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.

Half Of Americans Pay Too Much For Housing

A new Harvard study found that about half of Americans are paying too much for rent. Though perhaps in unsurprising find, the study does provide some hard numbers that are worth examining.

What does “too much” mean? The study defined Americans who pay 30% of their income or more in rent to be “cost-burdened” and those paying 50% or more to be “severely cost-burdened”.  Results reported that in 2011, 50% of Americans were cost burdened compared to 25% in 1960. 28% of Americans in 2011 were severely cost burdened.

Photo courtesy of bill lapp via flickrcc

In layman’s terms, the study concluded that the availability of new, affordable apartments has been nowhere near the growing demand and that the gap between the two has been widening annually since the 2007 recession.

Though the stream of foreclosures during the recession did provide an influx of rental structures, the growing prices of homes zoned out a large portion of the population from the possibility of home ownership and the resulting increase in demand for rental housing quickly outpaced the supply the foreclosed homes provided.

New York Office Demand Shifts to Budding Tech Startups

One of the upcoming difficulties for mayor elect Bill de Blasio will be adjusting to the real estate demands of an industry shifting from law and business to technology. New York developers are pushing for de Blasio to support office spaces that will appeal to the tech and creative start-ups that are becoming more and more numerous.

Image courtesy of Pete Bellis via flickrcc

The ideal office space going forward seems to be middle to small sized and favoring cost efficiency, rather than the large but expensive business hubs that used to be more commonplace. Former president of the New York City Economic Development Corporation Seth Pinsky stated that a solution “partially lies in the traditional existing business centers, but it can’t be entirely accommodated in these areas”.

Mr. Pinsky and many others believe that additional development will become a necessity to house the companies of the future. A spokesman for de Blasio stated that he would support development for more modern office spaces, but did not give any details on what that support would entail.

Stacie Brach Named Property Manager of the Year

The National Association of Home Builders has officially recognized Stacie Brach as the 2013 Regional Property Manager of the Year.

Stacie Brach is a district property manager with Interstate Realty Management. Multi-Housing News reports that she is responsible for 26 properties located in California and Nevada, as well as IRM’s first property management project located in Hawaii named the Towers of Kuhio Park.

NAHB selected Stacie Brach for the award in recognition for her outstanding portfolio that enjoys both substantial income and excellent occupancy rates. In particular, her management of Kuhio Park from 2011-2012 as it was renovated from a dying public housing facility to a thriving community was recognized as a commendable logistical achievement.

The revitalization cost $135 million and involved major exterior and interior renovations as well as structural changes and updates to the building systems. Despite the fact that the building was fully occupied at the time of renovation, Brach’s efforts resulted in 96% of families to remain on site and the renovation was still completed well before the deadline.

Michaels Development Company Constructs Affordable Housing in Ohio

A new affordable housing facility is under development in Dayton, Ohio. Based in the Germantown-Broadway area, the aptly named Germantown Village is being developed by the Michaels Development Company.

Michaels Development Company’s vice president of development Scott Puffer promises to both long-term housing needs and revival of a positive community in the Germantown-Broadway area, stating that Germantown Village was the beginning of a multiphase project to restore the Germantown area by providing alternatives to the many dilapidated residential properties that currently exist.

The first phase of Germantown Village includes 5 buildings encompassing 60 apartments, ranging from one to three bedrooms. The new apartments will feature modern HVAC (heating/ ventilation/ air conditioning) and Energy Star appliances and the buildings themselves will offer amenities such as playgrounds, gardens and a community room. Over half of the apartments offer affordable rent to those earning below 50% of the area’s median income.

The development is reported to cost $12.8 million and will be managed by the Interstate Realty Management Company.