Last Sunday, I read an column in the NY Times which I wanted to share.  Many clients ask about co-op ownership, in particular whether they can put their shares in a trust which can be passed onto their heirs.  This is a very important question and can determine whether a buyer purchases in a co-op or not.

Each co-op has different guidelines but the attached response to a question asked by a concerned parent regarding his assets may be helpful to you when making the decision between co-op or condo.

In many cases co-ops allow transfers to certain types of trusts after the co-ops’ attorney reviews the trust along with a completed application which includes the trusts’ financial information.  Statements regarding who will occupy the apartment and an agreement that the apartment may not be occupied by or transferred to anyone without the board’s approval may be required.

By Cathleen Civale, 5/18/2012
SOURCE ( The New York Times)

As time goes by, this iconic building has fewer and fewer residences  come on the market, as owners are so happy to live here, they will be keeping their apartments for generations. This is a photo of the beautiful direct Central Park View from this 3 bedroom/3.5 bath residence. It even comes with a separate studio/suite. The price reflects the luxury of the building and residence. Please feel free to contact me personally for further information.

Noel Berk
noel@mercedesberk.com
212.371.4065

By Noel Berk, 5/18/2012
FLOORPLAN ( 15 Central Park West 4A)

Developers have taken the pulse of the market and are creating buildings for two extremes:  families looking for very large apartments with multiple bedrooms, and buyers looking for small apartments in full-service buildings.   Studios and one-bedroom apartments represent nearly half of all condo sales in the first quarter of 2012, and three-bedroom apartments made up 20 percent of transactions, both significant increases over the same period in 2011.  Large apartments keep getting larger, offering square footage and rooms counts not unlike those in suburban homes,  and spacious “showpiece” eat-in kitchens.   The other niche market is that of the buyers, often empty nesters or out-of-towners, looking for smaller spaces, anything from a studio to a small  three bedroom units, which often have small kitchens and are found in buildings with lots of amenities.

By Fran Shapiro, 5/18/2012
SOURCE ( The Real Deal)

What used to be the social center of fashionable New York, with elegant brownstones surrounding the square, is now a residential real estate revival in Madison Square Park. The neighborhoods surrounding Madison Square Park have grown tremendously after the seven-acre park underwent a $5 million renovation. The city’s “green jewel” is now overseen by the Madison Square Park conservancy.

Over the past few years, three long-standing buildings on the north side of the square have been converted or expanded for luxury condominiums, with another conversion on the way. The 1884 Western Union Telegraph Building, located on the southwest corner of the square, has been redeveloped to include loft-style condo apartments.  The Toy Center North building, a pre-war building on the square’s western edge, is being transformed into condos that have open floor plans..

Luxury residences are changing the skyline from Madison Square Park.  One Madison Park, a 50-story tower on 23^rd Street and Madison Avenue, is under construction and will soon be a 69-unit condominium that will come on the market at the end of the year.

Across Madison Avenue, the Metropolitan Life Tower has been acquired by Marriott International in a partnership with Ian Schrager, and will turn into a hotel later this year. The opening of trendy hotels and their restaurants and boutiques has brought new traffic to the area north of Madison Square Park, often called NoMad.

Prices are discounted relative to the Flatiron district. Most spaces are less than $1,000 per square foot for co-ops, whereas condos usually range from $1,100 to $2,000 per square foot.

By Sarah Goot, 5/18/2012
SOURCE ( The New York Times)

Text: On several occasions brokers at Mercedes Berk found themselves in situations which reminded them of times at the height of the market. New listings which fit our clients’ needs must be visited as soon as possible. Special apartments are being bid on at the first showings. Even with an accepted offer, selling brokers continue to receive additional offers and a bidding war may or may not begin. This is not just happening here in New York. Read more…………

By Cathleen Civale, 5/11/2012
SOURCE ( The Wall Street Journal)

Manhattan rental prices have climbed 3% from a year ago, striking an all-time high. The average Manhattan apartment rented for $3,429 last month. The vacancy rate is down to 1.16% from March’s 1.25%. The supply of apartments is low, making it likely that rents will climb as the vacancy rate decreases in the coming months. Leasing agents are advising apartment shoppers to carry money and applications when searching for a home to rent.

Additionally, the vacancy rate is up from 0.94% from a year ago, probably due to many renters who have decided to purchase apartments and take advantage of record-low mortgage rates. For those with the means to buy, there’s no better time to make the leap from renter to Manhattan homeowner.

For now, purchase prices are still out of reach for many renters. The average renter is projected to rent into his 40s. Just 0.5% of apartments in SoHo and TriBeCa are empty, and only 0.8% in Chelsea. Renters should be prepared to pay $3,853 for a one-bedroom in the tight SoHo submarket. Those looking for three bedrooms should be prepared to pay $8,960.

