Hoboken / Manhattan Real Estate Blog

By Brian Louis

March 15 (Bloomberg) — Pulte Homes Inc., the fourth- largest U.S. homebuilder, said the housing market is unlikely to have a quick recovery as buyers wait out the drop in prices.

“We’re not projecting anything to bounce off the bottom at this point,” Chief Financial Officer Roger Cregg said at a UBS conference in London. “There’s been a lot of buyers that have moved to the sidelines.”

Profit at homebuilders has plunged since the five-year housing boom ended a year ago. Rising inventories of unsold homes and hesitation by potential buyers on concern that the price of their house will drop has sent the housing market tumbling.

“We don’t think it’s repeatable,” Cregg said of the high profit and sales of 2004 and 2005 for builders.

Homebuilding executives have turned bearish on the prospects for a recovery this year after earlier forecasting that buyers would return in 2007.

Donald Tomnitz, the chief executive officer of D.R. Horton Inc., said at a Citigroup Inc. conference on March 7 that his company would miss its projections for closings this year, and that “2007 is going to suck, all 12 months of the calendar year.” The company is the second-largest home builder by revenue.

`A Bust’

Robert Toll, CEO of Toll Brothers Inc., said today at a Citigroup Inc. conference in Las Vegas that the spring selling season has been “pretty much a bust” and he can’t predict when the housing recovery will begin.

The forecasts, along with a crisis in the subprime lending market, have sparked a decline in homebuilder shares this year. The stocks had gained from July to February on expectations of a housing recovery this year and comments from some industry executives that the market was stabilizing.

Part of the fuel for the housing boom was the availability of mortgage loans to buyers with poor credit histories. Investors are now concerned that tightening lending standards will reduce the number of buyers for houses and keep the housing market weak.

A Standard & Poor’s measure of home construction companies tumbled 15 percent from Jan. 1 through today, erasing much of the gains achieved after rebounding from a July low.

Homebuilder Shares Sink

Eight of the 16 stocks in the index have lost at least 15 percent of their value this year. The worst performer is Scottsdale, Arizona-based Meritage Homes Corp., which has fallen 31 percent this year.

Shares of Pulte rose 11 cents to $26.63 in New York Stock Exchange composite trading. The stock is down 20 percent this year.

Pulte, like other builders, has tried to prevent investors from buying houses by making prospective buyers attest they are not speculators and that is helping the market, Cregg said.

“We think we have taken a majority of them out,” Cregg said of the investors.

Increasing numbers of speculators expecting to make a quick profit by “flipping” houses helped fuel the housing boom. When demand started to ebb and house price appreciation slowed, many investors put their houses on the market, increasing inventory.

Wednesday, December 27, 2006
By JARRETT RENSHAW
JOURNAL STAFF WRITER

To my loyal readers:

These past couple of months, I’ve attempted to give you everything I got, and all I asked in return was for a few minutes of your time each week and perhaps a few less insulting e-mails.

It’s a tough crowd here in Hudson County, but I am hoping a generous one as well. So, how about throwing me $500,000 so I can buy a condo. See, I really want a new set of wheels and there’s a chance the developer might throw that in if you buy me the apartment.

Young Chu and his wife Young Soon Chu gave me the idea. The Hoboken nail salon owners recently bought two investment properties at 1100 Adams St.

A week after inking the deal, the developer, Tarragon Corp., called Young Chu and told him he won a two-year lease on a BMW X3. Tarragon raffled off the $40,000 car to the first five people who bought condos in October.

“I was surprised,” said Young Chu. “I knew there was promotion, but I really didn’t think I would win. I guess buying two properties helped my odds.”

Developers, reluctant to drop their prices, are now offering a boatload of goodies. Perks range from home upgrades to eight-hour plane rides to luxury cars.

“When we don’t get as much traffic as we want, we try to spark interest, and it works,” said Tarragon spokesman Christopher Winslow.

If you want to buy at the Hudson Tea House, Toll Brothers is throwing in a free kitchen or bathroom upgrade.

Manhattan Place Realty is offering a 5 percent discount on pre-construction sales at the Cliffs in Hoboken, and Tarragon will pay your first six months of maintenance fees.

As luck would have it, the new car opportunity has left the garage.

Other less generous developers label such tactics as “gimmicks.” For the record, telemarketing is a gimmick; a new car is a prize.

It’s not just homebuyers getting in on the action.

Toll Brothers recently handed out gift certificates to brokers for showing their condo units. Sell a couple properties, the brokers were told, and you could be eligible for an all-expense-paid vacation.

So, you can see why I need the money. I could lose out on a new toaster for my brand new $500,000 Jersey City condo if you don’t hurry. Thanks in advance.

[solid box] The Jersey City Redevelopment Agency is anticipating a report from the Port Authority of New York and New Jersey that will help resolve the future of the historic Powerhouse.

