Victor Jung

CEO, V Global Holdings

Chelsea residents file lawsuit to halt “monstrous” condo – Victor Jung

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Community group claims city may have improperly approved the 11-story West 16th St. project

March 02, 2017 10:00AM

124 West 16th Street rendering (Credit: Einhorn Development Group via DNAinfo)

A neighborhood community group is suing the developer behind a planned 11-story residential building on West 16th street, claiming its plans may violate city codes and could have been improperly approved.

Einhorn Development Group is planning to build an 14-unit condominium building at 124 West 16th Street, DNAinfo reported. The building is next door the French Evangelical Church, which sold its air rights to the developer in 2014.

But a community group called “Save 16th Street Committee” has been fighting the plans — which they describe as “monstrous” — ever since. Last week, the group filed a petition in Manhattan Supreme Court, asking the Department of Buildings to release documents the group argues could prove Einhorn’s plans violate city statutes and codes, or that the department improperly approved the project.

Einhorn was originally planning to build a six-story building on the site, but filed a “post-approval amendment” with the DOB, according to the publication. The committee and its representatives submitted several Freedom of Information Law requests, which have not yet been resolved, according to the petition.

“The people in the neighborhood have every right to be enraged. It’s just really incomprehensible why we can’t get answers from them,” said an attorney for the committee, Stuart Klein. “We’re not asking for anything that they’re not required to give us.”

A DOB spokesman told the website the department hasn’t yet been served with the committee’s petition, and that the agency is still reviewing the FOIL request. [DNAinfo] — Miriam Hall

Tags: Einhorn Development Group, residential real estate

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.)

Take a look inside this UES townhouse asking $85M: VIDEO

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Developer Keith Rubenstein’s lavish home has Hermès leather walls and more

March 04, 2016 05:15PM
By Alistair Gardiner

3 (1)

Is any home worth $85 million? That’s debatable, but this townhouse at 8 East 62nd Street, which is listed for that amount, certainly features every lavish detail you can possibly imagine (Hermès leather walls anyone?) –plus a whole lot more. Watch our video for an inside look at the fourth most expensive listing in the city.

 

Stream of Foreign Wealth Flows to Elite New York Real Estate – Victor Jung

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On the 74th floor of the Time Warner Center, Condominium 74B was purchased in 2010 for $15.65 million by a secretive entity called 25CC ST74B L.L.C. It traces to the family of Vitaly Malkin, a former Russian senator and banker who was barred from entering Canada because of suspected connections to organized crime.

Last fall, another shell company bought a condo down the hall for $21.4 million from a Greek businessman named Dimitrios Contominas, who was arrested a year ago as part of a corruption sweep in Greece.

A few floors down are three condos owned by another shell company, Columbus Skyline L.L.C., which belongs to the family of a Chinese businessman and contractor named Wang Wenliang. His construction company was found housing workers in New Jersey in hazardous, unsanitary conditions.

Behind the dark glass towers of the Time Warner Center looming over Central Park, a majority of owners have taken steps to keep their identities hidden, registering condos in trusts, limited liability companies or other entities that shield their names. By piercing the secrecy of more than 200 shell companies, The New York Times documented a decade of ownership in this iconic Manhattan way station for global money transforming the city’s real estate market.

Many of the owners represent a cross-section of American wealth: chief executives and celebrities, doctors and lawyers, technology entrepreneurs and Wall Street traders.

But The Times also found a growing proportion of wealthy foreigners, at least 16 of whom have been the subject of government inquiries around the world, either personally or as heads of companies. The cases range from housing and environmental violations to financial fraud. Four owners have been arrested, and another four have been the subject of fines or penalties for illegal activities.

The foreign owners have included government officials and close associates of officials from Russia, Colombia, Malaysia, China, Kazakhstan andMexico.

FORMER RUSSIAN SENATOR
VITALY MALKIN
Official who battled the Canadian authorities over entering their country.  See others »

They have been able to make these multimillion-dollar purchases with few questions asked because of United States laws that foster the movement of largely untraceable money through shell companies.

Vast sums are flowing unchecked around the world as never before — whether motivated by corruption, tax avoidance or investment strategy, and enabled by an ever-more-borderless economy and a proliferation of ways to move and hide assets.

