Tag Archive for: New York City Real Estate

Ron Hershco on Madison Square Garden Losing their Lease

Madison Square Garden

Late last month, when reviewing the lease of Madison Square Garden, the Department of City Planning recommended that its commissioners grant the Madison Square Garden Company a limited 15-year renewal. This means MSG will most likely be leaving the neighborhood in 2029.

The Huffington Post  highlights the current predicament MSG is in:

The Madison Square Company had sought an unlimited extension for The World’s Most Famous Arena, which had been operating under a temporary certificate of occupancy since its 50-year permit expired in December.

Local leaders and community groups, by contrast, had advocated for a 10-year cap, which they said would help force the arena to relocate and make way for an expansion of Penn Station, the busiest and one of the most overcrowded transit hubs in the country. City Planning ultimately tried to find middle ground, Planning Commissioner Amanda Burden said Wednesday.

“The special permit term limit we are approving today recognizes that Madison Square Garden occupies a unique location on top of a major transit hub,” Burden explained, adding that the vote was unanimous.

The City Council has 50 days to vote on City Planning’s decisions, a City Planning spokeswoman said. If it does not, the measures will automatically go into effect.

The Madison Square Garden Company said it was “extremely disappointed” in Wednesday’s outcome.”

Do you think MSG should move from its current home? If so, where should it move to?

Hurricane Season and Flood Insurance – What Ron Herscho Wants You to Know

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The 2013 hurricane season began on June 1 and will officially end on November 30. Ron Hershco believes now is the best time to make sure your properties are covered with you current flood insurance policy.

The Wall Street Journal recently published an article about new FEMA evaluations on how much flood insurance should be attained by multiple mortgage holders:

The Federal Emergency Management Administration is currently re-evaluating flood maps, requiring more jumbo-mortgage holders with homes in high-hazard areas to buy flood insurance. Also, changes to federal law enacted in July are expected to jack up premiums.

Even though flood coverage is only mandated for government-backed mortgages, or conforming loans, lenders generally keep the same requirements for jumbo borrowers who live in high-hazard (Zone A) areas. These are defined by FEMA as having a 26% chance of flooding during the lifespan of a 30-year mortgage.

“The pool of people required to pay flood insurance has dramatically increased,” said Peter Grabel, a senior mortgage loan originator at Stamford, Conn.-based Luxury Mortgage.

Both Bank of America and Wells Fargo require jumbo-mortgage borrowers to obtain the $250,000 maximum coverage available for residential properties under the National Flood Insurance Program (NFIP), which is an arm of FEMA. Homeowners can purchase a second NFIP personal-property policy that covers up to $100,000 to replace a home’s contents.

Homeowners also have the option to buy what is called “excess” flood insurance from private insurers to cover repair or replacement costs above $250,000.”

Where you or your family affected by Hurricane Sandy? Did you have flood insurance before last year’s hurricanes? Do you plan on getting it now?

 

Ron Hershco and Living Under Co-Op Rules

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Can you imagine being told what shoes to wear in your own building? What about having your umbrella and rain boots taken away when you leave them outside your door to dry for a quick moment? How about being told you can have a dog, just not the breed of dog you currently own? These are just a few examples of harsh co-op board rules that exist in NYC.

Ron Hershco recommends getting a list of the co-op board rules for living BEFORE putting in an application. There most likely won’t be a rule to make you not buy the apartment of your dreams, but if you’re early in your process, a known list of rules could help you narrow down your options.

A recent article in The New York Times gave a more detailed background on where these rules came from:

“The average co-op or condominium has two dozen house rules. “Typically, they’re quality-of-life rules meant to benefit everyone in the closed community,” said Toni Hanson, a vice president and senior managing director of Douglas Elliman.

While there’s good sense behind many of these rules — don’t hang or shake things out the window; lay off the stereo before or after a certain hour — certain strictures can charitably be described as quirky, not to say capricious or overreaching. Your home is your castle? Think again.

