady to stronger in October, non-auto retail contacts report that sales have been on or ahead of plan, and tourism activity has been generally robust.

Home sales and prices have generally held steady since the last report, though rental markets continued to strengthen.

Commercial real estate markets have shown slight signs of softening. New York City financial firms continue to face adverse business conditions and have announced impending layoffs.

Finally, bankers report a pickup in demand for commercial mortgage loans, continued tightening in credit standards, and lower delinquency rates on commercial and industrial loans.

Consumer Spending

Non-auto retailers report that same store sales were mostly on or ahead of plan in October and the first half of November but little changed from a year earlier.

Consumer confidence has weakened noticeably since the last report. Both Siena College's October survey of New York State residents and the Conference Board's survey covering the Middle Atlantic states (NY, NJ, PA) show consumer confidence falling to its lowest level in more than a year.

Tourism activity has been generally robust since the last report. Albany-area hotels report strong improvement in occupancy rates in September.

New York City hotels report that occupancy rates were steady at about 90 percent in September and October--up modestly from 2010 levels; room rates were up roughly 4 percent from a year earlier in October and total revenues were up about 6 percent.

Hospitality market continues to be very strong in New York City with thousands of new rooms reaching the market in 2011. Approximately 90,000 hotel rooms are now available in the five boroughs of the City. Room rates are up significantly in Manhattan, and prices for rooms in Downtown Brooklyn and Long Island City have improved. New hotels have opened in the fall in Downtown Brooklyn and Long Island City with average daily rate twenty percent higher than twelve months ago. A number of new hotels are in various stages of construction especially in Midtown and Times Square area as well as in Downtown Brooklyn. Hotel operators are cautiously optimistic about the winter season a time when rates normally decline after the holidays. Hospitality market may be impacted by the economic crisis in Europe resulting a decline in occupancy and daily rate this winter.

However, Broadway theaters report that attendance fell 5-10 percent below year ago levels in October and early November--in part reflecting fewer shows open this year. Still, total revenues have continued to run ahead of 2010 levels, reflecting double-digit percentage increases in revenues per show.

While the report indicates that Broadway theaters reported decline, in my discussions with operators of theaters as well as restaurant owners in the theater district, reports an uptick in volume. Prices for limited run productions which include Hugh Jackman and Patti Lupone and Mandy Patinkin are sold out at record pricing.

Construction and Real Estate

Residential real estate markets have been stable, on balance, since the last report, while home construction activity remains low--particularly for single-family homes. Few new for sale homes are under construction in New Jersey with the exception of Morristown and in Jersey City, where sales remain active.

New York City's rental market continues to strengthen: asking rents remained on an upward trend up in October and were up 5 to 10 percent from comparable 2010 levels. The rental market in New York City is reaching record rents especially in certain neighborhoods of Manhattan, and the Williamsburg and Downtown sections of Brooklyn. Rents have reached close to $90 per square foot for apartment rents in trendy sections of the City. Tenants are now paying brokerage commissions and limited concessions are offered by developers of newly built apartment buildings. Rents in Long Island City have increased by ten to fifteen percent from a year ago.

Co-op and condo prices in Manhattan and Brooklyn were mostly steady since the last report, while transactions activity dipped in October but turned up in early November. Condo prices for luxury apartments are reaching record levels. Sales are active for apartments on the Upper West Side of Manhattan, meat packing district and Tribeca. Sales are strong in the Williamsburg section of Brooklyn.

In northern New Jersey, home prices are reported to be down modestly, hampered by a glut of distressed properties; while fewer home mortgages are moving into delinquency status recently, there remains a large overhang of distressed properties.

New home construction remains at a low level, with multi-family rental buildings accounting for most new development--in both New York City and northern New Jersey.

Commercial real estate markets have been steady to slightly weaker since the last report. Office vacancy rates in both midtown and downtown Manhattan ticked up in October; the average asking rent continued to climb, but this is attributed to the fact that much of the space recently coming on the market is in high-priced buildings.

A number of major office leases were signed during the month of October in Midtown and the World Financial Center.

For the week ending November 30th, 2011, the Mortgage Bankers Association reported that mortgage applications fell 11.7 percent for the week as demand for refinanced loans cooled across the country. The steep drop is tied to a 15.3 percent decline in the refinancing index. Refinancing is now making up 73.9 percent of all loan applications.

Rates for residential mortgage rates continue to be record levels with the average rate for a 30 year, fixed rate mortgage valued at $417,500 or less fell to 4.21 percent. In addition, the average contract interest rate for a 30 year, fixed rate mortgage jumbo loan declined to 4.55 percent.

The 30 year, fixed rate mortgage backed by FHA decline to 4 percent, and the average 15 year fixed rate mortgage remained unchanged at 3.58 percent.