The report is expected to suggest ways to move the transformers that power the PATH system across the street, as well as who will foot the bill - the developer, Cordish Companies, the Port Authority, or both. The $400,000 report is due early next year.

[solid box] Pre-construction sales at the Schroeder Lofts in the Hamilton Park neighborhood are going well, reports developer Paul Silverman. Roughly 23 of the 58 loft-style condos have been sold, and a large percentage of the sales are from Jersey City residents. “I think it’s good when we see people moving within the city,” says Silverman.

© 2006 The Jersey Journal

Published Fri, 8 Dec 2006 12:00:00 GMT
Explore art of negotiation, buying home with bad credit, timing market

Robert J. Bruss
Inman News

Each week I read and review at least one new real estate book. At the end of each year, it is my honor to select from these 52 books the “top 10″ real estate books. 2006 was an especially difficult year to select the best because there were so many new, high-quality realty books.

All of these excellent real estate books are available in stock or by special order at local bookstores, public libraries, and www.Amazon.com. Here are the 10 best real estate books of 2006, plus five Honorable Mentions:

Purchase Bob Bruss reports online.

1. “Trump-Style Negotiation,” by George Ross (John Wiley and Sons, Hoboken, NJ), $24.95, 259 pages. This unique book offers insights into Donald J. Trump’s big-thinking negotiation style, which leaves the contract details to his trusted adviser, George Ross. Only serious real estate buyers, sellers, real estate agents and investors will study this extremely well-written book that reveals negotiation tactics not found elsewhere, illustrated with many actual examples from Trump acquisitions.

2. “The Automatic Millionaire Homeowner,” by David Bach (Broadway Books, New York), $19.95, 244 pages. If you could read only one real estate book, whether you are a renter considering a home purchase, a current homeowner, a seasoned realty investor or a real estate agent, this is the book for you because it shows how home ownership can lead to wealth. The book’s two themes are (a) renters can become millionaires by investing in their first house or condo and (b) that residence can become the foundation for a better home or more investment property in future years.

3. “Buy Even Lower,” by Scott Frank and Andy Heller (Kaplan Publishing Co., Chicago) $18.95, 238 pages. Aimed at real estate investors and real estate sales agents, this book, by two full-time corporate executives and part-time realty investors, shows how they buy single-family houses at targeted below-market prices and then either buy and hold, buy and flip, or (their favorite) buy and lease-purchase. The authors favor “ugly and awful” three-bedroom, two-bathroom houses in middle-income neighborhoods.

4. “Real Estate Debt Can Make You Rich,” by Steve Dexter (McGraw-Hill, New York), $21.95, 156 pages. The two audiences for this book, which explains why real estate debt is good, are (a) home buyers and realty agents who want to understand the inner-workings of the mortgage industry and (b) investors who need to know how “good debt” can be created to maximize realty profits. The mortgage-broker author reveals how avoiding “inexperienced and inept loan hacks” can obtain the best mortgages to buy a home or investment property. The book includes the best compilation of real estate Web sites available.

5. “Bubbles, Booms, and Busts; Make Money in Any Real Estate Market,” by Blanche Evans (McGraw-Hill, New York), $16.95, 167 pages. This extremely well-researched and up-to-date book explains the signals of local rising, falling or neutral local home sales markets, and how to profit in any situation if you take a long-term perspective on home sales. “Except for local economic shocks, like the collapse or exit of a major employer, home prices nationwide have not gone down since the Great Depression,” the author reminds readers.

6. “Success as a Real Estate Agent for Dummies,” by Dirk Zeller (Wiley Publishing Co., Indianapolis, IN), $21.99, 350 pages. Whether you are a new real estate agent, a longtime “old pro” agent or an individual thinking about becoming an agent, this basic book by a real estate “coach” explains what is involved in selling real estate for sales commissions, how to use sales time management profitably, and how to get started fast by contacting expired listings and “for sale by owners.” The book includes an invaluable list of Web sites for realty agents plus the author’s advice how to gain competitive advantages by obtaining a “slice of the market.”

7. “Everything You Need to Know Before Buying a Co-Op, Condo, or Townhouse,” by Ken Roth (AMACOM Publishing, New York), $18.95, 197 pages. The real estate attorney author shares his many legal and real-life personal experiences so readers don’t make costly mistakes when buying into the unique lifestyle of these properties. Heavy emphasis is placed on the pros and cons of homeowner associations, including “condo commando” members who seek to take charge of the “mini-democracy” members.

8. “Who Says You Can’t Buy a Home?” by David Reed (AMACOM Publishing, New York), $17.95, 182 pages. This mortgage-broker author is on the side of home buyers and real estate agents as he explains how mortgage lenders look at borrowers in this “tell all” book.” “Anyone with steady income, no matter how bad their credit rating, or even with no credit, can find a mortgage to buy a home,” the author reveals.

