This Week on "The Stoler Report-New York's Business Report"
This week join Michael Stoler on the television productions of New York Real Estate TV, LLC.
Monday, June 10th, Michael Stoler's guest on "Building New York-New York Life Stories" is Peter Schaffer, principal, "A La Vielle Russie"
On Tuesday evening, June 4th, the topic of the Stoler Report-New York' Business Report is "Everyone wants to be in New York City: New Banks entering the Big Apple.
My guests on the broadcasts include Kevin Cummings, Jack Kopnisky, Richard Ehst and Joseph Ficalora
The Stoler Report-New York's Business Report now airs a total of 8 times a week on CUNY TV in New York City.
Building New York: New York Life Stories, air 8 times a week in New York City and around the nation on Tuesday night on JLTV & DIRECTV.
Every Monday morning you will receive the latest real estate article by Michael Stoler on the state of the market an information about the upcoming guests on the productions of New York Real Estate TV, LLC
Despite Current Projects, New York City Boroughs Still Under Retailed
New York City is the number one retail location in the world. Retailers from around the world flock to open flagship stores throughout the Big Apple. Apple's store on Fifth Avenue, with its familiar cube, has the highest revenue of all Apple stores. Then there are the flagships of Uniqlo, Zara, Tiffany & Co., Bergdorf Goodman and a cast of others. Nevertheless, when you ask prominent owners of commercial real estate as well as local and national retailers, the general consensus is that the outer boroughs of New York City are severely under retailed.
Eastern Consolidated's Barbara Byrne Denham reported in May 2012 that retail sales per capita ratios for the outer boroughs were far below the national average. Brooklyn was 39 percent below, Queens was 40 percent below and the Bronx came in a whopping 60 percent below.
"Our biggest problem is securing sites in the five boroughs to build adequate retail," Christopher Conlon, chief operating officer and executive vice president at one of the most active developers of urban retail in the boroughs-Acadia Realty Trust-told The Mortgage Observer. Thomas Caputo, president of Equity One, a REIT active in development of retail sites in New York City and Long Island, concurred with Mr. Conlon on the lack of adequate retail in the boroughs.
With a limited availability of developable land, many of these developers are working with the New York City Economic Development Corporation and other agencies to secure sites. In March of 2012, Equity One was selected by the New York City Economic Development Corporation to redevelop a surface parking lot into a 130,000 square feet multi-level retail center at grade. The development, Broadway Plaza, at 171 West 230th Street in the Kingsbridge section of the Bronx, is located at the intersection of West 230th Street and Broadway with direct access off of the Major Deegan Expressway. Equity One's site is at the hub of a major retail corridor that is well served by subway, buses and easily accessible by automobiles. With almost 550,000 people within less than three miles, the project reflects the REIT's strategy of bringing convenience to urban areas that are underserved by national retailers. Construction commenced this earlier in 2013 and the project is expected to open in fall 2014.
A few blocks away from the site, local developer Metropolitan Realty Associates and Angelo Gordon are building Riverdale Crossing, a 165,000-square-foot shopping center slated to open before the end of the year on the site of a former Stella D'Oro factory.
Simone Development Cos. is undertaking a third major retail project in the Bronx in conjunction with Aaron Malinsky and Paul Slayton. They're developing Throggs Neck Shopping Center in the Ferry Point section. The two level center will include 285,000 square feet of retail, in addition to covered and uncovered parking for 900 cars. The center will be anchored by a 165,000-square-foot Target when it opens in 2014 and will provide a mix of national and local retailers to occupy the remaining space. T.J. Maxx has signed a lease for 28,417 square feet and other tenants include Petco, Famous Footwear MetroOptics Eyewear and Applebee's.
Triangle Equities president Lester Petracca also sees the boroughs as under-retailed, though he added that retailers in some Triangle properties have seen results surpass expectations. "When we built Triangle Junction, on Nostrand Avenue near Brooklyn College" Mr. Petracca remembered, "most of the retailers never realized that their stores in the center would achieve the sales level."
In 2011, New York City Economic Development Corporation selected Triangle Equities to purchase and develop two sites in the South Bronx. They include a spot at 430 Westchester Avenue and another parcel on land between East 14th Street, Brook Avenue and Westchester Avenue in the Hub section of the South Bronx.
Expected to be completed by early 2014, the new $41 million Triangle Plaza mixed-use commercial and community facility project in the Melrose neighborhood of the South Bronx will serve as a catalyst for a revitalization of a major intersection that once served as a bustling urban center. New buildings totaling 187,000 square feet will house restaurants, a FRESH grocery store, along with much-needed nonprofit office space for Legal Services of New York.
