Victor Jung

CEO, V Global Holdings

Qualified Rural Opportunity Funds and Micro-Resorts

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Unlocking Rural Investment Potential — With a Spotlight on Upstate New York

Rural America is quietly entering a new investment era. While major cities continue to attract capital, talent, and attention, something different is happening beyond the skyline. In small towns, scenic landscapes, and overlooked communities, a powerful combination of tax incentives, changing travel behavior, and creative real-estate models is creating opportunity where few expected it.

At the center of this shift are Qualified Rural Opportunity Funds (QROFs) and a rising hospitality concept known as micro-resorts. Together, they form a compelling strategy for investors seeking long-term value, tax efficiency, and meaningful economic impact.

And few regions are better positioned for this model than Upstate New York.

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What Are Qualified Rural Opportunity Funds (QROFs)?

Qualified Rural Opportunity Funds are a specialized evolution of the broader Opportunity Zone framework established under the U.S. tax code. Like standard Qualified Opportunity Funds, QROFs allow investors to defer capital gains taxes by reinvesting those gains into designated Opportunity Zone projects.

The difference is focus.

QROFs invest exclusively in rural Opportunity Zones, defined as areas outside cities or towns with populations of 50,000 or more and not adjacent to urbanized areas. This distinction matters because lawmakers recognized a simple truth: rural communities often face deeper capital gaps and need stronger incentives to attract long-term investment.

Why Rural Zones Get Enhanced Benefits

To make rural projects more competitive, QROFs offer enhanced tax advantages compared to traditional Opportunity Funds:

  • 30% step-up in basis after five years, meaning nearly one-third of deferred capital gains may never be taxed
  • Reduced substantial-improvement requirements, allowing investors to rehabilitate existing properties with lower capital thresholds
  • Potential exclusion of future appreciation if the investment is held for ten years

These benefits are designed to reward patience, commitment, and community-aligned development.

In other words, QROFs are not built for quick flips. They are built for vision.

Enter the Micro-Resort: A Perfect Rural Use Case

Micro-resorts are not mega hotels. They are intimate, experience-driven hospitality developments that typically include:

  • 10–40 small lodging units (cabins, cottages, tiny homes, yurts, or modular suites)
  • Shared amenities such as fire pits, trails, wellness spaces, or communal lodges
  • A strong connection to nature, culture, and place
  • Lower density and smaller environmental footprint
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Travelers are increasingly drawn to authentic, quiet, and nature-based experiences, especially after years of crowded urban travel. Micro-resorts meet this demand while remaining financially efficient for developers and investors.

Why Micro-Resorts Align So Well With QROFs

The synergy between QROFs and micro-resorts is no accident.

1. Rural Land Economics

Rural land costs are generally lower, allowing developers to deploy capital more strategically. This fits the long-term hold requirements of Opportunity Zone investments.

2. Scalable Development

Micro-resorts can be built in phases. This flexibility helps investors manage cash flow while still meeting regulatory requirements.

3. Community Integration

These projects often create local jobs, support nearby businesses, and attract visitors who spend money throughout the region — a key policy goal of Opportunity Zones.

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4. Durable Demand

Nature-based and experience-driven travel has proven resilient, particularly in regions within a few hours of major population centers.

That last point brings us directly to Upstate New York.

Why Upstate New York Is Uniquely Positioned

Upstate New York offers a rare convergence of natural beauty, accessibility, historic towns, and designated rural Opportunity Zones. It is close enough to major metropolitan markets to attract steady tourism, yet rural enough to qualify for enhanced tax incentives.

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Proximity to Major Cities

Millions of people live within a 3–5 hour drive of the region, including residents of New York City, Boston, Philadelphia, and Toronto. This makes Upstate New York ideal for weekend getaways and short-stay tourism.

Established Tourism Brands

Areas such as the Adirondack Mountains, Catskill Mountains, Finger Lakes, and the Hudson Valley already have strong name recognition. Micro-resorts can plug into existing demand rather than trying to create it from scratch.

Abundance of Rural Opportunity Zones

Many counties across Upstate New York include federally designated Opportunity Zones that meet the rural criteria. This allows investors to structure projects that qualify for QROF benefits while revitalizing underutilized land and properties.

The Hospitality Gap in Rural New York

Despite its appeal, many parts of Upstate New York suffer from an outdated lodging inventory. Travelers want modern amenities, thoughtful design, and immersive experiences — not necessarily large hotels.

Micro-resorts fill this gap by offering:

  • High-quality accommodations without overwhelming local infrastructure
  • A design aesthetic that complements natural surroundings
  • Year-round revenue potential through seasonal programming

This creates an opportunity for investors to deliver something the market wants while benefiting from tax-advantaged capital structures.

Economic Impact Beyond Returns

One of the most overlooked aspects of QROF-backed projects is their community impact.

Micro-resorts can:

  • Create construction and hospitality jobs
  • Support local farms, artisans, and service providers
  • Increase regional tourism without overdevelopment
  • Encourage infrastructure improvements

When executed responsibly, these developments become economic anchors rather than extractive projects.

Risk, Reality, and Responsible Strategy

No investment is without risk. Rural projects require careful planning, strong local partnerships, and realistic operating assumptions. Seasonality, permitting, infrastructure access, and workforce availability all matter.

Successful QROF projects in Upstate New York tend to share three traits:

  1. Deep local understanding
  2. Long-term operational vision
  3. Alignment between financial goals and community needs

Tax incentives amplify returns, but they do not replace sound fundamentals.

