New York's luxury real estate market shows signs of slowdown

StreetEasy | November 05, 2019

Following a rapid expansion of luxury housing in New York City in recent years as developers took advantage of low interest rates, sales of high-end units have begun to slow, worrying stakeholders and raising concern over the health of the economy. In a coveted area along the southern end of the city's Central Park, a number of ultra-luxury buildings have sprung up or are under construction, including the 1,550-foot Central Park Tower, billed as the world's tallest residential skyscraper.

Spotlight

The National Association of REALTORS® (N.A.R.) in the U.S. has conducted an extensive study of home sales in 2015.  They found that only 8% of sales were conducted as ‘private sales’, where no agents were involved, so roughly 1 in 12.

Spotlight

The National Association of REALTORS® (N.A.R.) in the U.S. has conducted an extensive study of home sales in 2015.  They found that only 8% of sales were conducted as ‘private sales’, where no agents were involved, so roughly 1 in 12.

Related News

MARKET OUTLOOK

Cherre and Fortimize Announce Strategic Alliance

Cherre and Fortimize | August 12, 2022

Cherre, the industry’s leading real estate data management and analytics platform, and Fortimize, a Salesforce partner since 2012, have entered into a strategic alliance to help real estate firms make faster and more accurate decisions within Salesforce. The alliance combines an industry-leading real estate data management platform with an industry-first consulting approach on the world’s #1 CRM and customer engagement ecosystem, to increase deals in the pipeline and improve the accuracy of underwriting for acquisitions and dispositions. Together – and along with the expertise and advisement of Jonathan Fishman of Bizydev – the new partnership brings multiple decades of experience in the real estate and proptech sectors, to bring new and innovative solutions to the market. “Real estate investors and operators are demanding more data-driven insights for decision making. The Cherre and Fortimize alliance provides the real estate industry with expertise and a turnkey solution for users to get the data they want into a tool of their choice,” - Grant Wood, Cherre Vice President of Strategic Solutions Fawn Perazzo, Fortimize Real Estate Practice Lead added, This partnership amplifies the power of Salesforce for real estate companies. By connecting a mutual customer’s disparate real estate data, Cherre’s platform enables us to seamlessly integrate property data into Salesforce, creating a single source of truth around a team's deal pipeline. Firms can customize the Salesforce platform to meet their team’s needs, which many pointed solutions lack. In this highly competitive landscape, this means dealmakers are better enabled to focus on building relationships and closing deals, instead of wasting time swiveling between disparate systems. With the launch of this partnership, Cherre and Fortimize will arm real estate organizations and teams with key data points to help reduce space downtime, maximize rental terms and improve revenue forecasting for leasing use cases, all from within their CRM. About Cherre Cherre is the leader in real estate data and insight. We connect decision makers to accurate property and market information, and help them make faster, smarter decisions. By providing a unique “single source of truth,” Cherre empowers customers to evaluate opportunities and trends faster and more accurately, while saving millions of dollars in manual data collection and analytics costs. Cherre launched in 2016 and is located in New York City. About Fortimize Fortimize, a financial services and real estate consulting firm, partners with clients to design, build, automate and enhance digital experiences for their customers and employees leveraging the Salesforce platform and other leading technologies. Fortimize has been a Salesforce partner since 2012. About Bizydev Bizydev is a business development firm based in New York City that specializes in working with technology, product and service companies across industries such as PropTech, business intelligence, analytics, and other verticals to help accelerate growth. Bizydev creates value for the groups it works with by generating unique opportunities around customers, partners, and capital.

Read More

REAL ESTATE TECHNOLOGY

Scores of Pandemic Homebuyers Purchased Vacation Homes With High Natural-Disaster Risk

Redfin | July 06, 2022

In 2020 and 2021, purchases of second homes with high flood risk rose 45% from the prior two-year period (2018-2019), according to a new analysis of ClimateCheck data from Redfin (redfin.com), the technology-powered real estate brokerage. There were also significant increases in purchases of second homes with high storm risk (40%) and high heat risk (39%). Demand for second homes surged during the pandemic as low mortgage rates, remote work and the desire to escape the city drove up demand for vacation properties. Overall, purchases of second homes were up 37% higher in 2020 and 2021 compared with 2018 and 2019. Demand has since fallen back below pre-pandemic levels as life has returned somewhat to normal, but many Americans now own at-risk second homes, which has implications for the future. “The threat of climate change isn’t the top concern for a lot of homebuyers, which means they often prioritize factors like warm weather and proximity to the beach over avoiding natural-disaster risk. Second-home owners, in particular, have another place to live if disaster strikes—another reason climate danger may not feel like a pressing issue, But house hunters should be aware that purchasing in a disaster-prone area not only puts them and their home at risk, but their finances as well. Home values in climate-endangered places may fall in the coming years as consumers learn more about the risks to properties in these areas.” Redfin Senior Economist Sheharyar Bokhari A recent Redfin analysis found that more people have been moving into than out of the U.S. counties with the largest share of homes at high risk from natural disasters. That’s partly because some buyers just aren’t aware of the risks. Redfin.com now publishes climate-risk data for nearly every U.S. home, with the exception of rental listings, to help house hunters make more informed decisions. “House hunters from out of town ask about climate change because they’re very concerned about flooding, but most of them don’t change their minds,” said Miami Redfin agent Cristina Llanos. “They hear horror stories of hurricanes, but generally still move forward. People want to talk about it but it typically doesn’t make or break their decision.” Heat and Storm Are Most Common Risks Second-Home Buyers Face Overall, heat is the most common risk facing second-home buyers—nearly all (94%) of second homes purchased in the past two years face high heat risk. Next comes high storm risk, which plagues more than three-quarters (78%) of second homes bought in the past two years, followed by high flood risk (26%), high fire risk (23%) and high drought risk (21%). Many popular second-home destinations, like Florida and Arizona, face significant heat and/or storm risk. The most popular destinations for homebuyers looking to relocate are Miami, Tampa and Phoenix, which attracted scores of affluent out-of-towners in search of vacation homes during the pandemic. About Redfin Redfin is a technology-powered real estate company. We help people find a place to live with brokerage, instant home-buying (iBuying), rentals, lending, title insurance, and renovations services. We sell homes for more money and charge half the fee. We also run the country's #1 real-estate brokerage site. Our home-buying customers see homes first with on-demand tours, and our lending and title services help them close quickly. Customers selling a home can take an instant cash offer from Redfin or have our renovations crew fix up their home to sell for top dollar. Our rentals business empowers millions nationwide to find apartments and houses for rent. Since launching in 2006, we've saved customers more than $1 billion in commissions. We serve more than 100 markets across the U.S. and Canada and employ over 6,000 people.