In addition, the average contract interest rate for a five year adjustable rate mortgage fell to 2.98 percent.

Other Business Activity

According to an industry contact, financial sector conditions remain adverse, with several thousand layoffs reportedly in the pipeline in the New York City area. This contact notes that regulatory uncertainty is hampering planning and causing shifts in resources among areas. While securities firms are reducing headcounts overall, they are still hiring in the legal and compliance areas. A major New York City employment agency reports that the job market has held steady since the last report with hiring activity described as moderate in October. Starting salaries have remained stable over the past year.

Both manufacturers and service-sector firms continue to report stable employment levels but indicate plans to increase headcounts, on balance, over the next six months.

Non-manufacturing contacts are also increasingly optimistic about the near-term outlook, though less so than manufacturers.

Financial Developments

Small to medium-sized banks in the District report increased demand for commercial mortgages but no change in demand in other loan categories. Bankers also reported an increase in the demand for refinancing. Respondents report tightening credit standards in all categories except residential mortgages, for which they indicate no change.

Tightening of standards was most prevalent for commercial mortgages. Contacts report decreases in spreads of loan rates over costs of funds for all loan categories. Respondents also indicate widespread decreases in average deposit rates. Bankers report declining delinquency rates for commercial and industrial loans, but no change in delinquencies for the other loan categories.

Smaller scale "casino" boutiques will aid in the growth of Atlantic City

2011-12-07T12:41:00.000-05:00

Competition in Pennsylvania, coupled with the growth of casinos at racetrack's commonly known as racino in the tri-state region has had a significant impact on the gaming industry in Atlantic City.

The State of New Jersey has passed legislation to help hoteliers compete and grow in these difficult times. The first national hotel chain and casino operator to take advantage of the legislation is the world renowned Hard Rock Hotels & Casino's.

Last month, Hard Rock International announced that the company plans to start construction next July on the first phase of its entrance to the Atlantic City with a grand opening in spring 2014.

The New Jersey Casino Control Commission boosted the project by approving the Hard Rock for the pilot project that allows development of two new smaller-scale casinos on the Boardwalk. The Hard Rock's project is the first of the so called "boutique" casinos permitted by the new state law.

Press of Atlantic City reported that the hotel chain would start by building a 200 room casino hotel in the first phase. The second phase of the project would add a 650 room tower.

Hard Rock, which is owned by Florida's Seminole Indian tribe, is teaming up with New York based Och-Ziff Capital Management Group to develop the project. Hard Rock will design, build and operate the casino, while Och-Ziff is expected to finance the project.

The pilot project of building a smaller-scale casino is intended to make it easier for hoteliers to develop and operate a hotel in Atlantic City. The program was approved by the State legislature and signed into law this year by Governor Christi. The idea is to lower the cost of entry into the market by allowing developers to build smaller, less expensive casinos. Previously, the minimum threshold for casino construction in Atlantic City was 500 hotel rooms

The Stoler Report: The Office Market in the Region

2011-12-06T17:29:00.000-05:00

This week on The Stoler Report hear from four prominent real estate leaders provide their insight on the state of the office market. My guests include Leslie Himmel, Jason Muss, Bruce Mosler and Norman Sturner. The shows on Tuesday at 11 PM, Wednesday at 8:30 AM, 2:30 PM and 10:30 PM, Friday at 5:30 AM, Saturday at 12 Midnight and Sunday at 10:30 PM. The show is also available on the Internet at Stoler Report, CUNY.TV and other sites.

Retail growing by leaps and bounds at nation's airports

2011-12-06T09:40:00.001-05:00

Airports around the nation have become popular locations for specialty retailing. The high traffic and a captive audience who are now spending in certain cases one to two hours due to security, aiding to spur significant retail sales.

In the city of Brotherly love, Philadelphia, a visitor can at Minute Suites, just one of the latest 165 retail offerings at the Philadelphia International Airport.

Philadelphia is only the second airport to attract a Minute Suites "Transit" hotel, concept that became popular debuting at Atlanta's airport. Minute Suites in Philadelphia opened last March with offering 13 private suites and two workstation cubicles. The Philadelphia location is nearly three times larger than Atlanta location where they have hosted over 10,000 guests since opening their doors on November 18, 2009.

The Philadelphia location is staffed by students from Temple University's School of Tourism and Hospitality Management.

The 7 by 8 foot cubicles have a daybed sofa, a television, a workstation, sound suppression systems, temperature controls, and a free Internet. The rate is $30 for the first hour and $7.50 for each additional 15 minutes, with discounted rates after hours and a flat $120 overnight.