The Long View

Qualified Rural Opportunity Funds represent a rare alignment of public policy and private capital. Micro-resorts offer a modern, flexible way to deploy that capital in places that deserve attention and investment.

Upstate New York stands out as a region where this model is not theoretical — it is practical, scalable, and increasingly relevant.

As investors search for yield, impact, and resilience in a changing economic landscape, rural hospitality projects may offer something cities no longer can: space to grow, room to breathe, and time to think long-term.

And that leaves one final question worth considering:

As travel trends evolve and capital looks beyond crowded markets, will Upstate New York become one of the defining success stories of the rural Opportunity Zone era?

Micro-Resorts: Big Experiences in Small Packages

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Why are Micro-Resorts redefining travel?

Imagine a place that feels like a private getaway with all the charm of a luxury resort — but instead of hundreds of rooms, it offers a handful: a cozy cluster of tiny cabins, each with its own personality and purpose. This is the magic of the micro-resort. Far from simply being a “tiny hotel,” a micro-resort is a carefully curated retreat that trades scale for intimacy, locality, and unforgettable guest experiences. Below, we explore how you can build such a retreat — and why, these days, micro-resorts are quickly becoming the future of boutique hospitality.

Mountain Milla Jefferson NY by Unplugged Cabins

🌲 What You’ll Learn — Quick Snapshot

  1. Definition: What is a micro-resort?
  2. Five key steps to create one
  3. What sets a micro-resort apart from a typical Airbnb or hotel
  4. The business case — are micro-resorts profitable?
  5. Final thoughts: Where to begin if you’re inspired

What Is a Micro-Resort — and Why It Resonates

At its heart, a micro-resort is a small, high-quality lodging cluster — typically 2 to 10 rental units — designed to deliver a refined, luxurious stay.

These units can take various forms: from “park-model” tiny homes and modular cabins to modern-style cabins to Yurts or Domes, each contributing its own vibe.

But it’s more than just the type of building. What makes a micro-resort is intentionality. It’s not “just somewhere to stay.” It’s a place where design, setting, and experience come together — where guests may soak in a private hot tub, enjoy a communal firepit under the stars, or sip a local craft beer after a hike.

In other words: micro-resorts deliver the feel of a boutique hotel, but with the authenticity, calm, and soul of a private retreat. (RedAwning)

How to Build a Micro-Resort — The 5-Step Blueprint

If you’re thinking of launching your own little slice of getaway magic, here’s a roadmap.

1. Choose Your Building Style

Your first move: decide what kind of units will go on your property. This shapes everything — from land requirements, infrastructure, cost, to guest experience.

Mountain Milla - Unplugged Cabins - Victor Jung
  • Park-model tiny homes — these are compact (generally under 400 sq ft), often built to RV standards, and delivered on a trailer. That means faster deployment, flexibility, and sometimes lower taxes.
  • Modular cabins — either log-style or modern designs, built in a factory and assembled on site. These offer more “home-like” comfort and work well if you want to attract families or longer stays — even potentially resell as standalone homes later.
  • Modern-style cabins — think A-frame, contemporary wood and glass, minimalist charm. Great if you aim for a boutique aesthetic.
  • Yurts – is one of the most enduring glamping structures in the world — a circular, tent-like dwelling with roots in the nomadic cultures of Central Asia. But don’t let the word “tent” fool you. Today’s yurts are an elevated fusion of tradition and modern comfort.
  • Domes – is a spherical, faceted structure made from a network of interlocking triangles — a design celebrated for its strength, durability, and ability to withstand intense weather. In the world of glamping, domes are the architectural showstoppers: sleek, sculptural, impossible to ignore.
  • Stage Coach Wagons – Inspired by 19th-century covered wagons, these units combine historical charm with luxury craftsmanship. Picture a curved wooden frame wrapped in canvas, elevated on sturdy wheels, often placed along a prairie-style meadow, desert ridge, or woodland path.

Each choice comes with trade-offs: tiny homes are efficient and flexible; modular cabins are more substantial and homey; modern cabins offer style, Yurts, Domes and Stage Coach Wagons transport you in unique accomodations.

2. Find the Right Land — And Understand Zoning

Half the battle is legal and logistical. Zoning laws differ wildly across municipalities. Some areas may permit resort-style rentals easily; others might require variances or prohibit such use altogether.

V Global Holdings and Unplugged cabins offer development and consulting services to guide you through the process of planing your next micro-resort.

If you’re buying raw land, ideal parcels are those zoned for “Resort/Hotel” or similar commercial-hospitality use. Otherwise, expect paperwork, permit delays, or even denial.

Some savvy hosts even subdivide property parcels — letting each unit be its own rental while sharing communal amenities. But be sure local regulations allow that.

3. Design the Layout: Where Each Unit — and Amenity — Lives

With land and units decided, it’s time to plan the layout. Think beyond just cabins. Ask yourself:

  • Are there shared amenities — a pond, cold plunge, firepit, outdoor lounge?
  • Do you want each unit to have privacy — separate hot tubs or saunas — or communal spaces for gathering and socializing?
  • How will landscaping and natural terrain be used — or preserved?
woman grabbing glass bottle near field
Photo by Nono Photographer on Pexels.com

If your goal is privacy and nature immersion, park-model tiny homes — delivered and placed carefully — may be perfect. If you’re leaning toward bigger cabins with porches or basements, modular homes need more space and crane-ready setup.

4. Create a Distinctive Guest Experience

This is where a micro-resort becomes more than just lodging. It becomes a story.