Read More

REAL ESTATE INVESTMENT

Capital Square Acquires Multifamily Community Near Washington, D.C. for DST Offering

Capital Square | August 23, 2022

Capital Square, one of the nation's leading sponsors of tax-advantaged real estate investments and an active developer of multifamily communities, announced today the acquisition of Rivergate, a luxury 402-unit multifamily community in the Washington, D.C. suburb of Woodbridge, Virginia. The community was acquired on behalf of CS1031 Rivergate Apartments, DST. "I thought it could not get any better than the acquisition of Class A+ 2000 West Creek in 2019 for $103 million for Capital Square's 1031 exchange/DST program, but then we continued to acquire a large portfolio of comparable Class A+ apartment communities and, now, Rivergate Apartments in Woodbridge, Virginia, These Class A+ acquisitions perfectly fit the DST acquisition strategy of buying best in class multifamily assets for stable returns and capital appreciation. The acquisition of best-in-class assets demonstrates the maturation of the DST industry." -Louis Rogers, founder and chief executive officer of Capital Square Located at 13175 Marina Way, along the picturesque Occoquan River in the Potomac River basin, Rivergate is in a scenic area with excellent community amenities that include a resort-style swimming pool and sundeck, a rooftop terrace with cabanas, outdoor sofas and a bar, a courtyard with a firepit, gas grilling stations, a state-of-the-art fitness center, two resident clubrooms, a business center, a paw spa with a self-service wash and grooming suite, a volleyball court, kayak and bicycle storage, a multi-level parking garage, a package concierge, on-site management and maintenance and controlled access. The Greater Washington, D.C. and Northern Virginia economy has experienced consistent growth and diversification over the past several years, supported by the federal government and largely devoid of highly cyclical industries. The area is home to several international companies, including Amazon, Booz Allen Hamilton, Capital One Entities, Freddie Mac, GEICO, Hilton Worldwide Holdings, Inc., Marriott International and Northrop Grumman. Rivergate is ideally located in a thriving economic sector of Northern Virginia that continues to enjoy significant employment growth and will soon welcome Amazon, which will open its second global headquarters nearby in 2023, The Amazon facility is just 20 miles from Rivergate and is expected to employ 25,000 people. Amazon joins a host of other major international companies that call the region home,said Whitson Huffman, chief strategy and investment officer. Rivergate is just four miles from both the 183-bed Sentara Northern Virginia Medical Center and a new, $200 million Kaiser Permanente medical center. Together, these employers support approximately 1,500 workers.1 Potomac Mills, Virginia's largest enclosed outlet shopping and dining destination with more than 200 storefronts and restaurants, is just five miles from Rivergate. Stonebridge at Potomac Town Center, a 500,000-square-foot open-air lifestyle center, is just six miles from the property. Stonebridge features a Wegmans Food Market, full-service health club, Alamo Drafthouse Cinema, and a splash pad water park for children. Rivergate residents enjoy ready access to both Ronald Reagan Washington National Airport, situated 20 miles northeast of the property, and Dulles International Airport, located 30 miles to the northwest. CS1031 Rivergate Apartments, DST seeks to raise $46.5 million in equity from accredited investors and has a minimum investment requirement of $50,000. Since its founding in 2012, Capital Square has acquired 153 real estate assets for over 6,000 investors seeking quality replacement properties that qualify for tax deferral under Section 1031 of the Internal Revenue Code and other investors seeking stable cash flow and capital appreciation. About Capital Square Capital Square is a national real estate firm specializing in tax-advantaged real estate investments, including Delaware statutory trusts for Section 1031 exchanges, qualified opportunity zone funds for tax deferral and exclusion and a real estate investment trust (REIT). In recent years the company has become an active developer of mixed-use multifamily properties in the southeastern US, with eight current projects totaling approximately 2,000 apartment units with a total development cost in excess of $600 million. Since 2012, Capital Square has completed more than $6.0 billion in transaction volume. Capital Square's related entities provide a range of services, including due diligence, acquisition, loan sourcing, property/asset management, and disposition, for a growing number of high-net-worth investors, private equity firms, family offices and institutional investors. Since 2017, Capital Square has been recognized by Inc. 5000 as one of the fastest growing companies in the nation for six consecutive years. In 2017, 2018 and 2020, the company was also ranked on Richmond BizSense's list of fastest growing companies. Additionally, Capital Square was listed by Virginia Business on their "Best Places to Work in Virginia" report in 2019 and their "Fantastic 50" reports in 2019 and 2020.

Read More