Weekly News (July 24, 2019)
This week’s Interest Rate
30 Y Rate: 3.750%/ 15 Year Rate:3.250%/ 10 Y Treasury: 2.065%/ Prime Rate:5.5%
Lotte Market will be open in Edison on 7/26/2019.
(The Korea Daily 7/22)
- 50,000 sf Supermarket, “Lotte Plaza Market” (Chairman: SeungGil Lee, President: SangMin Lee) will be in Edison, NJ, opening on 7/26/2019. The store is aiming at high-end store with comfortable retail environment. Differentiating with existing stores, the store is focusing on Asian clients such as China, Vietnam, Japan, India with very competitive pricing.
- The store is located at 1199 Amboy Ave, NJ ( 732 702 2350 lotteplaza.com) and is 3.7 mile away from H Mart Edison.
- Ask Grand opening or Store lease at 703 577 2622, 410 290 3643(ext 9916). Email : email@example.com
H Mart will open it store in Meadowland complex in New Jersey
(The Korean Daily 7/18)
- 35,000 sf H Mart store will be open near ADM at the corner of Rt 3 and Highway I-95. Opening time will be in the end of October this year. Using “Market Eatery” concept, visitors can enjoy Asian food, Bakery, live music, cocktail, other entertainment in the store. Stacy Kwon, President of the H Mary mentioned that they have many ideas to show to ADM visitors.
Gloria Oh, council woman in Englewood Cliffs is recalled by residents
(The Korea Times 7/24)
- Englewood Cliffs home owner’s club (Michael Kim and other residents) filed a recall for two council members, Gloria Oh and Edward Aversa to the clerk office. The reason of recall is that Gloria Oh is in favor of the 600 unit apartment project on 800 Sylvan Ave proposed by Normandy.
- Many residents are objecting the project because they believe this project will cause more tax and lowering home values.
- If filed application is accepted by clerk office, then quorum (25%, 922 members) has to be met. After quorum has met, they can proceed with residents vote to make a recall.
Real Estate Re-development by Korean in New Jersey is rare
(The Korea Daily 7/19)
- In northern New Jersey, there are a few development projects currently: self-storage building between Broad Ave and Grand Ave in Ridgefield/ Commercial building at the corner of entrance Rt 46 and Fort Lee Rd in Fort Lee/ Residential duplex complex on Grand Ave in Palisades Park. There is no major development projects which are owned by Korean and carried on by Korean.
- Usually major real estate development project requires three things coordinated: 1. Capital (Investor) Experience (Bank, Real Estate developer), 3. Technology (Architect, Contractor).
- Fewer Korean can mobilize between $5M – $10M. Also fewer bank can lend 60% capital of total project budget. Bigger project needs to hire local company with size.
- Some Korean owners managed Rodeo Plaza, Pine Plaza, Tamla Plaza in Palisades Park area, and some warehouses on Grand Ave, Ridgefield and small and medium size buildings on Main street and Lemoine Ave in Fort Lee.
- Recently a Korean developer, joining with a reputable local developer, is building 40 story building in Fort Lee ( $600M), Super size apartment building in Palisades Park, and Re-development project near Leonia Light-Rail station, reported by Park, JongWon at Korea Daily News Paper.
- If more capital can be expected to inject from Korea, local development projects can be carried on by Korean developers.
Barneys New York is considering for bankruptcy
(The Korea Daily 7/19)
- One of best New York department stores, Barneys NY is in difficult financial situation and considering various plan to get it over. Since 1923, about 100 years of operation positioned Barneys as one of leading luxury department stores in New York. The store is facing difficulty to pay high rent while challenging fast change of buying trend.
- Located at 660 Madison Ave, New York.
Manhattan condo residents buy out air right at $11M
(The Korea Times 7/24)
- The developer Extell Development was planning to build 132 ft new condo in front of “L” shape condo (12 story) located on 7th Ave at 17th Street. But residents in “L” shale condo got together and purchased air right at $11M to preserve the view of Empire State building. The residents shared the price prorated depending the unit floor and first floor resident did not contributed.
- Extell Development has changed to lower the new condo’s height upon this deal. Some expert says paying this much air right cost to preserve the view is the first time I the city.
Foreigners are buying less residential properties in US
(The Korea Daily 7/16 )
- Purchasing by foreigners during last year, from April 2018 till March 2019, has been dropped by 36% and among them Chinese was the biggest drop, according to NAR. During this time, total residential sales was 183,100 and amount was $77.9B. Previous year total sales was 266,800 and amount was $121B.
- Chinese buyers spent $13.4B and they were leading foreign buyers, but 56% has been dropped, compare to last year. After Chinese, Canada was #2 with $8B, Indian was #3 with $6.9B, British was #4 with $3.8B, and Mexican was #5 with $2.3B.
- Trump effect is damaging Chinese purchasing US residential for study abroad and for safety investment.
Investment Limit on EB-5 will be changed to higher amount : $1.8M
(The Korea Times 7/24)
- By EB-5 Modernization Rule, EB-5 investment limit will be increased by 80% from $1M to $1.8M, beginning in November, 2019, which is the first adjustment since it’s beginning in 1993. Also regional center investment will be adjusted from $500,000 to $900,000. Regional center investment is most popular investment and takes 90% of all immigration investment.
- USCIS ( US Citizenship and Immigration Services) mentioned that the limit has been unchanged for 30 years and this adjustment is calculated by inflation rates for 30 years.
- TEA (Targeted Employment Area) for regional center was limited to towns with less than 20,000 population, but will be expanded to more than 20,000 population.
US Home sales fall in June amid scarce supply
(The Record 7/24)
- US home sales tumbled 1.7% in June, with rising prices and scarce supply locking out many Americans from ownership. NAR reported on Tuesday that homes were sold last month at a seasonally adjusted annualized rate of 5.27M units. Sales have shriveled 2.2% over the last 12 months, despite a robust job market and falling mortgage rates.
- Home prices have been climbing faster than incomes for seven years, leaving many renters unable to afford ownership and preventing owners from upgrading pricier properties.
- The median price climbed 4.3% from a year ago to $285,700, outpacing wage growth that has averaged roughly 3%.
- There was an increase in the proportion of the first-time buyers in June to 35% up from 32% in May. Home ownership rate for Americans today between the ages of 25-34 are lower than preceding generations, according to Census Bureau data.