9. “Confessions of a Real Estate Entrepreneur,” by James A. Randel (McGraw-Hill, New York), $29.95, 256 pages. This book’s theme is “add value” to real estate, whether you invest in raw land, houses, run-down factory buildings with rezoning potential, or fixer-upper apartments and offices. The self-deprecating author shares his mistakes and his successes, along with his advice to invest with as little of your own cash as possible so profits can be maximized. Negotiation strategies are heavily emphasized throughout this unusual book.

10. “The Reverse Mortgage Advantage,” by Warren Boroson (McGraw-Hill, New York), $21.95, 169 pages. Virtually all the key aspects of senior-citizen reverse mortgages are thoroughly explained in this detailed but easy-to-read book that emphasizes the potential pitfalls as well as the major benefits. The author shatters the reverse-mortgage myths, such as “the bank owns the house,” the supposed high costs, and even the scary stories of early reverse mortgages, which are no longer possible.

HONORABLE MENTION:

11. “Trump: The Best Real Estate Advice I Ever Received,” by Donald J. Trump (Thomas Nelson Publishers-Rutledge Hill Press, Nashville), $19.99, 273 pages. This is the most unusual real estate book of 2006 because it has 100 successful real estate investing, brokerage and marketing co-authors (including me) who contributed 100 chapters revealing the best realty advice ever received. What do all these realty entrepreneurs have in common (other than being very diverse individuals)? “Apprentice” Bill Ransic said it best: “Learn to recognize value.”

12. “Find it, Fix it, Flip it!” by Michael Corbett (Plume Books-Penquin Group, New York), $15.00, 323 pages. This author, host of the TV Extra program “Mansions and Millionaires,” created a technique of changing a fix-up home’s lifestyle from dull routine to upscale, but without high renovation costs. The before-and-after photos are amazing. The “profit calculator chart” shows readers how to spot the potential profit by purchasing problem houses and correcting drawbacks to add value. This book is unique because the author shows how to add market value by improving the lifestyle of the buyer.

13. “Landlording on Auto-Pilot,” by Mike Butler (John Wiley and Sons, Hoboken, NJ), $19.95, 190 pages. Both “old pro” residential landlords and beginner novice property managers will profit from this unusual book about how to profitably manage the tenants in your properties. “Your tenants are your employees” is the philosophy of the retired, no-nonsense cop author who shares his basic belief that most tenants would own their own homes if they had adequate income and good credit.

14. “Two Years to a Million in Real Estate,” by Matthew A. Martinez (McGraw-Hill, New York), $21.95, 182 pages. This is the success story of an ex-dot-com employee who got tired of working long hours at a great job for 10 years and watching his fellow workers lose their jobs. He accidentally discovered real estate’s market-value appreciation, leverage, tax savings, cash flow, reliability and freedom from a 9-to-5 workday. In the process, he became a multimillionaire, and he shows readers how they can have the same result.

15. “Home Buying for Dummies, Third Edition,” by Eric Tyson and Ray Brown (Wiley Publishing, Inc., Indianapolis, IN), $21.99, 328 pages. Because of its ultra-complete coverage of virtually every home-buying topic, this 600,000-copy best-seller in prior editions is still the best “how to buy a home” book. The new edition adds extensive coverage of Internet resources for home buyers, where more than 75 percent of today’s buyers begin their quest. This ultra-honest book even takes a few swipes at inept real estate agents who make the home-buying process more difficult than it needs to be.

By ANTOINETTE MARTIN

When New Jersey’s office vacancy rate, stuck around 19 percent for several years, dropped 1.4 percentage points in the third quarter of this year, to 17 percent, analysts at Cushman & Wakefield, the big commercial real estate brokerage firm, called it a stellar performance “fueled by tightening options for prime space in Manhattan.”

Analysts at CB Richard Ellis, another big firm, highlighted the fact that a couple of the major lease deals for the quarter involved two corporate banks from Manhattan taking large blocks of space in Jersey City. In the largest deal of the year so far in New Jersey, Citibank sublet 316,775 square feet from UBS at its 2-year-old building in the Newport Office Center just south of the Exchange Place PATH station. In the other deal, Deutsche Bank leased 282,238 square feet at Mack-Cali’s refurbished Harborside I at Exchange Place.

Despite these big lease signings, the vacancy rate for New Jersey’s waterfront market is currently estimated at 15 percent, far higher than the rate in Midtown Manhattan, according to various real estate companies.

While some professionals discern signs of a migratory trend from New York to New Jersey, most say it is more like a trickle.

Builders are not exactly rushing their construction equipment to New Jersey, either. An example of the marked difference in one developer’s confidence about the New Jersey market relative to New York involves SJP Properties, which is based in Parsippany.

While SJP is moving ahead with a speculative 40-story office tower project in the Times Square redevelopment area, pushing for expedited approvals, the company’s executives say the timing is not yet right to begin construction of the third and last building at its Waterfront Corporate Center on the riverbank in Hoboken.