Marketplace Development is the company responsible for the planning, development and management of retail development at airports across the country. Marketplace is responsible for the 142,000 square feet of retail development at Philadelphia International Airport and the 46,000 square feet of retail development of the Central Terminal Building at LaGuardia Airport. A total of 48 retail and news/gift shops such name brands as Brookstone and Sunglass Hut the Metropolitan Museum of Art and Discover New York. The terminal also features more than 29 restaurants and eateries including Figs Restaurant and Figs Café by celebrity chef Todd English.

One of the largest retail shop centers at Kennedy Airport. Within Terminal 4, visitors to the airport are offered the opportunity of shopping prior to visiting security. The terminal is composed of Arrivals, and a retail hall, as well as shopping within concourses A & B.

In addition to the standard fast food and newsstands, Terminal 4 a Dry Cleaner, the Exclusive shop which features Hermes Ferragamo and Zegna; Bluwire Electronics, a Seafood Bar, the famed "Palm Bar & Grille", Victoria's Secret, Metropolitan Museum of Art Store and XpresSpa.

The Westfield Group, one of the largest retail property groups in the world by equity and market capitalization with over 124 shopping centers around the world, manages retail concessions as some of the country's busiest airports.

The Westfield Concession management operates the concession of retail at Terminal 8 in JFK International, as well as the retail in Newark Liberty International Airport.

Terminal 8 is the home of American Airlines where visitors can shop at Metropolitan Museum of Art, Bobby Van's Steakhouse & Grill, Swatch, Tumi/Knot Shop/ Naturally Cashmere.

Newark International is the home of coffee bars to massage bars, dozen of shops, restaurants and other services. Specialty retailers at Terminal C include Balducci's, Gallagher's Steakhouse, Brookstone, Coach, Johnston & Murphy, Lacoste, and an Interfaith Chapel.

Perhaps one of the most well know retail centers at airports is the Las Vegas' McCarran International Airport which has more than 50 retail hops and nearly 30 restaurants, lounges and snack bars, plus gift shops from major hotel/casinos which include Bellagio. Circus Circus, Excalibur, Luxury, Mandalay Bay, MGM, Mirage, Monte Carlo, New York, New York , a children's play area, fitness center, pet relief areas and more than 1,200 slot machines. Retailers include Bose, Brookstone, Harley-Davidson,

NAR issues five-point plan for housing

2011-12-05T12:42:00.002-05:00

The national housing market continues to be in trouble. Last month the National Association of Realtors coordinated a meeting with two of the nation's respected think tanks, the Progressive Policy Institute and the Economic Policies for 21st Century to create list of actions items intended to stimulate growth of in the housing industry.

The outcome of the meeting was a five-point recommendation sent to letter to President Obama, Federal Reserve Chief Bernanke and Congress.

Recommendation 1: Do Not Risk Weakening Our Nation's Housing Markets Any Further.

* Re-craft the Qualified Residential Mortgage rule. Act to include a wide variety of traditionally safe, well-documented and properly underwritten products.

Revisions recommended by the Dodd-Frank Act would require a 20 percent down payment with stringent debt to income ratios that would prevent many from owning homes.

* Restore higher loan limits.

The lower loan limits implemented in September in 669 counties and 42 states, caused sellers to have to lower their prices where FHA, Freddie Mac and Fannie Mae loans are no longer available. This, of course, hurts the housing market further.

* Resist proposals that call for changing the tax rules that apply to home ownership now or in the future.

Losing the mortgage interest deduction would not help stimulate housing growth.

Recommendation 2: Restore Vitality to Our Communities and Neighborhoods by Reducing the Foreclosure Inventory:

* Support S170, The Helping Responsible Homeowners Act.

This act would remove refinancing limits for underwater homeowners who have been paying on time and eliminate risk-based financing fees charged by Fannie Mae and Freddie Mac.

* Support improvements to the Home Affordable Refinance Program and provide refinancing opportunities to at risk borrowers as an alternative to defaulting on their loans.

Recommendation 3: Open Opportunities for Private Capital to Return to the Mortgage Marketplace to Foster New Demand among Responsible Homebuyers.

* Open up the FHA Section 203k rehabilitation loan program to investors to encourage purchases of foreclosed properties.

* Require Government Sponsored Enterprises (Freddie and Fannie) to suspend investor financing limitations, especially the limit on the number of mortgage loans for any one investor/borrower.

Recommendation 4: Support a Secondary Mortgage Market Model that Includes Some Level of Government Participation.

* Reject proposals that call for full privatization of Fannie Mae and Freddie Mac.

Recommendation 5: We call on the White House to Hold a National Housing Summit to Articulate a New National Housing Policy and Move the Provision of Housing to the Front of the Nation's Domestic Agenda.

"In conclusion, we emphasize again the recovery of the broader economy depends on housing. The last two and a half years have shown that, with housing prices bumping along the bottom, a robust economic recovery will remain exceedingly difficult. The National Association of Realtors stands ready to work with Congress and the Administration to move this 5-point plan to help restore housing and grow our economy."

