Friday, April 10, 2015

News: Queens Real Estate Market Continues to Gain Momentum


Queens is increasingly gaining attention as the place to buy real estate in New York City. Previously seen as the affordable and reliable option, but with little to offer to its residents, this reputation is quickly changing. While this is partially due to the lower prices that Queens Real Estate has to offer, it also has much to do with the developments that have been taking place in the borough in recent years.
There is no doubt that Queens continues to offer more affordable housing options than Manhattan. In Long Island City, for example, the monthly rent for a two-bedroom rental was $3,831 in October.  In Astoria, the rent was $2,610. On the other hand, due to the rising demand for housing in the borough, prices are steadily increasing. As such, many who are moving to Queens see it as an opportunity to get in while the costs are still reasonable.
Among the developments taking place in Queens are numerous housing options, including more than 10,000 apartments that are currently being planned for Long Island City over the next three years. These options will include everything from family-size condos to rentals boasting numerous amenities. Hundreds of new developments are also planned for downtown Flushing, while older buildings throughout the borough are being updated and redesigned. These developments will also reshape the waterfront while adding new residences in industrial areas.
Once viewed as the borough for older people, Queens is quickly shedding this reputation. To help bring about this change, real estate companies are making significant changes to their buildings. In addition to updating and upgrading their interiors, they are adding amenities such as fitness centers and rooftop gardens. Yet other companies are building new developments, such as the 421-unit QLIC, which will feature an outdoor pool with views of the Manhattan skyline. Other examples include Pearson Court Square and the Linc LIC.  Low- and moderate-rent apartments are also in development, with tens of thousands of applications already submitted for 900 units.
While many of the new and remodeled offerings in Queens are in the form of rentals, most experts agree that condos will soon be popping up with greater frequency. Two condo projects in Astoria are already gearing up for sales this year, including the 33-unit Marx in the Kaufman Arts District and the 77-unit Baron near the New York Lions Group by the waterfront. A 97-unit condo called the Aston in Forest Hills sold more than half of its units in just one month. This sort of demand isn’t exactly anything new, as the Astoria Lights redevelopment sold all 58 of its units within four months after opening.
While Queens still doesn’t have as many basic conveniences as some of the other boroughs, a larger number of cafes, chain stores, bars and other nightlife opportunities are popping up throughout the area. Transportation options to and through the borough are also excellent, making it easy for residents to enjoy all that the city as to offer. As a result of these developments, many people are now seeing Queens as they once saw Brooklyn: as the next frontier for New York City.

Written By Queens Realty Blogger

                       Douglas Elliman Realty, Long Island City Office                      
47-37 Vernon Blvd, Long Island City, NY 11101




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   “Queens is the new Brooklyn. People are seeking affordability and Queens is benefiting.”
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Thursday, April 9, 2015

News: Perspective On Mortgaging In Queens

The housing market is stable but still leaving many would-be Queens homeowners out of the market.

While some indicators of economic health, such as job growth, creep towards pre-recession rates City-wide, the housing market in Queens remains “generally flat,” according to Jonathan Miller, president and CEO of Miller Samuel Real Estate Appraisers.

The underlying issue for Queens buyers, Miller suggested, is that mortgage lending standards have not eased significantly since the start of the recession.

“So markets like Queens, like Long Island, are seeing modest or stable prices versus in the City, where you have a higher proportion of cash buyers,” Miller explained.

The result is that many residents who might otherwise be looking to own a home remain stuck in the rental market. Without “pristine credit” or the ability to cash-buy a house, home ownership becomes practically impossible, according to Miller.

Both the number of new rentals and rental prices in the Borough were up last year, according to a rental report prepared by Miller Samuel for the real estate firm Douglas Elliman, focusing primarily on the northwestern Queens. Meanwhile, according to a January 2015 Federal Reserve Board survey, home-purchase loans are in weak demand.

“Lenders are essentially looking for reasons not to lend,” he said. “Whereas purchasing generally is much cheaper than renting, a large swath of the population can’t qualify.”

