Wednesday, November 28, 2012

Press Release: Bloomberg Endorses New Two Tree Development Across From One Hanson



The City of New York

Office of the Mayor

New York, NY 10007

 

FOR IMMEDIATE RELEASE

November 27, 2012

No. 449


 

MAYOR BLOOMBERG ANNOUNCES THREE MAJOR MILESTONES IN THE REVITILIZATION OF THE DOWNTOWN BROOKLYN CULTURAL DISTRICT

 

Announces Plans to Begin Construction of 600 New Units of Housing; 50 Percent to Be Affordable

 

Public Review Begins on New Mixed-Use Development to Create Approximately 50,000 Square Feet of New Cultural and Community Space, and a New Iconic Public Plaza

 

RFP Issued For the Last Development Parcel in District with Plans for New Cultural and Commercial Space

 

            Mayor Michael R. Bloomberg today announced three major milestones in the development of the last city-owned parcels in the Downtown Brooklyn Cultural District. First, the Gotham Organization and DT Salazar, Inc will develop 600 units of housing, 300 of which will be affordable, as well as new cultural, community and commercial space on a site bounded by Fulton Street, Rockwell Place and Ashland Place. Second, an ambitious, multi-faceted proposal by Two Trees Management Company to develop 50,000 square feet of new creative, cultural and community space, along with a dynamic new public plaza, has begun the public review and approval process. Finally, the City Department of Housing Preservation and Development released a Request for Proposals for the last development parcel in the district.

 

“Downtown Brooklyn has very quickly become one of the City’s most vibrant cultural destinations and an exciting place to live,” said Mayor Bloomberg. “These projects – which will bring more affordable housing and community space to the neighborhood – are more proof of the confidence that the real estate industry has in New York City and in downtown Brooklyn.”

 

“Downtown Brooklyn is one of the most exciting and dynamic neighborhoods in New York City or anywhere in the world, and today’s announcements are further confirmation of Downtown Brooklyn’s momentum,” Deputy Mayor for Economic Development Robert K. Steel said. “These new development initiatives are also a powerful reminder that cultural institutions like BAM are major economic growth engines throughout New York City.”

 

 

“Bravo to Mayor Bloomberg, EDC President and new dad Seth Pinsky and HPD Commissioner Mathew Wambua on today’s announcement, which further proves Brooklyn’s status as a cultural hub and cements our reputation as the ‘heart of art’ in the ‘city of stages,’” said Brooklyn Borough President Marty Markowitz. “I look forward to reviewing the ULURP proposal for the continued expansion of the Downtown Brooklyn Cultural District and am especially excited to see allocations made for affordable housing. I have been a strong advocate for increasing the availability of affordable housing throughout Brooklyn, and this development will provide much needed access to reasonably priced homes while expanding the reach of the cultural corridor in Downtown Brooklyn to its new residents.”

 

Fort Greene has historically been home to countless artists who are in need of affordable housing,” said Council Member Letitia James. “This plan will provide additional arts space for those creative forces in this community, and affordable housing to address the demand. It is a mix that reflects the needs of a creative and diverse district.”

Downtown Brooklyn is currently home to more than 40 non-profit visual, performing and media arts organizations, including the Brooklyn Academy of Music (BAM), the Mark Morris Dance Center, and the Museum of Contemporary African Diasporan Arts (MoCADA), and together, these new projects will add to this dynamic neighborhood’s emergence as an unparalleled center for arts and culture in New York City.

The City has been committed to bringing much-needed affordable housing to the neighborhood as it has continued to grow. HPD has finalized plans with developers The Gotham Organization Inc. and DT Salazar, Inc. to build 600 units of new housing, 50 percent of which will be affordable to low- , moderate- , and middle-income New Yorkers. This commitment of approximately 300 affordable units doubled the amount of affordable housing originally projected for Cultural District Site I and exceeds the City’s plan for the entire north block. In addition, 40 percent of these affordable units will be two-bedrooms. The building will be designed to complement the cultural district and will help enliven the district by adding foot traffic to the Arts Plaza and locating active retail uses along Fulton Street.

When completed, the approximately 515,000-square-foot building will also contain 20,000-square-feet of cultural and related office space and 20,000-square-feet of retail space HPD and the NYC Housing Development Corporation (HDC) expect to close on financing with the development team late next year and to see construction begin shortly thereafter.

 “The development of the Downtown Brooklyn Cultural District is moving forward with great arts, cultural and community space, and the housing – both affordable and market-rate – will transform this collection of buildings and vacant lots that surround BAM into a real community,” said HPD Commissioner Mathew M. Wambua. “It speaks to the dedication of this Administration and that of our development partners that we were able to double the commitment to affordable housing at Site I.  And as we move forward with the RFP for Site II, I look forward to watching this neighborhood grow and to celebrating the richness of its cultural institutions and the diversity of its housing.”

“We are thrilled to be collaborating with the City to enliven this cultural district with a rich combination of uses - retail, cultural, office, market and affordable housing,” said David Picket, President of Gotham Organization, Inc. Established in 1931, Gotham Organization, Inc. is a fourth-generation family-run business that develops, builds, owns and operates residential and retail real estate primarily in New York City. For more information visit www.gothamorganization.com or www.livinggotham.com

On November 26, Two Trees, which agreed to purchase the district’s South Site parcel from the City’s Economic Development Corporation in 2009, began the City’s Uniform Land Use Review Procedure to gain approval to build a new mixed-use development on the Flatbush Avenue site. The approximately 47,000-square-foot lot, which is bounded by Flatbush Avenue, Lafayette Avenue and Ashland Place, is currently a parking lot owned and operated by EDC. Once the ULURP process is complete, and approvals have been granted, Two Trees can begin constructing a new state-of-the-art, 32-story mixed-use facility designed by Enrique Norten of Ten Arquitectos including approximately 50,000-square-feet of creative and cultural space that will be shared by BAM, 651 ARTS and the Brooklyn Public Library. In addition, the tower will include approximately 23,000-square-feet of ground-level retail, as well as approximately 300 to 400 apartments, 20 percent of which will be affordable.

