Archive for Geezer Thoughts
Air-Quality Survey Dismisses Health Concerns for MTA’s Second Ave Subway
Posted by: | CommentsMTA recently hired Parsons Brickeroff to conduct an air-quality survey.
Starting on September 12, 2011 and continuing throughout a 4 week period, the firm collected minute-by-minute data for various pollutants at 10 locations between E 69th and 87th Streets. The final report, revealed that most measured pollutants were below national air quality and industry standards.
- High concentrations of one type of particulate matter were “attributed to local traffic emissions, other local sources such as commercial and residential boilers . . . with no significant contribution from blasting activities”, according to the report.
- Another spike during the 3 to 7 pm blasting period showed concentrations below acceptable levels to indicate no adverse health effects.
According to a statement released Thursday, MTA Capital Construction President Michael Horodniceanu “Based on the results of the study, there are no concerns that Second Avenue Subway construction si causing any danger to the public’s health. We will continue to do everything we can to be a good neighbor as we complete this critically important project as quickly as possible.”
Several measures were implemented to mitigate the odors and dust :
- “Dust Bosses” that spray water mist to force the dust particles to settle within the “muck house” structure were installed in two of the structures.
- Wet burlap curtains were installed in the shafts to act as screening for dust.
- Permanently sealing some overhangs
- Installed additional vents
- Increased time between blasts to allow for dust and smoke to dissipate.
Residents agree these measures have improved the conditions, but lament the delay in implementation.
The study findings will be presented by the MTA to the Community Board 8’ Second Avenue Task Force at Hunter College, 695 Park Ave, West Building Lecture Hall Room, 714W on January 26, at 6:30 which we will be attending.
Excerpted from DNAInfo.com article by Amy Zimmer.
In the News
Posted by: | Comments1/6/12: Silk Stocking District Still Hotter Than the Trendiest Neighborhoods: ‘Last year, the somewhat stodgy “Silk Stocking District” of the Upper East Side fared better than hip new downtown and uptown enclaves in terms of their absorption rates — the percentage of listings that went into contract or were taken off the market.’ Read about it at DNAinfo.com
1/18/12: ‘Medical Arms Race’ Spurs Massive Health Development on East Side: “At a time when the city’s public hospitals are struggling and Brooklyn hospitals are facing possible closures, top-tier East Side institutions — including the Hospital for Special Surgery, NYU Langone Medical Center, Lenox Hill Hospital, Weill Cornell Medical College and Mount Sinai Medical Center — could dramatically reshape the city’s landscape over the next five years as they expand their footprints, modernize and adapt to upcoming health care reforms.” Read about it at DNAinfo.com
1/21/12: Chefs, Butlers, Marble Baths: Hospitals Vie for the Affluent: “Pampering and décor to rival a grand hotel, if not a Downton Abbey, have long been the hallmark of such “amenities units,” often hidden behind closed doors at New York’s premier hospitals.” Read about it in the New York Times
1/22/12: Massive, Exclusive Full Floor UES Co-op Wants $30M: “It’s not every day when a unit at the fabled 2 East 67th Street comes onto the market, and this massive full floor unit is certainly impressive.” See the floor plan and read about it at Curbed
1/24/12: East River Underwater Turbines Give Jolt to City Power Grid: Using underwater turbines in the East River off the coast of Roosevelt Island, Verdant Power will be electrifying New York with roughly 1 megawatt captured from the strait’s natural tidal currents — enough for an estimated 1,000 city homes. Read about it at DNAinfo.com
1/25/12: A-Rod sells his NYC condo for a considerable profit: “According to the Wall Street Journal the New York Yankees third baseman has already received a contract for his 3,500-square-foot condo on the 35th floor of the Rushmore building on Manhattan’s Upper West Side.” Read about it at YAHOO! Sports
Last Week’s Headline Review
Posted by: | Comments* 50 Hotels to open in NYC through 2013: “Building a hotel in New York City is becoming more affordable than buying one, as demand from publicly traded investors helps drive a surge in property prices. Read more
* Are low prices behind increase in co-op board rejections?: “Co-op boards are rejecting buyers with increasing frequency, and according to New York Magazine that may have something to do with the bargain prices on apartments during the downturn.” Read more
* Wealthy Buyers still active in global cities: “The world’s wealthiest individuals are continuing to purchase luxury residential property in key international cities…” From The Real Deal Read more:
Central Park: Seasons On The Terrace
Posted by: | CommentsCentral Park is one of the most important works of art in America. And for 30 years, the Central Park Conservancy has worked to maintain this living masterpiece and enhance the public’s enjoyment of its visionary design. What better way to celebrate the Park’s success than with a stunning art installation befitting of New York City’s premier museum without walls?