Imagine arriving to a private cabin with a hot tub under the stars, a sauna waiting after a hike, or an outdoor firepit crackling while neighbors share local wine. Maybe you offer e-bikes, kayaks, or golf carts for exploring the property; maybe you include fresh local produce, artisan charcuterie boards, or curated welcome baskets.

The beauty of micro-resorts is that you don’t need to offer everything — but what you do offer should feel deliberate, thoughtful, and high-quality. In this hospitality model, less is more — done right.

5. Market Your Micro-Resort — Tell the Story

Once your place is built and ready, it’s time to share the story. A simple website, social-media presence, and online booking listings (for example, through established vacation-rental platforms) are your starting point.

But more than that — you’re selling a vibe. Highlight the privacy, the design, the nature, the local flavor. Capture the guest experience before they’ve even booked. That’s what makes people choose a micro-resort over a standard stay.

Micro-Resort vs. Typical Airbnb or Hotel — What’s the Difference?

Here’s what sets a micro-resort apart.

  • Intentional design & consistent aesthetic. Unlike a random vacation-home listing, units at a micro-resort are curated to fit the same vision — atmosphere, style, story.
  • Amenities and shared spaces (or private perks). From saunas and hot tubs to communal fire-pits and outdoor lounges — amenities are part of the offering. Airbnb-style single rentals rarely deliver this level of hospitality.
  • Boutique service and guest experience. With fewer units, hosts can pay attention. Guest stays are more intentional, more human — less transactional than a big hotel chain.
  • Scale — small but premium. A micro-resort delivers exclusivity: you’re not one of 300 rooms, you’re one of a few. That exclusivity becomes part of the brand’s charm. (Shelter Dome)

In short: micro-resorts trade scale for soul, turning hospitality into hospitality again — at a human scale.

The Business Case — Are Micro-Resorts Profitable?

body of water and green field under blue sky photo
Photo by Matthew Montrone on Pexels.com

Yes. They can be.

Because you’re not building out a massive hotel or expansive campground, your upfront land and construction costs are lower. The limited number of units reduces overhead — fewer cleaning staff, no countless hallways, less maintenance. (Wind River Built)

At the same time, demand for unique, private, soulful stays has never been higher. Micro-resorts can command premium nightly rates, especially when paired with thoughtful amenities and memorable design. (RedAwning)

Even with modest occupancy rates — for instance, a couple of tiny homes renting half the nights of the year — the math can work. Some operators find they can recoup their investment in a few years. (Zook Cabins)

That said, profitability depends on execution. If you skimp on design or amenities, or misjudge your market — you may struggle to attract guests. The secret sauce lies in offering uniqueness, quality, and experience.

If You’re Inspired — Where to Begin

If you’ve read this far and can picture yourself building a micro-resort, here’s a simple first step: start small. Even just two units can serve as your proof-of-concept. Build thoughtfully. Invest in design and guest experience. Launch with a landing page or social profile.

From there, you can expand — adding more units, amenities, refining your offering. Many successful micro-resorts started small, learned what worked, then grew.

Because this isn’t just about owning property. It’s about creating a destination — a place where travelers feel something real.

Why Micro-Resorts Are The Future of Boutique Hospitality

We’re in a moment where travelers are rejecting cookie-cutter hotels and looking for places with personality, privacy, and purpose. Micro-resorts deliver exactly that — but at a manageable scale for developers and hosts. They give a path to building something unique, profitable, and — if done right — sustainable.

Small doesn’t mean second-rate. It means intentional. Personal. Memorable.

If you’re dreaming of your own little woodland escape, or a riverside cabin cluster, or a modern tiny-home hideaway with design flair — know this: you don’t need acres and hundreds of rooms to make magic. With vision, care, and thoughtful planning, a micro-resort can become your legacy — and your guests’ favorite memory.

So — are you ready to design not just a stay, but a story?

Investors from Germany, Korea & Japan could fill Chinese void – Victor Jung

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Negative interest rates will drive purchases

March 07, 2017 04:30PM
By Rich Bockmann

TheRealDeal.Com

Bill Shanahan

China supplanted Canada for the first time last year as the most active foreign investor in U.S. real estate. But so far this year, some Chinese institutional investors such as insurance companies have been silent, and the yuan’s appreciation against the dollar could shift Chinese buyers toward markets in Asia.

But if the big guns from China pull back from New York, there could be investors from Germany, Korea and Japan game to fill the void. Investors from those countries may be able to take advantage of arbitrage between overseas and local interest rates and make big-ticket deals, according to CBRE.

“We think the amount of Chinese investors that falls off may be enhanced by German investors and Japanese investors, in particular, as negative interest rates are driving capital out of those countries,” Spencer Levy, head of research in the Americas for CBRE, said Tuesday afternoon as the company released the results of its annual investor survey.

Bill Shanahan, co-chair of CBRE’s capital markets group in New York, said that’s exactly what he sees with Korean investors. Last year a group of South Korean insurance firms invested roughly $220 million in mezzanine debt for AXA Financial’s 787 Seventh Avenue.

“Korea has a 200-basis point negative arbitrage on currency,” he said. “One of the things they do is they borrow heavily here . . . because it’s a hedge in U.S. dollars.”

In CBRE’s survey of investors, about 40 percent said they planned to buy either the same amount or more property this year. About 30 percent of respondents said their largest motivation will be seeking yield spreads.

In September, North Carolina-based apartment REIT Bell Partners teamed up with the German firm HANSAINVEST to create a $1 billion fund focused on multifamily properties in the U.S.

