WIRE MAGAZINE NEW YORK
OCTOBER 2017
THE WATERLINE FOOD HALL
OPENING SOON
OCTOBER 2017
SUMMARY
03 CINEL’S CORNER
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13 CIPRIANI: AN ITALIAN EXCELLENCE IN NEW YORK
THE RAPID GROWTH
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OF BROOKLYN E QUEENS
A PROFESSIONAL ADVICE: ACQUISITION RULES
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FIAO THE ITALIAN- AMERICAN COMMUNITY IN NEW YORK
THE WORLD
11 REAL ESTATE MARKET FROM OUR PERSPECTIVE
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A WINDOW ON
25 OUR OFFICES
OCTOBER 2017
CINEL’S CORNER “An investment in real estate is an investment for life”. This popular statement, well-known amongst specialists as well as amongst investors, hides the most basic human need of identifying a house with not only a place for shelter but also one for the safety of one’s savings. But how do you choose the right real estate investment to best gratify this fundamental urge?
Angelo Cinel, Co-Founder & CEO of Gruppo WIRE
In our book “Acquistare casa all’estero”, published by Alpha Test we have already provided a detailed outline of the ‘recommended steps for an informed purchase’. The aim was and still is to help the reader avoid common clichés and instead approach a real estate investment in a more methodical manner. It is inevitable that in nowadays changing international political and economic landscape one has to consider additional evaluation parameters- identifying the market to invest in and the type of choice within that market. Thus if one’s goal is to invest and therefore ‘to protect’, this is where an independent international real estate consultant becomes an irreplaceable advisor. Free from ties with any specific properties and with an in-depth knowledge of international markets, he or she will be perfectly placed to guide you with confidence in your search.
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OCTOBER 2017
THE RAPID GROWTH OF BROOKLYN AND QUEENS Demand for homes in Queens and Brooklyn continued to outpace supply throughout the third quarter of 2017, pushing residential prices to new highs. In Brooklyn, the median sale price hit $790,000, which is $5,000 below the record price hit in the borough last quarter. Brooklyn inventory reached 1,826, a 30 percent decrease on this time last year and the lowest level since the second quarter of 2008, the report found. The luxury median sale price, which represents the top 10 percent of the market, remained the same at $2.5 million. The absorption rate in the borough hit 1.9 months. By comparison, in the third quarter of 2016 absorption in Brooklyn was at 2.9 months. The number of sales hit 2,914, a year-over-year increase of 6 percent. The market is trying to find its peak, it doesn’t appear to be close to it yet. We’ve seen the same old story for the last several years — it’s very tight and fast moving. The borough is on the cusp of seeing the average sales price break the $1 million threshold. The average hit $981,623 in the quarter. A report that examined the same time period found that market-wide closed sales in Brooklyn were the strongest they’ve been in 9 years, up 31 percent. Contracts signed increased by 15 percent year over year.
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OCTOBER 2017
Townhouses in the borough hit an average price of $1.2 million, according to a separate report, a 16 percent increase on last year. In Queens, the median price hit $550,000, a 10 percent increase on the same time period last year and a record high. The borough is seeing similar trends to Brooklyn, with rising demand, tepid supply and increasing prices. The borough is benefiting from buyers who have been priced out of Brooklyn. Listing inventory increased by 4.5 percent from last year to hit 4,486. The absorption rate was 3.5 months, compared to 3.4 months last year. The days on market was 81, down from 92 last year and the listing discount was 2.8 percent, up from less than a percent last year. The luxury median sale price was $1.3 million, up 6 percent on last year. These trends are attracting not only domestic buyers, but rapidly foreign buyers purchasing now, conquered by the upside potential in Brooklyn & Queens. Brooklyn, in particular, was recently named as the fastest growing "town" in the whole United States of America!
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OCTOBER 2017
TWO BEDROOM FLAT NEW YORK MANHATTAN – PARK AVENUE
Spacious two bedroom apartment of 1022 ft2 in a brand new building. The apartment, with wooden floors, consists of two bedrooms, two bathrooms and an open kitchen. With west exposure, it enjoys great brightness thanks to the large windows. The main room includes a large wardrobe and an en-suite bathroom with a large bathtub. Concierge h24, children's room, state-of-the-art gym, lounge, bookcase with fireplace, car parking and bicycle.
Price: $ 1’150’000 www.wireinternationalrealty.com
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OCTOBER 2017
OTTOBRE 2017
THE ITALIAN-AMERICAN COMMUNITY IN NEW YORK The Italian community in the city of New York always had a remarkable specific weight within the various nationalities, and there is a federation that has joined all Italian organizations. The Federation of Italian-American Organizations of Brooklyn(FIAO) is a not for profit, community-based organization, established in 1975. As evidenced in its bylaws, FIAO was created from the efforts of dozens of organizations to unite, to galvanize resources, and provide services to the community. FIAO began back in 1975 with a group of community leaders volunteering to work with youth in a recreational environment as an alternative for keeping youth "off streets." In 1977, two years later, FIAO received its first after-school program funding from the NYC Department of Youth Services to provide academic and recreational services to youth ages 6-16. Today FIAO runs twenty After School Programs in as many locations providing cultural, academic and recreational activities for participants of all ages.