“The Downtown Brooklyn Cultural District is a premier global center for art and culture,” said New York City Economic Development Corporation President Seth W. Pinsky. “With today’s announcement, the City will continue to promote the growth of this vibrant district, creating not only additional space for arts organizations, but also additional affordable housing and open and commercial space—further integrating these cultural institutions into the fabric of the neighborhood and ensuring that world-class art and culture continue to flourish in Brooklyn. I would like to thank Borough President Markowitz, Council Member James, and all our partners who have allowed these important projects to come to life.”

            Plans also include a 16,000-square-foot public plaza to provide desired open space for community residents, local artists and visitors. The plaza is designed to allow a variety of outdoor programming, including dance and theater performances, film presentations, open air markets and crafts fairs, and other community uses.

 “The growth of the Downtown Brooklyn Cultural District is another example of the City's commitment to improving and enhancing neighborhoods by increasing opportunities for arts and culture," said Cultural Affairs Commissioner Kate D. Levin. “The City supports dozens of cultural organizations in Fort Greene, and the South Site development is one more step toward creating affordable workspace for artists and arts groups, expanding public amenities, and making Downtown Brooklyn an even more vibrant destination for residents and audiences.”

Once the facility is complete, the 50,000-square-feet of cultural space and a portion of the public plaza will be controlled by the City of New York. Approximately 17,400-square-feet of space will be occupied by BAM to allow the institution to meet the needs of its growing audiences. A component of this expansion will enable BAM to make its BAM Hamm Archives Center resources available to the public, providing researchers, artists, educational institutions, and students with access to materials and records documenting the oldest performing arts center in the country.

BAM President, Karen Brooks Hopkins, said, “BAM is thrilled to have the opportunity to broaden its artistic and institutional vision, further serving its audiences and community. We are grateful to BAM trustee and longtime archives supporter Charles Hamm and his wife Irene and to the City of New York for investing in the cultural life of one of the most vibrant and dynamic districts in New York.”

The Brooklyn Public Library will use approximately 16,500 square feet of the cultural space to open a new state-of-the-art branch at the South Site. The new branch will offer traditional library services as well as new technologies and programming that will benefit the local community. BPL is also working with BAM to develop an innovative cultural partnership at the new branch.

“This vibrant neighborhood and cultural district is a natural fit for Brooklyn Public Library as we adapt our vital services to meet the needs of a growing and changing Brooklyn,” said Brooklyn Public Library President and CEO Linda Johnson. “By partnering with the City, BAM and Two Trees, we'll be able to create a flexible, technology-rich new branch right in the heart of Brooklyn with programming designed specifically for the needs of this community.”

 

             A studio and rehearsal center will comprise approximately 12,500 square feet, to be occupied by 651 ARTS, an acclaimed performing arts presenter dedicated to artists of the African Diaspora. 651 ARTS will manage the space for use by local performing artists and arts organizations. Rehearsal studio spaces will be available at affordable rates, and preference will be given to organizations in the Downtown Brooklyn Cultural District. The state-of-the-art studios will also be multi-purpose space for education programs, and will provide opportunities for live public performances, gatherings and salons for artists to cultivate their work.

 

“651 ARTS is excited for the opportunity to expand its presence in the Downtown Brooklyn Cultural District and to collaborate and support local cultural organizations with a space to create, develop and showcase new works,” said Shay Wafer, Executive Director of 651 ARTS.

 

“By partnering with the City and some of Brooklyn's most innovative cultural institutions, we'll be able to provide permanent community amenities and an iconic new public plaza that helps to connect Downtown Brooklyn to the new arena,” said Jed Walentas, a principal at Two Trees Management. “In addition, the creation of much-needed affordable housing will help to ensure that this growing cultural hub and dynamic neighborhood will continue to be accessible to all New Yorkers.”

 

On Tuesday, HPD released a Request for Proposals (RFP) for Cultural District Site II, the last development parcel in the district. Located at the intersection of Ashland Place and Lafayette Avenue, Site II is the key remaining piece of the multi-site plan to bring affordable housing, new commercial space, and space for cultural activities to this growing community. The RFP calls for approximately 100,000-square-feet of floor area and may include residential, community and/or commercial space, with a requirement to include a minimum of 15,000-square-feet dedicated to cultural space and the arts. If affordable housing is proposed it must serve low-income New Yorkers. As this site is complimentary of the City’s overall plans to support the established and emerging arts organizations in the area, designs should reflect excellence and creativity in architecture and be a defining component of the heart of the Cultural District. Proposals must be submitted by February 1, 2013. For more information and to download the RFP, visit www.nyc.gov/hpd.

 

Downtown Brooklyn was rezoned in 2004 in part to help facilitate the growth of the new cultural district centered in the Fort Greene neighborhood and its legacy of cultural activity. Since then, the City has committed over $100 million in capital funding to further enliven an already vibrant neighborhood of arts organizations and support the development of the Downtown Brooklyn area as a whole. This includes the Mark Morris Dance Center, the James E. Davis 80 Arts Building, the newly opened BAM Fisher Building, the BRIC Arts | Media House and the UrbanGlass Renewal project currently in construction, and construction of a new home for Theatre for a New Audience which is also underway.

 

In addition, after the rezoning other cultural, residential and commercial projects involving a cross-section of the surrounding community have been planned or built in Downtown Brooklyn. These new projects, along with other City investments, have improved the street-level experience in the district while serving to further integrate cultural organizations, residents and businesses in Downtown Brooklyn.

 

“It's difficult to put into perspective how impactful today's announcement will be on the future of Downtown Brooklyn,” said Tucker Reed, the President of the Downtown Brooklyn Partnership. "Active uses on these vacant sites will provide critical connections between our commercial and residential assets and world class cultural and entertainment attractions, fostering a cohesive and attractive Downtown experience. These sites were a critical missing piece.”