And Shanahan said Germany’s Union Investment Real Estate, which entered the New York hotel market late last year with the purchase of Courtyard the New York Downtown Manhattan/World Trade Center for $206 million, is poised to invest more overseas.

“About two months ago, Union, probably for the first time in six or eight months, opened up one of their funds,” he said. “They got $800 million in a month and had to shut the gates because they can’t place the capital. They’re promising all their investors returns. So if you have all this cash laying around and it’s in a German bank – you’re basically getting no return – it’s a drag on the fund.”

“It’s also the same for Korea and it’s also the same for Japan,” Shanahan added, who said Japanese buyers are becoming more interested in New York City multifamily properties. “Rates in those home countries are either negative or they’re very, very low.”

Late last month, Japanese trading conglomerate Mitsui & Co. acquired a 20 percent stake in Los Angeles-based real estate investment firm CIM Group. Another Japanese conglomerate, ASO Group, made a splash by purchasing one of L.A.’s most notable properties, the Google-leased Spruce Goose hangar in Playa Vista.

Tags: bill shanahan, CBRE, foreign investment, real estate finance

London no longer calling: home prices fall post-Brexit – Victor Jung

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Political uncertainty, new tax cool demand

March 02, 2017 10:30AM – THE REALDEAL.com

Homes in the Royal Borough of Kensington and Chelsea

London home prices are falling in the wake of Britain’s vote to leave the European Union and a new tax on property sales.

The share of sellers who slashed asking priced rose in 31 of the city’s 33 boroughs between July and January, according to data by listings site Zoopla. In the luxury enclave of Kensington and Chelsea, the average price cut in January was 8.2 percent.

“Over the past two years some agents have been overvaluing to win business from sellers, but given the state of the market post-Brexit, buyers are now very astute and won’t over pay, and reductions are taking place,” Capital Estate Agents Joe Mourat told Bloomberg. “The British public are responsive to negative news, and we definitely saw a downturn in activity after the vote.”

Speaking at the Knight Frank wealth conference on Thursday, Liam Bailey, head of residential research at the brokerage, said London prices are down 6 percent.

London’s residential real estate market has long competed with New York for wealthy overseas investors. Uncertainty over Britain’s political future appears to have cooled demand for luxury apartments in its capital, but New York is dealing with its own uncertainty in the wake of Donald Trump’s Muslim travel ban.

In its March issue, The Real Deal broke down how anti-immigration policies are threatening New York real estate’s status as a safe haven for foreign capital.  [Bloomberg] — Konrad Putzier

Tags: brexit, london home prices, residential real estate

EB-5 will thrive under Trump, experts say – Victor Jung

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The Real Deal's EB-5 and U.S. Immigration panel

From left: Nicholas Mastroianni, Scott Alper, Connor Chen, Charles Gargano, Former New York Gov. George Pataki, Phoebe Yuan, Jianlen and Hiten Samtani

The legislative fate of EB-5 may still be up in the air, but champions of the controversial visa program are not worried — they say they have a powerful friend on their side.

EB-5 will likely to continue to thrive under President-elect Donald Trump, EB-5 experts said at a panel hosted by The Real Deal in Shanghai Friday, despite his adversarial rhetoric toward immigrants.

“His strong stance [is] against illegal immigration,” former New York Gov. George Pataki said. “And EB-5 is a legal immigration program. He understands the need for capital, the need for investment.”

Charles Gargano, the executive director of the U.S. Immigration Fund and a former U.S. ambassador, is also optimistic.

“Under President-elect Trump, a developer himself, he will magnify the need for a program like this,” he said.

Trump certainly isn’t a stranger to the program. His son-in-law Jared Kushner’s Trump-branded rental tower in Jersey City took in $50 million in EB-5 funds. U.S. Immigration Fund, in fact, was tapped for the 50-story, 447-unit project.

Last month, Congress granted a temporary extension ensuring that EB-5 would operate until at least early December. Meanwhile, lawmakers are mulling over a proposal to reform the program. They’re considering changes that include a raise in the minimum investment amount from $500,000 to $800,000 and tougher qualifications for project sites.

“It shouldn’t be an issue, but it is going to change,” U.S. Immigration Fund CEO Nicholas Mastroianni said. “I don’t see [the increased minimum amount] as a deterrent.”

Critics of the program lament the fact that it commodifies American citizenship, provides opportunities for fraud and disproportionately benefits wealthy areas. Proponents, however, argue that such setbacks are far outweighed by its benefits.

“People can say it’s a backdoor ploy for citizenship,” Pataki said. “There’s always going to be criticism but the need for this is only going to be greater because banks [today] are taking a step back.”

Former New York Gov. George Pataki making his keynote address

Former New York Gov. George Pataki making his keynote address

For Chinese investors themselves, EB-5 will remain a popular immigration option. It could very well grow to new heights under a government that’s fully controlled by Republicans, panelists said.

Trump may not be against legal immigration, but work visa programs like EB-2 and EB-3 are getting tougher and and tougher to attain, according to Yuan Shaozhong of QWOS, a Shanghai-based immigration agent.

“EB-5 is the only feasible option for a lot of Chinese immigrants right now,” she said.

Tags: Donald Trump, EB-5, george pataki, TRD Shanghai

Cuomo approves $300M for NYC affordable housing projects – Victor Jung

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Gov. Andrew Cuomo signed off on granting the city another $300 million in bonding authority on Friday, providing a considerable bump in funds needed to construct affordable housing.