Narrated by Kevin Bacon this incredible marriage of art and technology takes you through a year in the life of Central Park. With musical selections from Sting’s Symphonicities, this digital artwork lets Central Park admirers from around the globe enjoy its colorful spring blooms, green summer lawns, rust-colored fall foliage and snowy winter landscapes – all without traveling an inch. Originally projected onto Bethesda Terrace during a live event on October 13, Seasons is making its online debut today.
Co-op Board Interviews for Pets!
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People tend to find Co-op Board interviews difficult, if not downright stressful. Some co-op Boards are now requiring applicants to submit their dogs for interviews as well. Owner/Applicants can also be required to submit letters of recommendation from dog walkers, neighbors and groomers for their pet.
There are a number of trainers who now specialize in preparing dogs who face the scrutiny by New York City co-op boards. Ms. Renee Payne, owner of Walk This Way , a canine behavior therapist designed an interactive interview process for co-op buildings to evaluate potential canine residents.
- Frustration tests to see how easily a dog loses patience and whether or not it acts out if it does not get what they wanted on demand.
- Separation Anxiety tests to determine if the dog can remain calm when the owner is asked to leave during the interview.
- An Elevator test to see a dog’s response riding the elevator and strangers getting on and off.
- Doorbell tests to see how many times the dog will bark when the doorbell is rung.
Excerpted from New York Times Article by Sarah Kershaw on August 23, 2011.
Hurricane Irene – Updates, Tips & links
Posted by: | CommentsThe current forecast is that Hurricane Irene will reach the New York metropolitan area as a Category One storm. The ground speed of the storm has accelerated; gale forces winds of 40 miles per hour will reach New York City by 9 pm Saturday. The severe weather is expected to last between 12 and 18 hours. As Hurricane Irene continues on its path, the impact on New York City becomes more clear and additional information and precautions are being advised.
Updates:
- Mayor Bloomberg ordered a mandatory evacuation of coastal areas in Brooklyn, Queens, including all of the Rockaways, and Staten Island, along with Battery Park City and the financial district in Lower Manhattan and Governor’s Island. People are expected to be out of these areas by 5PM on Saturday.
- MTA and NJ Transit service, including subways, buses, and railroads, will begin to shut down at noon Saturday. Depending on the effect of the storm MTA service may not be restored in time for rush hour Monday morning.
- The NYC Department of Buildings is ordering suspension of all work at construction sites in New York City as of 2 p.m. Saturday, August 27 to 7 a.m. Monday, August, 29, 2011. Please continue to review their website for the most up to date information on precautions for buildings and construction sites.
- The City is revoking permits for events on Sunday and in the low-lying areas on Saturday.
- Evacuation centers are open as of 4:00 pm today, Friday August 26; there are 91 centers in total. See link below for location of evacuation centers.
- Governor Andrew M. Cuomo has declared a state of emergency in the State of New York and may close bridges and tunnels if winds exceed 60 miles an hour for more than a short time
Building Owners and Managers can prepare by:
- Organizing emergency contact information for staff, tenants, and vendors.
- Locate and review relevant insurance information.
- Ensure you have proper staffing to run the building and perform EAP duties.
- Secure objects in and around building such as lawn furniture, garbage cans, gas grills, antennas and satellite dishes.
- Check flood pumps to ensure proper operation.
- Make sure backup generators are working properly and you have adequate fuel.
- Residential buildings should notify residents to secure outdoor furniture on patios and balconies.
In addition to the city’s local preparations, FEMA and the Department of Homeland Security have regional and national support personnel briefed and on call. FEMA’s Private Sector Desk is operational from 8am-8pm daily and can be reached at FEMA-NRCC-Private-Sector@dhs.gov or by calling 202-212-2240. Our regional private sector liaison is Terry Winters who can be reached at Terence.Winters@fema.gov or 212-680-8516.
For more information on Hurricane Irene, please check the resources below:
NYC Department of Buildings:
http://www.nyc.gov/html/dob/html/news/pr_weather_advisory_082611.shtml
NYC Office of Emergency Management:
http://www.nyc.gov/html/oem/html/home/home.shtml
FEMA:
http://www.fema.gov/news/newsrelease.fema?id=57362
http://www.ready.gov/america/beinformed/hurricanes.html
National Weather Service:
To locate your local evacuation center:
http://www.nyc.gov/html/oem/downloads/pdf/hurricane_map_english.pdf
Details of MTA Shutdown
Please stay safe.