Forget the uncertainty in the stock market, retail continues to be solid in Manhattan

2011-12-05T12:40:00.000-05:00

The economy uncertainty coupled with the shaky stock market and troubles in Europe seems to have had limited affect on Manhattan's retail rents.

According to the Real Estate Board of New York's (REBNY) Fall Retail Report, tourist activity has aided Fifth Avenue registering the greatest increases in asking rents and demand. Traditionally, Fifth Avenue between 49th and 59th streets has seen a 17 percent increase in the asking rents to $2,633 per square foot since spring 2011 and an 11 percent increase since the fall of 2010.

Due to the high level of interest in this corridor, the adjoining corridor of Fifth Avenue between 42nd and 49th streets, which in the past has had significantly lower rental rates has seen substantial increase form the spillover demand with a 31 percent uptick to $675 per square foot since Spring 2011 and a 35 percent increase since the same time last year, due in part to the addition of major international retailers such as Swatch, Michael Kors and Dolce & Gabbana.

Last month, another major retailer signed a lease for space on the Northeast corner of 48th Street. Ted Baker will be opening its flagship store at 595 Fifth Avenue, occupying the basement through the fifth floor of the building totaling approximately 12,000 square feet. The retailer will replace Sprint, the previous tenant, which occupied the ground floor.

Herald Square and the Flatiron District has also registered rent increases of 15 percent and nine percent, respectively since Fall 2010.

Not all areas in the city witnessed the type of volatility in asking rents as the international shopping destinations of the Fifth Avenue corridors and Times Square where supply is short, demand is high and one opening can drastically change the corridors average asking rents. Third Avenue between 60th and 72nd Street and 5th Avenue in the Flatiron Districts are two larger corridors where a steady supply of space leads to stable rents. Average asking rents this fall on Third Avenue between 60th and 72nd streets are up 4 percent from last fall to $255 dollars per square foot but down 5 percent from last fall. Average asking rents on Fifth Avenue in the Flatiron District are up 1 percent from the spring to $279 per square foot and 9 percent from the Fall of 2010.

The east 86th Street corridor has seen a renaissance with the arrival of Fairway supermarket in the former home of Barnes and Noble between second and third avenue, driving demand with a significant increase of 36 percent in asking rents since Fall 2010 and 20 percent since the Spring of 2011.

On the West Side of Manhattan, the Columbus Avenue corridor from 66th to 79th streets, the new home of Century 21 in the former home of Barnes & Noble on Broadway and Columbus and 66th street, where very limited retail space was available, saw a two percent drop in asking rents since Spring 2011 because most of the prime locations have been taken.

The average asking rent for all available space in Manhattan has declined. The average Manhattan asking rent for all space is $112; down three percent since Spring 2011 and five percent since Fall 2010.

While rents are rising in key shopping locations in Manhattan, rents have had minor adjustments in certain neighborhoods.

In the West Village, in the Bleecker Street corridor from 7th Avenue to Hudson Street, asking rents went down 24 percent both year on year and since last spring.

In Harlem, in the 125th Street from River to River corridor, asking rents increased three percent since Spring 2011 and 10 percent since Fall 2010.

In SoHo, on Broadway from Houston to Broome streets, asking rents increased two percent since the spring but decrease four percent since last year.

BuildingNY: Bruce Slovin, Chairman, 1 Eleven Associates LLC

2011-12-05T08:57:00.000-05:00

This week on Building New York-New York Life Stories, Michael Stoler, profiles the life of Bruce Slovin, chairman & ceo, 1 Eleven Associates, and the visionary behind the Center for Jewish History, former president of McAndrews & Forbes and Revlon. The show airs on Monday at 10:30 AM, 4:30PM & 10:30 PM, Wed at 5:30 AM, Thursday at 11:30PM, Sat at 12 Noon & 12:30 AM & Sunday at 6 PM. Airing in New York City on CUNY TV and on the Internet

The Stoler Report: What's Happening in the Hospitality Industry?

2011-11-30T09:00:00.000-05:00

The hospitality industry is hot in New York City. This week on The Stoler Report hear from four prominent real estate leaders provide their insight on the state of the hospitality market. My guests include Jason Lipiec, Hung Luk, Jim Erlacher and Will Obeid. The show airs on Wednesday at 8:30 AM, 2:30 PM and 10:30 PM, Friday at 5:30 AM, Saturday at 12 Midnight & Sunday at 10:30 AM on CUNY TV, Channel 75 in New York City and on the Internet

A unique approach for veterans housing on Long Island

2011-11-30T03:06:00.000-05:00

The Metropolitan New York market has thousands of U.S. military veterans. A newly incorporated company Veritas Villages of America has the option to purchase undeveloped land in Smithtown, Long Island where they plan to construct 560 affordable condos, apartments and townhouses made from modular homes for sale and for rent by U.S. military veterans and their families. The land is located at Old Northport Road and Lawrence Avenue. The development will have amenities and clubhouses and may also include a Fisher House, a home away from home for military families to be close to a loved one during hospitalization for an illness, disease or injury. The site in Smithtown is only a few miles from the VA Hospital in Northport, New York.