It’s all, of course, in the interest of helping a building full of strong-minded New Yorkers coexist in (relative) harmony. Co-op boards have long issued directives about deportment and decorum, and condo boards are increasingly following suit. For the most part, they are well within their rights. Residents can either get with the program or get behind a co-op coup to remove the big-brother board members in their midst.

Generally, thanks to what’s known as the business judgment rule, boards have broad latitude in making, amending and rescinding house rules — the good, the bad and the decidedly wiggy. If board members think a situation needs to be addressed, they can address away without input from residents.”

Have you ever experienced any of these tough co-op rules? Do you think they are fair or unjust? What rules would you make sure to enforce?

Ron Herschco on Illegal NYC Housing Laws

Global rental website Airbnb, which connects short-term renters with budget priced room rentals, has found themselves on the wrong side of the law in NYC. Residents are restricted by NYC law from renting out rooms or apartments for fewer than 30 days, unless they are also living in the home as the same time as the visitor. This is contradicts the basic business plan of Airbnb.

Earlier this month, Ron Hershco commented on the Department of Buildings cracking down on real estate agents and brokers. Now it seems they are heavily pursuing non-licensed renters and average home owners as well.

According to Time Magazine it is not the first time Airbnb has been in trouble:

No stranger to similar controversies in other cities, Airbnb released a statement saying it will continue to fight the legal battle. While its  terms of service say that users are fully liable for complying with local laws, the company maintains that New York City’s laws are not aimed at individual tenants, but instead at preventing landlords from buying residential buildings and operating them as hotels, reports CNN Money. The San Francisco-based company, which currently operates in over 33,000 cities in 192 countries, has raised the ire of authorities elsewhere — most recently in Amsterdam, where the main issue is that local laws, such as paying tourist taxes, are circumvented with Airbnb transactions.

Since New York City’s mayor’s office of special enforcement began carefully scrutinizing short-term rental issues in 2006, it has received more than 3,000 complaints, conducted nearly 2,000 inspections and issued nearly 6,000 notices of violation, according to the New York Times. In January, the travel news site Skift estimated that approximately half of Airbnb’s listings  in New York City “are likely illegal.”

Have you ever rented to or from someone that could violate this new law? Do you know anyone who has?

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.

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Ron Hershco on Getting Your Start in NYC Real Estate

NYC Real Estate Ron Hershco

So you’ve just landed your first job as an agent. You’re probably wondering how you can work your way up. How you can stop showing run-down rooms in Spanish Harlem and the Bronx and move onto higher-priced properties, or sitting behind a desk while someone else does the showings!

Many people have worked their way up from where you are. Real estate mogul Ron Hershco is just one example. He got his start as an agent. And now he’s developing high-rise condo buildings in the city, as well as affordable housing and charity buildings for art classes for low-income kids. Having inside knowledge of how real estate works is key to climbing up the ladder. You won’t land a job as a higher-up without some real knowledge and a sense of the market. Have you lived in NYC for a long time? If not, you should brush up on the style and character of the different boroughs.  And even all the different neighborhoods within them. Knowing not just the real estate game but also the feel of NYC is important.

Because New York is the busiest and most populous city in the country, there’s always work in real estate. People are always moving in and moving out. But even finding the right company to work for can be difficult. When you are at an interview, be sure to mention that you want to be manager material some day. Showing your ambition is a good way to get your foot in the door. It’s also a way to see if the company is really right for you and open to promoting you. If there’s no way up, you can only go down!

Ron Hershco’s own approach to real estate involves working in several types of markets. He builds luxury condo high-rises as well as affordable housing, so if one market fails, the other might stay strong. Having all your eggs in one basket can be a bad idea. Another tip: be sure to dress your best and to “match” the style and personality of your clients and your bosses. You will sell more units if the people who are interested in renting think you’re friendly, and think you’re like they are. The same goes for managers. You want to act like manager material, dress like manager material, and show that you’re interested. The sky is the limit.

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.