Week in Review: News You Can Use July 8, 2011
Posted by: | Comments- “Despite a banner month for Governor Cuomo, New Yorkers put their Trumpets down when it came to the Economy” Read all about it at Siena Research Institute
- New York City Tax Commissioner Announces 10% Assessment Cap on Co-ops, Condos. “New York City Finance Commissioner David M. Frankel confronted his critics yesterday at a City Council Hearing in May, announcing he was placing a 10% cap on tax assessment increases for co-op and condo properties in the five Boroughs.” Read about it at Habitat.
- AGs, Banks near $60B deal on Foreclosures. “America’s biggest mortgage servicers are closing in on a deal with federal and state officials to settle some of the thorniest foreclosure problems.” Read about it in the New York Post.
- Manhattan rents rise with room to go higher. “The Manhattan apartment rental market has been heating up for months, and second-quarter market reports released today by residential brokerages Citi Habitats and Prudential Douglas Elliman show skyrocketing rents. Now, the question is how long the rent increases will continue.” Read about it at the Real Deal
- Homes Dark and Lifeless, Kept by Out-of-Towners “some Manhattan neighborhoods are assuming that vacant feeling the year round, because the people who own or rent apartments there actually live somewhere else most of the time” Read about it in the New York Times
Square footage: It’s a matter of opinion!
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I remember seeing a cartoon in the New Yorker Magazine Cartoon Bank showing two mice talking about the size of their in-wall apartment. One said to the other “Counting the space behind the pantry shelves, it’s eleven square feet.”
Nowhere is caveat emptor more applicable than when referring to the stated square footage of a Manhattan apartment. Many real estate sites have disclaimers like this: “Exact Dimensions can be obtained by retaining the services of a professional architect or engineer.” At best all stated square footage and dimensions are approximate. At worst they are deceptive and misleading.
It is part of the overall marketing plan with most brokers: clean up, de-clutter, professional photos, and professional floor plans. Brokers want to show the property in the most flattering light. A floor plan in black and white (lately I’ve seen 3D color floor plans), provides a visual that shows walls, doors, fixtures and open space.
In addition to the stated square footage, does the floor plan show the whole truth? Are columns shown in the proper location and proportion to the space? Are radiators and moldings shown? How about the thickness of the walls? Sometimes they are, sometimes not. While technically correct, some graphic designers will measure from wall to wall, without taking into account such things as moldings and radiators. But, these things eat into usable floor space. Many times columns and window and door placements, even wall thickness are just estimates based on educated guesses and knowledge of building practices for a particular building.
For more information on how floor plans are created, see the New York Times article here.
Week in Review: News You Can Use June 10, 2011
Posted by: | Comments- Foreclosures fall 38% in May for New York City according to data from PropertyShark.com, the total number of residential foreclosures fell last month from May 2010, however co-op apartments made up 79% of all new foreclosure auctions scheduled. Read it all in Crain’s New York
- Federal Reserve publishes Beige Book June 8, 2011 “The Second District’s economy has continued to expand since the last report, though at a somewhat diminished pace.”
- City’s Design Sector grew 75% the past decade: “More designers are employed here than in any other U.S. city, thanks in part to an explosion in recent years of Brooklyn-based companies, said the report, released on Wednesday by The Center for an Urban Future, a think tank in Manhattan. It noted that the number of Brooklyn-based firms spiked from 257 in 2001 to 433 in 2009, for a 70% increase”. Read it all in Crain’s New York.
- The Bullish Case for the U.S. Economy “Investment strategist Robert Doll says America’s edge is faster population growth, companies that are global in scope, and a culture of innovation and entrepreneurship.” Read it all in the Wall Street Journal.
New York Mansion Tax? I don’t live in a mansion!
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According to New York State, if the purchase price of an apartment is $1 million or more, you are buying a mansion! Therefore your purchase would be subject to a 1% Mansion Tax, calculated on the entire purchase price, not just the part that exceeds $1 million. Buy at $999,999.99 no tax; buy at $1,000,000.00 or more, and you’ll owe $10,000+ tax.
If you’re thinking you’re safe if the purchase price is less than $1 Million, but are paying fees or taxes that would have otherwise been paid by the seller, think again. Those fees become part of the consideration for the property and could lead to being responsible for the Mansion Tax.
