Ed Freiberg January 2023 Newsletter

FROM THE DESK OF YOUR VEST-DRESSED SALESPERSON

JANUARY 2023

Hi Friends,

As we reach the end of January, the real estate market is slowly emerging from its winter slumber. New
listings are coming online, and buyers are resuming their home searches. Empirically we are seeing an uptick in activity... Maybe buyers are tired of sitting on the sidelines, maybe sellers are being more flexible on pricing.  Maybe both and mortgage rates have been trending downward since the beginning of the year and are currently at the lowest
they've been since September. It's a smart time to buy... and guess what I can help you! Let's grab a coffee or breakfast or lunch, or or or let's just meet up! 


This is an action packed newsletter... Let's celebrate hope, harmony and abundance by ringing in the Year of the
Rabbit, one of the Chinese Zodiac's most auspicious signs, at one of the many Lunar New Year celebrations happing all around the city... Plus is the city ready for a casino? We look at 4Q results in Manhattan and Brooklyn and are we finally going to see office space turned into resi space?  All of this and some of our great great listings below... Have a fantabulous day! 

Ed 
917 592 5971 

MARKET ROUNDUP

RECAPPING THE END OF 2022

While last year came to a quick standstill in the waning months, the Compass Q4 2022 Manhattan Market Report shows that 2022 actually ranked 4th in annual sales over the last decade. The total number of sales dipped 19.7% year over year, while total sales volume dropped 17.8%, buoyed by slight price increases and more transactions of larger homes. Price per square foot rose 3.1% YOY, while the average square footage of homes sold rose 16.6%. "The market now more closely resembles pre-pandemic levels, dismissing any doomsday narratives and pointing to a continued market rebalancing after two years of frantic and unsustainable record activity," the report explains.

The Q4 2022 Brooklyn Report describes Brooklyn as a market "recalibrating as it shifts to a more sustainable model after once-in-a-decade activity levels." While contracts dropped 38.1% YOY in Q4 and prices declined across property types, bright spots were found in North Brooklyn neighborhoods Greenpoint and Williamsburg, where volume rose 4.9% — the only submarket in the borough to show an uptick in sales.

IS TURNING OFFICES INTO HOMES THE SOLUTION TO NYC's HOUSING ISSUES?

In a city with practically zero buildable land, it takes a lot of creativity to add residential living space and ease a housing shortage. One interesting approach to revolutionizing New York City would be to create usable living space out of existing office towers that are increasingly underused. According to The New York Times, there is nearly a billion square feet of vacant office space across the country that could be better used as homes, retail space, classrooms or even artist's studios. After all, in New York, we know that where the artists go, everyone else soon follows. See: The Village, SoHo, Williamsburg and Bushwick.

The major challenge in repurposing office buildings is that they're simply built differently than residential buildings, making them exceedingly expensive to convert. According to Moody's, in New York, just 3 percent of buildings would be viable for apartment conversions. "But if office value eventually dips low enough, some real estate developers are noting, the math for more conversions could begin to work out."

In the 1990s, New York State passed a 421-g tax abatement program that resulted in nearly 13 million square feet of office real estate being converted to housing. In December, Gov. Kathy Hochul and Mayor Adams proposed changes to state law that would encourage more office conversions to housing. One such success story is One Wall Street, a 1931 bank building converted to 556 luxury residential units with jaw-dropping amenities.

MY NEW YORK CITY – LUNAR NEW YEAR

Lunar New Year kicked off last weekend, and throughout the city, you'll find lively events celebrating the Year of the Rabbit now through early February. The rabbit is considered the luckiest of the 12 zodiac animals, so plan to kick off a year of prosperity at one of these special New York neighborhood celebrations.

The Chinatown New Year Weekend Fair takes place on Jan. 28 and 29 at Downtown's East Broadway Mall.

The Lunar New Year Parade returns to Lower Manhattan at 1 p.m. on Feb. 12, stretching from Mott Street down to East Broadway and culminating at Sara D. Roosevelt Park with dragon dancing, vendors, and more.

At Chelsea Market, New York institution Pearl River Mart will offer dance performances, happy hour and food specials on Jan. 28 between 5 p.m. and 8 p.m.

At Lincoln Center's David Geffen Hall, the New York Philharmonic is putting on a special performance on Jan. 31 to ring in the Year of the Rabbit featuring violinist Ning Feng.

Another Lincoln Center event will honor Lunar New Year with The Sound of Spring — an authentic Chinese New Year concert specially selected for the people of New York — on Jan. 28 at the Jazz at Lincoln Center's Frederick P. Rose Hall.

In Downtown Brooklyn, enjoy traditional lion dance performances at Albee Square on Jan. 28 between 2 p.m. and 5 p.m.

Head to Queens to enjoy the world-famous Nai-Ni Chen Dance Company that will combine Lunar New Year with the 50th anniversary of hip-hop! The performance takes place on Feb. 5 at Queens College's Colden Auditorium.

CASINOS ARE COMING TO NEW YORK CITY?!?!?

A casino in Saks Fifth Avenue?!? The idea sounds wild, but Hudson's Bay Company, the owner of the Saks Fifth Avenue, recently announced it would pursue a gaming license to convert the top three floors of the 611 Fifth Avenue location into a casino. Last April, the state legislature approved licenses for three city casinos, with a Times Square Caesar's Palace, a CitiField-adjacent casino and a Coney Island venue all in the running.

The Saks proposal has a distinct advantage in that converting three floors of the existing building would likely take under a year. In contrast, projects like the Caesar's Palace destination, which includes a hotel, wellness center, dining venues and a theater, would take much longer. It will likely take a year for any proposal to be granted a state license, but whether it's at Saks or elsewhere, it's not a matter of if the city gets a casino but when.

FEATURED SALES LISTINGS

421 Hudson Street, Unit 418

2 BD   2.5 BA   1570 SF   
$2,975,000

33 Rector Street, Unit 7

3 BD   3.5 BA   2170 SF   $2,275,000

FEATURED RENTAL LISTINGS

114 West 17th St, Unit 4R

3 BD   2 BA   2650 SF   
$17,500/mo.

33 Rector Street, Unit 7

3 BD   3.5 BA   2170 SF   $8,995/mo.

60 East 8th St, Unit 27M

1 BD   1 BA      
$7,000/mo.

90 William Street, Unit 2F

STUDIO   1 BA   845 SF   
$4,400/mo.

Edward Freiberg

Licensed Real Estate Salesperson Licensed as Edward R Freiberg
M: 917.592.5971
ed.freiberg@compass.com

Office: 212-913-9058

Compass is a licensed real estate broker. All material is intended for informational purposes only and is compiled from sources deemed reliable but is subject to errors, omissions, changes in price, condition, sale, or withdrawal without notice. No statement is made as to the accuracy of any description or measurements (including square footage). This is not intended to solicit property already listed. No financial or legal advice provided. Equal Housing Opportunity. All Coming Soon listings in NYC are simultaneously syndicated to the REBNY RLS. Photos may be virtually staged or digitally enhanced and may not reflect actual property conditions.