Tuesday, May 5, 2015

Manhattan Buyer's Guide Nuances

 Manhattan Buyer's Guide Nuances

I'm Ready to Buy a Manhattan Apartment... How Much Time Will It Take?
Short answer: anywhere from a month to a year. But I'll break it down into ten steps...

1. Get Mortgage Pre-approval (by Your Bank or Broker)
How long does this take? A day or three...
Know your budget... most condos require at least 10% down. Most co-ops require at least 20%. Budget your down payment and monthly expenses (common charges, real estate taxes, mortgage, repairs, utilities, and so on).
A pre-qualification letter shows how willing your bank is to work with you. It also shows sellers how committed you are to buying a Manhattan home.
Also, it's time to pick a New York City real estate attorney. They'll help with the haggling, plus writing up a contract. They're around to look out for you, so take advantage.

2. Find Your Home

How long does this take? A few months... unless you believe in love at first sight!
The average buyer looks at more than fifteen apartments before finding the right one. Good things take time!
Prioritize... What matters most? Community? Space? Aesthetics? Safety? The view? Amenities? Investment? Building Features? Apartment features? Bathroom features? Kitchen features?
Consider the schools, transportation, entertainment, etc. in your preferred neighborhoods. Look at amenities and rules (Have a washer & dryer? What about pets? Need storage?).
The best way to search is obvious... do legwork. If that's not best for you, we're available to help you search.

3. Negotiate with Owners
How long does this take? A few days (or weeks)
Assessments, fixtures, floors, appliances, fireplaces, washers & dryers, and so on... it's all on the table. Make an oral offer for purchase, followed by a written offer (which formalizes your intention to buy). Your seller might counter-offer. Your turn again!
Remember, we are here to help negotiate.

4. Sign Your Contract
How long does this take? A few weeks
The seller's attorney sends the contract of sale to the buyer's attorney. After due diligence, the buyers sign and forward the contract, plus deposit. The sellers are ready to execute the contract.
Issues to monitor: financing, board approval, and closing date.

5. Apply for Your Mortgage
How long does this take? A month or two
If you're financing, the board will ask for a commitment letter from your lender.
This letter is usually the final piece in a board package or condo application.

6. Prepare Your Condo Application or Co-op Board Package
How long does this take? Anywhere from three to nine weeks
After the contract has been executed, condos ask for an application.
Co-op's expect extra information. Most boards request full financial disclosure (and supporting documentation), employment history, current salary, personal and business references, three years of tax returns, credit history... good thing you've got a checklist.
It might sound like a lot -- remember, we're here to help!

7. Submit Your Condo Application or Co-op Board Package
How long does this take? Under one month
After completion, we'll submit your app to the building's management. They'll review it for completion. Next, it goes to the condo's Board of Directors. After they take a look, they decide if they'd like to meet you.

8. Interview with Co-op Board & Get Approval
How long does this take? Scheduling might take a couple days, but interviews are only an hour or two. Co-op boards meet about once a month. Meetings are usually on weeknights. Board interviews don't necessarily equal approval. We'll make sure you're prepared for your interview... we've done this before.

9. Schedule Your Closing
How long does this take? Almost there! Just a week or so!
Everyone involved agrees on your closing date, time, and location.
This is when final documents are signed... and ownership is transferred.

10. Move In!

It's an involved process. Keep your eyes on the prize... owning Manhattan real estate is a lucrative investment.

Consult with me about your next real estate investment:
Jamie Knuckles
Licensed Real Estate Salesperson
BOND New York Properties, LLC
1776 Broadway 19th Fl.
New York, NY 10019
Office: 646-666-2253
Mobile: 347-386-6386
Fax: 646-666-2390

Friday, May 1, 2015

NYC’S No-Longer-Ailing Developers Seek to Retain 1971 Tax Break

An obscure state law enacted 44 years ago giving tax breaks to a struggling New York City real estate industry will expire in June, and a battle is brewing over whether it should live or die.
In a city where two-bedroom Manhattan apartments now rent for an average of $5,248 a month, affordable housing is becoming increasingly out of reach as developers add luxury residential towers to the skyline. The real estate industry says abolishing the law will make construction of rental properties unprofitable. A 1984 amendment requires developers receiving an abatement to keep 20 percent of their units at below-market rents.

Groups representing thousands of financially squeezed tenants say the law gives developers generous breaks without forcing them to create enough affordable apartments, costing taxpayers $1 billion a year in lost revenue. Money would be better spent on rent subsidies, vouchers and low-cost financing, they say.

The Real Estate Board of New York, the industry’s lobbying arm, says that without the law known as 421-a, no apartments will be built in a city whose construction costs, land prices and taxes are among the highest in the world.

“We welcome anybody looking at the numbers to tell us that rental housing can be built in this city without assistance,” said Steven Spinola, president of the group, whose members spent at least $21 million on state elections last year. “When someone calls for the end of 421-a, they’re calling for the end of rental-property development.”

