Archive for category: Blog

Department of Buildings Cracks Down on Real Estate Agents and Brokers

Ron HershcoSome interesting news came out recently. According to a recent New York Times article, the Department of Buildings has begun issuing fines to agents and brokers who advertise and show illegal apartments for rent. This is a huge deal for not only real estate agents and brokers, but the real estate industry as a whole. The fines have been issued to agents and the companies that they work for and start at $3,600 and can reach as high as 5 times that amount depending on the type of violation.

Here is an excerpt from the article with some further background.

From January to March, inspectors combed through listing Web sites like craigslist, and then, posing as curious potential renters, went to see 50 apartments they considered suspicious. (Telltale signs of an apartment without the proper certificate of occupancy might be a listing that says all utilities are included, for example.)

The department issued fines to 10 agents, including agents at Douglas Elliman and Halstead Property, for listing apartments in a variety of neighborhoods and boroughs, including Park Slope and Brighton Beach in Brooklyn, and Hamilton Heights in Upper Manhattan. All of the apartments were in the basement or the cellar, and most did not have the required two means of egress, the department said. The department says the building code gives it the right to issue fines to agents; in the future, it may go after brokers who supervise the agents as well.

How far the Buildings Department will actually go to crack down and the steps that they will take in the future is still up in the air. However, if this is any indication of how things will be moving as time goes on, real estate agents, brokers and their companies alike will have to take caution in showing or advertising illegal apartments for rent.

(img src)

An Empire State Battle

Ron Hershco - Empire State

For those who missed the New York Times’ article this weekend in regards to the recent battle taking place over the Empire State building, you’ll get to see how it plays out today in court. Here is a quick synopsis of what’s about to play out from the Times:

On one side are the New York real estate barons Peter L. Malkin and his son Anthony E. Malkin, who control the landmark tower but are minority owners. They are within a whisker of landing the deal of a lifetime, valued at $5.2 billion, that would offer to the public shares in 19 properties in the New York area that they oversee, including the crown jewel, the Empire State Building.

The offering would catapult the Malkin family into the elite of Manhattan real estate, valuing their stake at an estimated $730 million and installing Anthony Malkin as chairman of a major new company, Empire State Realty Trust.

What some are forgetting in this legal battle is taking into account the celebration of what of New York’s most treasured real estate landmarks. It was yesterday, April 28, 2013 that the Empire State Building celebrated it’s 82nd birthday. It’s a shame that such a legal battle overshadows something that is a staple of New York City.

It’s interesting to see how certain properties around the city actually change to non-other than a piggy bank for folks who are looking to cash in. The time, effort and design that went into these properties seems to be thrown to the background when it comes to cashing in on investments and making some extra money. This is a piece of history and it seems as if sometimes we forget about what’s really important and what matters in times like this.

Either way hopefully a resolution is reached in a quick and orderly manner. Although, it seems as if this is going to be a long drawn out process. Only time will tell.

(Img src)

Trying to Cope with a Neighbors Renovation

Ron Hershco Renovation

We’ve all be there in the past. One day you’re pulling into your driveway or walking into your building, all things are clear and then the next there’s scaffolding set up and contractors moving about. Unless you’ve put in for some new renovations it can only mean one thing, your neighbors are making a few changes to their place and you have got to grin and bear it until the changes are done.

However, there are a number of things that you can do to help you cope with the noise, debris and other ‘annoyances’ during the real estate makeover. Ron Hershco actually just read a great article in The New York Times about what others can do to help deal with the pains of a neighbors renovation. The highlights are below:

  • Adjacent homeowners ask to be added to the renovating neighbor’s insurance policy, and also have their own architect or engineer review the construction plans. That is especially important if your neighbor plans to dig a lower level deeper than yours, as it may require shoring up your foundation.
  • Take as many pictures as possible just in case any damage happens to your property.
  • People concerned about a renovation project first try to communicate with the neighbor who is doing the work, and then become involved in the permit-approval process.

The New York City Department of Buildings (nyc.gov/buildings) also offers resources for neighbors concerned about construction. On its Web site, you can enter an address and get information about jobs that have been filed for it, a record of any complaints or violations, and whether they have been resolved.