In downtown Brooklyn, Acadia Realty Trust, Washington Square Partners and Aaron Malinsky and Paul Slayton are developing City Point. The mixed-use property, at 1.8 million square feet, is expected to add retail and residential to Brooklyn's bustling retail corridor on Fulton Street. Phase 1 is complete and an additional 650,000 square feet are currently under construction at the former Albee Square Mall Site. In December 2012, Alamo Drafthouse Cinema announced that it will open New York Alamo Drafthouse City Point, a seven screen theater and entertainment center. A/X Armani Exchange celebrated its opening in the development in November 2012. Earlier in the year Century 21 signed a lease, making it the first new department store on Fulton Street in fifty years. The company plans to open a 50,000 square store in 2015.
Empire Outlets New York City, slated to open in Thanksgiving 2016 on Staten Island, will be New York City's first outlet center. The complex will have 350,000 square feet of retail space within the new entertainment complex. Shops slated for the center include Adidas, Coach and Nike.
Even with all of these planned developments, the boroughs remain under retailed for the foreseeable future, with a long way to go before this gap is closed.
"Numerous local officials have long claimed that the city needs more big-box retail," Ms. Byrne Denham wrote in her May 2012 report, "and that many New Yorkers travel outside the city to do bulk shopping."
Win a chance to secure one of the139 affordable rental apartments on the High Line
The High Line runs through three of Manhattan's most dynamic neighborhood: the Meatpacking District, West Chelsea, and Hell's Kitchen/Clinton.
Construction is underway along the northern stretch of the High Line, for The Related Companies newest residential at 500 West 30th Street. This structure will have 32 stories with a total of 386 units, of which 77 which will be affordable.
Immediately around the corner, Related is constructing at 529 West 39th Street, a 14 story tower which will contain 139 affordable housing units.
Applications are now being accepted for the 139 units, including 7 units available for the disabled. The property features a 70% preference for performing artists and support personnel, a 15% preference for residents of Community Board 4 age 62 years or older and 15% preference for residents of Community Board 4 regardless of age. Occupancy is planned for January, 2014.
Qualified applicants will be required to meet income and household size guidelines and additional selection criteria to qualify.
Interested persons may request an application online atwww.affrental.com or by mailing a letter or postcard with your complete mailing address, including apartment number and zip code to: RMCAO, 328 Eighth Avenue, Box 311, New York, New York 10001. Requests must be received by June 17, 2013.
Completed applications must be returned by regular mail only to a post office box that will be listed on the application and must be postmarked by July 1, 2013.
Applications will be selected at random and logged in the order they are opened. Due to the limited number of apartments available, once 4000 applications are logged, no more will be opened, but will be held for future use.
The configuration and mix of apartments:
# of Apts Apt Household Total Annual
Available size size Income Maximum
57 Studio 1 $36,120
37 1 bedroom 1 $36,120
45 2 bedroom 2 $41,280
The State of the Paid Travel Search
A large majority of travelers around the nation utilize paid search ad words. With the vast majority of travel bookings now taking place online, Hotel Magazine report that travel is highly competitive category for paid search.
Based on the pay per click-generated impressions, the Top paid search advertisers on U.S. Ad Words in the Travel Category in 2012 were:
1. Kayak.com 883 million impressions
2. Priceline.com 699 million impressions
3. Orbitz.com 670 million impressions
4. Tripadvisor.com 663 million impressions
5. Cheapoair.com 629 million impressions
6. Expedia.com 595 million impressions
7. booking.com 538 million impressions
8. Travelzoo.com 469 million impressions
9. Bookingbuddy.com 353 million impressions
10. Hotels.com 349 million impressions
The following chart shows the Top 25 Travel keyword terms in 2013 based on January to March click throughs
2 Cheap lights
5 Cheap tickets
8 Disney world
9 Southwest airlines
11 Us airways
14 Trip advisor
16 Vacation rentals
17 Rental cars
18 Royal Caribbean
19 Carnival cruise
21 Cheap hotels
24 Best western
25 Myrtle beach
Foreign investors one of the most active purchasers of commercial real estate in the U.S.
International investors are bullish on ownership of commercial real estate in major U.S cities and especially in New York City. Real Capital Analytics reported that International investors made $7.97 billion in U.S. commercial property purchases this year through April, a 25 percent jump from the same time last year. Last year, foreign investor's purchases reached $27.5 billion, almost six times the $4.7 billion low in 2009.
Foreigners represented 8.8percent of the U.S. commercial real estate transactions in the first four months of 2013, up from an average of 8.1 percent for the previous 10 years.
These figures do not include the most recent foreign buyers of office properties in the Plaza district of Manhattan. The families of Chinese real estate developer Zhang Xin and M.Safra & Co. the NYC based investment firm of Brazilian Safra family have purchased a 40 percent stake interest in the 50 story General Motors Building at 767 Fifth Avenue. The transactions value the building at $3.4 billion. In December 2010, an affiliate of Joseph Safra paid $285 million for 660 Madison Avenue, the home of Barney's New York, in the city's priciest office deal of the year. The purchase price included only the 255,000 square feet of the office portion of the building, above the ten story retail store.
In October, 2012 Chinese based Xinyuan Real Estate, a real estate holding & development company listed on the NYSE purchased a development site in Williamsburg, for its first development in the U.S. a 216 unit residential condominium building.