With this latest allowance, the state has granted the city $771 million in tax exempt bond capacity this year — an amount Cuomo’s office touted as the highest provided in a decade.

“Homelessness is exploding and affordable housing is all but disappearing,” Cuomo said in a statement. “New York City needs this help from the state which will provide thousands of units of safe, clean, affordable housing and will help alleviate this crisis.”

Under federal law, the state controls bond capacity, a fact that has been yet another source of tension between Cuomo and Mayor Bill de Blasio. In November 2015, the de Blasio administration claimed it received a far smaller share of the bonds than it was promised and, as a result, had t0 delay construction of certain affordable units. In January, Cuomo also proposed changes that would have added two new layers to the bond allocation approval process, a prospect New York Housing Commissioner Vicki Been called “a poison pill.” The revisions were ultimately not implemented.

It’s been a big few weeks for affordable housing in the city. The Real Estate Board of New York and the Building and Construction Trades Council announced on Nov. 10 that they’d finally come to an agreement over 421a, seemingly paving the way for lawmakers to revive the tax break. After a fundamental misunderstanding over a wage component of the agreement last week, the groups again seem to be on track. [NYDN] — Kathryn Brenzel

Here’s what $1M worth of prime real estate looks like in the world’s top cities: Knight Frank

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In Hong Kong, it buys you a guest bath, but in New York …

March 03, 2016 12:32PM
By Hiten Samtani 

What does $1M get you in prime real estate across the globe?

What does $1M get you in prime real estate across the globe? (Click to see full-size image)

What does $1 million get you in luxury real estate? New Yorkers know that the answer, at least in prime Manhattan, is “not a hell of a lot.” But since many luxury apartment buyers are choosing between New York and a host of other alpha cities, the folks at Knight Frank thought it would be interesting to compare different cities across the globe and see what part of a home one could afford with a $1 million budget.

Here's what you could buy with $1M in terms of prime real estate across the globe (Source: Knight Frank/The Wealth Report 2016)

Here’s what you could buy with $1M in terms of prime real estate across the globe (Source: Knight Frank/The Wealth Report 2016)

In Manhattan, your money would get you a charming 290-square-foot study. Faced with that budget in Miami, however, you’d be able to get yourself a nice, ocean-facing 829-square-foot terrace. In the City of Angels, you’d be able to secure a 700-square-foot master bedroom.

Outside the U.S., the numbers get even more interesting. Along with its incredible historical heritage and cosmopolitan scene, buyers in Istanbul could afford a palatial, 1,011-square-foot dining room. In Hong Kong, you’d get a humble guest bath, whereas London would allow you a fine master bath.

The most uppity of them all? In Monaco, the world’s foremost playground of the super-rich, $1 million would get you a 183-square-foot dressing room.

(Source note from Knight Frank/The Wealth Report 2016: Price ranges for Hong Kong, Beijing and Shanghai are for properties considered “Super-Prime.” Prices used in the calculation for Sydney and Hong Kong are based on apartments only and for New York, Los Angeles and Miami based on condos only. All currency calculations are based on the prevailing rate as of Dec. 31, 2015.)

SVHO and Bizzi Partners at 125 Greenwich Street to house 275 Units – Victor Jung

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Michael Shvo and a rendering of 125 Greenwich Street (Credit: ArX Solutions)

Michael Shvo and a rendering of 125 Greenwich Street (Credit: ArX Solutions)

Michael Shvo, Howard Lorber’s New Valley and Bizzi & Partners’ soaring condominium at 125 Greenwich Street will house 275 units – nearly 150 more than early renderings for the Financial District tower indicated.

The Rafael Vinoly-designed tower will rise 91 stories with 275 condos spread over 306,312 square feet, according to an offering plan filed with the Attorney General’s office and reviewed by The Real Deal. Prices were not disclosed, but units will range in size from a 403-square-foot studio to a three-bedroom pad measuring 3,625 square feet. The top two floors will have two units each.

Unit 87A

Unit 87A at 125 Greenwich Street

Projected operating expenses for the condo tower will top $4 million, according to the offering plan.

Early renderings circulated in the fall of 2014 indicated it would have 128 units, with 10 full-floor penthouses. A 10,600-square-foot duplex was to occupy the top floor. The developer said plans were subject to change.

Unit 87B

Unit 87B at 125 Greenwich Street

According to published reports, the building is expected to rise more than 1,000 feet, down from 1,356 feet as was initially reported. Plans filed with the Department of Buildings, however, describe an 876-foot tower.

Shvo partnered with a group of investors, including Bizzi and New Valley, to arrange $240 million of equity and debt for the acquisition and development of the site in 2014.

"D" line on floors 23-32

“D” line on floors 23-32 at 125 Greenwich Street

The developers paid $185 million for the site, where Fisher Brothers and the Witkoff Group had planned a 956-foot-tall rental tower. Shvo and Bizzi are currently looking to raise $175 million for the project through the EB-5 program, which gives foreign investors a U.S. green card in exchange for a $500,000 investment.

In addition to 125 Greenwich, Shvo and Bizzi, along with partner Halpern Real Estate Ventures, are also planning a Renzo Piano-designed, 242,000-square-foot condominium building at 100 Varick Street. The building will house 115 condo units.