According to Joel E. Miller, a Queens tax lawyer, although the mansion tax is not deductible, however it does increase the property’s tax basis so it will ultimately reduce the tax paid on a gain on the sale of the property.
All Real Estate is Local. Very, Very Local!
Posted by: | CommentsTruth, lies and statistics!
Earlier this month, Zillow released its Q1 Real Estate Report. Many in the press joined in and cried gloom and doom.
The hysteria was best summarized by a Curbed article that listed the 10 Most Depressing Things Mentioned in The Zillow Report. Perhaps real estate prices continue to decrease in Phoenix, Los Vegas, Tampa, etc., but in New York City, especially Manhatan, it’s just not the case.
You would be misled if you simply looked at the Zillow Home Value Index for New York Metro data and assumed it had anything to do with Manhattan Residential real estate sales.
| MoM | QoQ | YoY | |
| New York Metro | -.5% | -1.6% | -5.3% |
But if you focus on coops and condo sales which account for over 99% of residential properties sold in Manhattan vs single family homes , you’ll see that in New York City there have been significant price increases.
| MoM | QoQ | YoY | |
| New York Coop+Condo | +2.3% | +7.5% | +19.2% |
As previously discussed with regard to the Case Shiller report discussed here, the Case Shiller report excludes new developments, condos and coops. At least the Zillow report has that data available (perhaps not new development) but you have to dig for it.
All real estate is local. So local, in fact that certain neighborhoods, blocks, buildings and even specific apartments have their own hyper-local real estate data.
Mortgage Market Trends for week ending October 29, 2010
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MARKET RECAP
Were we smart or lucky? We’d like to think smart, but we won’t discount luck either. We are speaking of the housing sales trend that unfolded after the tax credits expired at the end of April. We noted back in May that we expected sales to dip post-tax credits, and they did. We also noted that we expected sales to rebound once the market became acclimated to standing on its own feet, and that appears to be occurring.
Indeed, sales of existing-homes strengthened across all categories to jump 10 percent in September to 4.53 million annualized units, while sales of new homes rose 6.6 percent to a 307,000 annualized rate. The surge in sales helped push supply down to 10.7 months for existing homes and down to eight months for new homes.
The obvious question is how much discounting was required to stimulate sales? It appears some discounting occurred, when holding sales composition firm. The national median price for existing homes fell 3.3 percent to $171,700, with the average price falling 3.5 percent to $218,200. Meanwhile, the median price for new homes rose 1.5 percent to $223,800, with the average price dropping 1.2 percent to $257,500.
We’ve been vocal in our belief that home prices have stabilized. We stand by that sentiment, even though we wouldn’t be surprised to see some price volatility over the next month or two, thanks to the brouhaha over the foreclosure processes of the large banks and the expectation that foreclosures could swell into 2011.
That said, it’s important to remember that the housing market is much more orderly and stable than it was a year ago. All the malinvestment and all the excesses of yesteryear have percolated to the surface. We know what we are dealing with, which means foreclosures will certainly be handled in manner that won’t be too disruptive to the market. After all, the people selling foreclosed houses still want to sell at the highest price possible; the highest price possible isn’t achieved by flooding the market with inventory.
As for the foreclosure-servicing issues, the NAR warned that a single related court order could take 20 percent of the homes off the market. We’re somewhat circumspect. To be sure, an unfavorable court order could happen, but the pressure is great for it not to. If we were to balance the odds on a scale, we think the scale favors it not occurring.
As for balancing lower or higher mortgage rates, we side with higher. That’s not just our opinion. Bill Gross, a highly respected bond manager at PIMCO, noted this past week that a Fed announcement on additional monetary easing “will likely signify the end of a great 30-year bull market in bonds.” In other words, Gross expects bond prices to fall and interest rates to rise, which would translate into higher mortgage rates.
Let’s Get On With It
The time for waiting has ended. Confidence will return; that is, if it hasn’t already returned. Merrill Lynch reported on Bloomberg this past week that Americans – at least those with a few dollars to invest – are feeling more financially secure today than they were a year ago. Merrill surveyed 1,000 people with investable assets of at least $250,000 and found that 78 percent of those surveyed are confident their economic circumstances will improve in 2011.