These are only a few tips from Ron Hershco. But there are lots of other things you can do. And remember, if renovations are happening at your neighbors have patience. They are you neighbors and unless you’re renting, you’re going to have to live there for a long time. There are a lot of things worse than a few weeks of renovations, right?

(Img src)

The Evolution of Manhattan Real Estate

At 1,004 feet the tallest apartment house in New York, will open later this year at 157 West 57th Street. It is going to be the highest and most expensive condominiums in the history of New York. However, what a few folks might not know if that just across the street once housed the long-gone Rembrandt. The Rembrandt was built in 1881, was only six stories high and was New York’s first even co-op.

Hard to believe how far we’ve come in the real estate marketing over the recent years. Ron Hershco has been in the business since 1992, starting his career at a small agency and working his way up through the ranks. In that relatively short time period, Ron has seen prices rise and fall, new buildings sprung up and the evolution of the Manhattan real estate market.

According to a recent New York Times article about the Rembrandt:

The internal arrangements are hard to reconstruct, but the building had at least one elevator and duplex units with as many as 12 rooms.  Various early accounts mention sales of $4,000 to $5,000, and maintenance as low as $50 per month.

It’s going to be interesting to see where the Manhattan real estate market is headed in the future. The market can be touch and go day by day, but Ron Hershco knows a thing of two about real estate. Always looking to the future, Ron has his focus on urban development, affordable housing and high-rise condominium complexes.

(Img src)

Israelis Continue Activity In Real Estate

Israelis worldwide continue to be very active worldwide in the real estate industry. Ron Hershco of Hershco Properties continues to search more for properties – and Africa Israel USA (AFI USA) announced that they had closed on the sale of the Rialto Building, a landmark turn-of-the-century office and retail property situated in San Francisco’s South Financial District.

They are selling the nine-story building only six weeks after placing it on the market. The Rialto Building, boasts creative, open floor plans, high ceilings and abundant light. Originally built in 1902, the H-shaped Renaissance-style Revival building was designed by architects Meyer & O’Brien. After the great earthquake of 1906, the Rialto Building’s interiors were completely rebuilt, although, the exterior structure made of steel, brick and concrete was left intact.

Located at the intersection of Mission and New Montgomery streets, the Rialto Building is situated in the heart of the South Financial District, one block from both BART and the Transbay Terminal Redevelopment.

For real estate news follow Ron Hershco on Twitter at: https://twitter.com/RonHershco

Soure: http://www.jewocity.com/blog/israelis-continue-activity-in-real-estate/7974

Ron Hershco Admires Chelsea Clintons Purchase of Prime NYC Real Estate

Ron Hershco knows that New York City Real Estate can be incredibly luxurious. This is especially true for the apartment recently purchased by Chelsea Clinton and her husband.

New York City is renowned for its real estate. The reputation is partly built upon the beautiful architecture that can be viewed in any direction, in nearly any area of the city.  The location itself adds incredible appeal to the real estate. NYC Real Estate has also been the vehicle of helping entrepreneurs attain the American Dream, Ron Hershco being a great example of such an entrepreneur. But NYC Real Estate’s reputation isn’t 100% positive. It has earned a degree of notoriety for being one of the highest costing housing markets in the country.

Because of the high price of housing, most people aren’t surprised to hear that Chelsea Clinton and her husband spent $10.5 million on a 5,000 square foot apartment located in the flatiron district of Manhattan.

OMG covered Clinton’s new pad. You can read a portion of the article below:

Ron HershcoChelsea Clinton, Husband Buy $10.5M New York City Apartment

By  | omg! – Thu, Mar 14, 2013 1:59 PM PDT

“…The married couple of three years has traded in their “measly” $4 million apartment for a much more spacious (and much more expensive) $10.5 million pad located in Manhattan’s Flatiron district, a source confirms with omg!.

