Weekly News (June 6, 2018)

1. ADM (American Dream Meadowlands) is ready for a boom

Expecting tourism boost → Big money for area business
Hotels are repositioning to benefit from that boom, starting with Taylor Swift in concert this summer / WWE Wrestle mania XXXV in April, 2019 / Transplant Games in 2020 / The Army-Navy football game in 2021
Example: Super Bowl in 2014 → 8,500 rooms are occupied / $4.18 Million Revenue, $626,714 Tax
The Mall of America in Minnesota attracts 40 Million visitors each year (20% entertainment) → ADM has 55 % entertainment
Developer Triple Five has plan to build own American Dream Hotel ( Location is un-specified)
Trade show tourism : Big Convention events → Easy New York access

2. Closter, NJ → Rich town with good school, large retail stores

Population: 8650 (It was old town till a few year ago)
Big development projects initiated → Whole Food Market, Target, Home goods, CMX Market Cinema and high quality restaurants
Attracts more professionals with children
Many new construction homes over $2 Million in East Hill section
According to NJMLS, Sold median price → $665,000 between 5/15/2017~5/15/2018
Total listed houses: 61 ($399,000 ~ $2.6 Million: 6 Bedroom house)
‘Hillside’ elementary school (PK ~ 4th Grade), ‘Tenakill’ Middle school (5th~ 8th Grade)
High school students go to NVRH in Demarest (SAT: 614 (Reading & Writting), 620 (Mathematics)) (NJ Average: 551, 552)
NJ Transit Bus: 42^nd St Port Authority Bus Terminal in Manhattan in about 60~90 minutes (One way: $7, Monthly pass: $199) / No train → A drawback

3. A mixed use building in Bronx sold at $2.45 Million

769 Melrose Ave ( 157th St and 158th St)
Total 2,415 SF / 1st Floor: Deli Grocery, 2~5 floor: 12 Apt Units (3 Bedroom: 8, 2 Bedroom: 4) → 11 units are under Rent Control
Buyer: Melrose RE Group

4. The plan for keeping Manhattan Garment district is available from NYC

Building owners who provide low rent for long period will get tax reduction benefit
Condition: $35 / SF including utilities for 15 year lease → Building owner gets $1~$4 / SF
Tax benefit a year for 25,000 SF ~ 100,000 SF
NYC’s target is to secure minimum of 300,000 SF (Current rent is about $50 / SF)
Public and Private partnership will secure exclusive Garment manufacturing buildings by injecting $20 Million
Re-zoning Plan: When re-construct / Remodel in 5th ~ 9th Ave and 34th St ~ 42nd St, certain portion should be allocated to Garment business
Currently 80% business disappeared → Only 400 businesses remain
NYC also announced the plan for new Garment district allocation in Brooklyn Sunset park area (Former Army Terminal) and Bush Terminal ( to ‘Made in New York Campus’)
Criticized for jeopardizing the current Manhattan Garment district

5. New Luxury Apartment (‘Clark’) will be constructed in Prospect Park, Brooklyn, NY

This area was run-down place before → Changing its shape because of Brooklyn re-development move
Prospect Park area is still low price relatively
‘Clark’ (2 buildings) is located at border between Prospect Park and East Flatbush
1st building at 310 Clarkson Ave → 8 story, total 170 units (Studio ~ 3 Bedroom)
Pre-lease starts next month (Studio: $1,900, 1 Bedroom: $2,300)
2nd building: 8 story, total 250 units → Will be completed in 2020

6. New York State advanced Electric Car development and distribution

‘Evolve NY’ Initiative by NYPA → Receives $250 Million for 7 years
10,000 charge stations (Level 1) will be installed till 2021
First, 200 fast charge station on major Highways (10 minutes charge runs 200 miles)
Second, fast charge stations will be installed at JFK and LaGuardia Airports → Attracts residents within 200 miles distance from Airports to drive to Airports
400 charge stations (Level 2) will be installed at airports, train stations, public parking lots
Further development: Electric bus will be used by cooperating with MTA, Con-Edison
State’s goal → To reduce exhaust gas by 40% by 2030, and 80% by 2050

7. Lord & Taylor will close Flagship store on 5th Ave, Manhattan in early 2019

It will sell the building to ‘We-Work’ (Office sharing company)
Hudson Bay said it will close 10 of its nearly 50 stores through 2019
Lord & Taylor is working with Walmart and launching a dedicated site for discount retailer market, featuring 125 brands

8. Economists worry about possible recession developing by 2020

A group of top business economists believe the major tax cuts by Trump will boost economic growth this year and next
But they worry that the country could be entering a new recession by 2020
Three-fourths of NABE panel believes that current trade policies will have a negative impact on the economy