The projected price will range from $148,500 to $343,500 for the units ; which are listed on the website at www.veritasvillage.com

Type of Unit Cost Sq. Ft Total Units

Studios $148,500 500-600 25
1 Bedroom $233,500 1,000 25
2 Bedroom $298,500 1,350 75
3 Bedroom $343,500 1,750 75
Townhouses $285,000 1,000 360

While the concept and approach is wonderful for the veterans and the community, the company has two hurdles. In order to move ahead the newly formed company is seeking a capitalization of 100,000 shares at a price of $10 per share, or $1,000,000. Long Island Business News reports "that the key to the profitability of the development will be the company's ability to win federal grants for providing veteran housing and to qualify for the HUD-VASH housing voucher program.

The Department of Housing and Urban Development and the Department of Veterans Affairs Supported Housing (HUD-VASH) Program, through a cooperative partnership, provides long-term case management, supportive services and permanent housing support.

Eligible homeless Veterans receive VA provided case management and supportive services to support stability and recovery from physical and mental health, substance use, and functional concerns contributing to or resulting from of homelessness.

HUD provides 20,000 "Housing Choice" Section 8 vouchers designated for HUD-VASH to participating Public Housing Authorities to assist with rent payment. The program goals include promoting maximal Veteran recovery and independence to sustain permanent housing in the community for the Veteran and the Veteran's family.

This program was designed to address the needs of the most vulnerable homeless Veterans. To be eligible for this program, Veterans must be VA Health Care eligible, homeless and need and participate in case management services in order to obtain and sustain permanent independent community housing.

governance, reporting and controls for private equity real estate. What was previously an immature industry is starting to take on an increased element of operational maturity and is benefitting from better deployment of technology solutions."

Great time to capitalize on distressed deal opportunities

2011-11-29T03:05:00.000-05:00

With more and more real estate mortgage loans maturing in over the next few years, coupled with the reduction in financing options due to the reduction in collateralized mortgage backed securities (CMBS) financing as well as fewer foreign lenders offering financing, "Now is the time for real estate private equity fund managers to capitalize on distressed deal opportunities according to Ernst & Young Global Market Outlook.

The aftermath of the financial crisis has had a substantial impact on transaction volumes and material impact on the amount of leverage in the marketplace and availability of debt, and so the market has shrunk.

Leaders at the international accounting and consulting firm are bullish on distressed debt opportunities. Mark Grinis, Global Real Estate Funds Leader at E & Y, comments, "The market is considerably smaller than it was in 2007, and because it's contracted so substantially, t may have now over-contracted. The market is much smaller in terms of the amount of equity being raised, the availability of debt financing and the number of transactions in the market. However, there are now signs the sector is reaching the bottom, and fund managers should brace themselves for an acceleration of deals and financing activity to hit the market, albeit slowly, over the next several years."

Fund terms have changed and are not back to pre-crisis levels. There seems to be a fairly even split in terms of fee modification as a result of the market turmoil and the challenges investors and managers are both facing. Many funds have lost money and investors are pressuring funds to reduce their fees and equity returns. Management fees have slightly changed in favor of the investors from the pre-crash to post crash time period. This is evidence recently by the announcement that Carlyle Group, has had to cut fees and offer other unusual incentives to lure investors for its new $2.3 billion real estate fund.

As reported in the Wall Street Journal, Carlyle has been offering large investors annual management fees of as little as 0.75% of assets, half the 1.5% industry standard. Carlyle, also has raised the bar that must be cleared before the firm can share in the funds' profits, known in the industry as a hurdle rate or preferred return.

Typically, real estate funds must return at least 8% to 9% a year before splitting profits with investors. In its new fund, Carlyle will have to return 11% to certain investors. That means, if the fund returns anything less than that on an annual basis, it won't get any share of the profits.

The journal also reported that Research firm Preqin found in a recent survey of 118 real estate funds world wide that only 6% of them offered hurdle rates above 10% when raising money during the past two years.

E & Y reported that fund expenses will rise due to regulatory and investor reporting changes. The regulatory impact on real estate funds could be significant because they are going to have to budget for added costs to comply with the new regulations and reporting requirements.

Howard Roth, Ernst & Young's Global Real Estate Leader comments, "Global investors,
regulators and pension advisors are all simultaneously demanding greater transparency in
governance, reporting and controls for private equity real estate. What was previously an immature industry is starting to take on an increased element of operational maturity and is benefitting from better deployment of technology solutions."