“We’re positioned and we’re poised,” said Peter Eppie, SJP’s executive vice president.

Mr. Eppie said SJP stayed in constant touch with planning authorities so that the start-up of construction of the third building could be swift once the company decided to go ahead.

In September, SJP had announced that it had already “commenced development” of the third building. But this month, Mr. Eppie said the only work done for the 550,000-square-foot office structure was ground clearing that took place when construction began for the adjacent W Hotel. SJP’s new building and the Hoboken W will share a retaining wall on one side.

“We’re just not comfortable moving ahead with a spec building in Hoboken right now,” Mr. Eppie said, “and frankly, we don’t see big tenants moving over from Manhattan at this very moment.”

The chairman and chief executive of SJP, Steven J. Pozycki, added, “We follow the numbers very, very closely, and we believe it will happen, and we believe it is due to happen soon.”

Stephen B. Siegel, chairman of global brokerage at CB Richard Ellis, who represented SJP on the Times Square deal, said, “Right now, we have a vacancy rate of 7 percent or less in Midtown and tremendous velocity in deal making, with spillover from Midtown to downtown.”

But tenants that may see rising Midtown rents as too steep are eventually going to look beyond downtown, he said. “Any time space is being quickly absorbed, when that push is evident, the next move has got to be out of the city,” Mr. Siegel said.

Immediately after the attacks of Sept. 11, there were predictions that there would be significant defections from Manhattan to the Hudson River waterfront in Jersey City and Hoboken, and on the Passaic River in Newark.

That happened to a limited degree, mainly involving companies in the financial services and publishing industry. Tenants at SJP’s first two buildings at Waterfront Corporate Center include the publisher John Wiley & Sons, which moved its headquarters from Manhattan, and the offices of Marsh & McLennan, Sumitomo Trust and Banking and Mizuho Securities.

Now, Mr. Siegel says that “nontraditional” expansions out of Manhattan might be on the horizon. “Law firms, for example,” he said, “may have always stayed in Manhattan, but it’s very feasible that given the conditions now, a firm might decide to consider moving part of its operation out of the city.”

“Akin Gump signed a lease at the Bank of America building a month ago for $105 per square foot, for over 200,000 square feet,” Mr. Siegel said. “Let’s say a firm needs 500,000 square feet, and 100,000 square feet of that is back-office operation. Class A space is available in New Jersey, or Westchester, for $50 to $70 per square foot, a nice lower-cost alternative.”

Mr. Pozycki of SJP said the intensity of the demand for space in Manhattan was unprecedented, and the situation anywhere else did not compare. “Manhattan, quite simply, is on fire,” Mr. Pozycki said.

SJP acquired the Times Square parcel in a deal announced during the summer. The parcel, the last remaining redevelopment site in the Times Square renewal project, is on the southeast corner of 42nd Street and Eighth Avenue and had been owned by Howard and Edward Milstein since 1983. It was not officially for sale.

In the deal arranged by Mr. Siegel, the Milsteins were persuaded to set a price — $305 million — and SJP was required to take it or leave it. “We pounced,” Mr. Pozycki said.

The parcel was purchased in a joint venture with Prudential Real Estate Investors. SJP is proceeding with the building at 11 Times Square without having secured any tenants. It will be designed by FXFowle Architects, which has designed other office buildings in Times Square.

SJP will have to pay another $23.2 million to secure development rights before construction can begin.

But Mr. Pozycki said the company was confident that the space would be sought after given the prime location; sleek glass-and-steel design; rights to signage along 42nd Street, where the main entry will be; and coveted curb space for chauffeur service on the 41st Street side, where the second entry will be.

In New Jersey, SJP has approvals to build a total of 2.5 million square feet of office space at the Hoboken site, other sites near the waterfront and in Morris County.

Historic schoolhouse finds new life as high-end residences
By Tom Jennemann

CLASS IS IN SESSION – R Squared Real Estate Partners have converted a 136-year-old school into Adams Square Condominiums.
The final bell rang long ago at 501 Adams St., but Manhattan developers R Squared Real Estate Partners believe that area homebuyers are ready to go back to school.

The five-story building, which has been renamed Adams Square, began life in 1870 as the private Kealy School and later served as Hoboken’s Public School No. 2. In 1996, it was converted to rental apartments and remained that way until R Squared acquired the property last year.

Now the building has been converted into condos, which are currently on the market.

Architecturally speaking, R Squared Principal Mitchell Rechler said the building is one of the Hoboken’s most unique. It boasts twin towers, accented with gothic arched windows and stone tracery. Inside, the lobby is highlighted by white marble and framed by dual staircases that ascend the left and right side.

The lobby flows into what used to the school’s auditorium and cafeteria. The ceiling has been removed, which has left a quiet courtyard.