Miller called the scenario “frustrating for consumers,” adding that he does not expect it to loosen for another couple of years.

However, the Federal Reserve Board survey indicates that this loosening may have begun.

“Several large banks reported having eased lending standards for a number of categories of residential mortgage loans,” the survey states.

Meanwhile, while home prices are on the rise, mortgage rates remain low. The most recent figures from Freddie Mac put the benchmark 30-year fixed mortgage rate  at 3.66  percent. According to data compiled by Keller Williams Realty, single and multi-family house prices show “sustainable growth,” which the firm expects to continue through 2015.

Among other important Queens market trends that Miller noted was the fact that a housing boom in Brooklyn has drawn out this Borough as an attractive and affordable alternative.

“You have people being priced out of Brooklyn with its rapid growth and seeking out neighborhoods in Queens for affordability, and that has benefited the market,” he said.

Although 2014 was a “mediocre” year for home sale prices, Miller said it finished strong in the fourth quarter with the median sales price up 15.5 percent year-over-year.

Written By JACKIE STRAWBRIDGE  jstrawbridge@queenstribune.com or @JNStrawbridge

                      
                     Douglas Elliman Realty, Long Island City Office                      
47-37 Vernon Blvd, Long Island City, NY 11101




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   “Queens is the new Brooklyn. People are seeking affordability and Queens is benefiting.”

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Wednesday, April 8, 2015

News: Queens rules! Borough’s real estate market heats up as foreigners, would-be Brooklynites swoop in

Queens is the new Brooklyn. People are seeking affordability and Queens is benefiting.

Bidding wars. All-cash deals. Foreign buyers.
Manhattan? No, Queens!
The borough's housing market is heating up as low inventory, strong demand and a spillover of buyers priced out of Brooklyn are lifting property values.
The average price of a home in Queens jumped 10.3%, to $429,544, in the first quarter, according to a report from Douglas Elliman.
The average price of a luxury home in Queens rose 19.5% to $1.03 million. The total number of sales in the borough surged a whopping 32.8% to 3,156.
"It's crazy," Jim Pappas, the owner of Jackson Heights-based real estate brokerage Rock Realty, told the Daily News.
Neighborhoods riding the wave include Astoria, Long Island City, Jackson Heights and East Elmhurst.
Foreign buyers seeking investment properties are driving demand. Many are from China, but buyers from Greece, Brazil, India, Tibet and Nepal are also hitting the market, Pappas said.
Some buyers are coming in with all-cash offers and are bidding on properties without seeing them.
Pappas is currently handling the sale of a house on 84th St. in the historic section of Jackson Heights.
"Five offers were submitted sight unseen in less than one week," he said.
Another one of his properties, in Woodside, sold for all cash in January for $573,000, above the asking price of $568,000.
Inventory in Queens is scarce, dropping to the second lowest level in nine years, according to the Douglas Elliman report.
Queens had been slower to catch up to the city's real estate revival than Brooklyn and Manhattan.
But Queens has been gaining steam lately as buyers priced out in Brooklyn are turning to the less expensive borough.
"Queens is the new Brooklyn," Jonathan Miller, CEO of appraisal firm Miller Samuel, who compiles the Douglas Elliman report, told the Daily News.
"People are seeking affordability and Queens is benefiting."
The average price of a Brooklyn home rose 7.3% to $681,182, according to Douglas Elliman.
Another report, from brokerage firm Corcoran Group, said the median sale price of a home in Brooklyn decreased 6% to $450,000 and the average price per square foot decreased by 5% versus last year.
The reason: During the quarter there was an increase in sales in lower-priced neighborhoods of south and eastern Brooklyn, said Frank Percesepe, Corcoran's regional senior vice president of Brooklyn.
At the same time, there was a decline in sales activity in higher-priced areas of northwestern Brooklyn.
Written By Phyllis Furman  pfurman@nydailynews.com

                                              Douglas Elliman Realty, Long Island City Office                      
47-37 Vernon Blvd, Long Island City, NY 11101




Harvey's Long Island City Real Estate Blog


           
   “Queens is the new Brooklyn. People are seeking affordability and Queens is benefiting.”

