January 10, 2018

1. Korean owned building between Northern Blvd purchased by Chinese developer 

  • 146-17 Northern Blvd / Closing is completed at $9.7 Million
  • Tenants: 'Tong Tong Don Gass' / Cumon school
  • Developer will build 5 story mixed building for retail and condo → Condo development expanded to Northern Blvd commercial area from Downtown area

2. Manhattan NY Rent tipped off 

  • According to Zumper, 1 Bedroom median price: $2,870 (3.7% Down, compared to last year) Biggest drop in 10 cities
  • 2 Bedroom median price: $3,230 Down (5.0% Down) Biggest Drop in 10 cities
  • 1 Bedroom median price is higher than $3000 Only 1 city (San Francisco: 1 Bedroom price: $3,400 1.5% Up, 2 Bedroom price: $4,380 2.9% Up)
  • Rent high cities: San Francisco, New York City, San Jose, Washington DC., Los Angeles, Boston, Oakland, Seattle, Miami, San Diego

3. Manhattan, NY Average Residential price below $2 Million 

  • 4th QT, 2017 Average price $1.897 Million (First time below $2 Million for last 2 years)
  • According to Elliman Douglas (RE Brokering Co), 4th QT # of sales dropped by 12% to 2514
  • Partially it is due to Tax Reform

4. Most expensive Lease (Tenant) this year in NYC   Hyundai  Genesis 

  • According to 'RealDeal.com', 40,000 SF in Solar Carve building in Meatpacking District (40 Tenth Ave) $11 Million / Year ($916,000 / M) leased by Hyundai Genesis for office and retail space ($275 / SF)
  • Landlords: Aurora Capital Association and William Gottlieb Real Estate
  • Solar Carve Building near completion : Basement 2 floors/ 10 story building Total 139,000 SF
  • Genesis will take 27,700 SF at 1st floor space and basement retail space / 13,700 SF at 1st and 2nd floor for office
  • In Meatpacking district, Genesis 2nd / Tesla 1st luxury brand tenant

5. 'Fancy Cleaners' in East Harlem, NY has to close down by eminent domain 

  • Korean owned Dry Cleaners in East Harlem is facing eminent domain due to $300 Million local development
  • Local development includes Cancel center, low income apartment, community park
  • Fancy Cleaners: 6,000 SF between 126th St and 3rd Ave / operated since 2003 which was opened by owner Mr. Bae’s parents (Building owner: Parents / Business owner: Mr. Bae)
  • In 2008, NYC issued eminent domain and purchased at $3.5 Million  Bae did not accepted sued NYC to the court, but failed
  • Issues: 1. Compensation for building owners, but compensation for existing tenants
               2.Big difference between owner’s compensation and current market price

6. Ritz-Charlton Luxury Condo in Nassau County, NY is popular 

  • In North Hill, new Ritz-Charlton condo is being sold fast
  • Completed last year / 4 units left among 106 units
  • Prices: $1.5 Million ~ 6 Million (A buyer purchased 2 units and combined to one)
  • Ritz-Charlton will build 120 additional units by end of 2019  

7. Incheon Airport might operate JFK Airport 

  • Deal on the table: #1 Terminal needs renovation & 30 year operation right
  • JFK Airport opened in 1948, Yearly passengers About 60 Million
  • Total renovation: $10 Billion ($3 Billion for Incheon Airport Co)

8. Samsung New Laundry Factory completed in US 

  • New Berry, South Carolina Factory begins operation 1/12/2018
  • 504 Employees / Front Load type first Top Load Type later
  • By end of 2018, 1000 employees will be hired through 2 shifts, 1 Million units production
  • Promised to invest $380 Million to US in June 2017
  • ITC’s recommendation: 50% tariff for over 1.2 Million units imported moves the plan faster

9. 2017, House value went up by total $2 Trillion in US 

  • Total Value: $31.8 Trillion 6.3% Up, compare to last year Highest since 2013
  • Top 10 cities: $11.3 Trillion  36% of total (LA is most high value)
  • LA: 5.7% Up $2.7 Trillion / NYC: 7.9% Up $2.6 Trillion
  • San Jose: 13.5% Up / Seattle: 11.7% Up
  • According to Zillow, 2018 Real Estate market not so bright due to Tax Reform
  • According to NAR, High price area will down by 5~10% in 2018 due to Tax Reform