Weekly News (January 9, 2019)

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

• 146-17 Northern Blvd. / closing is completed at $9.7M
• 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 $3,000 → only 1 city: San Francisco (1 bedroom price:$3,400 → 5% up, 2 bedroom price: $4,380 → 2.9% up)
• Rent high cities: San Francisco, NYC, San Jose, Washington DC. Los Angeles, Boston, Oakland (CA), Seattle, Miami, San Diego

 

3. Manhattan, NY Avg Residential price → below $2M

• 4th Qt, 2017 Average price → $1,897M (first time below $2M for 2 last 2 years)
• According to Elliman Douglas (RE Brokering Co), 4th Qt # of sales dropped by 12% to 2014
• Partially it is due to Tax Reform

 

4. Most expensive Lease(Tenant) this year in NYC à HyunDai Genesis .

• According to RealDeal.com, 40,000 sf in Solar Carve building in Meatpacking District (40 10th ave) → $11M /year ($916K /month) leased by Hyun Dai 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 139K sf
• Genesis will take 27,700 sf at 1st floor space and basement retail space /13,700 sf at 1st and 2nd floor for office
• In Meatpacking district, Genesis → 2nd / Tesla → 1st 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 $300M local development
• Local development includes Cancel center, low income apartment, community park
• Fancy Cleaners: 6000 sf between 126th st and 3rd 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 $3.5M → 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: $1.5M – 6M (a buyer purchased 2 units and combined to one)
• Ritz-Charlton will build 120 additional units by end of 2019

 

7. In Cheon Airport might operate JFK Airport

• Deal on the table: #1 terminal needs renovation & 30 year operation right
• JFK Airport opened in 1948. Yearly passengers → about 60M
• Total renovation: $10B ($3B for In Cheon Airport Co)

 

8. SamSung New Laundry Factory completed in US

• New Berry, SC Factory begins operation 1/12/2018
• 504 employees /front load type first → top load yype later
• By end of 2018, 1000 employees will be hired → through 2 shifts, 1M units production
• Promised to invest $380M to US in June 2017
• ITC’s recommendation: 50% tariff for over 1.2M units imported → moves the plan faster

 

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

• Total Value: $31.8 T → 3% up, compare to last year→ highest since 2013
• Top 10 cities: $11.3 T → 36% of total (LA is most high value)
• LA: 5.7% up → $2.7 T /NYC : 7.9% up → $2.6T
• 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

 

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