Weekly News (October 16, 2019)
This week’s Interest Rate (41st week)
30 Y Rate: 3.750%/ 15 Year Rate: 3.375%/ 10 Y Treasury: 1.727%/ Prime Rate: 5.00%
Ref IR: 1.75- 2.00%
Contaminated Earth (1000 C.Y.) in Edgewater will be removed from this week
(The Korea Daily 10/16)
- It will take 5 days to remove 1000 cubic yard contaminated earth and debris at the Quanta project area at 115 River Rd, Edgewater. Every day about 15 dump trucks will be moved from the contaminated site.
- Quanta cleaning project is being done by Honeywell and EPA is monitoring the project.
- There was a factory to produce coal tar and asphalt in later 19th century and this becomes a chemical factory for refinery of used oil in 1974, and finally it was closed down by the State EPA.
Northern New Jersey Real Estate Development is booming
(The Korea Daily/ Stephen Lee 10/16)
- Korean population is about 80,000 in and around Bergen county. Recently many development projects including mixed use buildings, apartment complexes, shopping malls, parking buildings, culture centers in such towns, Montclair, Hackensack, Glenrock, Fort Lee, etc.
- 10 story mixed use complex will have retail store including restaurant in ground floor and apartment units above. In addition, 12 redevelopment projects are under construction, including converting 170 year old church to cultural center.
- In Ridgewood, mixed use building including retail store, 66 residential units, and 150 parking space will be built at Franklin Ave.
- In Montclair, old train station building is being converted to 154 unit apartment.
- In Fort Lee, Hudson Lights project including two “Modern” apartment buildings, 47 story/496 feet each.
- 3M sf ADM project will be opened in Oct, 2019.
- LG HQ building in Englewood Cliffs is being built in 16 Ac lot after about 3 year battle in court. (800 Sylvan Ave apartment complex project is in court)
Family who pays more than 30% of income for rent might be helped by NY State
(The Korea Times 10/15)
- New law was proposed to give tax benefit for middle and low income class in NY: Rent Relief Act. Qualification will be 1. Income limit is $125,000, 2. Rent and utility bill should be over 30% of the family income.
- Those families under $25,000 income will get all amount for up to 30%.
- Those families between $75,000-$100,000 will get 25% of amount of more than 30%.
- According to “Watch Dog”, 44% families are paying more than 30% of their income as rent.
Office space rented at $75/sf in Midtown Manhattan
(The NYT 10/16)
- Morimoto Management signed up for 3005 sf space on the 2nd floor at $75/sf to annual rent of $225,375. 26-story building was built in 1914 at 110 W 40th St. Morimoto Management will use the space as executive offices.
- Other tenants include Movado Group, a luxury watch maker, and Crisp Restaurant.
- Brokers were Davis Levy and Brett Maslin of Adams & Company.
New York will use real names on Real Estate transaction report
(The Korea Time 10/12)
- Governor Cuomo signed up the law : LLC buyer is required to release names and social security number of individuals of LLC. Relevant info will be released to IRS, not to public and it will apply to 1- 4 unit residential, not to co-op.
- According to Real Deal, during 2nd half of 2018, 7,319 residential transactions were carried by LLC names. During this period, 72% of condo sold at above $10 M were dealt by LLC while it was only 20% 15 year ago.
- 85 % of the luxury condo at 200 Central Park South were sold by LLC names.
Softbank is considering additional investment to WeWork
(The Korea Times 10/16)
- Softbank has one third of WeWork share currently. The additional investment amount us not known exactly, but it will be a few billion dollar scale by stock purchase and loan. Accordingly, if it happens, founder Adam Neumann’s control is weakened and Masayoshi Son (손정의) will increase his control over WeWork.
- WeWork is negotiating with JP Morgan Chase for a few billion dollar loan and meeting with about 60 different lenders currently.
- Softbank forecasted that WeWork is required at least $3B to operate next year.
Green roof policy becomes important issue worldwide
(The NYT 10/16)
- 15% increase in the number of green roofs in North America since 2013. As concerns about climate change and dwindling natural resources grow, green roofs have become increasingly popular. Replacing black asphalt and shingles with plants can numerous advantages: 1. Lower the surrounding air temperature. 2. Filter dirty water 3. Reduce building energy use – less use of air con systems, working as out-door AC thorough evaporation of plants 4. Reduce air pollution and greenhouse gas emission.
- Copenhagen bean requiring green roofs on all commercial building with a roof slope less than 30 degrees.
- In Cordoba, Argentina issued a bylaw that directed all roofs- new or existing- of more than 1300 sf to be turned into green roofs.
- Toronto was the first city in North America to pass a green roof law in 2009 requiring new building and addition greater than 21,000 sf to cover between 20% – 60% of their buildings with vegetation.
- Beyond commercial building’s benefits, it becomes value added feature of residential buildings: green roof tops at 525 W 52nd St, an apartment building in Hell’s kitchen, Manhattan.
Other/Tech News : Google phone : Pixel 4 has been announced on 10/15/2019
5.8” and 6.3”(XL model)/no notch/ “Motion sense”(face recognition) equipped.