– See more at: http://therealdeal.com/2016/01/15/shvo-and-bizzis-125-greenwich-to-house-275-condos/utm_source=internal&utm_medium=popular_widget&utm_campaign=posts_popular#sthash.n2eDbwG4.dpuf

Bluelight Special: Price cuts, broker incentives increase – Victor Jung

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20% of Manhattan listings saw prices slashed between Sept.-Dec. 2015

January 15, 2016 03:05PM – The Real Deal excerpt

From left: 110 Central Park South, 252 East 57th Street and 15 West 20th Street

From left: 110 Central Park South, 252 East 57th Street and 15 West 20th Street

Forget bidding wars and packed open houses. These days, bargain hunters have the upper hand as overpriced Manhattan properties experience rampant price chops.

Roughly 20 percent of Manhattan listings saw prices slashed during the last four months of 2015, according to data from startup brokerage Compass and cited by the New York Times. That’s compared with 10 percent of pads that had discounts during the same time in 2014.

“I have seen more broker incentives and price reductions in the last few months than I’ve seen in the last three years combined,” Compass’ Leonard Steinberg told the Times.

And the price cuts are hefty.

The seller of a sprawling five-bedroom at 110 Central Park South knocked $7 million of the asking price, which is now $17.7995 million, and the seller of a penthouse at 15 West 20th Street took $1 million off the price, now $7 million.

Brokers said part of the problem is record-setting condo deals in 2014 and 2015 prompted some sellers of resale units to overprice their homes.

But the influx of luxury condos is increasing competition for high-end buyers. There were more than 3,500 new development units for sale during the third quarter of 2015, up from more than 2,400 units during the same time in 2014, according to Corcoran Sunshine Marketing Group.

While most developers haven’t yet turned to discounts at new condos, some are offering incentives to brokers. At the Oosten, a 216-unit condo in Williamsburg, developer XIN Development Group International is now offering brokers a $5,000 American Express gift cards for delivering signed contracts for any of the project’s 78 unsold units, which range from $1.4 million to $6.42 million.

Last year, O’Connor Capital Partners started offering brokers at 200 East 62nd Street bonuses ranging from $10,000 to $30,000. And World Wide Group and Rose Associates’ 252 East 57 Street is offering a one percent commission within 60 days of a signed contract, rather than paying the broker commission when the condos close.

“We’re doing this to try to raise awareness among brokers who have not been to the building,” according to Steven Rutter, the director of Stribling Marketing Associates, which is leading sales. Nine five-bedrooms condos listed for $10 million and up have had price cuts.

Although real estate execs said price cuts are a function of overpricing, the sale of apartments over $10 million dropped 12 percent in 2015 compared with 2014, according to CityRealty.

“We’re seeing an incredible dichotomy in the market, where certain projects are selling better and quicker and for higher prices than ever seen in history, and there are projects where very little is happening,” said Shaun Osher, CEO of brokerage firm CORE, who evoked a “tale of two markets” in his description. [NYT] – E.B. Solomont

– See more at: http://therealdeal.com/2016/01/15/bluelight-special-price-cuts-broker-incentives-increase/#sthash.8F9YPtRz.dpuf

In 2015, Shattering Records in New York City Real Estate – Update Victor Jung

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In 2015, Shattering Records in New York City Real Estate
By VIVIAN MARINO DEC. 24, 2015 From New York Times

In the realm of New York City real estate, what goes up just keeps going up, and up.

This past year prices again punctured records, with the official closing of a $100.47 million penthouse at the pinnacle of Extell Development’s One57, the vitreous Midtown skyscraper and popular abode for billionaires worldwide seeking to park their cash.

Other sales in the Central Park-facing condominium, at 157 West 57th Street, flirted with the nine-digit mark. And across Manhattan, records were set for co-ops and extravagant prices paid for other condos and townhouses. Brooklyn, which is becoming ever more desirable (and dear) as a home address, also posted a record for the most expensive sale for a single residence, in Cobble Hill.

“We shattered just about every record that pre-existed,” said Shaun Osher, the chief executive of the brokerage firm Core. “It was the year of the big sale.”

A penthouse on the top two floors of the blue-glass condominium at 157 West 57th Street recently sold to an unidentified buyer for a record price.Big Ticket: $100.4 Million Sale at One57JAN. 23, 2015

The limestone 834 Fifth Avenue is considered a Candela masterpiece.Big Ticket: $77,500,000, a Record for Co-opsAPRIL 3, 2015

Big Ticket: $15.5 Million, a Record for Brooklyn Real EstateJUNE 19, 2015

A penthouse in the south tower of Time Warner Center has been sold.Big Ticket: $50,917,500 Penthouse Sets a Time Warner RecordJULY 31, 2015

Paul McCartney performing in London this month.Big Ticket: Paul McCartney’s $15.5 Million Central Park ViewMAY 29, 2015

Big Ticket: Penthouse Owned by Joan Rivers Sold for $28 MillionJULY 17, 2015

But the record books are almost certain to be rewritten in the months ahead as new “billionaire bunkers” are added to the city’s ever-evolving skyline, like 220 Central Park South, 432 and 520 Park, and 56 Leonard, to name just a few.

Sarah Jessica Parker and Matthew Broderick sold their brick townhouse, second from left, at 20 East 10th Street in Greenwich Village for $18.25 million. They took a bit of a bath, having paid nearly $19 million for it in 2011. Credit From left: Chang W. Lee/The New York Times; Amy Lombard for The New York Times.
The current record price will be surpassed — make that doubled — when another megadeal is filed with the city in the next couple of years. The hedge fund manager Kenneth C. Griffin, whose net worth totals $7 billion by Forbes’s estimate, entered into a contract in late summer to buy a triplex at 220 Central Park South for around $200 million, according to sources familiar with the sale who, like others in this article, requested anonymity so as not to jeopardize a current or future deal. This purchase would not only be the city’s largest sale of a single residence, but also the country’s, usurping the $147 million sale of an 18-acre East Hampton, N.Y., estate in 2014, according to Jonathan J. Miller, who runs the Miller Samuel appraisal firm. He wonders, though, how long this upward trajectory will endure: “Developers and those observing the market are asking how many $10 million-and-up buyers are really out there.”