The new Clinton-Mezvinsky abode is sprawling (and not just by NYC standards) at nearly 5,000 square feet, and is housed inside luxe building The Whitman. The place boasts four bedrooms, six and a half baths, a state-of-the-art kitchen, planting terrace, home office, and media room – not to mention amazing views of Madison Square Park across the street…”

Read the Full Article Here

Sources from OMG confirm that the Clinton Apartment took up 2 levels of the apartment building. And like most high end real estate in New York City, the building the Clinton’s now live in was first erected nearly 100 years ago. Which suggest another appeal of New York City real estate that draws in entrepreneurs like Ron Hershco: there are so many beautifully building available to develop and redesign, blowing a breath of new life into historical buildings of the city.

 

 

Ron Hershco Brings Exciting New Ideas to NYC Real Estate Development

Ron Hershco NYC Real Estate Development

There is an exciting frontier in the area of NYC real estate development, and Ron Hershco is on the forefront of it. As an entrepreneur, Ron Hershco brings exciting new ideas to NYC Real Estate Development. There are many opportunities in the Big Apple for renovation of older buildings as well as the development of land for new building projects.

So what exactly is NYC real estate development? Real estate development involves the release and renovation of old buildings as well as the purchase of raw land and the sale of improved land. A developer oversees and coordinates all of these activities. Developers are the minds that convert ideas on paper into reality.

Ron Hershco has been one of the most significant and greatest minds in NYC real estate development. After working for some time with a real estate company, he decided to branch out and start his own company  to develop areas of New York City. As an entrepreneur, he has found immense success in this area for nearly twenty years.

Ron Hershco has handled a number of significant developments, overseeing  projects and breathing new life into old properties. One such development is The Meridian in Long Beach. Overlooking the Atlantic Ocean, this luxury residence is a seamless contemporary melding of style and beauty.

As a New York resident himself, Ron Hershco sees the importance of development every day. Old buildings are being renovated to not only improve the look of the city, but also to improve the lives of the people living in and around the developments. As an entrepreneur dedicated to NYC real estate development, Ron Hershco takes pride in helping to make these improvements. His company has even helped development by gifting a public school in Queens.

NYC real estate development is an exciting area and developers such as Ron Hershco work hard to make the city the best it can be. They take immense pride in their work and the improvement that they have made to the city.

Manhattan suffers renter fatigue says Ron Hershco

It’s been widely known that rents in Manhattan have been steadily increasing, but there has been a buzz in the industry that the rental market is finally taking a rest for a while.

Rents have been rising 5% consistently year-over-year and then there was a dip in prices between the third and fourth quarters of 2012.

Brokers in the market agree too and they are starting to see stabilization of rents. However, some noted that the market is still strong and argued that the recent change was nothing more than a seasonal downshift. And others say that some renters have decided not to be paying increased prices.

Jonathan Miller, a real estate analyst said that the difference in median rent between Manhattan and Brooklyn has “compressed” slightly last year. There’s a number of Manhattanites who are turning to the outer borough for more affordable rents. And Miller understands that shift, “Anytime you have out-of-control growth that doesn’t self-regulate, it always ends badly,” he says.

Ron Hershco, a property developer in New York believes that the market needs to stabilize itself for a while. Renters don’t want to be always pressured for that 5% increase each year.

Another tactic some renters are doing is that they may attempt to buy a property versus renting, but their lack of qualifying for a loan ends up being a barrier to purchase. Douglas Wagner of Bond New York Properties noted that renters who were fleeing the market in the fourth quarter of 2012 are now returning to our rental offices to sign another lease for a property.

The Manhattan rental market needs a break for a moment, but there’s no doubt that it will pick up and that rents will increase again.

Ron Hershco Comments on the Most Anticipated Real Estate IPO of the Year

Initial public offerings by real estate companies have been all the buzz in the New York City area. 2012 was a good time to turn to Wall Street to raise money from the public markets. Companies including the real estate website Trulia, the private equity firm the Carlyle Group and Realogy, and the residential brokerage Corcoran Group and Citi Habitats have all capitalized by using massive IPOs. These companies have also reaped the rewards of cash infusions as a real estate investment trust also known as  REIT.

This year is not expected to be as sizzling as 2012, resulting from multiple firms already listed on the stock exchange, and many having more luck drumming up capital without Wall Street as the cost of debt comes down.  Observers predict some real estate IPO activity. The real estate industry can expect to see IPOs from less-obvious real estate firms, including storage and outdoor billboard advertising companies.

