Tag Archives: Manhattan

Real estate, Renewable Energy

Solar Power now available for apartments

According to an article this week in the New York Times, now even apartment dwellers can elect to use solar power. No need to install solar panels on the roof of your Manhattan building. You can purchase your power from another location and potentially reduce your energy costs. The claim is between 10-15% and also it’s great for the environment and the grid.

Full coverage

The Author-  Brian Silvestry , a licensed real estate broker, has been selling residential and commercial real estate since 1999. He has sold in every Manhattan market from Battery Park City to Washington Heights.

Investment, multifamily, Selling tips, Taxes, Townhouse

How to minimize the taxes on the sale of your Manhattan property

One of the easiest way to save money on the sale of your Manhattan investment property is to do a 1031 exchange also known as a like kind exchange. The gist is you sell an investment property, and purchase a property of similar value. The property must close within 6 months of the sale of the first property and you need to identify it within 45 days of the closing of the sale.

Let’s take a look at an example.

You have an investment condo worth $2 million that you have owned for 20 years that you bought for $500,000. Instead of paying tax on the profit, you buy another property worth $2 million and roll over the gain. The purchase can be another condo, multi-family, vacant land etc… When you close the sale of the condo, you have 45 days to identify potential purchases and 6 months to close or you lose the opportunity to do the 1031 exchange. Speak to your CPA and attorney for details on how to execute this process. But once you execute the purchase, you trade one property for the other and have deferred the taxes. With the typical Manhattan condo investment property returning 2-3%, you can probably buy another property either in New York or another statement that will return two to three times the net cash flow. In addition, if you have owned an asset for a number of years, it is likely you have depreciated it possibly even to the max. By starting over, you can begin depreciating anew. Again, speak to your CPA.

Keep in mind that a 1031 exchange is not for your primary residence but rather a property that you have rented it as an investment with one exception. The 1031 exchange can be used for your primary residence if you own a townhouse where you live it but rent other apartments. So in the case of a 3 family, your primary residence is the unit you live in and if you rent the other two units, the 1031 exchange can be applied to the rental portion of the building.

The Author-  Brian Silvestry , a licensed real estate broker, has been selling residential and commercial real estate since 1999. He has sold in every Manhattan market from Battery Park City to Washington Heights.

Marketreports, Rentals

Manhattan rental market continues to be driven by concessions

In May, rental prices for both 3 bedrooms and 2 bedrooms dropped, 6% and 4.6% respectively. Concessions are up 12.5% year over year and have been steadily rising for the last 3 years.

This is consistent with the rentals that I have listed of late which need to be either priced very aggressively or offered with concessions to be rented. Along the same lines, landlords are negotiating with existing tenants to keep them.

Coverage from CNN

Buying tips for your NYC apartment, BuyingtipsforManhattanproperty, Luxury, Marketreports

33 Luxury contracts signed last week Record breaking week

33 Luxury Manhattan apartments priced at $4 million and up went to contract last week marking the best late June week since records were kept by Olshan Realty. Could this be a turning point in the luxury market as the pipeline begins to dry up. There is still a lot of inventory out there that needs to be absorbed but market conditions in favor of buyers do not usually last long in Manhattan.

Real Deal coverage

Real estate

New developments selling well in the right neighborhoods and for the right price

With approximately 6,000 units of new development in the market throughout NYC, there is an obvious glut. But some developments like 250 W 81st street are raising prices. In the Robert A.M. Stern designed building, the largest units were the first to sell and the buyers are coming from the local market with zero foreign buyers. In addition, the location on Manhattan’s upper west side, has a scarcity of new development.

Most developers believe that within 2-3 years, most of the existing inventory will be gone so now is a good time for them to begin the process knowing full well the market may swing in the favor by the time they are ready to start selling.

Commercial Observer coverage

Harlem, Listings, multifamily, rentstabilization

313 West 138th street Sold and closed

313 West 138th street, an 8 unit rent stabilized building recently closed. The asking price for the 17′ wide building between Frederick Douglass boulevard and Edgecombe avenue was $1,800,000 and the purchase price was $1,870,000. The buyer was a professional firm that owns a portfolio of buildings in the Bronx. One unit was delivered vacant at closing and the building had some deferred maintenance.

 

The Author-  Brian Silvestry , a licensed real estate broker, has been selling residential and commercial real estate since 1999. He has sold in every neighborhood from Battery Park City to Washington Heights.

Amenities, Investment

Should your building install a roof deck?

I have been in many Manhattan buildings that have roof decks and it’s a wonderful place to enjoy especially a well designed one with a view. It’s difficult to say how much a roof deck adds in value to an individual apartment but it does add some value but probably not more than 5% more or less. However, for residents, it can be an urban retreat, a place to interact with neighbors or to entertain friends.

However, there are many items to consider including cost, changing of the buildings certificate of occupancy, reinforcing of the roof and design aspects including decking materials and how to secure items to the roof. The Cooperator takes a more in depth look at the factors that will affect your decision making process.

The Author-  Brian Silvestry , a licensed real estate broker, has been selling residential and commercial real estate since 1999. He has sold in every neighborhood from Battery Park City to Washington Heights.

BuyingtipsforManhattanproperty, Listings, Marketreports, Soho

Soho residential listings selling at 15% discount according to report

According to a recent report, the residential listings in Soho are experiencing price cuts of approximately 10% and usually are chopped another 5% after that. The market like many neighborhoods in Manhattan is a buyer’s market. Seller’s expectations are coming down but as this is happening in Soho, the sellers do not have to sell so the market is at an impasse.

The below table shows the number of active listings by bedroom count in Soho.

# Bedrooms Active Low Price High Price
1 36 $580,000 $11,000,000
2 58 $630,000 $12,250,000
3 + 80 $1,995,000 $40,500,000

The Author-  Brian Silvestry , a licensed real estate broker, has been selling residential and commercial real estate since 1999. He has sold in every neighborhood from Battery Park City to Washington Heights.

Buying tips for your NYC apartment, Luxury, Marketreports

21 luxury contracts were signed last week

Manhattan’s luxury market continues to record strong sales this spring with 21 contracts signed last week for properties at $4mm and above. Roughly half of those contracts were signed for downtown properties.

 

Real Deal coverage

The Author-  Brian Silvestry , a licensed real estate broker, has been selling residential and commercial real estate since 1999. He has sold in every neighborhood from Battery Park City to Washington Heights.

 

Selling tips

Thinking of selling your Manhattan property-Should you paint?

If you are going to be selling your Manhattan property and it’s been a number of years since you painted, and/or you had chosen a dark color, a paint job can really help to spruce things up. Choosing a light color like a designer white can help to brighten up a room or rooms and help to bring out the spaciousness of your offering. If you live in a building, it might be more frugal to have one of the handymen or super do it on his off time. But you will probably see a more favorable reaction from potential buyers with a fresh coat of paint.

Should you stage your apartment?

The Author-  Brian Silvestry , a licensed real estate broker, has been selling residential and commercial real estate since 1999. He has sold in every neighborhood from Battery Park City to Washington Heights.