Luxury Developments Struck Big In 2013

It was a good year for luxury residentials in New York. According to an end of year report by Olshan Realty, 2013 saw the best year for contracts signed since 2007 totaling in at nearly $10.9 billion sold.  This represents a 70% increase over total sales contracts in 2012.

Development, particularly in the Manhattan area, also saw a sharp upturn this year. 38% of all luxury apartment sales were made on new developments that are not yet completed, and the total number of development contracts in Manhattan jumped 20% in the third quarter of 2013. The new Leonard series of developments proved to be in high demand among the wealthy tenants of New York City. 56 Leonard did particularly well, seeing 90% occupancy in 9 months at an average of $3,200 per square foot.

The Azure luxury residential in Manhattan co-developed by Carl Mattone and the DeMatteis Organizations continued its slow but steady climb to success. The Azure building announced earlier this year that it had reached 75% occupancy, and though the penthouse units remain unsold they underwent an extensive interior makeover by acclaimed design specialists Bjorn Bjornsson and James Rixner.

Though the year ended on a high note for luxury high rises, the inauguration of Bill de Blasio as mayor of New York City on Wednesday may prove problematic for 2014. de Blasio spent a portion of his ceremony speech condemning the economic disparity within NYC, particularly the rapid development of luxury condominiums under Bloomberg’s oversight. Though his current action plan shows no sign of actively opposing luxury development, he has plenty of time in 2014 to decide to do so.

Would You Rather Have A Daycare Or A Rooftop Beach?

Just how important is it to have a pool in your building? A recent survey from the Marketing Directors found that fitness related amenities such as gyms and yoga rooms are the current favorite of New York City luxury residents. But the demand for various amenities is frequently subject to ebb and flow from a lot of different factors.

Many luxury condo residents have favored “practical” amenities over “entertainment” ones, and high rises developed in the last decade responded. The relatively recent Azure luxury residence, developed by the DeMatteis Org and Carl Mattone, offers an interesting spin on offered amenities. Though lacking the obligatory swimming pool, Azure has a more family oriented suite of amenities, notably a fully stocked playroom for small children and several upscale dining areas. While not particularly flashy, they are versatile and serve vital, routine functions that tend to be more utilitarian than having a bowling alley downstairs.

Despite this, there is evidence that the trends are changing in response to the still-recovering real estate economy. A recent New York Post article found that offered amenities are starting to backlash and enter the realm of absurd extravagance. Several luxury residences such as 101 Bedford Ave, developed by Halcyon Management, are found to offer up to 50,000 sq feet of amenities, including a recording studio, a golf simulator and a rooftop beach.

As the luxury real estate market continues to improve, competition between developers to attract residents has risen with it. Amenities are eye-catching and represent the go to method of filling vacancies, making them susceptible to trends. As the market continues to improve and the upper class finds more money to spend, we can likely expect amenities to become more innate as well. 

One World Trade Center Nears Completion, Features New Green Design

One World Trade Center, the recently completed skyscraper on the old Twin Towers site, has a clear symbolic value for the city of New York. Less well known is that it is making an effort to stay on the cutting edge of sustainable technology as well. The building was originally developed by Silverstein Properties until it was taken over by the Port Authority of New York and New Jersey in 2006.

In recognition of its past, One World Trade Center incorporates multiple structural redundancies, biochemical filters, and protective structuring for its fire safety features. Exit stairwells are wide and the building includes emergency backup lighting to ensure optimal evacuation.

The building also sets a new standard for green construction. The building features internal daylighting, recycling of rainwater, energy efficient windows and recycled construction materials from debris.

Appropriately,the building is immediately adjacent to the jurisdiction of Battery Park City, which is recognized as the largest “green” neighborhood in the world with over 5 million square feet of state of the art environmental property within its borders. Battery Park City is headed by Chairman Dennis Mehiel, the former chairman of U.S Corrugated Inc.

Other notable members include Martha J. Gallo, a senior employee of JP Morgan Chase and currently the only female board member of Battery Park, and Carl Mattone, president of the real estate development company the Mattone Group.

As a leading example of safety, sustainability and sleek modern architecture, One World Trade Center is set to become an iconic part of the New York City skyline in its expected opening in 2014.

Real Estate In Queens Heating Up

A recent survey of New York City developers revealed that Queens is the new hot neighborhood predicted for residential growth. Queens is rapidly becoming a popular location for younger city dwellers that can’t afford the likes of Manhattan or Brooklyn, largely because of its proximity to Manhattan. Queens offers the convenience of a 10 minute train ride to midtown Manhattan while offering cheaper living rates than the trendier New York neighborhoods.

Roughly 30% of surveyed developers said they had their sights on Queens, with Brooklyn coming in a close second at 24%. High-rise residences are already under construction in the area, and as Brooklyn living rates skyrocket the demand for cheaper apartments will certainly see a demand for more residential construction in Queens.

Eric Benaim, CEO of NYC real estate firm Modern Spaces, says “I get calls from developers on a daily basis wanting to know more about Astoria, Long Island City and even other parts of Queens,” Benaim said. “Everyone’s finally seeing the potential of Queens.”

The Cord Meyer Development Company and COO Anthony Colletti report that they are already hard at work on a 17 story condo in the Forest Hills area. Colletti believes that Manhattan and Brooklyn are long past as real estate opportunities, as they are largely considered unaffordable.

Queens is already the home turf of several established real estate developers, including The DeMatteis Organizations and Carl Mattone with the Mattone Group. Though no official word has been given, it wouldn’t be surprising to see more residences being built under their development as well.

New York Cosmos Propose a New Stadium

The New York Cosmos and Carl Mattone of the Mattone Group are pushing for a privately funded development of a 25,000 seat professional soccer stadium in response to a “request for proposals” by the Empire State Development Corporation.

The proposal would transform two sections of Belmont Park into a general entertainment area, including 9 eateries, roughly 250,000 square feet of retail space, a new hotel and a 4.3 acre community park. Though negotiations are still underway, if the project is approved then construction is slated to begin in 2014, with the stadium and all facilities open by 2016.

According to the project website, the proposal is estimated to create over 500 jobs during construction, followed by 3,000 permanent full time jobs to man the stadium, stores and other facilities. Construction income is expected to generate over $500 million, with a combined annual revenue of $200 million from the stadium and other facilities. Total costs for the project are estimated to be over $400 million and will be privately funded.

Though the New York Cosmos have not taken to the professional soccer stage in some time, it was announced in 2012 that the Cosmos would be returning for the 2013 NASL Fall Championship. The finished stadium could possibly become a new base for a revitalized New York soccer team after their 30 year hiatus. Carl Mattone is a well-known real estate developer in the Queens area and current president of the Mattone Group.

NASCAR Star Jeff Gordon Sells His New York Apartment

NASCAR superstar Jeff Gordon recently sold his apartment for $25 million, which clocks in at the biggest sale of the week according to NYC city records. Gordon had owned the apartment with his wife Ingrid Vandebosch since 2007, when they bought it for an initial $9.67 million. They have since added major renovations to the home, and the initial asking price for the apartment when it hit the market in May was $30 million with a $7221.80 monthly charge.

A 3 bedroom, 3.5 bath condominium, the apartment is located at 15 Central Park W and features extensive interior customizations (including a sushi bar) and sweeping views of the Central Park tree line.

The couple has relocated to a 4 bedroom unit the Whitman in Madison Square Park, the same building where former first daughter Chelsea Clinton now resides. The buyers for Mr. Gordon’s old apartment are his downstairs neighbors, choosing to move to the new apartment in order to gain more living space.