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Tuesday, April 7, 2015

News: CIT Provides $44.8MM Term Loan to Queens, NY Real Estate Joint Venture

CIT Real Estate Finance provided a $44.8 million senior secured term loan to a joint venture between The Treeline Companies, Mega Contracting and Glenmont Capital Management, LLC. The financing will be used to develop a new 7-story, 143,000-square-foot property that includes 114 rental units, 133 parking spaces, nearly 20,000 square feet of retail space, and 3,000 square feet of community space in Astoria, New York. Financing was provided by CIT Bank, the U.S. commercial bank subsidiary of CIT.

The Treeline Companies is a real estate investment firm founded in 1985. Mega Contracting is a real estate development and property management company focused in the New York City metropolitan area, and Glenmont Capital Management is a Manhattan-based private equity fund manager focused on value-add and opportunistic real estate investments.

Michael Schor, Chief Investment Officer of The Treeline Companies, said, “This project is located in the Long Island City/Hunters Point sub-market of Queens, which has fast become an increasingly attractive market for renters seeking more affordable housing outside of Brooklyn and Manhattan. CIT’s knowledge and expertise of the local market was critical to this transaction, and we look forward to building this relationship.”

Hercules Argyriou, Vice President of Mega Contracting, said, “We’re excited to partner with Treeline on this project as we’ve seen a marked increase in development throughout Queens. The need for new housing is only expected to increase in the coming years. In addition to CIT’s lending expertise, we also want to thank Glenmont Capital, a New York-based real estate private equity fund manager, for providing us additional equity in this transaction.”

Lawrence A. Kestin, Managing Principal of Glenmont Capital Management, added, “This represents a highly strategic investment for Glenmont that will allow us to capitalize upon improving area fundamentals and increasing institutional ownership in the borough, while at the same time providing high quality, well-located market rate housing at a significant discount to both Manhattan and Brooklyn. We anticipate that this will mark the beginning of a long-standing relationship with Treeline, Mega Contracting and CIT.”

“We are pleased to lend to this joint venture,” said Matt Galligan, Group Head of CIT Real Estate Finance. “New housing is in increasing demand throughout New York, and Queens is fast becoming the next hot market. This project will be a great addition to the Astoria community, and we’re proud to have provided this financing to make it a reality.”

Meggan Walsh, Managing Director and Deputy Group Head, CIT Real Estate Finance, said, “This new property offers a great example of mixed use space by combining rental units with retail space in addition to community space. We are pleased to have arranged and provided this financing in support of the continued revitalization of the Queens housing market.”

Founded in 1908, CIT is a financial holding company with more than $35 billion in financing and leasing assets. It provides financing, leasing and advisory services to its clients and their customers across more than 30 industries. CIT maintains leadership positions in middle market lending, factoring, retail and equipment finance, as well as aerospace, equipment and rail leasing.

Written By Matt Galligan 

                       Douglas Elliman Realty, Long Island City Office                      
47-37 Vernon Blvd, Long Island City, NY 11101




Harvey's Long Island City Real Estate Blog


           
   “Queens is the new Brooklyn. People are seeking affordability and Queens is benefiting.”
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News: Sky View Parc: $2M Goes A Long Way