The building has 59 one-, two-, and three-bedroom condos from 612 to 1,395 square feet of living space, which are currently priced from $430,000 to $800,000, according to Rechler.

Each of the condos features modern amenities such as solid hardwood floors and remote-controlled air conditioning systems. Kitchens include walnut-stained cabinets, honed Kashmir granite countertops, and stainless steel appliances, while bathrooms offer Carrera marble vanity tops, floors, and bases.

An example of adaptive reuse

Instead of demolishing the interesting old buildings, there has been a movement in urban renewal called “adaptive reuse,” in which buildings are adapted for new uses while retaining their historic features and maintaining a link to the past.

Rechler said that the building’s history as a schoolhouse and “gothic castle-like” façade made the building the perfect candidate to be adapted into condominiums.

R Squared hired Manhattan architects Beyer Blinder Belle to remodel all of the building’s interiors. That firm specializes in historic renovations and has worked on projects at Ellis Island and Grand Central Station in the New York Area and the Capital Building in Washington D.C.

“Our goal was to adapt the existing classic design into today’s world and with today’s aesthetics,” Rechler said. “All of the important architectural elements that existed in the building have been adapted beautifully.”

10/08/2006

Despite some concerns, council passes zoning for movie theater
By Tom Jennemann

After about an hour of hearty debate, the Hoboken City Council approved zoning changes that will allow developers to build a five-screen movie theater at 14th Street, between Adams and Grand streets.

Ursa Development and Tarragon Development Corp., partners who are the designated developers for much of the city’s Northwest Redevelopment area, announced plans in July to bring a movie theater to Hoboken.

Their plan had the full support of Mayor David Roberts, who believes the theater would be a valuable community amenity. Because of the unique dimensions and other requirements for a movie theater, the City Council had to amend the zoning of the Northwest Redevelopment plan.

Ursa/Tarragon are in the final stages to lease the property to Clearview Cinemas. The concept would be to build an “urban theater,” where the vast majority of patrons would walk to the movies or arrive by mass transit. With this in mind, the new zoning would mean that the theater would be built with no parking.

At Wednesday night’s public hearing, several people who live in the neighborhood expressed concerns about parking, traffic, location, and the theater’s long-term viability.

No parking

For several of the speakers, parking was a big issue.

John Curley, a lawyer for URSA/Tarragon, said that having no parking is “the industry standard for an urban theater of this type.”

But not everyone agrees. Jane Song, who lives near the site, said that she is “skeptical that the movie theater will work without some form of parking.”

Hoboken resident and Hoboken Housing Authority Commissioner Perry Belfiore said the movie theater is “going to exacerbate the problem in a city that is already suffering.”

Councilman Michael Cricco, who was the only council member to vote against the rezoning and in whose ward the theater will be built, said he was presented with a petition signed by dozens of residents who live in the neighborhood and don’t want the movie theater there.

“I have to vote with my constituency,” Cricco explained as his reason for not supporting the rezoning.

Theater’s supporters respond

Councilman Peter Cammarano responded that he supports the plan not including parking spaces. He said having parking would only entice “vans full of kids” from out of town to come to Hoboken. Encouraging people to walk to the theater is a good thing, he said.

He added that he is not buying the argument that the location on the city’s northwest side will keep other Hoboken residents from going to the movies. He said that people who currently live in that area regularly walk to Washington Street to have a dinner at a restaurant.

Councilman Christopher Campos noted there are two large parking garages on 15th street that can accommodate people that come from out of town.

Councilwoman Theresa LaBruno, who has been one of the biggest advocates for the theater, said that a city that has a growing number of young families deserves its own theater.

Long-term viability

There were also several members of the public who questioned whether the theater can be a success, given past failures. Last year the small Hudson Street Cinemas near the PATH station closed, and that is in a much more centralized location, some argued. “I don’t believe this movie theater is going to be a success,” said Hoboken resident Bob DuVal.

But Councilman Ruben Ramos Jr. noted that the Hudson Street Cinemas were dilapidated. He said the new facility will be comfortable, with state-of-the-art equipment.

Ursa/Tarragon Attorney John Curley added that Clearview has a business model that has been successful in other urban areas.

“Clearview Cinemas would not come into a market if they thought they were going to lose money,” Curley said.

Additional residential zoning there

As part of Wednesday night’s ordinance, the City Council also rezoned two other parcels of land for which URSA/Tarragon is the designated developer. The parcels directly face the former Henkel Chemical Plant property. In the original redevelopment plan, the block was zoned as a non-residential “buffer area.”

The new zoning will now allow the developers to build residential as well as retail structures on that area. City Director of Community Development Fred Bado has said that the new zoning could allow the developers to build “up to 100 additional units” of residential housing.

Roberts said that the additional residential zoning is an allowance to offset development costs for the theater.

