Here in the Big Apple, we continue to witness remarkable transactions lately.
At the beginning of November, a contract was signed for the sale of an apartment at 15 Central Park West, constructed in 2006 and considered, for its beauty, the Prima Donna of the real estate residential market. The price, $40 million, will mark, when it closes, a new record for price paid per square foot: more then $10,000.
Another recent record from the month of November involves the priciest transaction for an apartment below 14th Street (it is also the third largest sale this year): $31.5 million for a penthouse at Superior Ink. An important fact to be noted about this deal is that the apartment was bought in 2009 by billionaire Leslie Alexander, owner of the Houston Rockets, for $25.5 million, who promptly put it back on the market!
Sure, these transactions are not the average, but they certainly help the spirit; since they give an idea of the psychological attitude of individuals that invest tens of millions of dollars in a single real estate deal.
They should know what they are doing!

recalling…
The history of the second largest sale of this year, after the largest I mentioned last month involving the Duke Semans Mansion, began in March when the unrenovated apartment at Trump International Tower (bought in 1998 by Italian film producer Vittorio Cecchi Gori for $10.4 million) was foreclosed by the lender who then sold it through an auction to a Russian investor in July for $18 million. This investor later gave up his $1.8 million deposit when he learned about the high renovation costs. The property was relisted and eventually a bidding broke out which led to the final price of $33.2 million…funny high-end real estate games.

The Real Deal, through data compiled by Miller Samuel, presents a report on the historical correlation between Wall Street bonuses (paid at the beginning of the year) and co-ops and condos Manhattan sales volume, from 1993 to this day.
Excluding the particularly volatile moments, like 1998 and 2005, the report shows that the correlation between the two series is positive and quite strong.
For example, at the beginning of 2010 bonuses shelled out by Wall Street have been 39.5 percent higher ($25.4 billions) than the year before, while the number of residential transactions is expected to grow by 39.3 percent by the end of the year.

As for retail commercial leasing, there is an interesting trend taking place.
Given the uncertain times to start a new business over the past two years, especially when a few bad months can compromise a small venture, some landlords have been offering variable rents tied to the performance of the retail location. A lower base rent should be adjusted when certain predetermined goals, agreed between lease holder and landlord, are met.
Jerri Longi of Tresanti restaurant in Soho has negotiated this kind of situation with his landlord, Vornado, and says he’s happy about the arrangement; even if he would prefer a fixed rent enabling him to control costs more effectively.

this month in real estate history
Reporter Adam Pincus reminds us that in December 1965 the Landmark Preservation Commission brought forward the project for the historical district of Greenwich Village; an area of 65 blocks and roughly 2000 buildings comprised within: 12th St. and 13th St. to the North; University Place to the East, Washington Sq. and West 4th to the South and Washington Street to the West.
While the approval to landmark Brooklyn Heights took only a few months, the first of this kind, the story was different for Greenwich Village. Given the number and strength of business interests colliding in the area, it took four years for the project to be approved in 1969.

In December 1903, the Williamsburg Bridge opened.
At the time the largest suspended bridge in the world, it facilitated the move of a great number of immigrants, mainly Eastern European Jews from the Lower East Side, where they were previously compressed, to Brooklyn.
The neighborhood swelled from a population of 105,000 in 1900 to 260,000 in 1920.

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; I will be pleased to send you interesting listings.

Wishing you a serene Christmas and a healthy beginning of 2011, I send you my warmest regards.

Riccardo Ravasini