 

- 30 -

 

            Contact:          Marc La Vorgna/Julie Wood                          (212) 788-2958

                                    Patrick Muncie (NYCEDC)                           (212) 312-3523

                                    Danai Pointer (Cultural Affairs)                     (212) 513-9322

                                    Eric Bederman (HPD)                                                (212) 863-5176

                       

Monday, November 26, 2012

AT THIS POINT, the "tip of the triangle" directly across from the building will rise to only 40-50' -- though this could change.
Comm Marin: who is paying rent to whom re the land? Answer: entire project will own the land -- cultural and residential.
Comm Bataglia: concerned about city owning cultural space while developer will own residential.
Commissioner de la luz; how many parking spaces? Currently 150, will be closer to 144 (?).
Highest point will be 382 ft to top of spire.
Unclear what is planned for south end of triangle?
Increase in FAR is requested/needed for bldg as planned. Waiver from 20' setback from Ashland is sought.
Zoning text modification is needed to modify set back regulation, cultural usage., signage regs.
Zoning map change necessary to extend c62 from across Flatbush.
3 movie theaters run by BAM in second floor.
28,000 sq ft of street level retail. Second/third floors for cultural space.
Bldg: "offset" towers with two "facets" meeting at the 10th floor.
47,000 sq ft of "cultural" usage
Zoning and FAR permits a tower up to 495 ft.

City Planning meeting


Planned: 400 residential units, 20% affordable housing, retail and underground parking

Sunday, November 25, 2012

LIVE BLOGGING from the City's Planning Review Meeting beginning at 1 pm Monday, November 26.

I'll be live blogging anything of significance from the city planning review meeting on Monday afternoon November 26 regarding Two Trees' proposed development across from OHP. Stay tuned.

Two Trees Development -- my two cents

I've always felt that arguments against the construction of a building that will potentially block views OF our building, as opposed to FROM our building, will go much further to engage the community in our effort to modify the development's size, density and massing. In fact I think it's the only feasible arguments we have.

I also believe that our best approach is to concede that the development, in some incarnation or another, is a fait accompli. The best approach is to operate on that assumption and to work with the city agencies, developer and community to try to encourage a compromise on what the development's ultimate design -- its size, height and placement -- will look like and what effect it will have on our building's views and light.

Remember a couple of years ago when the Empire State Building was facing a view-blocking monolithic commercial tower 900 feet away from them at 15 Penn Plaza?

http://www.nytimes.com/2010/08/24/nyregion/24empire.html

The outcry got a lot of media attention, and letters were written, petitions circulated, protesters filled  city planning meetings, etc. Their primary argument was that blocking views of an iconic building like the ESB from vantage points all over Manhattan was neither in the best interest of  public nor cityscape. Ultimately the resistance was unsuccessful. (As I understand it, the developer is still waiting for a large anchor tenant to commit before the tower finally goes up, but his prospects are good on that front, and the tower will be built.)

The same, but more effective argument can and should be made in the case of One Hanson/Two Trees. Whereas Manhattan has its share of iconic high rises, we arguably have ONE - ours. It would be nice to hear Marty Markowitz oppose a development that would block views of the Beacon of Brooklyn from his constituency, but the guy seems to gush over every new building that breaks ground in the borough. And I personally don't expect much help from Tish James, nor any other politician for that matter, until they determine what their net gain or loss of votes is going to be. Remember that if there is a 33 story residential tower built a couple of blocks from her office, that's potentially 33 floors of additional votes for her, not to mention, no doubt, a healthy contribution to her from Two Trees.

I believe a grassroots effort comprised of a coalition of community activists, landmark preservationists and architectural purists is going to be the only way to go. We Brooklynites treasure the cultural and architectural landscape in our borough. Engaging the public in our effort is the key to cultivating the influence necessary to effect any changes to the proposed development to make it more palatable to residents of One Hanson and the community at large.

My two cents.

Wednesday, November 14, 2012

Forbes: America's Most Diverse Neighborhoods Are Enjoying the Largest Increases in Property Values

http://www.forbes.com/sites/trulia/2012/11/13/finding-diversity-in-america/

Housing Market Recovery Projected to Continue Through 2013

The housing market recovery should continue through the coming years, assuming there are no further limitations on the availability of mortgage credit or a "fiscal cliff," according to forecast presentations  the housing market clearly turned around in 2012. "Existing-home sales, new-home sales and housing starts are all recording notable gains this year in contrast with suppressed activity in the previous four years, and all of the major home price measures are showing sustained increases," he said.

"Disruption from Sandy likely will be temporary, notably in New Jersey and New York, but the market is likely to pick up speed within a few months with the need to build new homes in damaged areas," Yun added.

Yun sees no threatening signs for inflation in 2013, but projects it to be in the range of 4 to 6 percent by 2015. "The huge federal budget deficit is likely to push up borrowing costs and raise inflation well above 2 percent," he said.

Rising rents, quantitative easing (the printing of money), federal spending outpacing revenue, and a national debt equal to roughly 10 percent of Gross Domestic Product are all raising inflationary pressures.

Mortgage interest rates are forecast to gradually rise and to average 4.0 percent next year, and 4.6 percent in 2014 from the inflationary pressure.

With rising demand and an ongoing decline in housing inventory, Yun expects meaningfully higher home prices. The national median existing-home price should rise 6.0 percent to $176,100 for all of 2012, and increase another 5.1 percent next year to $185,200; comparable gains are seen in 2014.

"Real estate will be a hedge against inflation, with values rising 15 percent cumulatively over the next three years, also meaning there will be fewer upside-down home owners," Yun said. "Today is a perfect opportunity for moderate-income renters to become successful home owners, but stringent mortgage credit conditions are holding them back."

Existing-home sales this year are forecast to rise 9.0 percent to 4.64 million, followed by an 8.7 percent increase to 5.05 million in 2013; a total of about 5.3 million are seen in 2014.

New-home sales are expected to increase to 368,000 this year from a record low 301,000 in 2011, and grow strongly to 575,000 in 2013. Housing starts are forecast to rise to 776,000 in 2012 from 612,000 last year, and reach 1.13 million next year.

