Weekly News (May 16, 2018)

1. KMS Capital purchased ‘River Drive Center II’ in Elmwood Park, NJ 

• Korean RE investment company KMS Capital → CEO: Monica Kang
• Purchased 669 River Drive, Elmwood Park, NJ at $8.1 Million (4 story / 83,620 SF)
• Very well maintained office building → High valued building → Will be managed by Accordia Realty Ventures)
• Monica Kang mentioned the value in this high-end office building is the location at rich northern Bergen County, easy access to major high way, well organized office building
• kmscap.com

2. Palisades park town got sued gain 

• Jesse Wolosky (Sparta resident) sued PP town and Clerk, Jina Kim for OPRA (Open Public Records Act)
• Wolosky requested to release the closed meeting minutes on 1/26/2016 and 2/23, 4/26
• The minutes were about police officer, Mark Messing charge who deposited $1000 to his own personal account and former police chief, Benjamin Lamos → Town’s position is that they cannot release the minutes because these cases are under trials
• Wolosky also sued for not opening the record that David Lorenzo received re-imbursement checks ($67,783.50) from the town for legal fees

3. US Economy growth will end in 2020??

• According to WSJ survey from 60 economists, 59% say that economy growth will end in 2020 and economy will shrink after that (22% say growth will end in 2021 / 7.8% say growth will end in 2019)
• Only 11% say growth will continue beyond 2020
• If growth will extend to 2020à record as longest economy growth in history
• 1^st:10 year growth in 1990 period because of Information tech
• 2^nd: 106 months in 1960 period
• Current: 107^th month from mid-2009
• Main reason for stopping growth is due to Fed’s constriction policy (Move up Ref IR / Asset reduction) and Trump’s Trade control
• Survey says 2.9% growth in 4^th QT, 2018 will be the peak
• UE rate: 3.7% at the end go 2018 / 3.6% in the middle of 2019

4. Manhattan Average Rent → $4,416 : Highest in US 

• According to RentCafe, among 30 cities in US, Manhattan is #1 as of March 2018
• 3 Bedroom: $8,163 / 2 Bedroom: $5,911 / 1 Bedroom: $4,000 / Studio: $3,179
• In Brooklyn, Average rent: $3,285 → 4th in US (3 Bedroom: $5,728 / Studio: $2,630)
• Manhattan → San Francisco → Boston → Brooklyn → Los Angeles → San Jose → Washington DC → Chicago → San Diego

5. Morningside Heights, NY is the best place for college grads 

• According to StreetEasy, Morningside Heights near Columbia University is the best place to live
• Brooklyn Bedford Stuyvesant → Lower Manhattan Financial District → Brooklyn Bush Wick → Queens Astoria
• In Morningside Heights, 75% of Apt 2 Bedroom →$3,000 level, 3 Bedroom →$4,500 level
  30 Min to Union Square, 59 Min to Time Square, 30 Min to Lexington 59^th St
• Financial District : high living cost, but convenient for everything
• Queens Astoria : Great public transportation, East access to Manhattan, Quiet, Food district

6. Oil price moves Up → Shale Oil production moves Up 

• Oil price breaks $70 / Barrel barrier (WTC price: $70.96 as of 5/14)
• Under $50 / Barrel → Shale oil is not attractive/ Not profitable
• According to Bloomberg, US Shale oil daily production → 8.02 Million barrel (48,590 barrels increased, compared to last month)
• # of US Shale drilling: 844 → Biggest since March, 2015 → Move to North out of Texas
• Issues: Lack of labor and equipment, Lack of water and sand supply for fracking, Possible environmental issue due to chemicals used

7. ‘Amazon Go’ will be expanded 

• No man in the store: You need have the Application, Entrance will recognize the Application, Store is equipped with numerous sensors, cameras, and AI
• It was in Seattle: Opened in December, 2016 → Now they will expand to Chicago and San Francisco: Not known the time to open
• The current board members of Amazon are all white: 10 (3 women)
• Amazon Board is criticized for lack of diversity

8. Mortgage Interest deduction becomes not easy 

• 1QT was transient period
• Deduction loan limit → $750,000 ($1,000,000 will apply till before 4/1)
• $750,000 limit will apply to single (2 buyers who are not married → $1,500,000)
• Existing loan: $650,000 and new equity loan: $100,000 → Deduction allowed
• Existing loan: $800,000 and new equity loan: $100,000 → Interest for $800,000 will be allowed (Limit was $1 Million) but interest for $100,000 will not
• Re-Finance: new loan should not be over the existing balance in order to deduct interests
  Exiting loan balance: $300,000 and need $100,000 more ($400,000 Re-Finance) → Only interest for $300,000 will be allowed