Home builders pessimistic about sales of homes to 55 and over market

2011-11-28T15:05:00.000-05:00

Over the past two decades many active adults over the age of 55 sold their primary residence and relocated to an active adult community. Thousands of home units were built in Nassau and Suffolk County and the suburban New Jersey.

Today, the National Association of Home Builders (NAHB) reported that many of these home builders who were active in the construction of these units have little confidence that older adults are willing, (or able) to buy age restricted single family homes and condominiums,

Bob Nielsen, chairman of NAHB said, "The current state of the economy continues to affect buyers in the 55 plus housing market. The market remains weak given the many uncertainties people face in this economy. While potential buyers exist, they are hesitant to commit to buying new homes as they are concerned about selling their existing home at a fair price, due to low appraisals, an abundance of foreclosures and tighter mortgage lending criteria"

The NAHB measures builder sentiment based on current sales, prospective buyer traffic and anticipated six month sales for the 55 and up market. A number grater than 50 indicates that more builders view conditions as good than poor.

When looking at the 55 plus multifamily condo home price index, that measure of condo sales in the senior age bracket also is weak with an index level of 10 and present sales dropping one point to an index score of 9.

While the sales market is weak, the rental market is experiencing a surge in demand for individuals in the 55 plus age range. The multifamily rental index for the age group saw demand jump 12 points to an index score of 40. The index measuring future demand in the segment increased 10 points to 42.

"Multifamily rental units continue to be the bright spot in the 55-plus housing market," said NAHB Chief Economist David Crowe. "However, with demand currently running ahead of production, as it has been for several quarters now, the risk of a shortage of rental units in select markets in the future looms larger as builders continue to have trouble obtaining credit to finance new construction."

BuildingNY: Burt Resnick, Jack Resnick & Sons, Inc.

2011-11-28T11:52:00.000-05:00

This week on Building New York-New York Life Stories, Michel Stoler profiles the life of Burt Resnick, Chairman & CEO, Jack Resnick & Sons. The show airs Monday at 10:30 PM, Wed at 5:30 AM, Thursday at 11:30 PM, Saturday at 12 Noon & 12:30AM, Sunday at 6 PM on CUNY TV, Channel 75 in New York City and on the Internet

BuildingNY: Edward J. Minskoff, Pres., Edward J. Minskoff Equities, Inc.

2011-11-26T13:52:00.000-05:00

His name is Edward Minskoff. He is the Chairman & CEO, of Edward J. Minskoff a major developer of commercial property in New York City. Gain insight on his life when he is interviewed by Michael Stoler on Building New York, New York Life Stories. The show is available on the Internet

The Stoler Report: Top Chefs/Restauranteurs & Sports Arenas

2011-11-23T19:59:00.000-05:00

This week on The Stoler Report, hear from four prominent chefs/restaurant operators provide their insight on Celebrity Chefs and restaurant operations in sportinng arenas. My guests include Drew Nierporent, Phil Surarez, Marc Glosserman, and Luke Ostrom. The show airs tonight at 10:30 PM on CUNY TV, channel 75, Show will air on Friday at 5:30 AM, Saturday at 12 midnight and Sunday at 10:30 AM on the Internet

Will Luxury retailers reduce their physical presence due to the Internet?

2011-11-23T11:38:00.000-05:00

It was less than fifteen years ago when few retailers had any major presence on the Internet. Fast forward to 2011, when InternetRetailer.com reports that four out of five luxury brands now have e-commerce web sites. PM Digital, an online marketing agency reports that luxury brand manufacturers' hesitance to embrace e-commerce appears to be over.

A recent study of the web sites of 42 luxury brand sites shows that 81% of those sites sell merchandise. Luxury brand sites represent 98% of the traffic of all visits.

PM Digital reported that web site RalphLauren.com commanded 39.2% of traffic to the 42 luxury brand sites in August, followed by LouisVitton.com at 11.8%; Gucci.com at 10.9%; MichaelKors.com at 6.6% and Burberry.com at 5.7%.

Landlords of prominent retail centers in the region have already been affected by e-commerce. An owner of a one of the region's most prominent luxury retail center, who prefers to remain anonymous, said "Certain luxury retailers have indicated that they are seeking smaller locations for their physical presence. The combination of a small retail presence and e-commerce might be the way of future for certain retailers."

The majority of the consumers who are visiting e-commerce luxury brand sites skew younger than the average consumer visiting apparel and accessories sites. PM Digital reports that 55.6% of visitors to luxury sites are age 34 and younger compared with 43.1% of same age visitors to apparel and accessories sites at all price levels.

It was only sixteen years ago when a Seattle, Washington based company Amazon.com went online. Today the company's is the world's largest online retailer. With e-commerce growing each and every day expect all retailers to evaluate their real estate needs.