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SETTEMBRE 2017 OCTOBER 2017
FIAO has 26 full-time and over 400 part-time paid staff as well as hundreds of volunteers. FIAO's staff is multi lingual, and reflects the changing population of the community, enabling them to communicate with the most recent immigrants. Staff receives ongoing training and development enabling them to provide services to the changing population. Staff, including paid and volunteer, are provided with materials and assignments in specific skill areas that individualize instruction to meet the community needs. The Brooklyn Columbus Parade, now in the 37th edition, annual Gala, neighbourhood improvement , donation of toys, and food for needy families are just a few specific programs that are offered by this neighbourhood based organization . FIAO has an extensive referral network. Program referrals occur through numerous sources including: families, school-based drug prevention counselors, communitybased organizations, law enforcement and elected officials, etc. FIAO is committed to the implementation of effective; state-of-the-art programs to the residents that provide opportunities and knowledge not otherwise attainable. The activities are offered during the after school, evening and weekend hours, as well as during the summer and other school vacations . The focus extends to the entire family and promotes the development of a sense of togetherness and community strength. F.l.A.0. announce that as of November 2017 Il Centro will be the hub for services and activities. This is the first Italian Cultural and Community Center with offices, classrooms, a swimming pool, a state of the art fitness facility, a library, an exhibition space, a community conference and multi-purpose room as well as a gymnasium. It will be the City’s focus for model preservation of one’s own rich cultural heritage, for exemplary service to multi-cultural communities, for art oriented and economic opportunities which give life and beauty to our City. These essential assets connect people to places, to self and others. The City’s residents will treasure and care for this legacy, building on the past to provide for the future generations.
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OCTOBER 2017
THREE BEDROOM FLAT NEW YORK MANHATTAN – PARK AVENUE
Wonderful three-bedroom apartment on the top floor of a 19-story building in a prime location at Park Avenue. The apartment is provided with a terrace throughout the length of the apartment. It consists of 3 bedrooms, two bathrooms, large living room, brand new kitchen with stainless steel appliances. The corner position with triple exposure to South, East and North provides the brightness apartment throughout the year.
Price: $ 2’595’000 10
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OCTOBER 2017
REAL ESTATE MARKET FROM OUR PERSPECTIVE Amid Global Instability in the Economy, and in the Real Estate Sector in particular, where even major cities have experienced high volatility, NY keeps proving itself as a "safe" investment for overseas and domestic investors/buyers. The New Development supply is increasing especially in Neighborhood such as Downtown & Midtown which provides new buyers with the possibility of nabbing their condo investment in the historically extremely low and highly competitive Manhattan Market. Furthermore, compared to the previous 5 years where appreciation has been close to double digits year over year and bidding wars have been characterizing the $1M and under market expecially, today's market offer the opportunity to obtain a valuable deal as new supply is injected. Over 40 New Developments Condominium, with over 50 units each on average, will hit the market this Fall 2017 alone in the NYC area. Regarding the neighborhoods in which to invest, Manhattan is still the the go-to borough where to invest in NYC for foreign investors, especially Central Park, Upper East Side, 5th Avenue, Wall Street & Soho are certainly the neighborhoods/streets with the highest appeal among worldwide buyers. However, an increasing number of foreign investors have been inquiring regarding Uptown Neighborhoods such as Harlem and Williamsburg & Bushwick in Brooklyn. These neighborhoods have certainly seen the highest appreciation in recent years 10-17% year over year and it is destined to continue. Alex Carini International Real Estate Advisor & Licensed Sales Agent WIRE International Realty
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OCTOBER 2017
TWO BEDROOM FLAT NEW YORK BROOKLYN
New two bedroom apartment on the third floor. The apartment combines the interior Industrial chic style with the California style of the outdoor terrace. This is accessed via a large walled window that gives great brightness to the apartment's spaces. This consists of two large bedrooms, walk-in closet, bathroom with washer/dryer, jacuzzi tub and shower. The building has a gym and terrace with views of Mahnattan. Great location close to all communication lines.
