Weekly News (October 17, 2018)

1. 42 Story rental complex will be built near U.N. Building

Luxury rental apartment “Summit New York” : 2 blocks from U.N. building
Total 429 units /studio, 1, 2 bedroom, and 3 bedroom penthouse
Entire glass wall from floor to ceiling
Rent: 1 bedroom → from $4,500 /2 bedroom → from $7,700 / 3 bedroom penthouse → $30,000
Marketed by Elliman. (1st month rent is free)

2. 7 Story medical building will be built in Flushing, Queens

130-10 Avery Ave, Flushing /80 feet, 7 story
Near Flushing Meadows Corona Park & 10 blocks away from Main Street station of 7 subway
Total 64,500 sf (40,400 st above ground /13,000 sf under ground: retail spaces)
Developed by Avery Group /designed by Michael Kang (Korean)
Currently vacant lot

3. “Central Park Tower” in Manhattan starts pre-sale

217 West 57th developed by Extell, one month after launching “Billionaire’s row at 111 West 57th
Total 179 units /1,550 ft high /cost: $4B → tallest residential building in NY
Price: cheapest unit: $1.542M for 569 sf studio ~ $95M for 4bedroom (8000 sf with 2000 sf terrace) unit /penthouse (16,000 sf) is not listed – no price information available (comparable: 11,000 sf unit at 220 Central Park south is rumored to ask $250M)
Over 26 units in the condo will ask over $9000/sf (average price → $7,106/sf)
Marketed by Extell’s in-house marketing team

4. “Cyber Security Center” will be opened in Manhattan, NY

According to NYCEDC, it will open the center at 17th St and 7th avenue in SOHO
The global security center will provide space for related start-up biz, seminars, events
The purpose is to re-enforce global cyber security → might create about 10,000 jobs
Sources for center establishment → tax money:$30M, organization /individual investment:$70M → total $100M cost
In 2017, 3.8B internet users got cyber-attack world wide → one attack every 40 seconds

5. House price went down in Scarsdale & Edgemont, NY

In Scarsdale, average income is $220,000 to buy average price house → 6 ranking in US
Scarsdale: not too much change in number of sales (in 3rd quater, listing 87 → 92), but price went down ($1.6M → $1.4M: 11.88% down) listing period:16% longer
Edgemont: listing 32 → 42/ sales: 46 → 66 / price: $990K → $890K (11.88% down). listing period: 16% longer
So, 3rd quater: listing period → longer /price → down /sales → increased because of good school district

6.US Economy is going through inflection point

Bob Prince, CIO of hedge fund, “Bridge Water” interviewed with Financial Times
Optimism for future improvement of corporation performance → stocks booming
Now US economy reaches at the inflection point: hot season → normal
In this year, higher interest rates à impact stock market negatively / frequent interests rate increase → slowing economy growth
Fed Reserve will increase Ref IR one more time in Dec this year

7. Mortgage interest rate is highest point since 2011, for last 7 years

8. Newark, NJ still has a chance to be Amazon’s 2nd HQ

Chicago, Miami, W. DC and Newark could be winner among Amazon’s final list of final 20 cities (original contenders: 238 cities)
Newark’s strong points: proximity to Manhattan, transportation hub at lower cost, internationl air port, major sea port, advanced fiber optic network, colleges in NJ and NY
Investing society → Newark is underdog → boost corporation’s social responsibility ranking → could be wining advantage
Summed up with 5 D’s: Data infrastructure, Destination, Diversity, Development opportunity, Destiny