FAQ About New Residential Developments

WHAT IS CONSIDERED NEW RESIDENTIAL DEVELOPMENT?
In New York, this is a residential offering that is completely new to the market, and must be approved by state and local governments. It includes both ground-up construction and the conversion of an existing structure, such as an office building or rental property.

WHAT IS A ‘SPONSOR’?
The legal entity that owns the new development being offered—considered “the seller.”

WHAT IS AN ‘OFFERING PLAN’?
A comprehensive disclosure document provided by the Sponsor and approved by the Office of the Attorney General of the State of New York (“Attorney General”) that describes the property’s offering.

WHAT IS AN ‘OFFERING PLAN AMENDMENT’?
A modification to the Offering Plan that is filed with and accepted by the Attorney General. Amendments are issued over time as material changes are made to the Offering Plan.

WHAT IS A ‘PURCHASE AGREEMENT’?
A legal agreement between a Purchaser and Sponsor detailing the conditions of the sale of property, including price and terms.

HOW IS AN OFFER MADE?
Offers are made in writing and submitted to the development’s onsite salesperson by the buyer or their real estate agent.

HOW DOES AN ACCEPTED OFFER GO INTO CONTRACT?
Once an offer is accepted by the Sponsor, the onsite salesperson requests contact information for the purchaser. The Sponsor’s attorney draws up the Purchase Agreement. The Purchase Agreement and Offering Plan are then sent to the purchaser’s attorney for review. Once both parties have signed the Purchase Agreement and the Sponsor receives a down payment, the residence is considered “in contract.”

HOW IS A DOWN PAYMENT MADE IN NEW DEVELOPMENT?
Typically, this is a percentage of the purchase price. Often, it is paid in the form of a certified check or wired into an escrow account set up by the Sponsor’s attorney.

WHAT IS THE DIFFERENCE BETWEEN COMMON CHARGES AND MAINTENANCE FEES?
Common Charges are monthly dues in condominiums, the most common form of new development. Maintenance Fees pertain to cooperatives.

FOR CONDOMINIUM BUYERS, WHAT ITEMS ARE COVERED BY MONTHLY COMMON CHARGES?
Common Charges are the monthly charges allocated to each residence and paid to the condominium in order to cover the pro-rata share of the condominium operating expenses. This does not include the unit owner’s real estate taxes which are billed separately to each owner. As the cost of operating the building changes over time, Common Charges are also subject to change.

DISCLAIMER: PLEASE NOTE THAT THIS IS NOT A LEGAL OR TAX DOCUMENT OR OPINION. THE INFORMATION CONTAINED HEREIN IS GENERALIZED FOR MANY SITES; BUYERS SHOULD CONSULT THEIR TAX ADVISORS, LEGAL COUNSEL AND THE COMPLETE TERMS AND CONDITIONS OF THE OFFERING PLAN FOR THE PROJECT BEFORE PURCHASING A PROPERTY.

Reasons to Buy New Development in Manhattan

TOP 10 REASONS TO BUY NEW DEVELOPMENT

1 THERE HAS NEVER BEEN A BETTER TIME With fewer developments on the market, interest rates at historic lows, and the last chance to secure 421a tax abatements.

2 BRAND NEW EVERYTHING Be the very first to live in your home and enjoy brand new infrastructure throughout.

3 COMPETITIVE PRICING Developers have a realistic understanding of the market and prices to match.

4 EASE OF OWNERSHIP Benefit from a hassle-free purchase process with no board packages, and use your residence however you want—live, rent, or pied-à-terre.

5 INTELLIGENTLY DESIGNED Modern room proportions, high quality materials, and windows that maximize light and air add up to a home that complements your lifestyle.

6 IMMEDIATE OCCUPANCY There is often no need to wait to move in—your brand new home can be ready right away.

7 HEALTHY HOME Green features make your life healthier, and energy efficiency benefits you and the environment.

8 STATE OF THE ART LIVING Your home is outfitted with top of the line materials, the most up to the minute technology, and all the little extras that make life easy.

9 CREATE A COMMUNITY Move in together, and build a community with your neighbors.

10 THE FULL PACKAGE Your home is more than just your condominium—it’s the fitness center, outdoor space, and private lounges, not to mention the doorman and concierge, at your service.

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Beloved Riverside Park on the Upper West Side

Riverside Park stretches over four miles along the Hudson River from 62nd to 158th Streets, the 330 acres of Riverside Park provide recreation and relaxation for a uniquely diverse population.

