Weekly News ( April 10, 2019)
This week’s Interest Rate
- 30 Y Rate: 4.000%/ 15 Year Rate:3.625%/ 10 Y Treasury: 2.499%/ Prime Rate:5.5%
“The Palisade Church” in Old Tappan, NJ filed Chapter 11 on 3/18/2019
- The church is located at 236 Old Tappan Rd, Old Tappan, NJ. Presbyterian Church of the Palisades Non Profit’s debt is $2.4M and they filed the Chapter 11 which is very rare for Korean church in NJ. The church borrowed $3M from Valley National Bank in 2004 with the collateral of the church building and adjacent vacant lot. The church was sued for foreclosure in Dec 2018.
- The church is facing the sheriff sale on 5/10. An officer mentioned that the church can take care of the issue because the church has the asset of $8M.
- NE Korean conference in PCUSA which is a mainline Protestant denomination in USA filed the complaint to the court to nullify the Chapter and also the conference voted to dissolve the church, but it was not successful.
- The first creditor meeting will be held on 5/1/2019.
Ridgewood, NJ announced the town education budget of $174M
- Ridgewood town in Bergen county, NJ is planning to improve public school facilities with $174M budget which was increased by $60M from $110.17M last year’s budget. This budget plan will be finalized in 4/16 through some minor adjustment form public opinion. The school board is expected to receive the aid of $5.49M from the State which means property tax will be increased by 1.8% instead of 2%.
- According to this budget planning, property tax will be increased by $174 based on the house value of $702,225.
- The increased education budget will be used for changing part time teacher to full time status, increasing high school capacity, bathrooms improvement.
- Some are criticizing the plan on improvement of bath rooms for $500,000.
Montgomery town in Somerset county is the best town to live in NJ
- According to “New Jersey family” recent report, Montgomery is #1 best town to live. The organization studied on 512 towns in NJ for life convenience, commuting hours, access to hospital, etc. Glenrock in Bergen county is #2. Northvale is #22 and Harrington Park is #28. Demarest is #31. Closter is #41. Tenafly is #64. Old Tappan is #72 and Cresskill is #87.
- Leonia is #108. Fort Lee is #247 and Ridgefield is #288. Palisades Park is #382.
Condo unit in Trump Int’l Hotel and Tower was purchase by a daughter of Congo’s president ($3,961/sf)
- The Trump International Hotel and Towner at 1 Central Park in Manhattan, near the southwest corner of the Central Park is 44-story building with luxury condo and hotel suite which can go for $2,500 per night. The unit 32G, 2 Bedroom, 1,767 sf was purchased by a daughter of the republic of Condo president, long time target of anti-corruption investigation.
- The transaction took place more than 2 years before Trump became president.
- The buyer name on the record, Ecree used a Manhattan address at the law firm K&L Gates.
- Unlike banks and other financial institutions, US real estate developers typically have not been subject to rules that require they check the backgrounds or sources of money of prospective buyers, including looking out for potential money laundering.
- If it is reported to the Justice Department, it might be the case because it was purchased by seemingly embezzled money.
The NYC Mayor decided to use Eminent Domain for the lot near “Hudson Yard”
- The Mayor will have a hearing for condemnation of the 3 acre lot between 35th St and 39th St in Manhattan. The city has a plan for making a park and prepared $374M to pay for the lot, which means $124M per acre – record high price for a park. Some real estate professionals and politicians are criticizing the mayor’s plan because NYC financial is not so good.
- Some report says NYC financials is so bad that NYC might file bankruptcy and Bill de Blasio administration is wasting the city budget.
- The Hudson Yard development cost is about $25B and the entire project will be completed in 2025. Currently about a half of the project is done.
The Movado group rented a show room at 75/sf in Midtown Manhattan
- The Movado group who designs watches for the Movado group and other labels including Coach and Tommy Hilfiger rented 3,005 sf on the sixth floor of the 26-story building at 110 West 40th street, between Broadway and Ave of the Americas. The space will be used as show room and the lease is 2 year and 9 months.
- The Movado manufacturing facilities is in Switzerland and corporate HQ is in Paramus, NJ ( 650 From Rd, #375, Paramus)
Real Estate Market in Manhattan, NY is very slow – lowest in 10 years
- According to Miller Samuel, Real Estate appraisal company, sales in Manhattan reduced by 2.7%, compared to the same 1st quarter in 2018, which means sales in Manhattan reduced continuously for 6 quarters. As for 1st quarter, it is the lowest 1st quarter since 2009.
- According to Wall Street Journal, sales for commercial/condo during 1st quarter was reduced by 5.2%, compared to the 1st quarter last year. It is reduced by 18%, compared to 1st quarter in 2016 which was highest period.
- Seller’s expectation for high price leads to less transactions in Manhattan
If the earth temperature is increased by 2 degree, it will affect investment
- According to the investment consulting company Mercer, 2 degrees temperature increase on the earth till 2030 will make investment in general very difficult, which leads to negative profits – financial sector, agricultural sector, industrial sector, consumer goods, etc.
- Also it will impact Real Estate sector as well. If sea level arises due to temperature increase, properties’ price on river front and ocean front will go down and people will move to inland more.
- If 4 degrees increase till 2050, it’s effect will be worse severely.
Tech/Other News : “Flying Car” will be on the market in Netherland in Summer in 2020.