Hoboken developments, others in northeast help ease Toll Brothers’ sag in earnings
By Tom Jennemann

Toll Brothers, Inc., a massive national real estate development firm based in Huntingdon Valley, Pa. with major development interests in Hudson County, reported Tuesday that its third-quarter profits fell 19 percent because of the weakening national housing market.

The company also slashed its earnings estimate for the full year, a sign that the market may not stabilize in the immediate future.

But one of the bright spots in the report was that Toll Brothers’ revenues in the Northeast increased, partially because of the company’s reinvestment into urban areas such as Hoboken and Jersey City.

Toll Brothers reported fiscal third quarter profits of $174.6 million, or $1.07 per share, compared with $215.5 million, or $1.27 per share, in the previous third quarter.

In a statement, Robert I. Toll, chairman and chief executive officer, said that fewer investors are flipping properties for a quick profit, and homes, especially luxury ones, are lingering on the market longer.

“The continuing malaise in the housing market, we believe, is the result of an oversupply of inventory and a decline in confidence,” Toll explained. “The speculative buyers of 2004 and 2005 are now sellers. Builders that built speculative homes are trying to move them by offering large incentives and discounts, and some anxious buyers are canceling contracts for homes already being built.”

Toll added, “This overhang in supply and the aggressive discounting of many builders is undermining consumer confidence and keeping buyers on the sidelines as they continue to worry about the direction of home prices.”

He added that the current environment has led the company to reduce its land position. In total, Toll Brothers now owns or controls approximately 82,900 lots, compared to approximately 91,200 at the end of the second quarter.

“We continue to re-evaluate the lots in our approval pipeline and to renegotiate or drop those options that we believe are no longer attractive,” Toll said.

Toll in Hoboken

In nine months prior to July 31, 2006, Toll Brothers sold 1,070 units in the northeast, as compared to only 793 for the same period in 2005.

Revenue in the northeast was $698 million for the first nine months of 2006 compared to only $447 million for the first nine months of 2005.

Beginning in 2003, the company made a significant investment in urban properties in Hoboken, Jersey City Philadelphia, Chicago, and Providence, R.I. Before that, it had focused on suburban markets.

Their holdings in Hoboken include: the 525-unit Hudson Tea building on the northern waterfront, and the adjoining 758-unit mixed-use expansion at the Hoboken Cove.

They also bought the 832-unit residential “Maxwell Place” development at the former Maxwell House factory on the central waterfront. They purchased most of the Manhattan Building Company and its projects, which include the 324-unit Sky Club on Marshall Drive, and the 230-unit 700 Grove St. project just over the Jersey City border.

In fact, Toll Brothers has established a City Living division, which has its office in Hoboken, to market and sell the Toll Brothers’ condos in and around Hudson County.

The New York Sun
June 15, 2006 Thursday
REAL ESTATE; Pg. 22

Michael Stoler

The strong demand for accommodation in Manhattan has resulted in healthy growth in the lodging market, and many are saying better is yet to come.

“The positive hospitality investment climate will continue for at least the next two years and urban environments will see the greatest investment activity in the next 12 months,” a survey of senior executives attending New York University’s 28th Annual International Hospitality Industry Investment Conference last week said.

“In 2005, a record 41 million visitors experienced the excitement of New York City,” the president and CEO of NYC & Company, Christyne Nicholas, said. She projects another banner year in 2006.

The city’s hotel industry last year registered an increase in revenue of 18% compared with 2004. Meanwhile, the overall occupancy of 85% and average room rate of $232.31 exceeded the historical peak achieved in 2000. Continued revenue growth in excess of 12% is expected in 2006, primarily fueled by a strong growth in the average room rate due to such factors as an improved economic climate, strong barriers to entry, and limited new supply.

“Travel and tourism is now the catalyst for growth in New York City for hotels, restaurants, and allied industries,” the chairman of Loews Hotel, Jonathan Tisch, who is also chairman of NYC & Company, said. “The travel and tourism industry is now spreading to all four boroughs.We have an administration that is committed to aiding the tourism industry, providing funding for marketing our city nationally and internationally.”

“New York City is the strongest hotel market in the world,” the principal and managing director of Sonnenblick Goldman LLC, Mark Gordon, said. “The market fundamentals continue to be extremely strong and we don’t see any material changes in the supply demand imbalance for the foreseeable future.”

“Hotel activity,occupancy,and the in crease in the average room rates in the city have reached levels to justify new hotel activity,” the chairman of global resources at CB Richard Ellis, Stephen Siegel, said. “Prior conversions to condominiums has diminished the number of rooms to justify new developments.”

Industry leaders expect that only a few hotels will be sold for conversion into residential condominiums.”Many hotels do not have the attributes that make for valuable residential conversions, features such as high ceilings, large rooms, and interesting architectural details,” the CEO of Lodging Investment Advisors, Sean Hennessey, said. “There may be some more conversions in the future, but most of the more desirable properties have already been taken.”

