Posts Tagged ‘New York City’

Green Metropolis Takes Aim at Environmentalists’ Conventional Wisdom

Monday, August 23rd, 2010

Author David Owen thinks that New York is the nation’s greenest city.  David Owen, a staff writer with The New Yorker, has expanded on his 2004 article entitled “Green Manhattan” that roughs up some of the environmental movement’s most closely held beliefs in a new book entitled Green MetropolisA review by Catherine Tumber, originally published in The Wilson Quarterly, notes that “Eco-friendly suburbanites and small-town residents are only kidding themselves as long as they live in sparsely settled, spaciously appointed, auto-dependent communities.  If they really want to reduce their carbon footprint in any significant way, they should live in densely settled, pedestrian-friendly, public-transit-oriented cities like New York.”

Owen suggests that cities like New York build on their biggest low-carbon asset – their large population densities – and place less emphasis on green buildings, urban agriculture and increasing the size of the city’s parks.  He even believes that Central Park is too big and wasted space that could be used to support even more housing.  Additionally, Owen takes aim at “the spectrum of green-tech fixes under development, from residential solar panels and LEED-certified buildings to ‘net-metering,’ de-concentrated ‘distributed’ electricity generation, ethanol production and electric cars.  ‘Nature-conservancy brain’ and ‘LEED brain,’ as he calls these environmentalist fixations, are too often driven by PR and do little more than distract from the more difficult task at hand:  how to get Americans to kick the car habit and live together more closely, in smaller spaces,” Tumber writes.

According to Owen, New Yorkers are environmentalists because they live in a city where a car is a luxury and residents tend to walk, take the bus or the subway.  “In urban planning in particular,” he said, “the best, most enduringly fruitful concepts have usually arisen accidentally, and have endured not because anyone was wise enough to identify and preserve them but because they serendipitously developed what was, in effect, a life of their own.  Owen argues that New York should be viewed as a model for other cities that want to reduce their carbon footprint.

Tumber notes that “Owen makes a point, almost in passing, that also deserves further conversation:  rather than reducing the carbon footprints of apartment buildings or growing food on precious urban real estate, cities should be focusing on ‘old-fashioned quality-of-life-concerns’ such as education, crime, noise and recreational amenities – the very troubles that drove people into suburbia in the first place.”

Foreign Governments Paying Cash for Pricey Manhattan Real Estate

Thursday, May 27th, 2010

Foreign governments are snapping up prime Manhattan real estate for consulates, U.N. offices.Foreign governments are a growth engine for New York City commercial and residential real estate at a time when many cash-strapped European nations are facing financial crises.  For example, Sri Lanka’s Permanent Mission to the United Nations has $8 million to spend and is looking at Manhattan office space.  Laos recently paid $4.2 million in cash for a five-story townhouse in the Murray Hill neighborhood.  Writing in the Wall Street Journal, Anton Troianovski notes that “Even the Western Hemisphere’s poorest country – Haiti – was gearing up to bid on a Second Avenue office condominium when the earthquake struck and derailed its plans.”

Foreign governments “are almost the only game in town,” according to Ken Krasnow, managing director with Massey Knakal.  During the boom years, foreign governments looking to buy real estate for consulates and U.N. missions found stiff competition from private developers.  Since last year, however, Senegal, Singapore, South Korea and the United Arab Emirates have purchased prime properties for redevelopment.  Additionally, governments are paying top dollar – usually in cash – for office space or land sites that are within walking distance of the United Nations.  Troianovski notes that “This trend underscores the bench strength of New York real estate:  When certain buying groups move to the sidelines, others are waiting to take their place.”

Dealing with foreign governments means that the transaction typically progresses at a glacial pace.  Philips International spent three years in negotiations with the Ivory Coast to close on an $8 million office condominium at 800 Second Avenue.  The transaction, which closed last September, spent 377 days in escrow.

Paul Krugman is Moving on Up

Thursday, September 10th, 2009

Paul Krugman – winner of the Nobel Prize in Economics, Princeton University professor and New York Times columnist – is taking advantage of falling home prices in a difficult market.  Krugman and his wife, economist Robin Wells, recently paid $1.7 million for a three-bedroom co-op apartment in a pre-war building on Manhattan’s upscale Riverside Drive.  The apartment had been on the market for more than one year and had an original asking price of $2.495 million, according to StreetEasy.com, a property listing service.

krugman-788178According to Krugman, “We really wanted a place that has the ultimate New York luxury, which is a washer and a dryer.  I do expect New York prices will fall some more, but we need a place.  And I came into some money.”  Krugman’s Nobel Prize included a $1.4 million cash award.  The six-room apartment has nine-foot ceilings, offers “romantic cityscapes” and has a monthly maintenance fee of $1,820.  Krugman’s long-time one-bedroom apartment on West 89th Street is under currently contract for a bargain $599,000.  Additionally, the Krugmans own a house in Princeton, NJ.

Median Manhattan home prices fell 18.5 percent to $835,700 from a year earlier, according to appraiser Miller Samuel, Inc., and broker Prudential Douglas Elliman Real Estate.  The number of sales is half of the 2008 number.

Krugman’s purchase comes at a time when the housing market appears to be stabilizing.  Existing home sales rose 3.8 percent in the second quarter to a seasonally adjusted rate of 4.76 million over the first quarter, according to National Realtor Association statistics.

Foreign Investors Like Luxury

Thursday, May 1st, 2008

You know what they say about polls.  Still, a recent one is an interesting temperature reading for the new economy.   Overseas investors in United States real estate prefer retail versus office or industrial space right now, according to a recent issue of Commercial Property News. This is just one conclusion in a survey that examined the influence of the current housing slump on the economy and consumer spending.  Nearly 200 members of the Association of Foreign Investors in Real Estate (AFIRE) revised their favored property rankings from the previous year.  Retail soared to first from fifth place, while hotels fell from second to fourth place  Office space plunged from first place to last. “While foreign investors are aware of the high occupancy and rental-rate increases in the office market, they fear that the credit crunch will cause tenants to lay people off and contract their space needs,” reported Karin Shewer, a principal for New York City-based Real Estate Capital Partners, which advises European investors about American real estate markets.  Shewer says multifamily’s lack of popularity is the result of a growing uneasiness with the United States condominium market.“Another issue with multifamily is that cap rates are very low right now and returns are limited,” Shewer said.  The strong preference for hotels relates to aging baby boomers.  According to Shewer, “A lot of baby boomers will inherit from parents who were conservative savers, and as they move toward retirement, they will have more time to travel, and they will occupy hotels.”  So why retail at the top?  Dan Fasulo, managing director for Real Capital Analytics, Inc., notes that “Retail is a diverse property type with many sub-niches.  What these investors might be referencing is high-end urban luxury retail.  We have seen a boom like never before in high-fashion apparel, jewelry and other upscale specialty stores that have been expanding globally as the worldwide economic expansion has driven up disposable incomes of affluent people around the world.”  The AFIRE survey also found that foreign investors still prefer American real estate to that in other countries.  To illustrate, AFIRE’s members collectively own $700 billion worth of real estate worldwide; $230 billion of that is invested in the United States.Lastly, AFIRE members were asked to rank their favorite cities for investment.  New York City and Washington, D.C., took first and second place.  London, Paris and Shanghai completed the list.