Calls for a pied-à-terre tax have increased since billionaire Ken Griffin closed on a penthouse at 220 Central Park South for over $239 million. The sale shattered the existing record of the most expensive home sold in the US by $100 million but Griffin will only be using the residence as “a place to stay when he’s in town.” City Council Members Mark Levine and Margaret Chin recently announced support for a bill that was first drafted by Sen. Brad Hoylman five years ago, which would place a yearly surcharge of 0.5% to 4% on secondary residences worth more than $5 million. In a statement released on Wednesday, State Budget Director Robert Mujica added his support, stating that a pied-à-terre tax could be combined with other revenue solutions to help fund the Metropolitan Transportation Authority’s $40 billion in capital needs.
Photo via Flickr cc
No one ever said that the New York City real estate market was easy to understand or even entirely logical. Still, you might not expect numerology to be among the knowledge sets required to fully navigate the market. But from good luck and bad luck floors to lucky number combinations, numerology plays a surprisingly significant role in how some units are priced, how quickly they sell, and most importantly, to which buyers.
It’s a numbers game
View from the Grand Concourse; photo courtesy of Dan DeLuca via Flickr.
According to an analysis by Property Shark, the area surrounding the thoroughfare once known as the “Park Avenue of the Middle Class” has seen an elevated housing demand that has brought median home sales prices along with it, showing an increase in just 5 years that ranges from 56.2 percent in Bedford Park to a whopping 124.5 percent in Mott Haven.
Bronx rising, this way
Via Vornado Realty Trust and Robert A.M. Stern Architects
Update 2/26/19: Council Members Mark Levine and Margaret Chin announced on Monday that they plan on introducing a resolution in support of the pied-à-terre tax, as amNY reported. The tax would be modeled after the measure sponsored by State Sen. Brad Hoylman and apply an annual surcharge on non-primary homes worth more than $5 million.
Last month, billionaire Ken Griffin closed on a penthouse at 220 Central Park South for over $239 million, making it the most expensive home ever sold in the United States. Griffin, the founder of the hedge fund Citadel, said he will not use the pricey pad as a primary residence, but instead as “a place to stay when he’s in town.” The staggering sale has renewed support from public officials for a pied-à-terre tax, which would place a yearly surcharge on homes worth $5 million and up, and apply to non-primary residences, as reported by the New York Times.
Photo via Pixabay
Over the past decade, there has been no shortage of headlines about the impact of foreign buyers on the New York City real estate market. At one time, the headlines about Russian oligarchs and Chinese business tycoons buying up luxury properties in New York City were true, but as of 2019, the real estate market in New York City and across the country is shifting. New restrictions on foreign buyers combined with a perception that the United States is no longer a friendly market for foreign buyers has slowed foreign sales. In fact, over the past twelve months, the highest closes in New York City have all been to U.S. buyers.
What’s the deal?
Rendering by Hayes Davidson
The partners behind the Jean Nouvel-designed tower at 53 West 53rd Street (also known as the MoMA Tower) will be serving even more price chops to the ultra-luxury project in the midst of lackluster sales, though they disagree on how much that should be. As Crain’s reported, Hines, Goldman Sachs, and Singapore’s Pontiac Land Group recently underwent an arbitration process to settle the matter, with Hines seeking aggressive discounts. The 1,050-foot condo building has already received $167 million in price cuts since hitting the market almost four years ago with a projection of $2.14 billion in sales. About 15 percent of the 145 units at 53W53 are under contract currently, with closings set to begin in the spring, a spokeswoman for the project said.
Get the details
Since Amazon announced it had selected Long Island City for its new headquarters last fall, a lot of people have wondered what will happen to the neighborhood and its surrounding communities. While LIC has already undergone a series of radical changes of the past two decades—first there was an influx of artists seeking larger live-work spaces and later a wave of condo developments—the arrival of Amazon promises to have an even deeper impact on LIC.
And the potential negative effect of the tech giant moving into town has not gone unnoticed by public officials and locals, who have led a strong opposition campaign. It was reported on Friday that Amazon was reconsidering its plan to move to the neighborhood after facing an intense backlash from those who fear increased rents and even more congestion. But with no plan to officially abandon Queens, it’s important to understand what could happen if Amazon does put down roots in LIC by first looking at how the company has already changed Seattle, where it first set up shop back in 1994.
More on the effect
55 Hudson Yards; Via Related Companies, Oxford Properties, Mitsui Fudosan
Apple is looking to move to a Hudson Yards office tower, the New York Post reported Monday. The company is in advanced talks to secure 60,000 square feet at 55 Hudson Yards, a 51-story building opening soon, as well as possible retail space at the mega-development site. Designed by Kohn Pedersen Fox and Kevin Roche, the 779-foot-tower features light-filled offices with modest-sized floor plans.
The most looked-at building in the world is getting a makeover. According to Crain’s, Jamestown will redevelop One Times Square, the 23-story building that garners the attention of millions for its famed ball drop every New Year’s Eve. The owner plans on installing 32,00 square feet of new signage, including a 350-foot-tall digital sign. To cash even further on its prime location, Jamestown may construct an observatory for NYE revelers to be at the heart of ball-drop festivities.
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The Wing will move its headquarters to 137 Second Avenue (on the right); via Wikimedia
Co-working network The Wing is moving its corporate headquarters to the former Stuyvesant Polyclinic building in the East Village, the Real Deal reported Monday. The space on Second Avenue is connected to the Ottendorfer Public Library, the first free public library in New York City. The adjoining buildings are both designated city landmarks, built as a pair in 1883 by German-born architect William Schickel. The Wing will lease all of the 22,000-square-foot building at 137 Second Avenue, which spans four floors.