Transaction activity, after the summer slowdown of July and August, has resumed at a very decent pace.
If during the last two years potential buyers were just looking, they are now acting. Deals are actually going through especially because financing is once again available.
Sure, the process of getting a mortgage is not as simple as it was during the era (that looks like the Jurassic period nowadays) preceding Lehman Brothers’ crash, but it is becoming less challenging than it was until few months ago.
30 yrs interest rates are fluctuating around 4% in the recent weeks.
Basically the market, slowly but surely, seems to be progressing on its upward trajectory.
On a national level: the fact that the Federal Reserve has given signals that lead us to think that it will resume its quantitative easing strategy tailored to sustain the economy has produced some good reactions in the stock market.

Meanwhile a number of condo projects that stalled during the recession are back on the market, many of which, after having gone through a financial restructuring.
Often with a new listing price and a mortgage market that is in recovery mode, these projects are fairly successful now.
Consider this: The percentage of new condos sold on the total number of Manhattan sales was 58% in the second quarter of 2006 (source: Miller Samuel); in the first quarter of 2010 this percentage was down to 16.4%; and in the second quarter it was up to 22.6% already.
For example: 1 Rector Park, where marketing efforts started in early 2009 to be interrupted soon after due to the scarce demand, has been going through financial restructuring and  is now in the spotlight again. It has been newly launched in August 2010; from that period to today there have been more than 500 phone calls to the building broker and 23 contracts have been signed.

The Mexican billionaire Carlos Slim, by many regarded as the richest man in the world, has purchased in July, with other investors, a gorgeous piece of New York Real Estate: the Duke Semans Mansion.
With this property, Slim adds another trophy to his already rich NYC portfolio. One of these most important holdings is Saks Fifth Avenue, where he is one of the largest shareholders.
If an investor like Mr. Slim has decided to get into the NYC Real Estate game now once again, doesn’t this seem like a good time to make real estate decisions?

David Jones writes on The Real Deal about the Cipriani family saga.
Legal battles with Capital One Bank appear to have slowed down the momentum of the family business; which is already a brand name recognized internationally. We are talking about $4 million.
Last month some Cipriani properties and belongings related to the restaurant business were almost auctioned off before the company negotiated and stopped the process.
In truth, sources say that a settlement agreement has been reached, and it is now down to how the cost of the legal fees will be split amongst the quarrelling parties.
One of the less than brilliant moments of the past few years regarding Cipriani’s dealings was the loss of the lease at the famed Rainbow Room in 2009. Tishman Speyer, the company that controls the Rockefeller Center and, with it, this fabulous top floor space, did not agree to renew the contract unless Cipriani was to pay $9 million a year a price that was considered too high by the Italian food and catering company. Result: the Rainbow Room now sits vacant.
Giuseppe Cipriani, grandson of the founder and principal engine since 1985 of the New York City expansion of the company that was born with Harry’s Bar (in Venice, Italy), states that the firm is eager to expand abroad; a new restaurant should be inaugurated this month in Istanbul, Turkey.
Going back to Capital One; it is not the first time the company encountered legal problems. In 2007, the company had to pay $10 million after having negotiated with IRS on unpaid taxes and in 2008, it shelled $12 million to anticipate the termination of a lease at the International Toy Center at 200 Fifth Avenue.

Commercial Transactions
Sales of whole buildings are finally in strong surge; not just in Manhattan but in the outer boroughs as well.
In fact: Queens, Brooklyn, The Bronx and Staten Island have registered, together, a +17% in transactions volume in the first seven months of this year compared to the same period 2009; 2100 sales this year versus 1800 the past year. More than 1000 sales happened this year only in Brooklyn.
In Manhattan 326 properties changed hands in the first seven months of 2010 versus 217 last year.

Dear Friends; this is it for today.
I am always available to answer your questions on your next NYC Real Estate investment. Please do not hesitate to contact me.

Warm Regards,
Riccardo Ravasini