Weekly News (January 10, 2018)

1. Korean owned building between Northern Blvd purchased by Chinese developer

146-17 Northern Blvd / Closing is completed at $9.7 Million
Tenants: ‘Tong Tong Don Gass’ / Cumon school
Developer will build 5 story mixed building for retail and condo → Condo development expanded to Northern Blvd commercial area from Downtown area

2. Manhattan NY Rent tipped off

According to Zumper, 1 Bedroom median price: $2,870 (3.7% Down, compared to last year) → Biggest drop in 10 cities
2 Bedroom median price: $3,230 Down (5.0% Down) → Biggest Drop in 10 cities
1 Bedroom median price is higher than $3000 → Only 1 city (San Francisco: 1 Bedroom price: $3,400 → 1.5% Up, 2 Bedroom price: $4,380 → 2.9% Up)
Rent high cities: San Francisco, New York City, San Jose, Washington DC., Los Angeles, Boston, Oakland, Seattle, Miami, San Diego

3. Manhattan, NY Average Residential price → below $2 Million

4^th QT, 2017 Average price → $1.897 Million (First time below $2 Million for last 2 years)
According to Elliman Douglas (RE Brokering Co), 4^th QT # of sales dropped by 12% to 2514
Partially it is due to Tax Reform

4. Most expensive Lease (Tenant) this year in NYC → Hyundai Genesis

According to ‘RealDeal.com’, 40,000 SF in Solar Carve building in Meatpacking District (40 Tenth Ave) → $11 Million / Year ($916,000 / M) leased by Hyundai Genesis for office and retail space ($275 / SF)
Landlords: Aurora Capital Association and William Gottlieb Real Estate
Solar Carve Building near completion : Basement → 2 floors/ 10 story building → Total 139,000 SF
Genesis will take 27,700 SF at 1^st floor space and basement retail space / 13,700 SF at 1^st and 2^nd floor for office
In Meatpacking district, Genesis → 2^nd / Tesla → 1^st luxury brand tenant

5. ‘Fancy Cleaners’ in East Harlem, NY has to close down by eminent domain

Korean owned Dry Cleaners in East Harlem is facing eminent domain due to $300 Million local development
Local development includes Cancel center, low income apartment, community park
Fancy Cleaners: 6,000 SF between 126^th St and 3^rd Ave / operated since 2003 which was opened by owner Mr. Bae’s parents (Building owner: Parents / Business owner: Mr. Bae)
In 2008, NYC issued eminent domain and purchased at $3.5 Million → Bae did not accepted → sued NYC to the court, but failed
Issues: 1. Compensation for building owners, but compensation for existing tenants
2.Big difference between owner’s compensation and current market price

6. Ritz-Charlton Luxury Condo in Nassau County, NY is popular

In North Hill, new Ritz-Charlton condo is being sold fast
Completed last year / 4 units left among 106 units
Prices: $1.5 Million ~ 6 Million (A buyer purchased 2 units and combined to one)
Ritz-Charlton will build 120 additional units by end of 2019

7. Incheon Airport might operate JFK Airport

8. Samsung New Laundry Factory completed in US

New Berry, South Carolina Factory begins operation 1/12/2018
504 Employees / Front Load type first → Top Load Type later
By end of 2018, 1000 employees will be hired → through 2 shifts, 1 Million units production
Promised to invest $380 Million to US in June 2017
ITC’s recommendation: 50% tariff for over 1.2 Million units imported → moves the plan faster

9. 2017, House value went up by total $2 Trillion in US

Total Value: $31.8 Trillion → 6.3% Up, compare to last year → Highest since 2013
Top 10 cities: $11.3 Trillion → 36% of total (LA is most high value)
LA: 5.7% Up → $2.7 Trillion / NYC: 7.9% Up → $2.6 Trillion
San Jose: 13.5% Up / Seattle: 11.7% Up
According to Zillow, 2018 Real Estate market → not so bright due to Tax Reform
According to NAR, High price area will down by 5~10% in 2018 due to Tax Reform