Sales and prices of Manhattan Condominiums fell this summer

2011-11-22T11:37:00.000-05:00

Economic uncertainty and turbulence in the stock market may have been the culprit for sales of Manhattan condominium buyers this summer, causing prices and sales to drop significantly this summer.

Real estate provider Radar Logic RPX Manhattan Neighborhood reports released this month reported that condominium priced fell 5.3 percent from July to August. On a year to year basis, the condominium prices have fallen nearly 1 percent.

The monthly decline in Manhattan condominium prices in August was the largest decline for that month since the beginning of Radar Logic's research data in 2000.

Condominium prices declined on a month to month basis in five of the eight Manhattan neighborhood tracked by the research firm, with the largest decline in the East Village/Lower East Side by 32.4%, followed by the Upper East Side by 19.7 percent, Soho/Tribeca at 6.6%, the financial district at 2.9% and the Upper West Side at 0.2%.

The volume of sales of condominium in Manhattan fell 14.6 percent. The monthly decline in number of sales was the largest for the month of August since 2007, and in terms of percentage terms was the largest on record.

Upper Manhattan registered the largest decline in condominium sales on a month to month basis falling 35.4% followed by a 25.5% decline in Chelsea and the West Village.

BuildingNY: Archie Rand, Painter

2011-11-21T14:47:00.000-05:00

This week on Building New York-New York Life Stories, Michael Stoler profiles the life of the world acclaimed painter-artist Archie Rand. Gain insight on the life of Mr. Rand today at 4:30 PM and 10:30 PM, Wednesday at 5:30 AM, Thursday at 10:30 PM, Saturday at 12 Noon and 12:30 AM and Sunday at 6 PM. The show is also available on the Internet at YouTube and iTunes.com

Institutional investors interested in owning office & residential properties on Hudson Waterfront

2011-11-21T11:36:00.000-05:00

The demand for office space is New Jersey is considered "Tepid" in a report by Cassidy Turley Commercial Real Estate Services. The Northern New Jersey office market ended the third quarter with a vacancy rate of 14.5% a slight increase from the end of the second quarter. The office market activity slowed in the third quarter resulting in 339,408 square feet of negative absorption. Class B office space continues to account for the majority of negative absorption in the market, representing 92% of this quarter's negative demand.

The "flight to quality" trend demonstrates that tenants are taking advantage of opportunities to upgrade to high quality buildings with more amenities, while maintaining their bottom line. Cassidy Turley reported "Overall, demand in Northern New, Jersey will struggle to gain meaningful momentum until there is a significant improvement with unemployment and job creation.

Although many submarkets are struggling with higher vacancies, the Hudson Waterfront submarket continues to lead office market activity with 120,344 square feet of position absorption for the quarter, and 324,971 square feet year to date.

With the lowest vacancy rate in Northern New Jersey, the Hudson Waterfront remains an attractive alternative location for New York companies looking to lower operation costs while maintaining optimum community accessibility.

The low office vacancy rate coupled with high credit tenancy has made the Hudson Waterfront office properties highly desirable by institutional investors.

Last month, Brookfield Office Properties sold the 36 story, 1.1 million square foot class A office building, Newport Tower, located on the Hudson River in Jersey City. The property was sold to Multi-Employer Property Trust (MEPT) a real estate equity fund with over $5.31 billion of net assts for a purchase price of $377.5 million, or $343 per square foot. It is the largest single office asset transaction in the history of New Jersey.

In August, Gaia Real Estate Investments partnered with Israeli firms Phoenix Insurance and Mivtachim Insurance to purchase 2 Journal Square in Jersey City. The joint ventured paid $78 million, or about $240 per square feet for the nine story, 324,912 square foot to Hartz Mountain Industries, for office building which opened in 1987.

In April, CB Richard Ellis Realty Trust acquired the 827,318 square foot office property at 70 and 90 Hudson Street in Jersey City paying $310 million or approximately $374 per square foot to Hartz Mountain Industries. At the time of the sale, the deal was the third largest office transaction in the state history.

Residential property in Jersey City is a sought after asset by investors. In January of this year, J.P. Morgan Investment Management, purchased Liberty Towers, two 37 story residential rental buildings in Jersey City, completed in 2003 with a total of 650 apartments. The sellers were a joint venture of Fisher Development and Northwestern Mutual Investment Management who paid approximately $280million, or $432,000 per apartment unit.

Residential Brokers Bullish on the New York City rental and sales market

2011-11-18T11:35:00.001-05:00

Residential brokers in New York City continue to be optimistic about the residential market in the Big Apple. The Real Estate Board of New York (REBNY) released the results of its residential brokers survey noting that 74 percent of believe that the next quarter will be the same or better than this quarter.

