From the category archives:

New Developments

The loss leader strategy of new developments and how to recognize it

by Red Delicious September 2, 2010

One strategy effectively used by developers to move otherwise stagnant inventory is that of the “loss leader”. They price one or two units in a building below market to generate interest, traffic and press, all of which can help in the selling of the remaining units in the development. As a result, buyers attracted by [...]

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FHA Concession Limits Halved: How will developers adjust?

by Red Delicious June 23, 2010

At some point this summer, the FHA is going to cut maximum “seller concessions” from 6% of the home price to 3%. Such concessions mean that the sellers (generally the sponsors of new developments) pay for costs associated with the sale of an apartment, including loan origination, transfer taxes, or entire closing costs altogether. When [...]

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Which neighborhoods are likely continue experiencing downward pricing pressure?

by Honeycrisp March 21, 2010

Perusing The Real Deal’s Data Book is always an interesting experience, and this was no different for the 2010 issue. Piquing our interest was the section outlining neighborhood inventory versus sales numbers. Arguably, we should see a correlation between the inventory/sales ratio and the degree of pricing distress per neighborhood.

As an example, the ratio for [...]

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A Manhattan Real Estate New Year’s Jingle for 2010

by Honeycrisp January 1, 2010

T’was the night before New Year’s, when for seconds so brief
All in the world of real estate breathed a sigh of relief.
Events that unfolded in 2009
Could have been so much worse for Manhattan’s skyline.
Thinking back to last year, markets frozen as ice,
It seemed sellers and buyers were way off on price.
Rents kept on falling with [...]

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FHA 101: changed guidelines for FHA backed loans

by Honeycrisp December 10, 2009

Loans insured by the Federal Housing Administration have allowed buyers with less than stellar credit to purchase with as little as 3.5% down. (In addition, most of the closing costs and fees can be included in the FHA backed loan.) After Congress extended NYC’s conforming loan limits to $729.8k, FHA loans have tripled, as have [...]

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Owning the Rent

by Red Delicious June 19, 2009

With many buyers still gun-shy and credit continuing to be tight, some developers are offering rent-to-own options (75 Wall comes to mind, among others). Developers are offering to apply 100% of rents toward the purchase prices with no up-front fees, giving “buyers” the opportunity to experience homes and neighborhoods without the commitment of a purchase [...]

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Who’re Ya Gonna Call?

by Red Delicious June 17, 2009

Ghost towers are slowly increasing in number in the city, so we thought we’d take a look at the reasons behind their growth:

Those with fewer than 70% of units sold do not meet most lenders’ financing criterion;
Buyers have dried up due to rising unemployment and tightening credit markets;
Developers’ funds have dried up as banks have [...]

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Taxing the Mind

by Red Delicious June 7, 2009

The projects of many developers hit by the credit crisis are at risk for missing the 36 month window allowed to fulfill the new 421a completion requirement.
What is a 421a Tax Abatement , you ask? It is an incentive to developers offered by the city to stimulate development and keep housing costs reasonable by offering [...]

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Bulking up

by Red Delicious March 31, 2009

“Multiple package options” have begun in new buildings in desperate need of buyers: Harlem’s Kalahari, Savoy West, Hell’s Kitchen’s The 505 and Long Island City’s Fifth Street Lofts, Bridges NYC and The Lore. As per our previous post, these bundled units are offered at a steep discount in hopes of attracting large-scale investors with the [...]

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