The national chairman of Greenberg Traurig LP’s real estate practice, Robert Ivanhoe, agrees. “The bud is off the rose a bit in terms of conversion of existing hotels to condos,” he said. “Condo values may have peaked, and the hospitality sector is strengthening.”

There have been some recent moves toward conversion of hotels.

In April, Macklowe Properties purchased the 495-room Swissotel, Drake New York at ParkAvenue and East 56th Street for about $450 million, or $910,000 a room. It plans to demolish the building to make way for a 70-story mixed-use residential condominium. Later this month, the winning bidder is expected to be selected for the 130-room Surrey Hotel at 20 E. 76th St.The hotel is to be sold and renovated as a cooperative hotel with the rules and regulations of a condominium.

In January, the hotel operators and condominium developers Simon Elias and Izak Senhabar purchased the 176-room Mark Hotel at 25 E. 77th St. and Madison Avenue.They paid about $150 million, or about $850,000 a room, to the Mandarin Oriental Company.

Both the Surrey and the Mark are under long-term ground leases and cannot be sold as condominiums.

Industry leaders expect the Hotel Plaza Athenee at 37 East 64th Street at Madison Avenue to be sold and converted into a condominium, while the Eastgate Tower hotel at 222 E. 39th St. at Lexington Avenue and the Beekman Tower at 3 Mitchell Place on First Avenue will be sold to an investor and con tinue to be operated as a hotel.

“The hotel market is on fire, and the large number of rooms that have been or are being converted to residential use, I fail to see the rationale for investing in hotels on a ‘cash flow basis’ given historically tight cap rates applied to these spiked net operating incomes,” the president of Dividend Capital Total Realty Trust, Marc Warren, said.

“From an investment perspective, hotel assets seem to be as favorable as any category of real estate investment,” a director at Eastern Consolidate Properties, Alan Miller, said.

New hotels are planned for all the boroughs and neighboring areas. A total of 3,119 rooms,or 19 properties,may enter the Manhattan market in 2006 and in 2007, including 10 limited-service and seven boutique hotels.

Last month, the 80-room Rockefeller Center Hotel opened at 25 W. 51st St. The hotel occupies the first six floors of a new 25-story building.

Next month, the Marriott Courtyard New York Manhattan, Upper East Side, at 410 E. 92nd St. will open, the fourth Courtyard in Manhattan.

Later this year, the New York Marriott at the Brooklyn Bridge will open an additional 280 rooms. It is the only full-service hotel in Brooklyn.

McSam Hotel LLC has more than a dozen budget hotels in various stages of development.”This builder feels that the market is ripe for a few thousand more hotel rooms to add to the supply of affordable nightly rooms in a tight market than can surely use them,” Mr. Miller said.Later this year,McSam will be opening a hotel at the corner of Fifth Avenue and 35th Street and begin construction on a boutique hotel at Union Square.

Next summer, the W Hoboken Hotel and Residence is scheduled to open.The waterfront property with a 225-room hotel and 40 luxury residences will be developed and owned byApplied Development Company.The hotel will be situated within steps of Frank Sinatra Park and other Hoboken attractions.

Earlier this month, the LeFrak Organization and Melvin Simon & Associates announced the groundbreaking of the Westin Jersey City, a waterfront hotel in the Newport mixed-used development in Jersey City.The 26-story hotel will include 429 guest rooms,a conference cen 1147 1580 1311 1591ter, and a 10,000-square-foot ballroom. Expected to open in summer 2008, the hotel will be managed by Westin.

Last month, the Ritz Carlton Hotel Company and developer Louis R.Cappelli announced plans to open a 123-room luxury hotel with more than 400 private condominiums in downtown White Plains.The Ritz Carlton,Westchester will be housed within two 40-story towers at the intersection of Main Street and Mamaroneck Avenue. Mr. Cappelli is planning another hotel in LeCount Square in New Rochelle and a hotel in the downtown redevelopment in Yonkers.

Two hotels are in the planning stages at the Southern Western Executive Park in White Plains. They include a 150-room Hampton Inn and a Residence Inn by Marriott.

The expansion of the Javits Center will fuel the demand for additional hotel rooms.”Expansion of the Javits center will result in a new 1,500-room hotel at West 35th Street and Eleventh Avenue, next to the expanded no. 7 subway line,” Mr.Tisch said.

“Once you put a shovel in the ground, you will see all of the older structures in the surrounding area being incorporated into travel and tourism. If we don’t build the addition now, we are going to miss the window of opportunity,” the president of International Hotel Network, Sumner Baye, said.

“More hotels are needed for the Javits Center. The city is not equipped to handle the transportation at this point to facilitate an expansion, and the area surrounding the center lacks an amenity base to support significant lodging development,” Mr. Gordon said.