"The growth in new construction sounds very impressive, and it does mark a genuine recovery, but it must be kept in mind that the anticipated volume remains below long-term underlying demand," Yun said. "Unless building activity returns to normal levels in the next couple years, housing shortages could cause home prices to accelerate, and the movement of home prices will be closely tied to the level of housing starts."

"Home sales and construction activity depend on steady job growth, which we are seeing, but thus far we've only regained half of the jobs lost during the recession," Yun said.

Yun projects growth in Gross Domestic Product to be 2.1 percent this year and 2.5 percent in 2013. The unemployment rate is showing slow, steady progress and is expected to decline to about 7.6 percent around the end of 2013. "Of course these projections assume Congress will largely avoid the 'fiscal cliff' scenario," Yun said. "While we're hopeful that something can be accomplished, the alternative would be a likely recession, so automatic spending cuts and tax increases need to be addressed quickly."

Regardless, Yun said that four years from now there will be an even greater disparity in wealth distribution. "People who purchased homes at low prices in the past couple years, including many investors, can expect healthy growth in home equity over the next four years, while renters who were unable to get into the market will be in a weaker position because they are unable to accumulate wealth," he said. "Not only will renters miss out on the price gains, but they'll also face rents rising at faster rates."

Also speaking was Mark Vitner, managing director and senior economist at Wells Fargo, who said the fiscal cliff is the biggest situation that needs to be addressed. "Beyond concerns about the fiscal cliff, the economic improvement seems to be broadening," he said.

"Housing will strengthen in 2013 even if the economy weakens because there is a demand for more construction, and the demand for apartments is rising at a faster rate than the need for more single-family homes," Vitner said. "Unfortunately, apartment construction is focused on about 15 submarkets, so additions to supply will be uneven.

Even with declining market shares of foreclosures and short sales, Vitner said they will continue. "Distressed homes right now are like an after-Christmas sale - most of the best stuff has been picked over, but make no mistake they'll be with us for a while."

Yun projects the market share of distressed sales will decline from about 25 percent in 2012 to 8 percent in 2014.

Friday, November 9, 2012

October 2012 housing reports are trickling in...

... and the news is good for homeowners!

Corcoran's Monthly Brooklyn Property Report finds a 14% increase in Brooklyn home prices (borough-wide) from September 2012 - October 2012. It also found that year over year prices have risen 13%. In July 2012, Ft. Greene prices were up a whopping 22% from July 2011. If this continues throughout the 4Q 2012, it will be the borough's fifth consecutive quarter reporting price improvements and a clear return to pre-recession home values. While the reason for the most significant increases have been attributed to higher townhouse prices, prices have in all categories continue to go up as well. This is good news for owners!

Thursday, November 8, 2012

As Usual, Rachel Maddow Nails it

See You Tube vid of her show last night. Gotta love this woman!


https://www.youtube.com/watch?feature=player_embedded&v=zRpSAKw0V48

Obama's New Housing-Related Challenges


Now that President Barack Obama has won re-election, there are several housing-related challenges staring the federal government square in the face. These are some of the decisions that will have to be made in the coming weeks:
 
1. The "fiscal cliff": The fiscal cliff is a series of tax increases and spending cuts that will go into effect unless U.S. lawmakers come up with an alternative plan to reduce the federal deficit by $1.2 trillion as required by the Budget Control Act of 2011. The spending cuts, known as "sequestrations," would automatically go into effect on Jan. 2 and be split evenly between defense spending and domestic spending.

The credit rating agency Standard & Poor's has said there's a 20 to 25 percent chance the U.S. economy will go into a double-dip recession should Congress fail to reach an agreement avoiding the fiscal cliff. S&P's deputy chief economist, Beth Ann Bovino, warned that such a scenario would cause home prices, currently at a bottom of 31 percent below their mid-2006 peak, to tumble to a record low of 40 percent below peak.

In a report released in September, the Obama administration called sequestration "bad policy" that "would be deeply destructive to national security, domestic investments, and core government functions." The president has put forward two deficit reduction proposals that included both spending cuts and revenue increases, but has run into opposition from some members of Congress who oppose tax increases and want to reduce the deficit solely through spending cuts, the report said.




President Barack Obama image via barackobama.com.


Given that Congress remains divided after the election -- Republicans retained control of the U.S. House of Representatives and Democrats retained control of the U.S. Senate -- whether lawmakers can come to an agreement over the coming weeks remains a question.

2. The mortgage interest deduction (MID): Revamping the mortgage interest deduction is one of the solutions proposed to head off the fiscal cliff and could be part of a broader plan to streamline the tax code by eliminating some loopholes and deductions. Some experts have said the MID, which costs the government about $90 billion a year, is unlikely to survive in its present form, though what would take its place, if anything, is unclear.

Two years ago, a bipartisan deficit reduction commission recommeded scaling back the MID, which is currently capped at mortgages worth up to $1 million for both principal and second homes and home equity debt up to $100,000. The deduction is available only to taxpayers who itemize.

The commission, often referred to as Simpson-Bowles, proposed turning the deduction into a 12 percent nonrefundable tax credit available to all taxpayers, capping eligibility to mortgages worth up to $500,000, and eliminating the deduction on interest from second homes and home equity debt.

The National Association of Realtors, which has consistently defended the mortgage interest deduction in its current for, was highly critical of the recommendation, claiming any changes to the MID could depreciate home prices by up to 15 percent, and promising to "remain vigilant in opposing any plan that modifies or excludes the deductibility of mortgage interest."

3. Mortgage debt forgiveness: Another homeowner tax break may be on the table in fiscal negotiations: the Mortgage Debt Relief Act of 2007, which is set to expire at the end of this year. The law exempts up to $2 million in mortgage debt forgiven by a lender in a short sale, loan modification or foreclosure from federal taxation. The law applies only to mortgage debt incurred to fund the purchase or improvement of a principal residence.

Banks have relied heavily on short sales to meet their obligations under the terms of a $25 billion settlement with the nation's five largest mortgage servicers over so-called "robo-signing" practices. If the debt relief law lapses, however, homeowners would have less of an incentive to pursue short sales because forgiven mortgage debt could be considered taxable income.