Ron Hershco, a real estate developer in New York City agrees that IPOs can come from large to small companies. There was an element of surprise in 2012 and it will be interesting to know what 2013 will bring.

In turn the most anticipated real estate IPO of the year is a portfolio that includes Manhattan’s landmark Empire State Building.  Owner of the building’s lease Tony Malkin, President of Milkans Holdings LCC, is looking to issue an IPO for the famous Empire State Building. Last month Empire State Realty Trust investors commenced voting on the fate of the company’s IPO aimed to provide liquidity for the new REIT anchored by the world famous office tower.

The notorious cloud buster provides momentous sources of revenue through its office and retail leases, observatory operations and broadcasting licenses.  The portfolio consists of 12 total office properties reaching approximately 7.7 million rentable square feet of office space, most located in the Manhattan area.

According to filings from the Malkin family, they have offered investors a variety of options including class A shares, operating partnership units, or a combination of OP units and class B shares. This includes tax deferred options that gives investors flexibility in tax deferral. In a video released by Malkin, the argument is aimed at broader diversification and better banking terms. He said, “By putting these properties together, we believe all investors will benefit through ongoing dividends with the potential to increase through property performance, better financing, more efficient operation and beneficial acquisitions. The potential for increased distributions from dividends and stock appreciation over time offers benefit for all investors.”

With REITs holding at least 75 percent of their assets in real estate, The Malkins aren’t the only ones that will be attempting to create a REIT in 2013. The New Year rang in a booming stock market, resulted in a focus on sector-dominating companies that have assembled blue-chip portfolios of the best income-producing assets in multifamily housing, regional malls, strip centers, office buildings, and distribution facilities. In a low interest rate environment investors have flocked to the high yielding dividend of REITs.  Many companies offer yields in excess of 10 percent.  “REITs are not taxed at a corporate level, but you’re required to dish out at least 90 percent of its taxable income as dividends to investors. The improving U.S. housing market has tremendously helped boost investors’ interest for real estate investment trusts,” said Ron Hershco.

 

Rising Trends of Real Estate Markets According to Ron Hershco

Real estate economists and industry reports said their predictions depend on next year’s accuracy for mainstream forecast of economic growth and assume that the economy won’t experience an earthquake from falling off the fiscal cliff.  Emerging trends show a sharp turnaround for the upcoming year.  Analysts have officially released important trends and issues of 2013 that you need to know affecting U.S. real estate markets.

Ron Herscho is a distinguished real estate developer, a pioneer in the New York real estate market.  He developed the Meridian a luxury residence overlooking the Atlantic Ocean and 306 Gold Street a 40 story glass building that overlooks downtown Brooklyn’s skyline. Ron focuses on urban development, affordable housing and high-rise condominiums in the New York area. His mission goes hand in hand with 2013 real estate trends by providing high quality affordable living and to make buying a home a simple experience.

The Emerging Trends in Real Estate report has been a reliable forecast for real estate developers and investors across the nation. The rising trends include:

• Focus on maturing infill locations, such as properties near mass transit stations and commercial areas near hip residential communities.

• Construct new-wave office and build to core in 24-hour markets. Build green, tenants will pay higher rent for buildings with efficient design layouts and lower operating costs.

• Develop industrial facilities in major distribution centers near ports and airports.

• Be cautious when investing in secondary and tertiary cities. Partner with local operators who understand the local tenant trends and issues. The leading secondary markets comprise Austin, Charlotte, Nashville and San Jose.

• Steer clear of apartment development in low-barrier-to-entry markets.

• Investing in single-family housing funds, will add to rental supply and compete against apartments.

• Repurpose the excess of out-of-date properties. Facilities such as vacant centers, old office parks and low-ceilinged warehouses are prim candidates for renovation or redevelopment.

Ron Hershco agrees that real estate firms boost profitability at the margins by keeping lean; anticipation of 2013 will be a reasonably good year for bottom lines. Stronger capitalized firms should continue to gain market share, but the overall size of the Industry will not change.