Riverside Park is widely regarded as Manhattan's most spectacular waterfront park. As one of only 10 officially designated scenic landmarks in the City of New York, it has a long and storied history.

Rugged bluffs and rocky outcroppings created through prehistoric glacial deposits once descended directly to the Hudson River shore. They were densely wooded until 1846, when the Hudson River Railroad cut through the forested hillside.

Today it is enjoyed by all through it's many playgrounds, bike paths and dog runs.

In 1865 a scenic drive and park was built on Manhattan's Upper West Side. The development of the park encouraged the construction of mansions along the drive. Monuments placed along the drive during this era included Grant's Tomb (1897), Soldiers and Sailors Memorial (1902), Firemen's Memorial (1913), and Joan of Arc (1915).

In 2000, seven acres of land stretching from 68th to 72nd Streets was added to Riverside Park, called Riverside Park South. This section of the park now known as the Joe DiMaggio Highway, and Trump Place (the site's developers).

Riverside Park South includes a soccer field, three basketball courts, and a public pier extending 750 feet into the Hudson River.

At 79th Street is The Boat Basin and The Rotunda a hidden Manhattan treasure that many New Yorkers enjoy once they discover the hidden treasure below the west side highway.

Recreational facilities include a range of sports courts and fields, a skate park, a large portion of the Manhattan Waterfront Greenway (for bicycles), and the 110-slip public marina at 79th street, The 79th street Boat basin an important part of New York State's Water Trail.

For more information events and schedules NYC Parks and Recreation

Photos Courtesy of:

Mitchell Hall, Associate Broker, The Corcoran Group Real Estate 

I make buying and selling Real Estate pleasant and stress free...Just like a walk in the Park!

©Mitchell Hall 2006-2010

Manhattan Real Estate Market Report: September 2010

 

The Corcoran Group September 2010 Manhattan Monthly Market Snapshot 

Condominium snapshot, Cooperative snapshot, average price per square foot, average sale price, median sale price, absorption

Click Images to enlarge

Price per Floor in Manhattan Condos and Coops

A buyer and seller recently asked what is the price differential for each floor of the same line in a Manhattan apartment?

In Manhattan there are many variables in determining the price differential for each floor. A beautifully renovated apartment on a lower floor can easily sell for a higher price than an "original condition" apartment on a higher floor. The parlor floor in a townhouse may be worth more than the 4th floor if it's a walk-up.

Views tend to be better on higher floors but that is not always the case. Unless the building owns the air rights over neighboring buildings views change in Manhattan. Higher floors usually have a premium as do views. Both premiums can often be separate. When pricing or determining value in Manhattan it is crucial to compare apples to apples.

All coops and condos in Manhattan have an offering plan. In the original offering plan whether new construction or conversion, the developer/sponsor put a price differential for each floor and unit in the building. The sponsor determined premiums for each unit. Since all offering plans are from different years and during different market conditions, I like to think in terms of percentages rather than an exact number.

For example, if you're considering purchasing or selling in a building that was built or converted in the 80's, you can figure out the approximate percent of the premium. If the same apartment, line, and square footage was selling in the $200,000 range originally and today the same apartments are selling in the $800,000 range, the apartment today is worth 4x more. If they're in the million dollar range 5x.

The premium for floor differential is 4x more whatever it was in the offering plan. If it was $2000 per floor in the offering plan, than it would be around $8000 per floor today providing the comparable apartments are otherwise the same. Million dollar range $10,000 range per floor.

In today's transparent information age there are many online tools designed for automated instant home values. Take them all with a grain of salt.  In Manhattan pricing is as much an art form as a science. Pricing is a function of marketing, the price you get is a function of the marketing you choose.

Manhattan Market Third Quarter Report - 2010

Third Quarter Corcoran Report, the quarterly survey of residential real estate sales in Manhattan.  This report compares data based on deals that closed in 3Q 2010 (July 1 through September 30) with those closed in the prior quarter and in the same quarter one year ago.

Thus far in 2010, the Manhattan market has achieved a new equilibrium in pricing and pace. Buyers have been quick to take advantage of favorable interest rates and price points down 20% from their peak in 2008.  However, those prices have stabilized noticeably; in the third quarter most homes appreciated in value by modest margins. 

The Third Quarter has historically been a period of slower activity and 2010 was no exception; the number of sales eased back from the breathless pace of the first two quarters.  In an interesting contrast, sales – which in the first part of the year were dominated by studio and one-bedroom units – saw an increase among larger apartments in the Third Quarter.

Third Quarter Corcoran Report