For everyone else, confidence is within reach. Claims for jobless benefits unexpectedly dropped last week to a three-month low, an optimistic indicator that the U.S. labor market is on the mend. What’s more, the total number of people receiving unemployment insurance dropped to a two-year low. Meanwhile, consumer spending – a direct measure of consumer confidence – continues to move higher, and could give employers reason to add workers ahead of the holiday shopping season.
We think this latest slate of good news portends a robust economy for the New Year, which is why we think the opportunity to take advantage of historically low mortgage rates and low housing prices is dwindling for this year.
Graph Courtesy from NY Times in an article by Lynnley Browning October 29, 2010. Data and Commentary provided by Fred Ashe, from DE Capital Mortgage.
Which Spot In Central Park Was Voted Most Romantic?
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As the snow falls heavily in Manhattan, I received an update from the Central Park Conservancy. Reminding me of Valentines Day (note to self: Send flowers to Les), I did wonder which was the most romantic spot in Central Park.
The answer? Bow Bridge. Check this and see what so many have said about Bow Bridge. Even in the snow of winter! Or read about Central Park’s most romantic stories.
The story behind Bow Bridge…
- Named for its resemblance to a violinist’s or archer’s — or Cupid’s — bow, Bow Bridge’s dreamy setting over the sprawling Lake has inspired many a lovers’ stroll.
- Designed by Central Park co-designer Calvert Vaux and his assistant Jacob Wrey Mould and built in 1862, Bow Bridge is the second-oldest cast-iron bridge in the United States. The Bridge spans 60 feet across the Lake, linking the cultivated and flowering landscape of Cherry Hill with the rustic and sprawling woods of the Ramble.
- Bow Bridge is one of the most photographed spots in the Park and is provides the romantic backdrop for many wedding proposals and classic film shots.
Don’t worry spring is on the way…
Back On The Market
Posted by: | CommentsThanks to the many friends, clients, customers and readers for showing your concern for my apparent absence from posting to the Real Estate Geezer.
As Boomers and DINKs, my wife and I have been fortunate enough to celebrate the holidays this year with my dad 84, my aunt who is 100 and my wife’s mom who is 94 years old.
But some things had changed. In early December 2009 my dad was diagnosed with pancreatic cancer and my aunt, although physically “healthy”, began having more difficulty walking, severe memory problems, and because caring for herself had become impossible she needed around-the-clock assistance.
Becoming a caregiver for our loved ones takes a lot of adjustment. Dealing with their doctors, Medicare, working with the pharmacies and the nurses’ aids is daunting and very time consuming. The emotional strain and the role reversal, if you will, as well as the financial aspects of getting old, made my wife and I look into ourselves, face our mortality and wonder what our lives will be like when we reach their age and have similar medical problems.
All this with the backdrop of the health care reform bill now coursing its way through congress. I must say, from what I understand, the bill does nothing to ease the financial and emotional strain of what millions of Boomers will be facing in the very near future. More on this when I actually get to read what the House/Senate reconciliation committees finally agree on — behind closed doors.
Well I’m back now. Back on the real estate market, so to speak. There is an order to things. My aunt’s nurses and Dad’s chemo therapy are scheduled. I give a wake up call to my father every day, bring him his breakfast, the morning newspaper and arrange his medication. And if he feels good that day perhaps we go for a short walk. I pick up my aunt’s mail give her a hug and hope she remembers who I am that day. Then I head to work.
Things make more sense now. Reading the New York Times blog The New Old Age has been very helpful. I feel less alone now. The support of the neighborhood and city infrastructure can be very reassuring. For example, The Lenox Hill Neighborhood House, only a half block from our apartment and where I was an after-school and day camp member over 50 years ago, was so helpful in assisting my dad and I in getting him Medicare drug coverage. They continue to offer invaluable help with assisted living ideas for my aunt and perhaps the eventual hospice care for both of them. And on good days, when both dad and aunt get out their apartments, they can visit with their friends at the senior center and have some lunch.
We’re lucky to live within four or five blocks of each other. We love our doormen who are an important part of our extended family. They show genuine concern, hold the elevator when dad is walking a bit slow, and even help us get a cab when the wind and snow make it difficult for even the sure footed to get around. They are just really nice! We love New York City because of the convenience, and yes, the small-own feel of the neighborhoods. We’re thankful for Fresh Direct and the convenience of being steps away from almost anything you may ever need or want.
I’ll file this under Boomers and will continue to update this story from time to time. If any of you are having similar experience, or just need some support or someone to speak with, please don’t hesitate to contact me. I’ll be more than happy to help in anyway I can.
