Page 4 - CooperatorNews New York August 2021

4 COOPERATORNEWS — AUGUST 2021 COOPERATORNEWS.COM PULSE Industry Pulse Events We’re Back, Baby! CooperatorEvents Expo Returns to NYC this Fall! coopexpo.com CooperatorEvents is thrilled to an- nounce the return of our in-person Expos! This fall, the CooperatorEvents New York Expo will take place at the NY Hilton Midtown on Thursday, October 28, 2021, from 9:00 a.m. to 4:30 p.m. We have an exciting lineup of exhibitors ea- ger to interact in person, covering every aspect of multifamily living, from board governance, financial planning, and community engagement to roof repair, energy management, and lawncare. Like our past in-person Expos, the Coop- eratorEvents New York Fall Expo 2021 will include a full day of free workshops, seminars, networking, and more. And as always, registration and attendance are FREE to all! Visit www.coopexpo.com to see who’s exhibiting, get more infor- mation, and register as an exhibitor or an attendee. This will be a must-attend event for all condo, co-op, and HOA board members, property managers, residents, and real estate professionals in the Empire State! We look forward to seeing you there in person! Trends Manhattan Sales Heat Up in Q2 2021 Real estate brokerage and data ana- lyst SERHANT. reports that the second quarter of 2021 showed that Manhattan is experiencing a major rebound in all types of residential sales compared to the same quarter last year. In fact, the number of sales is meeting or exceeding records, and prices are on an upward trajectory—indicating that we are once again on the verge of a seller’s market. Garrett Derderian, SERHANT.’s di- rector of market intelligence, says in a statement, “We are in the midst of the strongest housing market the city has seen since at least 2008, driven by ap- propriate pricing that is now in line with market expectations. There has not been a quarter since then where more con- tracts were signed,” noting that 2008 was the first year such data were recorded. According to the brokerage’s market- wide report, 2,739 sales closed in Man- hattan in the second quarter—a 123% increase over the same period last year. Derderian characterizes this post-pan- demic rebound as “spectacular,” adding that “especially in the luxury sector, the number of transactions is moving at a record pace. People are buying, and buying big. Larger apartments of all unit sizes are trading as buyers sought out more space due to lifestyle changes brought on by the pandemic and the shift toward somewhat more flexible re- mote work policies.” Average sales price increased 7.3% to $1,995,847 and the median sales price increased 10.1% to $1,123,500, accord- ing to the report. Discounts are shrink- ing as well, which Derderian attributes to units being priced correctly from the start. Derderian notes that certain sectors of the market “still have a way to re- cover.” Specifically, listings at $3 million and above are struggling to sell, with those at $20 million and higher seeing the greatest supply level, at 24.2 months. This, says Derderian, is “an extreme buyers’ market.” New developments—which were lag- ging in sales over the past year—are seeing a comeback as well. There were 469 new contracts reported, outpacing Q1’s 276 and last year’s 98 in the second quarter. “There are several very well positioned buildings selling at a record pace,” says Derderian, “while others are still correcting. Developers who moved more aggressively to price their prop- erties appropriately—and offer conces- sions as needed—did well.” As for the future, Derderian suggests two factors that might influence even greater growth: the return of the inter- national buyer, and the mayoral elec- tion. “So far this year,” he says, “most buyers have been domestic, as interna- tional travel was limited. We have yet to see the foreign buyer return en masse. We also have an upcoming mayoral election, which many are optimistic will breathe new life into the city. Both of these factors, along with pricing that is more in line with market expectations, could drive more people into the hous- ing market.” What does this mean for the city that never sleeps? “While heightened activity is itself a sign of the resilience of New York,” says Derderian, “it also tells us the ‘flight to suburbia’ was greatly over- stated. … Whoever said ‘New York is dead’ was dead wrong.” Transactions Tishman JV Buys 70 Condos in Bulk Deal Multi-Housing News reports that a joint venture between Tishman Re- alty & Construction and PIMCO has purchased 70 condominium units at a building known as Charlie West in Man- hattan’s Hell’s Kitchen neighborhood. The units at 505 W. 43rd St. were sold in bulk by the building’s developer, Elad Group, for $87.4 million. Charlie West is a 16-story, 123-unit building on 43rd Street between 10th and 11th Avenues. Construction of the building was completed in 2019. The 70 units in the bulk purchase represent the remaining unsold market-rate units in the building, totalling 76,897 square feet of residential space, according to MHN. The outlet reports that $60 million in financing for the acquisition came from the U.S. division of Bank Hapoalim of Israel (BHI), who also provided con- struction financing for the project. In a prepared statement, Ilana Druyan, BHI first vice president & head of In- ternational Originations Real Estate, describes the property as “an extremely desirable building at affordable luxury price points.” She notes the Midtown West location continues to be one of the city’s fastest growing areas. The acquisition financing was ar- ranged by Upland Property Advisors, who also represented the joint venture in the purchase. Upland Property Ad- visors founding partners Yoav Oelsner and Glenn Tolchin said in a separate statement that while investor interest in bulk condominium acquisitions is strong, particularly in well located new developments like Charlie West, the finer points of bulk transactions are still being worked out in many cases. “As sellers, buyers, and lenders gain clarity on pricing and appropriate deal structures,” says Tolchin in the state- ment, “we expect a pronounced increase in volume of bulk condominium trans- actions.” MHN notes that the Charlie West deal is the first major bulk condomin- ium sale in New York City since the start of the coronavirus pandemic. Co-op Loft in Flatiron Includes Column Signed by Rock Royalty A two-bedroom, two-bath co-op at 14 W. 17th Street in Manhattan’s Flat- iron neighborhood listed for $2.8 mil- lion has a unique feature: a support col- umn graced with the signatures of rock music icons including Kurt Cobain, members of Kiss and the Wailers, Sarah McLachlan, Robert Plant, and Joan Jett. The New York Post reports that the loft unit is “about to go into contract” after continued on page 13 YOU’LL LEARN SO MUCH YOUR HEAD COULD EXPLODE. (Our lawyers said we had to warn you.) COOPERATOR EVENTS EXPO 2021 WHERE BUILDINGS MEET SERVICES NEW YORK HILTON MIDTOWN — THURSDAY, OCTOBER 28, 9–4:30 FREE REGISTRATION: COOPEXPO.COM