October 17, 2018

1. 42 Story rental complex will be built near U.N. Building

  • Luxury rental apartment “Summit New York” : 2 blocks from U.N. building
  • Total 429 units /studio, 1, 2 bedroom, and 3 bedroom penthouse
  • Entire glass wall from floor to ceiling
  • Rent: 1 bedroom → from $4,500 /2 bedroom → from $7,700 / 3 bedroom penthouse → $30,000
  • Marketed by Elliman. (1st month rent is free)

2. 7 Story medical building will be built in Flushing, Queens

  • 130-10 Avery Ave, Flushing /80 feet, 7 story
  • Near Flushing Meadows Corona Park & 10 blocks away from Main Street station of 7 subway
  • Total 64,500 sf (40,400 st above ground /13,000 sf under ground: retail spaces)
  • Developed by Avery Group /designed by Michael Kang (Korean)
  • Currently vacant lot

3. “Central Park Tower” in Manhattan starts pre-sale

  • 217 West 57th developed by Extell, one month after launching “Billionaire’s row at 111 West 57th 
  • Total 179 units /1,550 ft high /cost: $4B → tallest residential building in NY
  • Price: cheapest unit: $1.542M for 569 sf studio ~ $95M for 4bedroom (8000 sf with 2000 sf terrace) unit /penthouse (16,000 sf) is not listed - no price information available (comparable: 11,000 sf unit at 220 Central Park south is rumored to ask $250M)
  • Over 26 units in the condo will ask over $9000/sf (average price → $7,106/sf)
  • Marketed by Extell’s in-house marketing team

4. “Cyber Security Center” will be opened in Manhattan,  NY

  • According to NYCEDC, it will open the center at 17th St and 7th avenue in SOHO
  • The global security center will provide space for related start-up biz, seminars, events
  • The purpose is to re-enforce global cyber security → might create about 10,000 jobs
  • Sources for center establishment → tax money:$30M, organization /individual investment:$70M → total $100M cost
  • In 2017, 3.8B internet users got cyber-attack world wide → one attack every 40 seconds

5. House price went down in Scarsdale & Edgemont, NY

  • In Scarsdale, average income is $220,000 to buy average price house → 6 ranking in US
  • Scarsdale: not too much change in number of sales (in 3rd quater, listing 87 → 92), but price went down ($1.6M → $1.4M: 11.88% down) listing period:16% longer
  • Edgemont: listing 32 → 42/ sales: 46 → 66 / price: $990K → $890K (11.88% down). listing period: 16% longer
  • So, 3rd quater: listing period → longer /price → down /sales → increased because of good school district

6.US Economy is going through inflection point

  • Bob Prince, CIO of hedge fund, “Bridge Water” interviewed with Financial Times
  • Optimism for future improvement of corporation performance → stocks booming
  • Now US economy reaches at the inflection point: hot season → normal
  • In this year, higher interest rates à impact stock market negatively / frequent interests rate increase → slowing economy growth
  • Fed Reserve will increase Ref IR one more time in Dec this year

7. Mortgage interest rate is highest point since 2011, for last 7 years

  • According to Freddie Mac, 30 Year fixed → 9%
  • Last week, 0.19% jumped up from 4.71% → biggest jump during last 2 years
  • Except those with high credit scores, home buyers already pay higher than 5%
  • Average $240,000 house → pays $150 /month more than 1 year ago
  • Reason: 10 Year US treasury bond rate → 15% (possibly it will be over 4%)

8. Newark, NJ still has a chance to be Amazon’s 2nd HQ

  • Chicago, Miami, W. DC and Newark could be winner among Amazon’s final list of final 20 cities (original contenders: 238 cities)
  • Newark’s strong points: proximity to Manhattan, transportation hub at lower cost, internationl air port, major sea port, advanced fiber optic network, colleges in NJ and NY
  • Investing society → Newark is underdog → boost corporation’s social responsibility ranking  could be wining advantage
  • Summed up with 5 D’s: Data infrastructure, Destination, Diversity, Development opportunity, Destiny