4. Qualified mortgages: Now that we know the Dodd-Frank Wall Street Reform and Consumer Protection Act is here to stay -- presidential candidate Mitt Romney had vowed to repeal it -- there are two controversial rules contained within the law that are waiting to be finalized: the qualified mortgage (QM) and the qualified residential mortgage (QRM).

QM would establish standards for borrowers' "ability to pay" the mortgages they seek, while QRM would establish certain baseline standards for safe underwriting and require lenders to retain a 5 percent minimum ongoing stake in any loans they originate that don't meet QRM requirements.

The regulations are under the aegis of the Consumer Financial Protection Bureau (CFPB), which postponed action on both rules in June after protests from Realtors, builders, banks, unions and consumer groups. Under Dodd-Frank, the CFPB is required to issue the qualified mortgage rule by Jan. 21, 2013.

A (You Tube) Walk Through Boerum Hill - November 1, 2012

 




http://www.youtube.com/watch?feature=player_detailpage&v=nS9zqqC2vDk

Atlantic Yards Jobs Development Group Shutters Its Doors

Brooklyn-based nonprofit leaves a trail of criticism and legal recriminations in its wake.

A key community backer of Atlantic Yards redevelopment will soon be no more.
Brooklyn United for Innovative Local Development, a nonprofit set up to connect unskilled local workers with good paying jobs, will dissolve operations at the end of next week, according the the Atlantic Yards Report.

As of Wednesday, a closed sign was posted on the door of BUILD's office on Hudson Street in Downtown Brooklyn underneath a notice regarding 900 immediate openings at Con Edison in the wake of Hurricane Sandy. BUILD was signatory to a Community Benefits Agreement in 2005 promising good-paying jobs and affordable housing for Brooklyn.





The nonprofit, headed by James Caldwell, was touted as a big piece of the community development puzzle, charged with the task of forming and facilitating a Workforce Development Council and to provide apprenticeship training program for low-income workers.
Whether BUILD ever fully lived up to that mission has been hotly contested almost from the beginning.

"It was a criticism from community and good government groups form the start that you couldn’t get the benefits that were promised," said Danae Oratowski, chairperson of the Prospect Heights Neighborhood Development Council. "There's no way these small organizations with no accountability could achieve these goals."

A Forest City Ratner spokesman sent the following statement regarding BUILD's demise:
"BUILD was a critical partner in the creation of the Community Benefits Agreement and the hiring for Barclays Center. We are thankful for their assistance and insight and their on-going commitment to social and economic justice for the people of Brooklyn. Mr. Caldwell has always believed strongly in the inherent good of people and recognizes that regardless of one's background, we all share the same desire to create a better, safer and healthier life for our children and families. It is a commitment he brought to Atlantic Yards and one that will continue to guide us as we begin the housing portion of the development. As we did with arena, we will continue to work with community groups, the city and other partners to ensure that as many of our employees as possible come from the surrounding communities.”
As Barclays Center rose quickly using mostly union labor from outside the neighborhood, some unemployed Brooklyn residents said Forest City Ratner and its community partner BUILD could have done much more.

Workers gathered at the still-rising Barclays Center in July 2011 slamming developers for failing to provide jobs for local residents — a goal that, according to the Atlantic Yards CBA, BUILD was supposed to help facilitate.

In November 2011, construction workier Kathleen Noriega joined others in suing Forest City Ratner and BUILD for damages related to unpaid wages and promises of employment.
No word yet on how BUILD's decision to end operations would affect Noriega's suit.
With the first residential tower at Atlantic Yards expected to break ground in December, Oratowski said BUILD's demise would mean even less accountability for Forest City Ratner to hold to its promise of more housing and jobs.

"It’s clear that the CBA was just a sham to generate publicity for the developer at a time when he was seeking state approval for the project," Oratowski said.

Tuesday, November 6, 2012

One Hanson interiors



DOB Approves 8-Story Rental Building at Bergen and 3rd

From Brownstoner:



The Department of Buildings approved permits for the future eight-story rental build on the corner of Bergen Street and 3rd Avenue. Unfortunately, the building will feature a streetscape-unfriendly parking lot on the first floor. The 85-unit luxury rental will also have a health club, a resident lounge, a courtyard and roof deck. The warehouse building that previously occupied the site received demolition permits earlier this month and is long gone. It also looks like excavation work has begun. The lot is in Boerum Hill near the Gowanus border.

The street-level parking lot looks a bit too California for me. A new zoning code requires a minimum amount of parking -- but couldn't the architects have made it a little more attractive?

Thursday, November 1, 2012

Warren Buffet Buys Prudential's Real Estate Division

Looks like my colleagues at Prudential Douglas Elliman just got a new boss -- a good one! That's good news for NY real estate customers.

Wednesday, October 31, 2012

Home Sweet Home (no power needed tonight)

Brooklyn's Fort Greene: From Bastion to Park

The 30-acre Fort Greene Park rises in New York City's borough of Brooklyn. Strategic military ground became a park designed by Frederick Law Olmsted.
 
 
 

Originally known as Fort Putnam, after patriot officer Israel Putnam, the hillside that currently comprises Fort Greene Park in New York City’s borough of Brooklyn once protected General George Washington and his troops during the Battle of Long Island. The works on this land, started during March 1776, consisted of a series of entrenchments essential to prevent the port of New York from falling to the British.
One of Washington’s most capable officers, General Nathaniel Greene, took command of the defenses during May. The fort was situated to the eastern end of the defense line. The landscape became a significant portion of the battleground during August
.
British Prison Ships

The British leveled the defenses and took control of the port. Related action occurred in today’s Green-Wood Cemetery and Prospect Park, plus the land, now developed, that connects all three locations.
Upon seizing control of the area, the British placed patriot prisoners from this fight and other battles in warships anchored in Wallabout Bay, which separated Brooklyn from New York City. Any prisoner refusing to pledge loyalty to King George was left to rot on the disease plagued ships. For six years, more than 11,500 patriots died from disease or starvation.
The bodies of these patriots were unceremoniously buried in shallow graves along the then-swampy Brooklyn shoreline. As the remains became exposed due to the changing tides, citizens collected the bones and placed them in a vault on Hudson Street in Brooklyn.