No Future
The law was created in 1971 to stimulate construction when builders saw no future in New York City, which teetered on the brink of bankruptcy four years later. It exempts developers of multi-unit residential buildings from paying property taxes on new construction for as long as 25 years.
The expiration looms as Mayor Bill de Blasio puts into motion his plan to create or preserve 200,000 units of affordable housing by 2025. The dispute over 421-a shows the limits of his power in a state where the governor and legislature dominate city governance to the point where even the installation of a traffic-light camera must get approval from Albany.
It’s also placed de Blasio between tenants of modest income -- the heart of his political base -- and an industry that accounted for $15.4 billion of the city’s $41 billion in 2012 local revenue.
Delsenia Glover, campaign manager for Alliance for Tenant Power, a coalition of affordable-housing advocates, said that if the law is extended, it would have the unintended consequence of gentrifying minority neighborhoods.

“We will wait and see what he says about this,” she said.

Not Enough
The mayor, the first Democrat to run City Hall in two decades, says he agrees that developers need tax incentives and other inducements to create affordable housing. At the same time, he’s sided with tenant advocates who say 421-a isn’t doing enough to help him reach his goal.

“The administration has made very clear that the current 421-a program has not delivered nearly enough affordable housing for the tax benefit provided,” said Wiley Norvell, a mayoral spokesman.
The 421-a program was thrust into the spotlight this year when it appeared in the federal criminal complaint that led to the indictment of former Assembly Speaker Sheldon Silver.

U.S. Attorney Preet Bharara said in the complaint that Silver’s power over 421-a and other real estate regulations helped him persuade a developer to sign with a law firm that was allegedly kicking back a portion of its fees to Silver.

Silver, a Manhattan Democrat, says he’ll be exonerated. He stepped down as speaker Feb. 2.
The Republican-controlled senate, which historically has supported real estate interests, is facing its own leadership crisis after WNBC-TV and the New York Times reported that Majority Leader Dean Skelos of Long Island was also under federal investigation. He says he’s cooperating. Scott Reif, a Skelos spokesman, declined to comment.

Cuomo’s View
Governor Andrew Cuomo, a Democrat who raised more than $12 million from the real estate industry in campaigns over the past seven years, according to the National Institute on Money in State Politics, said April 24 that he wouldn’t object if the law were extended.
When 421-a was created, there was no requirement that developers include below-market apartments. In 1984, the law was adjusted to require affordable units for projects built below 110th Street in Manhattan. The area has since been expanded to parts of the city’s other four boroughs.
The exemption can last between 10 and 25 years on the condition that 20 percent of the units are affordable to people earning 60 percent of the area’s median income, or about $1,260 per month for a two-bedroom apartment, according to a January report by the Association for Neighborhood and Housing Development, a nonprofit that promotes low-cost housing.

Of the 153,000 units that received a 421-a tax break in 2013, only 12,748 were affordable, the report said.

Richard Anderson, president of the New York Building Congress, an association of developers, architects, lawyers, construction companies and unions, said builders spent a record $11.9 billion last year creating 20,000 units of mostly super-luxury housing.

“This is no longer a city for the rich; it’s for the super-rich,” he said. While 421-a may help increase affordable housing, it may not be the most effective way, he said.
“An objective analysis of the program is long overdue,” he said.

Source: Bloomberg News

NYC Construction Spending Reached $36 Billion in 2014; A 26 Percent Increase from 2013

Construction Activity Yielded $57 Billion in Total Economic Impact for the City
Overall construction spending in New York City reached $36.0 billion in 2014, a 26 percent increase from 2013, when total spending reached $28.5 billion, according to a New York Building Congress analysis.

Construction employment in New York City reached 122,975 jobs in 2014, an increase of slightly more than 2,000 jobs from the prior year and the highest total since 2008, when the industry employed 132,625 workers.

Residential
Residential construction spending skyrocketed to $11.9 billion in 2014 – a 73 percent increase from the previous year. Not only is this a record (even after factoring for inflation), but it is the first time in New York City history that annual residential spending has even topped $7 billion.
That said, the percentage increase in unit production is not currently keeping pace with the increased spending. The 20,329 new units produced in 2014 represent just an 11 percent increase from the prior year and remain well below the more than 30,000 units of new housing that were created annually between 2005 and 2008.

Government
Government construction spending, which includes investments in mass transit, public schools, roads, bridges, and other essential infrastructure, increased 7 percent – from $13.4 billion in 2013 to $14.3 billion in 2014. Government spending peaked at $16.3 billion in 2008 and has remained in the $13-14 billion range over the past four years.

