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Weekly News (November 1, 2017)

1. NYC is difficult to be Amazon’s 2nd HQ

  • 238 city’s proposals from 54 States
  • Tough competition: NYC → Probability 14:1 (Manhattan Mid-town West, Lower Manhattan Financial District, Queens LIC, Brooklyn Triangle)
  • Probability #1 → Atlanta, GA (3:1)
  • Boston, MA / Austin, TX → 7:1

2. New Luxury Condo on 31st Street in Manhattan, NY

  • 30 East 31st Street between Madison and Park Ave: 40 story building
  • Developer: Extine Developer (Eric Extine) → To build not just glass tower, but building conformed with neighbor
  • 13 of 1 Bedroom unit → $1.65 Million (866 SF), 2 Bedroom unit (1,677 SF) → $3.5 Million
  • Top floor: 2 Bedroom Duplex style Penthouse (3,354 SF) → $12 Million
  • Will open lunching event on 11/01 → Construction will be completed in Spring 2019

3. New Jersey tallest condo building in Jersey City: ’99 Hudson Residential Tower’ 

  • 79 stories / 900 FT / 781 units (Goldman Sachs Building: 781 FT)
  • Currently 16 floors up → Complete in 2019
  • Architects: Perkins Eastman / Developer: China Overseas America, Inc.
  • Marketing: Marketing Directors
  • Price: $1400 / SF → 64 % of Manhattan condo price (1 BR: Starts $889,000, 2 BR: Starts $1.5 Million)
  • Developer purchased the lot at $68 Million from Harts Mountain Industries in 2013
  • Ask for internal sales ‘Helena Liu’ (C Land Realty New York member)

4. Tax Reform hits Homeowners (by Lawrence Yun, NAR chief economist) 

  • If Tax reform passed, Home owners will hit
  • Homeowners already pay 80~90% of all federal income tax in any given year
  • The plan to double the standard deduction ($12,000 to $24,000) → Fewer homeowners will use mortgage interest deduction → Only wealthy people will use interest deduction
  • Big family will loose more because deduction of $4050 per person would go away
  • Renters → Standard deduction make them better off → More renters (Typical wealth of renters has fallen from $5,900 to $5,100 since 2010 while home owning households have seen their wealth jump from $192,800 to $231,400)
  • Congress must not forget sustainable and successful homeownership should be encouraged
  • Homebuilder group opposes new tax reform
  • NAR reported tax reform would lower home values by 10% overall

5. Amazon will start Pharmacy business? In-home delivery?

  • Pharmacy industry → $421 Billion
  • Amazon obtained Pharmacy license in 12 different States (New Jersey, Connecticut, Arizona, Michigan, etc.)
  • They will start as early as next month
  • Expect not that easy due to complicated payment option with insurance, etc.
  • In-home delivery will start 11/08 by ‘Secure-lock Service’
  • Wanted customers will install Key In-Home Kit ($249) → Delivery man will open the door/deliver the goods in 5 min → One time secure code will be used → After delivery, One time code cannot be used, change to original code
  • NYC, LA, etc. in about 40 cities will be available

6. Commercial RE market is slowing down

  • Value gap between buyers and sellers are widen
  • Office building transactions in NYC are relatively better than other sectors, but the value gap is about 10%
  • Commercial RE Market has been good for past 8 years → Thought: will come to end soon
  • According to WSJ, REITS sold $46.7 Billion this year ($71 Billion last year)
  • According to CBRE, demand for commercial rent stays flat (Building owners think too optimistic)

7. Reasons to lower the house price

  • According to Recent CBS report, the following reasons will cause to lower house price
    Murder/accidental death/criminal in the house (ex. Sandy Hook incident)
    Haunted house/ill spirited house (in NJ, no obligation to disclose) → Often the court favors to buyer who claimed seller did not disclose
    Near cemetery (NAR reports about 12% lower)
    Near funeral house (NAR reports 6.5% lower)

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Stephen Lee

He has been in Real Estate industry in about 20 years and has been Broker of Record for 9 years. His experience includes residential, commercial, and property management. Prior to involving with Real Estate business, he has been involved in the digital communication equipment industry utilizing his engineering background and education, including running own company. He has established C Land Realty in 2011 which has grown to staffing over 100 Real Estate agents and the annual transaction amount of over $110,000,000 today.

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