Walt Whitman Wants Park

During 1812, Fort Putnam was rebuilt and renamed Fort Greene. Population growth on the farmland that surrounded the fortified hill led to the building of additional private homes, apartment buildings and commercial operations.
By 1846, Walt Whitman, the poet, editor of The Brooklyn Eagle and soon to be a Civil War nurse, wrote daily about the need for a park to serve as the “lung” that would provide the dense population with free circulation of air. He said the people needed to “spend a few grateful hours in the enjoyment of wholesome rest.” One year later, Washington Park was established on the site of Fort Greene.
Near the end of the Civil War and after the successful creation of Manhattan’s Central Park, Frederick Law Olmsted and Calvert Vaux were hired by Brooklyn to professionally design a series of parks. Their first assignment was Washington Park, later renamed Fort Greene Park. The designers incorporated a concept for a crypt within the park for the prison ship martyrs.
That monument became a reality during 1905 with the support of The Society of Old Brooklynites, The Daughters of the American Revolution and many other organizations. The prominent architectural firm of McKim, Mead and White, which soon after designed New York City’s Pennsylvania Station, was commissioned to design the Prison Ship Martyrs Memorial. The plan included a 100-foot wide granite stairway leading to a freestanding Doric column about 150 feet tall. The column was crowned by an eight-ton bronze urn. The remains of the lost patriots were placed in the crypt below.

Today, Fort Greene Park and the Prison Ship Martyrs Memorial are surrounded by the neighborhoods known as Fort Greene, Clinton Hill and Wallabout. Unfortunately, few residents know about the history of the hallowed ground, its role in the fight for liberty, the importance of the memorial, or the sacrifice of those whose remains are within the tomb.
Sources
  • New-York Historical Society
  • The Brooklyn Historical Society




Exhibit Profiles the Iconic Designs From the Minds of Pratt University Alums

Betty Boop, the Chrysler Building, Heisman Trophy, Cuisinart and Spirit of St. Louis have a lot in common. They were designed by someone who attended Brooklyn’s Pratt Institute.
Arguably the nation’s top art and design school, Pratt is to Clinton Hill and New York City what Harvard is to Cambridge and Boston —not only the top international academic institution, but a college that has helped its neighborhood grow rather than dominate it physically and philosophically.
This month, Pratt Institute turned 125 years old. To celebrate, the Pratt community held a gala at the Waldorf-Astoria, assembled a special edition of its Prattfolio magazine, and named 125 of its alumni and faculty as icons for creating some of the most important designs the world has seen. WNET aired a PBS documentary, “Treasures of New York: Pratt Institute,” narrated by New York City writer and former Pratt student Pete Hamill.


 

"So many objects fundamentally important to how we live our lives came from the mind of a Pratt person,” says Todd Galitz, vice president for institutional advancement. “We thought, ‘What better way to teach people about Pratt than through the things that were made or invented or designed by the people who came though here?’ When we stared researching, we couldn’t believe the incredible body of work.”
To name a few — the Trimline telephone from AT&T, an improved Cuisinart, Scrabble board, Life magazine logo, the compact blow-dryer of the 1970s, no-ghost Ghostbuster logo, and the 1955 Ford Thunderbird. Oscar-winning actor Martin Landau went to Pratt to study illustration. Philip Johnson taught there.
The final 125 items in the Icons exhibition were decided by votes cast online by members of the Pratt community. The exhibition is free and open to the public, and will be on view Nov. 30 to Jan. 19 at Pratt Manhattan Gallery, 144 W. 14th St.




“When Charles Pratt opened the school in the 1880s he said, ‘Be true to your work, and your work will be true to you,’ ” says Galitz. “If you look at these people and objects, you can see that legacy still lasts.”
New York architect Annabelle Selldorf is a Pratt 125 Icon. She came to the school as a 19-year-old from Cologne, Germany, to study architecture. Her designs include the Sky Garage building in Chelsea, profiled here last week, and a contextual residential building off the High Line on 19th St.





“There was a tremendous amount of intellectual diversity at Pratt,” says Selldorf. “There was not a prescribed style or overt dogmatic approach to the study of architecture. Rather, students were allowed to explore many avenues of thought. I really appreciated this openness to new ideas. It allowed me to explore and develop my own personal expression, and find my voice as an architect. It is something that I continue to value in my practice today.”
In its 125 years of educating men and women, here are some of the things that came from the minds of people who discovered part of themselves at Pratt, in Brooklyn.



Prices Soar As Inventory Falls in Brooklyn and Queens

10/18/2012 | Source: New York Magazine
 
"The inventory is falling! The inventory is falling!" That's the cri de coeur of the outer borough real estate market this past quarter, according to third-quarter market reports released today. Analyst and appraiser Jonathan Miller, who prepared the report for Prudential Douglas Elliman, says inventory has been falling since 2010, but "now we're noticing it because it's becoming acute." Both Brooklyn and Queens saw the number of available apartments plummet (16.2 percent in Brooklyn and 12.2 percent in Queens), leaving buyers to scramble for what remains and driving prices upward. Any decent property with decent pricing "goes quickly and over asking," says Corcoran Goup's Frank Prescepe.Consequently, the median sale price in Brooklyn, $525,000, reflects an increase of 3 percent from 2011, the Corcoran Group survey found, and the average price per square foot in the borough leaped to $633, only 5 percent off its June 2008 apex. And in Queens, median sale price is up 1.8 percent to $356,382, according to Elliman, and the average price per square foot was up a whopping 20.6 percent to $346. Last year's number was $287.

Wednesday, May 30, 2012

Rental Market Boom in Brooklyn

From the NY Times, May 29, 2012: http://nyti.ms/KqMYoi

The market for multifamily buildings in Brooklyn has been heating up over the last year. But the recent sale of 111 Kent Avenue in Williamsburg was stunning even in a hot market.       
The buyer, American Realty Advisors, paid $55.5 million, or more than $895,000 for each of 111 Kent’s 62 apartments. The price paid per apartment is a record for such properties outside Manhattan, according to the data company, Real Capital Analytics.
       