Non-Residential
Non-residential construction, which includes office space, institutional development, sports/entertainment venues, and hotels, climbed 20 percent – from $8.2 billion in 2013 to $9.8 billion in 2014. This marks the first time since 2010 that non-residential spending increased from the prior year. With multiple Hudson Yards towers now under construction as well as the full-scale resumption of work on 3 World Trade Center, the near-term prospects for the commercial sector remain bright.

“While the unprecedented boom in residential construction is justifiably grabbing the headlines, what’s most encouraging about 2014 is the growing strength exhibited in all three sectors of the construction market,” said New York Building Congress President Richard T. Anderson. “As an industry, we must ensure that we have the capacity to conduct all this work efficiently and safely while also collaborating with government to promote continued public and private sector investment throughout the five boroughs.”

Economic Impact
The $36 billion in direct construction spending in New York City stimulated an additional $21 billion in total spending in other sectors of the City’s economy – for a total economic output of $57 billion. This represents a multiplier effect of $1.58, as each dollar spent on construction yielded an additional $.58 in overall economic activity.

The additional $21 billion can be broken into two categories – the indirect and the induced effect. The indirect effect, which consists of output generated by businesses that serve the construction industry, amounted to $10.9 billion in 2014, while the induced effect, which represents the consumption spending of workers employed by the construction and support services, amounted to $10.1 billion.

The Gross City Product (GCP), or total value added, was $31.6 billion as a result of the total economic effect. This represents 4 percent of New York’s $762 billon GCP in 2014. By sector, government construction spending contributed 2 percent to the GCP while residential and non-residential each contributed 1 percent.

Along with government, residential, and non-residential construction, the other major sectors of the City’s economy that benefited from the $57 billion in spending included wholesale trade, real estate, and retail, as well as architecture, engineering, and related services.

In addition to direct construction employment, last year’s construction activity produced another 130,000 jobs throughout New York City’s economy. Nearly 67,000 jobs were created in fields that service the construction industry, such as lawyers, accountants, and suppliers. Still another 63,000 jobs were induced by the increased household earnings that resulted from direct construction and the related expansion of economic activity. The annual average salary for all direct, indirect, and induced employment was $83,250.

“There simply is no overestimating how important the construction industry is to New York City, especially once you factor in the ripple effect throughout the City’s economy,” added Mr. Anderson. “This is something that we need to keep in mind as the debate heats up in Albany regarding the MTA’s capital program and incentive programs such as 421-a. In addition to paving the way for continued growth, these programs also stimulate the economy in the near-term by providing stable sources of jobs, income, and spending.”
Source: Citybizlist New York

Friday, March 20, 2015

Confidential * Private * Attention Commercial Property Owners! (NYC)

Confidential * Private * Attention Commercial Property Owners! (NYC)




If you need to sell you commercial property investment(s) We can make this happen for you. Over the past nine years I developed a solid base of clients, prospects and real estate investors. We are only making this opportunity available to high net worth real estate owners such as: Building Owners, Private Equity Investors, Real Estate Developers, & Hedge Funds looking to sell their real estate assets in New York, NY who we believe are of the highest quality and integrity. If this interest you and you want to sell your property asset, please call or email me as soon as possible. 
We would love the opportunity to connect with you.

To learn more about the type of investment properties our real estate investors are interested in, reply with your contact information (name, email phone,etc.)

Jamie Knuckles
Commercial Sales & Leasing
Licensed Real Estate Salesperson
BOND New York Properties, LLC
1776 Broadway 19th Fl.
New York, NY 10019
Office: 646-666-2253
Mobile: 347-386-6386
Fax: 646-666-2395



Saturday, December 13, 2014

A Very Creative Loft with 15' beamed ceiling, River Views! (West Village)



Located on a quiet tree-lined street in a unique setting this 2127 sq. ft iconic Coop in this West Village neighborhood...you'll want to move fast if you want this one. The heart of Downtown's most sought-after neighborhood with its world class restaurants, cafes, highly rated schools and the fascinating Hudson River Park. Enjoy the Sunrise or Sunset over the River from your wall of windows in this Loft with 15' beamed ceiling, flooded with natural light. This rare Loft space in prime West Village location with abundant closets and storage is move in ready or can be re-designed to suit the creative mind. There are three sleeping Lofts, extra space for home office. There is plenty of storage space?  This Cooperative was Built in 1930. 
This Loft has 3 bedrooms, 2 Baths an air cooling wall unit,  heating is baseboard. There is Laundry in the unit and a Fireplace surrounded by a nice hardwood floor. If you would like to learn the secret of this house that has kept these sellers the most satisfied happy homeowners in the neighborhood come see this home. Nearby Schools are P.S. 41 Greenwich Village Grades K-5, NYC Lab Middle School for Collaborative Grades 6-8, NYC Lab High School for Collaborative S Grades 9-12.
Offered at $4,000,000
Maintenance - $2,325.30
Financing 75%

Contact:
Jamie Knuckles
Bond New York Properties
Direct: 347-386-6386