The report provided insight on necessities that buyers can't live without. A total of 28 percent cited laundry facilities on site or in the unit as the most important building amenity; while 18 percent considered an on-site gym, spa, and fitness center a top priority. Eighteen percent viewed private storage space as one of the most valuable feature.

Steven Spinola, President of REBNY, said, "It is important to solicit the viewpoint of brokers. They are the one's listening to what buyers are interested in and can provide market insight otherwise not reported. The continued optimism reported by brokers reflects the resilience of the New York City residential market. From their confidence, we can expect that the fourth quarter will show more market improvement."

The survey reported that the residential rental market is picking up, with seven percent of brokers reporting closing rental transactions at or above the asking price compared to last year.

Industry leaders report that rentals prices in certain neighborhoods of Manhattan and Brooklyn have increased by as much as twenty five percent.

BuildingNY: Bruce Bozzi Sr., Palm Restaurants

2011-11-18T08:47:00.000-05:00

His name is Bruce Bozzi. Together with his partner he grew a little steak house at 837 Second Avenue to over twenty locations around the nation, Mexico, Puerto Rico and London. Gain insight on his interesting life when he is interviewed by Michael Stoler on Building New York-New York Life Stories. View the show on the Internet

Lowest mortgage rates helped homeownership rate to rise after two years of decline

2011-11-16T14:13:00.001-05:00

With interest rates on residential mortgages at the lowest rates in more than sixty years may have helped to spur an increase for individuals to purchase homes. According to a Census Bureau report, after falling to a 13 year low during the second quarter, the homeownership rate posted a highly unexpected rise in the third quarter.

During the quarter the 0.4 percent increase, brought the homeownership rate to rise to 66.3 percent for the quarter. However, the current homeownership rate remains 0.6 percent below the rate recorded in the third quarter of 2010.

DSNEWS.com reported that the region with the highest homeownership rate was the Midwest with a rate of 70.3 percent, while the lowest homeownership rate was seen in the West at 60.7 percent.

The Northeast and South feel in between at 63.7 percent and 68.4 percent respectively.

At 76.1 percent, West Virginia had the highest homeownership rate. The state was followed closely by Mississippi with a 70 percent homeownership rate.

The lowest homeownership rate was seen in the District of Columbia, where the rate for the quarter was 44.3 percent. New York followed with 54.4 percent.

Nevada and California, the states hard hit by the housing crisis were also in the bottom five with homeownership rate of 55.3 percent and 55.9 percent respectively.

The Stoler Report: Legal Experts Perspective on the Market

2011-11-15T12:40:00.000-05:00

This week on Stoler Report, hear from four prominent real estate attorney's provide their insight on the state of the market. My guests this week include Alan Hammer, Steven Rabinowitz, Dennis Russo and Stuart Saft. The show airs tonight at 11 PM on CUNY TV in New York City and will be rebroadcasted on Wednesday at 8:30 AM, 2:30 PM & 10:30 PM, Friday at 5:30 AM, Saturday at 12 Midnight and Sunday at 10:30 AM. The show is also available on the Internet at Stoler Report, iTunes, YouTube

Home Values barely edged up in August;

2011-11-13T02:10:00.000-05:00

Home values in the United States showed minimal monthly appreciation in August of 2011, according to the Zillow® Real Estate Market Report. The Zillow Home Value Index increased 0.1 percent from July to August. On a year-over-year basis home values declined 4.5 percent to $172,600. Home values have fallen 28.3 percent since they peaked in June 2006.

Regionally, 68 of the 157 metropolitan statistical areas (MSAs) covered by Zillow experienced monthly home value appreciation, though minimal in many areas. Most notably, two of the hardest hit markets, Detroit and Ft. Myers, Fla.; have now seen five and nine consecutive months of appreciation, respectively. Seventy-four markets saw home value depreciation and 15 markets, including Los Angeles, Dallas and Miami-Ft. Lauderdale, Fla., remained flat.

"Due to the robo-signing controversy, the pace of foreclosure liquidations has been slower than it would be otherwise, which is impacting home value trends positively. Eventually the pace will pick up again, putting more bank-owned homes into local markets and putting additional downward pressure on prices," said Zillow Chief Economist Dr. Stan Humphries. "We remain encouraged about the organic stabilization in home values that we have been seeing absent the federal home buyer tax credits, but we remain concerned about the impact that recent economic turmoil and continued weak economic indicators will have on future home sales and home value trends."
"At this point, we maintain the expectation that a definitive bottom will not occur until 2012 at the earliest."

Zillow Home Value Index

August 2011 year over year change change from peak

U.S. $172,600 -4.5% -28.3%
New York $350,700 -2.9% -23.3%
Los Angeles $389,900 -6.1% -35.6%
Philadelphia $194,300 -4.2% -17.7%
Miami-Ft.
Lauderdale $139,900 -3.3% -54.5%