“It was an eye-popping number,” said Douglas Steiner, a developer and investor and the chairman of Steiner Studios. Mr. Steiner most recently acquired a 60-unit rental in Carroll Gardens for $24.5 million, or $408,000 a unit, and is in contract to buy another rental building in the borough.
Several factors are behind the trend, including a strong rental market and low interest rates. Rents in the borough increased by 10 percent in 2010 and were estimated to increase by 7 percent last year, according to a market report by TerraCRG, a brokerage firm based in the borough, citing research by Marcus & Millichap Real Estate Investment Services. Ofer Cohen, the founder and president of TerraCRG, estimates Brooklyn rents will climb another 5 percent to 10 percent over the next 12 to 18 months.

“In 2006 and 2007, any condominium you put on the market sold, and now the same thing is happening with rentals,” said David J. Maundrell, the president and founder of apartmentsandlofts.com. “I wouldn’t say we are throwing darts, but we are pushing the envelope with rental prices and seeing how high we can take it.”
Despite the high rents, demand remains strong in part because it continues to be difficult to obtain a mortgage. “Although interest rates are low, for would-be buyers of condominiums, the banks have such stringent underwriting standards that they are often frozen out and forced to keep renting,” said Adam Ginsburg, a co-chairman of GDC Properties, which recently developed 220 Water Street, a rental in Dumbo.

In addition to a strong rental market, Brooklyn is attracting waves of investors because of the many stalled condominium sites that are primed for conversions into rental buildings. During the market bubble, neighborhoods like Williamsburg were inundated with condominium developments, but many of those projects were left half-finished when the market turned.
In response, troubled condominium developers either repositioned the projects as rentals or sold the properties to investors who converted them into rentals. The buildings were quickly filled with renters and over the last year the properties have been sold to long-term holders, including many institutional investors.

“Any time people build condominiums and the market doesn’t support it, there is a shift to rentals — that is not a new phenomenon,” said Woody Heller, an executive managing director at the brokerage firm Studley who, along with Will Silverman, a senior managing director, represented the seller in the sale of 111 Kent Avenue. “What is new is that we are seeing this happen in Brooklyn.”
Other big sales include Invesco Real Estate’s purchase of 75 Clinton in Brooklyn Heights for $50.8 million, or roughly $686,000 a unit; Invesco also bought the Arias Park Slope at 150 Fourth Avenue for $57.5 million, or roughly $605,000 a unit. Equity Residential, led by Sam Zell, bought 175 Kent Avenue for $76 million, or nearly $673,000 a unit.

“Just two years ago, buyers in Williamsburg faced trouble closing on their condominiums because banks saw the Brooklyn market as declining,” said David Behin, a partner and president of investment sales and capital advisory at the brokerage firm MNS. “There has since been a dramatic shift from stalled construction sites and concern that there was too much inventory, to significant demand from investors.”

In the case of 111 Kent, the original developer had intended the building to be a condominium, but after constructing the majority of the building, financing dried up and Stellar Management and its partner Largo Investments acquired the property for $24.6 million. Stellar invested $8 million to finish the building and quickly rented out the units, some for as high as $70 a square foot, said Mathew Lembo, a vice president at Stellar. Then, earlier this month, Stellar sold the investment to American Realty Advisors, which plans to hold the property for the long term.

“From a price standpoint, you get more value in Brooklyn than you can achieve in Manhattan,” said Stanley L. Iezman, the chairman and chief executive of American Realty Advisors. The company had been looking for two to three years in the borough before finding 111 Kent, and is continuing to search for other retail or multifamily properties in the area, he said.

Another factor that is attracting these investors to Brooklyn is that the bulk of the stalled condominium sites come with 15-year tax abatements as part of the 421A tax program. The tax program allows landlords to pay less real estate taxes over the life of the program. In return, developers are allowed to charge market rate for the rentals, but they can only increase those rents by a limited percentage each year, as set by the New York City Rent Guidelines Board.
Since many of the projects were originally intended as condominiums, there is also the possibility that should the market shift they could be converted back into for-sale units. In many cases, the projects already have condominium plans filed with the attorney general’s office or have condominium-level finishes and amenities.

One caveat is that those projects that have the 421A tax abatement must wait until the program runs down before the building can be converted back to condominiums.
The Naftali Group, for example, recently bought a vacant site at 267 Sixth Street in Park Slope that was intended to be a condominium and is instead building a 12-story, 104-unit rental building. “Either us or future investors could look to sell this as a condominium when the tax abatement expires,” said Victor Sigoura, the chief investment officer of the Naftali Group, citing amenities that include a roof deck with cabanas, a lounge, on site parking and a gym.
But like any hot market the buying binge will come to an end, and there are already signs that it could be winding down. The chief factor is the diminishing supply of stalled condominium sites. “We are moving into the later innings of the distressed cycle,” said Dan Fasulo, a managing director of Real Capital Analytics. “With this game, there is only a finite amount of opportunities left, and the lack of supply is driving values through the roof.”

At the same time, land prices have begun to creep up and condominium prices are also showing signs of strengthening. If land prices and condominium sales reach a certain point, then developers may begin pursuing condominium developments rather than rental projects.
“At the beginning of this year, as the market saw more institutional investors coming in, there was a run up to finish buildings and buy the last available sites,” said Mr. Cohen of TerraCRG. He estimated that in the last six to nine months land prices in Williamsburg, for example, have increased by 30 percent.

Mr. Heller said “the landscape is beginning to feel selective and sparse” for multifamily sales, adding that “the market is at an interesting point of inflection.”

Monday, May 21, 2012

Bidding Wars? Proceed With Caution...