The International head of hospitality lending at HSH Nordbank, Frank Andersen said, “We will see an increase in boutique/lifestyle hotels and convention-type hotel in the city,the increase in these types are important for Manhattan in connection with expanding the Convention Center.

It is evident that the hospitality industry is a driving force in New York and is expected to continue to be so for the foreseeable future.

Copyright 2006 The New York Sun, One SL, LLC
All Rights Reserved

With Age 50 Dubbed the New 35, Hard-Working Second and Third Home Owners Are Leveraging Their Assets to Travel More and for Longer Periods: It’s a Whole New Generation

HOBOKEN, N.J. May 16

HOBOKEN, N.J., May 16 /PRNewswire/ — America’s suburban families are growing up — and out. As baby boomers say good-bye to their adult children, this career-driven segment of society is rediscovering leisure time. The trend of swapping their city apartments (originally purchased as relief from killer commutes) with like-minded travel-bugs worldwide, has been on the rise, according to a recent member survey conducted by the website http://www.digsville.com/ . Helen Bergstein, founder of the Digsville Home Exchange Club says, “secondary/vacation home listings have been increasing every year and now comprise over 20% of the Digsville database.”

A Long Island couple, who bought their NYC apartment when they were still working, say they “get an exchange request almost every day.” In fact, they didn’t even purchase their city digs with vacation home exchange in mind, but because “hotels are far too expensive, and restrictive (ie., can’t sign in before 4 pm — must sign out by 11am). We have our place for 24 hours a day.”

Joyce, of Buck’s County, PA, says she and her husband spend a good bit of time in their NYC apartment, and appreciate its “doorman, 24-hour access to local restaurants, transportation, and a parking lot.” Because their city home “is filled almost constantly with friends,” they often swap their primary home or another in Spain, advocating the lifestyle because “it’s more interesting and we get to meet great people and see environments that are ‘real,’ not plasticized like in hotels.”

“The second home market is booming,” says Bergstein. “Expecting to double by 2009, which means a full two-thirds of residential real estate purchases will be vacation homes or investment properties. Second homes are viewed both a solid investment and lifestyle enhancement. They make even more financial sense when used in vacation swaps with substantial savings on hotel bills, car rentals and by taking advantage of destination-specific or other airfare specials.”

Founded in 1999, Digsville provides an alternate travel lifestyle, freeing travelers from hotel bills forever. The site offers a range of informative articles, tips and stories by first-time and veteran home exchangers.

Wednesday, May 10, 2006

By ZINNIA FARUQUE
HERALD NEWS

RUTHERFORD — A developer hoping to build what some fear would amount to a small city at the edge of town said Tuesday it would continue to pursue the project even though an advisory committee has rejected its proposal.

While Lincoln Equities Group LLC would not comment on whether it would modify its current proposal to build 3,400 residential units, the builder said it wanted “mixed use” for the vacant industrial site along Route 17 — implying that it would still try to build residential units.

“While we disagree strongly with the findings of the Visioning Committee, we respect their opinion and their right to express their views,” the company said in a statement released Tuesday. “We remain committed to seeing the Highland Cross site developed as a mixed-use community.”

On Monday night, all 16 members of the borough’s Visioning Committee — a diverse group of residents appointed by the mayor to design a vision for how Rutherford should look by 2025 — voted against allowing the developer to build the condos in addition to a hotel and stores on a 56-acre site.

This was the first major step that could lead to the demise of the proposal, which has compelled hundreds of residents to rally against it during a series of public hearings over the past three months.

Before the vote, James McCarthy, a Visioning Committee member, spoke on behalf of the committee, expressing concerns that the project for the area known as Highland Cross would alter the borough’s small-town charm and would strain schools, the fire department and other municipal services.

“My conclusion, folks, is that I do not believe this [proposal] is consistent with the Vision Statement,” McCarthy said to about 100 people who gathered for the meeting in Borough Hall.

The high-density residential development, which the developer estimates would increase the borough’s population by more than a third, does not fit the suburban character of this bedroom community, McCarthy said, likening the proposal to “urban renewable projects in areas like Hoboken.”

Furthermore, a preliminary analysis that showed the borough would gain $6.6 million in tax revenue from the project may not prove accurate, said McCarthy. If so, the project could result in higher taxes, he said.

In a 15-1 vote, the committee also approved a motion to reject building any residential development on the other side of Route 17.

Larry Mango, the Visioning Committee member who voted against the motion, said he opposed the high density of the current proposal, but did not think the borough should completely dismiss the idea of building residential units. After the meeting, Mango explained that assisted living medical facilities or senior housing, for example, could be built.

Mayor Bernadette McPherson said that she would reject the proposal when it comes time for a council vote, based on the committee’s recommendation.

Lincoln Equities would not directly comment on whether it would continue to pursue the project if the mayor and council reject its approval, said Andrea Harvey, a spokeswoman.