Price: $ 895’000 12
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OCTOBER 2017
CIPRIANI: AN ITALIAN EXCELLENCE IN NEW YORK
Talking about New York one simply cannot not mention the Ciprianis, the most well-known Venetian family in town. The Cipriani Family have made of the Big Apple their strength by establishing their family name as a brand recognised all over the world. The Cipriani Family are currently working on their next project for a grocery store within Waterline Square in New York, a residential development consisting of three luxury mega glass towers to be built along the banks of the Hudson River in Manhattan. For this enterprise the developers, GID Development Group - a well-known US real estate company, unsurprisingly have appointed three of the world's best architects and renowned designers. The Cipriani’s project consists of an extensive store of over 2,500 square feet featuring a restaurant (whose interior is to be designed by the famous designer Martin Brundnizki) as well as food and drink outlets. The family also has another project under way- a luxury hotel near Battery Park. The Cipriani's story is pretty well-known. Giuseppe Cipriani opened his first venue in Venice, behind St. Mark's Square, thank you to a sum of money he once lent to a friend from Boston, Harry Pickering, who at the time was struggling financially. Some time later Harry in order to show his gratitude returned Giuseppe the 10,000 Lira he had borrowed with an extra 30,000 Lira which allowing Giuseppe to open his own venue namely the Harry's Bar.
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OCTOBER 2017
SETTEMBRE 2017
Over the years notable customers of the bar have included some of the greatest personalities of our century such as Ernest Hamingway, Truman Capote, Orson Welles, Charlie Chaplin, Peggy Guggenheim and many more. In 2001, the Italian Ministry for Cultural Affairs declared Harry’s Bar a national landmark. Following the success of Harry's Bar Giuseppe then opened the Locanda Cipriani on Torcello Island in 1947 and subsequently he headed to Giudecca Island where he opened the world famous Hotel Cipriani. Gradually after that a number of other establishments have been added to the Cipriani portfolio: two private clubs, three multi-function venues and 106 private residences in New York as well a number of venues in Hong Kong, Dubai, London and Monte Carlo. For this article we had the privilege of interviewing Arrigo Cipriani, son of Giuseppe and father of Giuseppe Cipriani who is today the Principal of the company. When asked what triggered the family’s interest in the United States, Arrigo surprised us with his humor by saying: "Seeing what happens where the sun sets". We then asked him to talk us through the main stages of their entry into the United States. In 1985 we opened Harry Cipriani in New York between 5th Avenue and 59th Street, mirroring the historic Harry’s Bar in Venice. Then it was the turn of Cipriani Downtown on West Broadway and in 1998 of the Raimbow Room (a luxury restaurant whose management was given to the Ciprianis by the Rockefeller family).
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OCTOBER 2017 In 1997 we bought Wall Street 55 with a 2000-cover capacity. Another pivotal step was Cipriani 42nd Street between Park Avenue and Lexington Avenue, an elegant and sophisticated event venue that can accommodate up to 800 people. Then in n 2002 came Cipriani Dolci at Grand Central Station. Among the challenges there was a dispute in 1987 with the Taft Hotel where we opened the Bellini Restaurant. The owners of the company Harry Cipriani, Trusthouse Forte, decided to replace the family in the management of their restaurant with another manger, changing even the sign. Needless to say, the customers stopped going to the restaurant which ended up going out of business. What do you find most interesting in the United States, in particular in New York? The lack of heavy bureaucracy and a slender decision-making process with those involved willing to facilitate the various projects. But also the fact that it is a city always open to new and evolving things. Equally it is necessary to maintain a level of traditions and heritage. As far as catering is concerned, however, New York particularly values a welcoming setting and rediscovering taste. What does Cipriani represent in the US and especially in New York? First of all Cipriani is recognised as a true institution. Secondly we have been successful in showing that the best promoters of any establishment are its own customers. Ultimately the client’s freedom is always at the heart of our philosophy. What do you mean? The customers should have no constraints. This understanding has been paramount to our success. Especially now with all these Michelin-star restaurants imposing their own rules starting from a tasting menu with no flexibility. In our restaurants a customer is free to order a plate of pasta with the most basic butter sauce if he or she wishes to do so. The lack of opulence is the very essence of luxury- a perfect and attentive service where nothing is contrived; the pursuit of the best with no pomp; an understated simplicity which provides the customer with that very desirable freedom. Arrigo Cipriani
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OCTOBER 2017
A PROFESSIONAL ADVICE: ACQUISITION RULES To better understand how to move within the New York real estate market, we interviewed the attorney Filippo Cinotti, legal expert in real estate. Which are the main steps to buy a property in New York, especially from the legal perspective? The first step for the purchase of an apartment in New York City is to conduct the so called “due diligence� and negotiate the terms of the Sale and Purchase Agreement. The due diligence process generally requires a review of the offering plan of the Condominium (or Cooperative, depending on the type of property that has been selected) and its amendments, the most recent audited financial statements of the Condominium (or Cooperative) with particular attention to the amount of reserves and net cash flow, and the board minutes.