MUltiple Offers Are Back!                                   
                                           
Perhaps the biggest story of the spring 2012 housing market is the return of multiple offers. It's not the frenzy of 2005-2007, but the open houses of properly priced properties are mobbed lately; many are receiving multiple offers after the first week on the market; some are selling over the asking price. What should you do if you find yourself in a bidding war? Here are a few tips:


Sellers:

The highest offer isn't always the best offer. After years of falling home prices, it's tempting to accept the highest bid straight off. But it's as critical as ever to carefully consider the buyers' ability to close, as well. While sales volumes are up, lenders are as fickle as ever as to whom they will lend. Weigh factors such as finance contingencies, ability to close without having to sell first, earnest money and closing date. At the end of the day, choosing the right buyer is just as important as choosing the right price.

Move quickly. While the market is heating up, three months of heat does not a sellers market make. Respond to offers quickly, and once the terms are to your liking, get a contract signed ASAP. The longer a negotiation drags on, the more tenuous it becomes.

 
Maintain your objectives. If your target price was "X", don't all of a sudden set a new target of "X plus Y". "X plus Y" has a nasty habit of turning into "X minus Y". Stick to your game plan, and be happy when it succeeds.

Foster a feeling of equity in negotiations. A person is likely to walk away from a negotiation when they feel they've lost control. This is important to remember, even in multiple-offer situations. While you may have the leverage, it's important to keep a buyer engaged and avoid ultimatums.


Buyers:


Start with your best offer. If you know you're going into a multiple bid scenario, write your best offer from the start.


Earnest money can make a difference. Increase your earnest money deposit to show the seller you are serious about closing and will not back out of the transaction.

Pre-approval is a must. A mortgage pre-approval (or proof of funds for cash buyers) is a necessity. Shopping for a home without pre-approval is an exercise in futility in today's market - multiple offers or not.


Find out what's important to the seller. Ask your broker to determine the seller's hot buttons in the transaction. Maybe they're willing to accept a slightly lower price for a fast closing or an "as-is" contract. If they are faced with a potential lapse in time between closing on their current home and closing on a new one, perhaps they prefer to close and then lease the property back from you during that lapse, rather than having to find temporary housing. 


Waive contingencies. Depending on the condition of the home, your finances and/or your level of job security and your comfort with DIY projects, it may make sense to waive certain contingencies, such as a home inspection or mortgage financing. Discuss this strategy with your broker at the outset, discuss and weigh your options, and explore your comfort level in this regard.


Preparing for multiple-offer situations ahead of time can make the process much less stressful and give you the edge you need to succeed.

Wednesday, May 16, 2012

Selecting a Real Estate Agent to Work With


Buying and selling real estate anywhere is complex; buying and selling in New York City can be daunting. At first it may seem that checking real estate websites or utilizing one of the many search engines is sufficient to find the right home at the right price. But all properties are unique; homes differ and so do contract terms, financing options, coop board requirements and closing fees. 

Similarly, no two transactions are alike. Familiarity with coop-specific board requirements, proper pricing and effective negotiations are key to a successful transaction and ultimately, a satisfied buyer or seller. It makes sense to work with a professional who specializes in the area and type of apartment or townhouse that meet your criteria, and has a proven track record in successfully closing deals.

How do you find the right agent for your needs?

Check out the competition. You can find local agents through recommendations from friends and colleagues, suggestions from lenders, lawyers, financial planners and CPAs, or by visiting open houses and agent websites.

When choosing an agent with whom to work, consider their training, experience, familiarity with the City on a macro (borough) and micro (neighborhoods, school districts, etc.) basis. If that's too much work, contact me and I will provide you a list of professional agents with the best proven reputations in the type of property you are seeking in the neighborhood you prefer.

What should you expect?

Once you select an agent you will want to establish a proper business relationship. Some agents represent only sellers, others represent only buyers; some represent both. Your agent should explain the options available to you and disclose in detail what fiduciary responsibilities the agent has to you under NY State agency disclosure law.

Once hired for the job, your agent will provide you with information detailing current market conditions, financing options available to you and negotiation strategies and issues that may arise. A good agent will keep you updated throughout the course of the transaction.


Williamsburgh Savings Bank (now One Hanson Place): History

One Hanson Place is a landmarked loft conversion whose gilded clocktower rises 34 floors over the nexus of Fort Greene, Prospect Heights, Park Slope and Boerum Hill. The building and its vast banking hall, designed by the architects to “be regarded as a cathedral dedicated to the furtherance of thrift and prosperity,” were landmarked in 1977. Thirty years later, the building was converted to 175 condominiums ranging in size from studios to full-floor penthouses.

Designed and built in 1927 by the architectural firm of Halsey, McCormack and Helmer as the the Williamsburgh Savings Bank Building, One Hanson Place is known for its four-faced, red-lit clock and gorgeous lobby’s precious blue mosaic-tiled arched ceiling. The 6-story former bank space adjacent to the building, (now leased by Skylight One Hanson as an event space) is ornately detailed in the byzantine-romanesque style. The Brooklyn Flea Market is located in this space on winter weekends, and doctors' offices are located on the 7th floor. All commercial spaces have their own entrances.
Most of the apartments have 10’6” ceilings, some have 11’ ceilings and a few have 14’, while all apartments have new, oversized, double-paned windows. Where the building “wedding cakes,” there are public and private terraces. (Above the 23rd floor, it is necessary to switch elevators -- there are 6 in all, one being for freight/move-ins.)

The units include custom kitchens with Sub Zero and Viking appliances, lava stone counters, Kalista faucets and custom lacquer cabinetry. All apartments have washer/dryer hookups, multi-zoned central air and heat and Brazilian Chestnut plank flooring. The bathrooms are limestone and marble, with hand-laid mosaic tile floors. Building amenities include a Resident Manager, 13 full-time staff members, 24-hour doorman and concierge service, four furnished common terraces with panoramic views, a huge childrens playroom, two bike storage rooms, a fitness room, laundry room, game room and a residents-only sky lounge.




The building was converted in 2007 with most people moving in by 2008 and 2009. The 15 year J-51 tax abatement started in 2010. One Hanson features direct access to the Atlantic Terminal with eight local and express subway lines and the LIRR. Two additional subway lines are three blocks away.