So far, roughly half the 118 or so apartments are under contract at 220 Central Park South, the 65-story limestone-clad building designed by Robert A.M. Stern Architects and at the ninth floor of construction, according to Steven Roth, the chief executive of Vornado Realty Trust, the developer. Fourteen of those units went for $50 million or more, he said in a recent earnings conference call.

Real estate brokers and market observers say that at least for the next few years, more of these astronomical sale prices will surface as signed contracts in the city’s nascent developments finally close. (Most of the units at 56 Leonard, for instance, are spoken for, said Kelly Kennedy Mack, the president of the Corcoran Sunshine Marketing Group, adding that full-floor units are listed for above $20 million, and the most expensive penthouse is around $50 million.) There are unsold units, too, at completed developments like One57 and those nearing completion, like the Greenwich Lane in Greenwich Village. And then there are the resales.
“With the inventory out there, the extraordinary amount of wealth, and the continued demand for New York real estate, we will continue to see robust sales in the superluxury market,” said Pamela Liebman, the chief executive of the Corcoran Group. Corcoran Sunshine Marketing is handling sales for 220 Central Park South.

Daniel Levy, the chief executive of CityRealty, which tracks condo and co-op sales, shares this opinion: “There seems to be plenty of demand for all these buildings,” he said. “Next year the story will be 432 Park and 56 Leonard; the following years will be 220 Central Park South and 520 Park.”

For 2015, the story, of course, was the Christian de Portzamparc-designed One57, where eight of the 20 biggest big-ticket sales took place — that is, those that were signed, sealed and officially recorded with the city.

All the year’s top 20 sales were for more than $30 million, and the top 10 for above $45 million. They included three co-ops, two townhouses, one condop and several other luxury condos, among them, two units at 15 Central Park West, which was designed by Robert A. M. Stern Architects and where another apartment had held the record until this year for the city’s most expensive residence, at $88 million. That was the full-floor penthouse the Russian billionaire Dmitry Rybolovlev bought in 2012, through a trust benefiting his daughter, from Sanford I. Weill, the former Citigroup chairman.

One57

The city’s record $100.47 million sale (and the seventh priciest in the nation, according to Mr. Miller) was for the 89th and 90th floors of the brash blue tower, a.k.a. unit No. 90, a 10,923-square-foot aerie with a reception gallery and grand salon. Extell initially marketed the duplex for $98.5 million, then raised the price to $115 million, according to the state attorney general’s office. Only a handful of people know the identity of its new owner, who, like most others buying these ultraluxury digs, hid under the mantle of a limited liability company. The buyer actually made the purchase in late December 2014, but it didn’t pop up in city records until mid-January.

Joan Rivers’s ornate escape from hilarity at 1 East 62nd Street changed hands for serious money, $28 million. The 11-room triplex, with four bedrooms, four and a half baths and five wood-burning fireplaces, encompasses around 5,100 square feet. Credit From left: Fred R. Conrad/The New York Times; Ruth Fremson/The New York Times.

While that deal was covert, the buyer of the city’s second most expensive residence (and No. 12 nationally), at $91.54 million, was more forthcoming. The hedge fund mogul William A. Ackman revealed his purchase of a six-bedroom on the 75th and 76th floors months before it officially closed in April. The apartment, known as the Winter Garden, is distinctive for, among other things, its 2,500-square-foot curved-glass atrium that opens to the sky.
In February, Guoqing Chen, a founder along with his brother, Chen Feng, of Hainan Airlines, part of the HNA Group, one of China’s largest private airline companies, paid $47.37 million for an apartment taking up the entire 86th floor. Two months later, at nearly the identical price, another full-floor apartment, on the 88th floor, was bought through a limited liability company associated with HNA’s New York subsidiary. Could this one be for Chen Feng?

Many of the buyers in the building are foreigners, particularly from China. “They are really looking to park money here because of the uncertainties of their governments,” Dorothy Herman, the chief executive of Douglas Elliman Real Estate said of this building and others like it.

Among the other big closed sales at One57: Unit No. 85 for $55.56 million and No. 77, $47.78 million.

Other Condos

Most of the top sales this year happened in condominiums, and several involved recognizable names.

The Related Companies’ Time Warner Center, one of the priciest buildings of the early 2000s and a favorite of Russian buyers, registered a record of its own. In late July, the Russian financier Andrey Vavilov sold his penthouse on the full 78th floor of the south tower, at 25 Columbus Circle, for $50.92 million. Mr. Vavilov served as deputy finance minister during the presidency of Boris N. Yeltsin and made a fortune when his oil company was taken over by a state-controlled enterprise in 2003. According to Mr. Levy of CityRealty, the sale of his six-bedroom apartment surpassed the building’s previous highest price, $37.5 million in 2009 — for the same unit.

Nearby, at Zeckendorf Development’s 202-unit 15 Central Park West, apartments sold for $45 million and $35 million, both around the same time in the fall. Then there was the $33 million sale in January of a penthouse at 1 Central Park West, a.k.a. the Trump International Hotel and Tower.