Most renters will have to pay the broker’s fee, typically equivalent to a month or so of rent. Very few rental apartment landlords are giving concessions to renters. This is a vast change from the days following the recession when desperate landlords threw in one month free of rent and paid landlord’s fees.

By Sarah Goot, 5/11/2012
SOURCE ( The Wall Street Journal)

Most buyers and sellers of New York City real estate understand the bidding and buying/selling process well enough. What most of these people usually don’t know or understand are what closing costs will be incurred in order to make the deal happen. The costs will vary between buyers and sellers and between co-ops and condos.

Closing Costs: Co-operative & Condominium Apartments and Townhouses
New York City Real Property Transfer Tax
(Paid by seller, except in most sponsor sales)
Sales under $500,000
1% of sales price
Sales over $500,000
1.425% of sales price
—————————————————————
New York State Real Property Transfer Tax
(Paid by seller, except in most sponsor sales)
0.4% of sales price
—————————————————————–
Mansion Tax
(Paid by buyer, only when price exceeds $1,000,000)
1% of entire sales price
—————————————————————-
Title Insurance
(Paid by buyer, condominium/townhouse only)
Approx. 0.5% – 0.8% of purchase price
————————————————————–
Mortgage Tax
(Paid by buyer, condominium/townhouses only, if financing)
Sales under $500,000
1.8% of entire mortgage
Sales over $500,000
1.925% of entire mortgage
—————————————————————-
Miscellaneous Expenses
Legal fees, bank costs,
Managing agent/building fees, flip tax
————————————————————–
Broker Commission
6% Seller only.
Costs can change and vary for some transactions. All information is subject to errors, omissions and changes in facts or circumstances.
Always consult your attorney before signing a contract.

If you have any questions about closing costs, please contact Kevin Reardon.
Kevin@mercedesberk.com
917-488-6117

By http://www.mercedesberk.com/?p=6206 <READ MORE>]]>

The New York City Department of Buildings has reported a 169% increase in new building permits in the first four months of 2012 as compared to the same period in 2011, having issued 35 permits for construction. Demolition permits, also issued by the DOB, were also abundant, with 74 issued through April, more than doubling the five-year low of 35 in 2010. Most or all of the demolition work is likely to be followed by requests for building permits. The permits already issued include rental apartment buildings, to meet the increased demand, and condominiums, such as the Brodsky Organization’s building-to-be at 127 East 79th Street. While details about the project have not yet been released, we will provided updates as they become available. The building is expected to be 19 stories high with 32 units averaging 3700+ SF each, with prices in the $3000/SF range. Other upcoming projects are Related’s 378,000 SF residential property at 500 West 30th Street and Alfa Development’s 51-unit condo on 21st Street between 6th and 7th Avenues, where sales will begin later this month. If you are interested in purchasing an apartment in a new condominium for personal use or investment, please feel free to contact me.

By Fran Shapiro, 5/11/2012
SOURCE ( The Wall Street Journal)

With record breaking rents and low mortgage rates, now is a great time to purchase investment properties in New York City. Many condominium owners are looking right in their own back yard and are buying up multiple units in the building where they reside. Having your investment in close proximity makes it easier to oversee, and tenants tend to like having the owner in the building if a problem does arise. Whether you reside in New York City or not, becoming a landlord right now can be a profitable side business and a great long term investment. If you would like to learn more about condominium investment properties in Manhattan, please feel free to contact me.

By Viveka Willner, 5/11/2012
SOURCE ( The New York Times)

According to a press release from the developer, the Baccarat Hotel & Residences will open in 2014, the same year the world-famous lifestyle brand of the same name will celebrate its 250 year anniversary.  Barry Sternlicht, Chairman and CEO of Starwood Capital Group, says, “A truly iconic European luxury brand now enters the hotel segment.  Baccarat’s name is synonymous with hand-crafted quality and a nearly 250-year-old pursuit of perfection. We’re excited to introduce a new super luxury hotel to the world’s most important travel market, New York City, one that takes its design direction from its unimpeachable historic roots and its awesome location across from one of the world’s most important museums. We expect to truly innovate the service standards for a luxury hotel, embracing state-of-the-art technology solutions and creating an overall experience that is sensuous, luxurious and discreet, and yet supremely comfortable. In our design, we will celebrate the qualities of light and we will design new specialty decorative products for both the hotel and the spectacular residences.”   With interiors designed by Paris-based Gilles & Boissier, the Baccarat New York amenities will include a Baccarat Spa, fitness center and indoor pool, a B Bar surrounded by a garden terrace, intimate meeting salons, a restaurant, and a selection of Baccarat products for sale.  Sales of the 64 condo units are scheduled to start in January 2013.

By Fran Shapiro, 5/04/2012
SOURCE IMAGE ( The Baccarat Hotel Rendering)