Alighting in places like London, Singapore and other financial centers, this flood of capital has created colonies of the foreign super-rich, with the attendant resentments and controversies about class inequality made tangible in the glass and steel towers reordering urban landscapes.

Where it made landfall in New York, in the wake of the Sept. 11 attacks, was the Time Warner Center. More than a decade on, even as a row of sky-piercing palaces rises on the southern rim of Central Park, the Time Warner Center remains the New York archetype of the global phenomenon, reflecting intertwined trends — the increasing sums of foreign money in high-end real estate and the growing use of shell companies.

About $8 billion is spent each year for New York City residences that cost more than $5 million each, more than triple the amount of a decade ago, according to the website PropertyShark. Just over half of those sales last year were to shell companies.

Article republished from NY Times – Feb 7, 2015 – Louise Story and Stephanie Saul.

Original NY Times Article

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

Delshah Raises over $102MM from two bond issuances in Tel Aviv

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NEW YORK, Jan. 13, 2016 /PRNewswire-iReach/ — Delshah Capital Limited, a full-service commercial real estate investment and property management company, today announced the successful public tender of over $102 million of corporate bonds (400 mm NiS), which will be traded on the Tel-Aviv Stock Exchange.

Delshah Capital Limited, A full service commercial real estate and property management company.

The offering was oversubscribed by more than 50% and included some of Israel’s most prominent institutional investors such as Harel Insurance, Migdalia Insurance, Meitav Pension, IBI mutual funds, Union Bank, Excellence and Menora mutual funds as well a number of major hedge funds.

The offering was supported by Delshah’s existing portfolio,with a gross asset value of over $500 million USD with a leverage rate of below of 40%, pre offering. The assets are all located in New York City, and contain prominent locations in NYC’s meatpacking district, Soho, the West Village and Herald Square. The proceeds will be used partially for investments into the existing portfolio and to fund Delshah’s pipeline of value add New York real estate investments.

“We are thrilled with the incredibly successful bond offering which came as a result of the hard work put in by our deal team” noted Michael Shah, Principal of Delshah Capital. “Our investment and asset management expertise, as well as our portfolio of cash flowing assets backed by credit tenants in prime NYC locations, was very well received by the market. It was clear during the road show that investors were getting the story behind the Company and its strategy. The Company intends to put in place a comprehensive investor relations program to keep our new investors informed about the Company’s progress. This offering puts in place a company structure which will allow Delshah to continue to take advantage of attractive investment opportunities for many years to come.”

“This successful offering is a major step for Delshah,” said Jeff Bogino, Managing Partner of Delshah Capital. “Through the public bond tender we have not only further institutionalized our platform, but have expanded our stable of capital partners to include the largest and most prominent Israeli institutional investors. We look forward to expanding those relationships over the coming years.”

Delshah was advised on the offering by the Israeli advisory firm InFin, led by Yehonatan Cohen and Yossi Levi, and the bonds were distributed by Clal Finance Underwriting. “The investors were attracted to four main themes in the Delshah offering: 1) Delshah’s consolidated 100% ownership of all of the subsidiaries, 2) the asset locations in premiere NYC neighborhoods, 3) the low existing leverage and 4) stable cash flow and in house management. Infin was able to communicate these themes to the Israeli marketplace for the Company and secure very attractive rates.” said Yehonatan Cohen. Infin also was the lead advisor for the Related Companies Israeli issuance, and is building a roster of sophisticated US real estate companies for cross border capital advisory. Delshah was represented by Goldfarb Seligman & Co in Israel, and by Kasowitz Benson Torres & Friedman LLP in the U.S., and auditing services were provided by Deloitte Israel.

About Delshah Capital: Delshah Capital is a full-service, vertically integrated commercial real estate investment firm specializing in acquiring, developing and managing multi-family, retail and office properties throughout New York City. Founded in 2006 by Michael Shah, Delshah is comprised of over 40 professionals within its commercial real estate investment and property management groups. The firm utilizes a fundamental, value-driven approach to its investments and has expertise in identifying, financing, structuring and managing real estate investments on behalf of institutional clients and for its principal account. Delshah owns a portfolio of more than 2 million square feet valued in excess of $500 million. For more information, please visit www.delshah.com.

News distributed by PR Newswire iReach: https://ireach.prnewswire.com

Photo – http://photos.prnewswire.com/prnh/20160112/321682

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