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OCTOBER 2017
Additionally, it is important to review the New Department of Buildings records to make sure that there are no open permits for work undertaken inside the apartment and that there has been no work done without permits. After the completion of the due diligence and the execution of the Sale and Purchase Agreement, the parties are required to submit an application to the Board of the Condominium in order to obtain the waiver of the right of first refusal on the proposed sale by the Condominium Board. If the apartment is inside a Cooperative, the Board has the right to approve or reject the sale and purchase application and the purchaser is normally subject to an in-person interview. In the purchase of the apartment is subject to financing, the buyer is normally given 45 days to procure the so called “commitment letter” from the bank and if the bank turns down purchaser’s mortgage application within such time frame, the purchaser may generally terminate the Sale and Purchase Agreement. The acquisition is finalized at the so called “closing of title”, which coincides with the transfer of title to the apartment (or to the shares allocated to the apartment in case of a purchase within a Cooperative), the payment of the balance of the purchase price and the issuance of an insurance policy over the title to the property called “title insurance”.
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OCTOBER 2017
How long does the purchase process last? In a cash deal, the closing date is normally 30 days after the Sale and Purchase Agreement is fully executed by the parties. In Sale and Purchase Agreement subject to mortgage financing, a realistic time frame is 60 days after the Sale and Purchase Agreement is fully executed by the parties. What are the guarantees for the buyer? At the closing, title to the apartment is covered by the si called “title insurance policy”, which is a form of indemnity insurance which insures against financial loss from defects in title to real property and from the invalidity or unenforceability of mortgage loans. This form of insurance is peculiar to the United States and is not common in other so called “civil law” countries, including Italy. What are the taxes that you pay during the acquisition? The seller normally pays a (i) New York State transfer tax equal to 0.4% of the sale price and, (ii) for residential real estate with a purchase price in excess of $500,000, a New York City transfer tax in the amount of 1.425% of the sale price. The purchaser normally does not pay transfer taxes, except of the so called “mansion tax”, in the amount of 1% of the purchase price, to be paid to the State of New York if the purchase price of the apartment is 1 million dollars or more. If the purchase price is less than 1 million dollars, the mansion tax does not apply.
Special benefits to buy through professionals? We recommend that prospective purchasers of real estate in New York use competent and knowledgeable real estate brokers and attorneys in order to accurately identify the correct investment and make sure that there will be no unpleasant surprises.
Attorney Filippo Cinotti
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OCTOBER 2017
A WINDOW ON THE WORLD
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PALAZZETTO STERN VENICE – GRAND CANAL BUILT IN THE END OF THE XIX CENTURY, WITH AMAZING TERRACE ON THE GRAND CANAL 4 FLOORS 1500 MQ (The sales procedures are governed by Article 50 et seq. Of the Law of 20 March 1980, No 18 and subsequent amendments, by R.D. 23.05.1924, No.827, and by DGRV No.339 of 14 March 2016.)
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PARIS – IX ARRONDISSEMENT ON BEDROOM FLAT WITH TERRACE 5th FLOOR WITH LIFT 409 ft2+ 237 ft2 (TERRACE) € 650’000
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LONDON – CHELSEA ONE BEDROOM FLAT 1st FLOOR 624 ft2 £ 950’000
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LONDON – FULHAM TWO BEDROOM FLAT 1st FLOR 43 ft2 £ 550’000
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MIAMI BEACH NORMANDY ISLAND TWO BEDROOM FLAT 1st FLOOR 775 ft2 $ 350’000
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OCTOBER 2017
OUR OFFICES WIRE Consulting
WIRE International Realty
Via Pescheria Vecchia, 1 30174 Venice – IT +39 0412750993 info@wireconsulting.it www.wireconsulting.it
1000 5th Street, Suite 1305 33139 Miami Beach, FL – USA miami@prestigeinternational.it
WIRE International Realty WIRE Consulting Via Gesù, 10 20121 Milan – IT info@wireconsulting.it
The Cipriani Building 25 Broadway, 9th 10004 New York, NY – USA newyork@prestigeinternational.it
MEMBER OF WIRE Rome, Florence, Porto Cervo, Cortina d’Ampezzo, Courmayeur, Palermo, Salento, Paris, French Riviera, Barcelona, Valencia, Madrid, Ibiza, Canary Islands, Monaco, Berlin, Athens, Cyclades Islands, Lisbon, Porto, Cascais, Valletta, Budapest, Moscow, Bangkok, Pukhet, Istanbul, Los Angeles, San Francisco, Boston, Rio de Janeiro, Sao Paolo, Fortaleza, Natal, Playa del Carmen, Marrakech, Tanger, Fes
WIRE International Realty 17 Grosvenor Gardens SW1W 0BD London – UK london@prestigeinternational.it
WIRE International Realty San Polo 30125 Venice – IT venezia@prestigeinternational.it
info@wireconsulting.it
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