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Rudin locks in $525M construction financing for St. Vincent's

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The Rudin family's $800 million redevelopment of the St. Vincent's Hospital site is one step closer to a reality. According to the Wall Street Journal, Rudin Management obtained $525 million in construction financing and can begin construction once the government approval process, already underway, is complete. 

The relative ease with which the Rudin's cleared the financing obstacle given today's tight lending environment was surprising, the Journal said. Bank of America, JPMorgan Chase, Bank of New York Mellon and M&T Bank contributed to the loan. 

But that last hurdle, government approval, could be the highest. 

The City Council may respond to pressure from Village residents and demand more concessions from the developers for the right to proceed with building. The Rudin family has already reduced the height of the development from 266 feet down to 203, agreed to renovate existing structures rather than replace them, provided a 15,000-square-foot park in the plans a…

New York Exceptionalism

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American debt has been downgraded. Has Manhattan real estate? A data-driven review.We know the eurozone is barely hanging on, job reports are terrible, and nobody’s hiring. What we don’t know—because it typically takes a few months to become evident—is what all of this means for New York real estate. Is this a moment to buy? To sell? To panic-sell? In the weeks after the Standard & Poor’s downgrade, we asked a wide range of brokers, analysts, and executives to size things up. As you’d expect, they more or less fell into two camps—the ups and the downs—but their opinions tended to funnel down to one conclusion.


From the optimists: “In my opinion, we’ve already come off the bottom,” declares Barbara Corcoran, founder of the Corcoran Group and commentator for the T­oday show. She says newcomers are still pouring in, especially from China and Brazil, and that those wealthy buyers are indifferent to the downturn. She’s backed up by Victor Calanog, chief economist at the analytics firm …

July Manhattan Market Update:

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 Lets get right to the freshest data available on the pace of new supply and the pace of newly signed contracts to see how the Manhattan market performed in July compared to both the prior month and the year ago period.

First, lets look at the pace of new supply coming to market on a monthly basis:



Conclusions: This is now the 10th consecutive year-over-year monthly decline of new supply to hit the market. If it feels like there is not that much new supply out there, your right. The data shows that the current pace of fresh, new listings hitting the Active marketplace right now is way down from both last month, and the same period last year. Inventory remains tight which means there is even less high quality product out there that is priced to sell quickly. This is adding to downward pressure on inventory levels right now.

Second, lets look at the pace of new contracts signed on a monthly basis:



Conclusions: We saw a big drop in new deals signed in July, to 713. This is down from 988 last…

In New York, a Sprinkling of Higher Prices

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Great article about how different and ahead of rest of the Country the Real Estate market in New York City is. Prices going up... Multiple offers... Yap! It is real here!!


In New York, a Sprinkling of Higher Prices


In New York, a Sprinkling of Higher Prices Hiroko Masuike/The New York Times BEFORE the financial markets’ most recent drubbing, New York City’s real estate prices had been flat for the better part of a year. But over the spring and summer, prices in certain pockets of property sprinkled around Manhattan and Brooklynhad rebounded to or beyond pre-recession levels.


Read the article: In New York, a Sprinkling of Higher Prices




By VIVIAN S. TOY, New York Times Published: August 19, 2011

Brazil, Fourth Largest Holder Of U.S. Treasuries, Will Maintain Foreign Reserves In Dollar

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Brazil has no plans to sell U.S. Treasuries or change its foreign currency reserves holdings as a result of Standard & Poor’s downgraded U.S.’s credit rating,according to Bloomberg. As of August 4th, Brazil holds $348 billion in foreign currency reserves, 35% more than in the same period in 2010. About 60% of this total, or $211 billion, is held in U.S. treasuries. Hence, Brazil is the US’s fourth largest creditor, only behind China, Japan, and the U.K. Since Brazil is such a large creditor, it is in Brazil’s interest to enforce the idea that even though U.S. treasuries are no longer “risk free”, they are and will still be perceived as safe havens. Therefore, Brazil will try to send the following message to the market: Standard & Poor’s downgrade of the US.’s credit rating is only an additional dramatic element but it doesn’t really have a large influence in the current global crisis. Guido Mantega is Brazil’s finance minister. Following the US's credit rating downgra…

Building permits see increase, construction resumes in city

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Though still below 2008 levels, new construction permits in New York City are on the rise, an indication that developments may be back on track, the Wall Street Journal reported. 

Permits for new buildings, alterations and demolition rose by approximately 12 percent during the first half of 2011 compared with the same period last year, according to new data from the Department of Buildings. Demolitions -- normally a firm indicator of brand new projects -- jumped by 14 percent. 

"More construction permits mean more people are going to work," Buildings Commissioner Robert LiMandri said. 

Private developers are still experiencing difficulty when it comes to financing big projects, said Richard Anderson, president of the New York Building Congress, as lenders tighten their restrictions. 

The increase in construction permits is "certainly a positive sign," he said, but the improvement has been undercut by the number of stalled sites in the city[WSJ]

New development condo sales increase in Manhattan, Brooklyn

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New development condominium sales are up year-over-year in both Manhattan and Brooklyn for the second quarter of 2011, according to a second-quarter new development report released today by residential real estate firm MNS. 

In Manhattan, condo sales prices were up 18 percent on an average compared to the second quarter of 2010, the report says.  

Compared with the first quarter of 2011, the average Manhattan new development price was virtually flat. Even though some condo sales are seeing strong sales, several real estate professionals told The Real Deal earlier this spring that many challenges lie ahead. 

The Flatiron District saw the most positive change in the second quarter, with the closings at 15 Union Square West  and the $13 million sale of the Cupola apartment at 141 Fifth Avenue forcing the neighborhood average up over 50 percent from the first quarter of 2011. 

On the Lower East Side, the Karl Fischer-designed seven-unit 263 Bowery condominium brought the neighborhood quarterl…

Despite improved quarterly figures, home prices still struggle to recover

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Though national home prices posted 4.1 percent quarter-over-quarter gains on improved summer numbers, year-over-year declines reveal that markets are still trying to find their footing, according to July 2011 Home Data Index from Clear Capital, released today. 

The gains of 4.1 percent, the second consecutive month of positive price gains, represent an improvement over June's 0.9 percent rolling quarter uptick but they have not been enough to alter the broader housing picture, Alex Villacorta, director of research and analytics at Clear Capital, said. 

"Building off last month's minimal quarterly gains," he said, "prices continue to correct from winter's extended declines. Although this is encouraging, many markets are still near, or at record lows as [real estate-owned] saturation remains a significant proportion of all sales activity." 

Northeast markets bucked the trend of year-over-year price declines, the report shows, with the broader New York City a…

Onsite: Early Look at the 9/11 Memorial and Museum

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