Speaking of Trump, the real estate developer and presidential hopeful Donald J. Trump sold one of his two investment penthouses at Trump Park Avenue, at 502 Park Avenue, last summer for $21.38 million to a founder of the supermarket chain Fresh Market, Ray D. Berry.

Paul McCartney and his wife, Nancy Shevell, bought a duplex in glass-faced 1045 Fifth Avenue for $15.5 million. Credit From left: Linda Jaquez for The New York Times; Evan Agostini/Invision, via Associated Press

In other celebrity sales, the palatial triplex where the comic Joan Rivers lived for more than a quarter of a century until her death last year at age 81, was sold by her estate in July for $28 million. The buyer of the apartment, at 1 East 62nd Street, was said to be Middle Eastern royalty.

Also, Jon Bon Jovi, the rock star, sold his penthouse at the New Museum Building, at 158 Mercer Street, a.k.a. 583 Broadway, for $34 million.
And Stephen Griggs, whose family business had owned the British footwear company behind the Dr. Martens brand of boots, paid $17.26 million for an apartment at 35XV, Alchemy Properties’ glass-and-stone high-rise at 35 West 15th Street.

The Carlton House condop at 21 East 61st Street, meanwhile, had a $52 million penthouse sale.

Co-ops
Two of the year’s top five sales were co-op apartments, including one that shattered the city’s record for co-ops: the $77.5 million purchase of a duplex on the 11th and 12th floors of 834 Fifth Avenue, designed by Rosario Candela.

The unit was sold in early spring by Woody Johnson, the owner of the New York Jets, to the Ukrainian-born billionaire Leonard Blavatnik. The previous co-op record was set in 2014, when the hedge fund manager Israel Englander paid $71.28 million for a duplex at another Candela building, 740 Park Avenue.

The same week the new record-holder surfaced in late March so, too, did the official closing of the year’s second most expensive co-op at $67.5 million: a full-floor apartment on the 18th floor of the Sherry-Netherland, at 781 Fifth Avenue. The seller was Gilbert Haroche, a founder of Liberty Travel. And in early May, a triplex at 775 Park Avenue sold for $35.14 million; the buyers were Elizabeth Right, the daughter of Stephen A. Schwarzman, a founder of the Blackstone Group, and her husband, Andrew Right.

There were other boldface deals in co-ops. This past spring, Paul McCartney and his wife, Nancy Shevell, bought a duplex at 1045 Fifth Avenue for $15.5 million.

220 Central Park South, with cranes, is under construction. A triplex at the fast-selling building reportedly is in contract for $200 million. Credit Edward Caruso for The New York Times
Just down the street and a few months later, Jeff T. Blau, the chief executive of the Related Companies, sold his apartment at 1040 Fifth Avenue, yet another Candela building, for $30 million. And across the park, the architect Cesar Pelli, known for the design of some of the world’s tallest buildings, bought a lower-floor apartment at the San Remo, at 145 Central Park West, for $17.5 million.

Two other big sales took place on Central Park West. T-Mobile’s chief executive, John J. Legere, paid $18 million in October for a duplex penthouse once occupied by William Randolph Hearst, at 91 Central Park West. And the estate of Lauren Bacall sold for $21 million the apartment at the Dakota, at 1 West 72nd Street, that the legendary actress called home for more than half a century until her death last year at age 89. Ronald N. Beck, a hedge fund manager, and his wife, Cynthia Lewis Beck, were the buyers.

Townhouses

The year’s most expensive townhouse, at 125-127 East 70th Street, sold for $37 million. (The record is still the 2006 sale of the Harkness Mansion at 4 East 75th Street, for $53 million.)

 

But most of the buzz seemed to center over the $18.25 million sale of a townhouse owned by Sarah Jessica Parker and Matthew Broderick. The famous couple took a loss on the 25-foot-wide Greek Revival-style townhouse, at 20 East 10th Street in Greenwich Village, for which they paid nearly $19 million in 2011, and likely spent more on upgrades. A nearby house that they were once reportedly in contract to buy, at 16 East 10th Street, sold for a tidy profit, at $32 million. The developer David Amirian, and his business partner, Warren Hammerschlag, an orthopedic surgeon, had paid $11.2 million in 2012 for the house, which had been owned by Pen and Brush, a nonprofit group for female artists and writers.

Mr. Levy noted that some buyers see townhouses as relative bargains. “Generally speaking, we’re seeing price per foot substantially less than in new buildings, so certain people see them as a value proposition given the size,” he said.

In another notable sale, a Facebook founder (no, not that one) was the likely buyer of a $22.3 million four-story Greenwich Village townhouse with a separate rear studio, at 157 West 12th Street. Chris Hughes, one of the five founders and a roommate at Harvard of Mark Zuckerberg, the Facebook chief executive, bought the property, according to a source familiar with the private transaction who requested anonymity. The seller was Michael P. Stewart, a money manager.

Brooklyn

The borough broke a record for its most expensive residence with the $15.5 million sale of a nearly 27-foot-wide, three-story brick townhouse in a historic district of Cobble Hill. The photographer Jay Maisel bought the house, at 177 Pacific Street, after selling his previous home and studio — the gritty six-story former Germania Bank building at 190 Bowery in Manhattan — to Aby J. Rosen’s RFR Holding for $55 million.

Mr. Osher of Core predicted more record closing sales in Brooklyn’s townhouse market in 2016. “We’ll see a $20 million-plus sale,” he said. “Once the townhouse buyer realizes they can’t get what they want in Manhattan, they’ll be looking in Brooklyn.”

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