With reports of developers scrambling for additional funding, its many phases of construction and sales openings, ownership buyouts and news of more luxury residential buildings rising close by, the Sky View Parc project has been in the real estate headlines countless times over the better part of the last decade.
Things, though, may have finally stabilized.
In a recent press release, Onex Real Estate Partners announced that their “exclusive preview event” – a kind of sales launch period that came before a more general sales launch period – was a resounding success. In only six hours, they sold 120 units, half of the total homes available in the first of what will be three towers collectively called The Grand at Sky View Parc on 40th Road and College Point Boulevard in Flushing.
“The event drew a tremendous response from attendees, many of whom already own in Sky View Parc,” said Michael Dana, president of Onex.
Sales for the first phase of the development – a mixed-use building featuring 448 condos and a tremendous shopping center at its base with renters including Target, Nordstrom Rack, Best Buy and other retailers – opened in late 2011. That construct has been perennially featured on Curbed.com’s Top-Ten Best-Selling Buildings in New York since its opening. Couple that fact with this latest announcement regarding the preview event, and it becomes clear that good things come to those who wait.
“Infrastructure for the [second phase of the] project has already begun,” a spokesperson for The Grand said. “The first tower is expected to begin rising in Spring 2015 for a Summer 2016 completion. The final tower, Grand Three, is expected to be complete by Fall 2017.”
Like the residential portion of the first phase of the project, the Grand’s three towers will rise above the nearly 800,000 square-foot mall.
The first tower will house apartments ranging from studios to three-bedroom homes. The coziest flats will span 492 square feet, while the largest units will stretch over 1,965 square feet with prices approximately running between $489,000 and $2 million-plus. Reportedly, the three towers combined will ultimately have about 650 condos available.
“We’re committed to answering the demand for full-service, exceptionally designed homes in Flushing,” Dana said, adding that they plan to accomplish such a goal “by bringing the next level of luxury living to this world-renowned destination.”
Each home within The Grand at Sky View Parc features top-of-the-line finishes and state-of-the-art appliances, including an in-suite laundry closet with a stacked Bosche washer and dryer. There are soaring ceilings up to nine feet high, floor-to-ceiling windows, hardwood floors and wraparound balconies with views of the Manhattan skyline. The open-concept chef’s kitchens contain Bosch stainless steel appliances, including built-in dishwashers and refrigerators, and Scavolini sleek lacquered cabinets with LED lighting underneath, all complemented by natural quartz stone countertop and backsplash. The spa-like bathrooms include Kohler fixtures, decorative wall lighting fixtures, Grohe bathroom hardware, accompanied by porcelain tile flooring throughout.
The luxury building will feature an impressive list of exclusive amenities provided solely for residents. There will be a tremendous lobby with a 20-foot ceiling, resident’s lounge, fitness center with multi-purpose rooms and a full-service spa. The outdoor area will “create an urban oasis for residents,” with uniquely programmed spaces to provide the ultimate lifestyle offerings, including meditation gardens, yoga zones and a pool. The new amenities will complement the existing amenities already at Sky View Parc, including a 24-hour staffed lobby and concierge service, tennis and basketball courts, running track, a four-acre landscaped rooftop garden, alfresco dining, barbeque grills, a children’s play area, golf putting green and a dog run.
The Main Street transportation hub is two blocks away, while the Long Island Railroad’s Flushing stop is just a half-block walk. The development also has easy access to four major highways.
Calling Sky View Parc a “passion project” for Onex, a spokesperson for The Grand noted that the “profile of Queens has grown in the past few years as a highly in-demand residential destination, and the neighborhood of Flushing in particular has come into its own as a first choice for dining, shopping and living today in New York City.”
With several other developments seeing groundbreakings and building skeletons rise this year, even more “grand” things are expected throughout the neighborhood – one that’s an emerging real estate powerhouse.

Written By MICHAEL STAHL
                       
                       Douglas Elliman Realty, Long Island City Office                      
47-37 Vernon Blvd, Long Island City, NY 11101




Harvey's Long Island City Real Estate Blog


           
   “Queens is the new Brooklyn. People are seeking affordability and Queens is benefiting.”

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Thursday, April 2, 2015

News: Housing gains in Elmhurst, Queens, leave many cold

A portion of old St. John's Hospital is reborn as Queens Pointe, a residential project.
Elmhurst, a quiet working-class area in western Queens, has seen major changes in recent years.

