FINAL STRETCH OF 2013

As the summer months come to a close, interest rates on the rise, and a new Mayor to be elected in the coming months, the New York City investment real estate sales market is heating up.

In order to avoid a bubble in the real estate market, the feds are raising interest rates. To what extent interest rates will increase is anyone’s guess. Our current Mayor, Mayor Bloomberg and friends decided to lower the tax rate for some property classes and increase the assessed value, even though values decreased during the recent recession years, which ultimately raised property taxes.

Due to New York City’s potential $2Billion plus budget deficit, our next Mayor, be it Republican nominee Joe Lhota or Democratic nominee Bill de Blasio, most likely will raise property tax rates. Historically, when New York City needs to raise revenue, bureaucrats pick the pockets of landlords.

The good news is that international and national smart money investors are pouring capital into New York City’s properties. Recently, 33 buildings traded in the Manhattan Valley section of the Upper West Side for $246MM in two transactions. An additional 12 buildings sold in the UWS bringing the total number of buildings sold to 45 in the third quarter of this year alone.  In 3Q12 only 12 buildings sold in 10 transactions. Despite the rise in capital gains tax in 2013 to 23.8% from 15% in 2012, transaction volume rose 375% from 3Q12 and the 3Q13 dollar volume $396,785,000 is more than triple or about 318% higher than last year’s 3Q12 dollar volume of $124,845,000. This dynamic is due to the lack of supply and overwhelming demand in the current market. Expect this trend throughout the remainder of this year.

As you know, we offer a complimentary opinion of value for your buildings. I would like to thank those of you who took advantage of this opportunity. If you do want to know what your buildings are worth, call 212-300-3289 or email me alex.isak@goldenwood.nyc . I would love to show you some ways you can add value to your buildings and sell at the highest and best price with the best terms possible.

These sales are a great sign of confidence operators and investors have in the future of the Upper West Side.  Demand to live and invest in the area continues to grow to an all-time high.  I look forward to sitting down with you before the close of 2013 to discuss your buildings worth and your real estate goals for 2014.

For questions about your property or for further information on this article, Alex can be reached directly any time at 212-300-3289.

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About alexisak

Born and raised in Queens New York, Alex Isak, a Director of Sales for Goldenwood Property Advisors, is a helpful man who breathes Commercial Real Estate. Alex Isak has brokered numerous transactions within the five boroughs and specializes in multifamily and mixed use property on the Upper West Side of Manhattan. In his spare time, Alex Isak helps raise funds for various charities and coaches a junior varsity basketball team in Forest Hills, New York. To date, Alex Isak helped raise over $1,000,000.00 most of which went towards early childhood education.
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One Response to FINAL STRETCH OF 2013

  1. Jack Reylan says:

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