Beginning in the 1970s, a wave of Latin American and, later, Chinese immigrants began settling in the once predominantly Italian and Jewish neighborhood. Today, it stands as one of the most international areas in the city, one where 70% of the heads of households are foreign-born, according to the 2010 Census. In the process, Elmhurst's population has become one of the city's fastest-growing, with more than 110,000 residents today, up from 72,000 in 1980.
Now Elmhurst finds itself in the midst of another major shift—an economic one. Developers are flooding in, erecting rental apartment buildings and even condominiums whose units few existing residents can afford to live in.
As of 2013, apartments in new developments—many of them condos—sold for 60% more than the average price of existing units, according to StreetEasy. Rents in these buildings also far exceeded the norm. At Elm East, a two-year-old luxury rental building located at 86-55 Broadway, a one-bedroom apartment goes for $2,400 a month, one-third higher than the average rent in the area, according to real estate agents.
"The new developments are changing the face of the neighborhood," said Anthony Chen, a broker at Best Realty in Elmhurst.
The force driving that sweeping transformation is the same one seen in several other parts of Queens, as a growing number of Asian-American investors purchase building sites and construct residential properties, many of which are either rented or sold to first- or second-generation Chinese immigrants.
A rush to build
During the past three years, newcomers from China have made up the majority of the 75,000 immigrants who have streamed into New York City, according to Department of City Planning data.
The largest number of them, in turn, have settled in Elmhurst, making it second only to Flushing as the borough's most populous Chinese neighborhood. The Asian influx is clearly reflected along Broadway, Elmhurst's main commercial thoroughfare. Chinese shops like Yi Mei Bakery, KBCB Grocery and Asia Bank now stand shoulder-to-shoulder with Thai eateries, Korean delis and others.
Developers looking to cater to the needs of that expanding population are rushing to build new housing. Among the largest of those new projects is Queens Pointe. Steve Wu and Harry Miller, its developers, are converting a portion of the former site of St. John's Hospital into 150 high-end rental apartments.
Mr. Wu bought the 260,000-square-foot property at 90-02 Queens Blvd., across from the sprawling Queens Center Mall, in 2013, paying nearly $55 million. Just four years earlier, the previous owner had paid $20 million for the building after the hospital closed down. Messrs. Wu and Miller plan to spend $45 million on its conversion.
When it hits the market in the next year, Queens Pointe will have 144 studio, one- and two-bedroom apartments, including eight penthouses featuring 15-foot ceilings and private roof decks, according to Josh Zegen of Madison Realty Capital, an investor in the project. The developers expect to achieve rents of up to $45 per square foot, which translates to well over $2,500 a month for a one-bedroom unit.
But longtime residents say the rapidly appreciating residential market underscores the widening gap between the old and new. Christian Cassagnol, district manager of Community Board 4, points out that very few residents can afford the new apartments and condos, yet more units are still coming, and at ever-higher prices.
At the Elm East on the corner of Broadway and Queens Boulevard, the developer sold all 83 condominium apartments within six months of putting the building on the market in 2012. Now Asian-American developers James and Jerry Pi, founders of Flushing-based Pi Capital Partners, plan a second, far larger project across the street. The six-story Elm West will have 130 apartments and, like its sister property, will offer views of the Manhattan skyline through floor-to-ceiling windows.
More construction on tap
Future developments led by Asian-American investors include a 69-unit residential condo building destined for 70-32 Queens Blvd., built by Bayside-based investor Steve Cheung, and a likely low-rise residential property behind the Queens Mall at 88-18 Justice Ave. Flushing-based investor Jiashu Xu recently bought the building site for $26 million.
"The high-priced rentals are positive in that they will bring revenue into the neighborhood," said Rosemarie Daraio, president of the Communities of Maspeth and Elmhurst-Together civic association. "But it would be nicer if there were a mix of more affordable new housing, too."
Written By Kerry Murtha
                                              Douglas Elliman Realty, Long Island City Office                    
 47-37 Vernon Blvd, Long Island City, NY 11101




Harvey's Long Island City Real Estate Blog


           
   “Queens is the new Brooklyn. People are seeking affordability and Queens is benefiting.”

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