It's Trump vs. market in condo project

By Alexandra Clough

Palm Beach Post Staff Columnist

Sunday, January 28, 2007

The condo market is tanking, and many projects are being canceled or put on hold nationwide.

Donald Trump's response? Don't worry. Be happy.

The real estate mogul says his brand is so strong that it now has the power to defeat poor market conditions, wherever they may be.

As proof, he pointed to his latest Trump Tower in Hawaii. Despite a slumping real estate market there, that project sold out for a whopping $700 million in just eight hours, setting a world record. Buyers were from around the globe.

Average unit price: $1.5 million.

Those kind of results are music to the ears of Jorge Perez, head of The Related Group of Miami.

Perez has been trying to drum up pre-sales for his latest planned West Palm Beach condo, Icon Palm Beach, on North Flagler Drive. Even though Perez has a loyal following on U.S. and South American projects, the Palm Beach County market is so tough these days that Perez knew he needed something more: Access to the worldwide market.

Enter The Donald to goose Icon's chances of success. Perez said he's counting on Trump's worldwide name to bring international buyers to his high-priced project, now renamed Trump Tower Palm Beach.

Would Perez have gone forward if he didn't have Trump?

"We think the land and the project are fabulous," he said. "But would we have waited one year for the launch until the market got better? We might have."

Perez said he's not concerned that Trump's bold way of speaking will hurt sales. "He's always been a controversial guy who speaks his mind," he said.

Indeed, Trump has made waves nationally for his verbal attacks on comedian and The View host Rosie O'Donnell, whom he's called a "loser" and "fat pig." Closer to home, Trump's also feuding with Palm Beach town officials over an oversized U.S. flag and flagpole at Mar-a-Lago.

In Trump style, he called these events positive. "Fox did a poll that said 91 percent of Americans are in favor of what I said about Rosie," he said. "And everyone is in favor of the American flag."

So will Trump fly the big flag at Trump Tower Palm Beach when it's done?

"I think we should have one," Trump said. "It's a prominent site, and any prominent site should proudly fly the American flag."

Perez may go along with Trump's over-the-top comments and his flag-loving ways. But one thing's for sure: He won't be joining Trump on the small screen.

Perez said he's frequently asked if he and Trump have discussed filming The Apprentice: South Florida, starring the telegenic Perez. The answer is a big fat no.

"I have no desire whatsoever to be on TV," Perez said.

NYC condos grab larger share of the pie

Brokers predict Manhattan co-op boards may have to relax some restrictions to compete

The Real Deal
By Lauren Elkies
December 2006

It's unlikely that prestigious Upper East Side co-op buildings like 740 Park Avenue and 834 Fifth Avenue are going to let the riff-raff in any time soon.

However, Manhattan co-op buildings as a whole -- despite trumping condos by three-to-one in sheer number -- have been losing a bit of steam as the primary apartment choice in recent years.


Source: Miller Samuel

Despite generally costing more per square foot, condos are taking up an increasing share of the real estate market in Manhattan -- accounting for more than 50 percent of sales in recent quarters.

Some brokers are saying co-ops will eventually have to reposition themselves to adapt: Changes could involve slightly more lax financial requirements and even tweaks to the typical co-op board approval process in some buildings.

Jonathan Miller, president and CEO of appraisal firm Miller Samuel, said he would suspect that in some buildings, "you may see co-ops limiting and, especially in a weaker market, loosening financial requirements." Still, that may take awhile, as many brokers say co-ops are getting tougher on candidates recently, and there are more board rejections now than in a long time.

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Manhattan real estate prices still rising in Q4

2006 was better than last year, says Douglas Elliman CEO

Thursday, January 04, 2007

By Glenn Roberts Jr.
Inman News

Manhattan, N.Y.

Manhattan residential real estate prices climbed overall in the fourth quarter compared to the same quarter last year, several major brokerage companies reported this week. Halstead Property, Brown Harris Stevens, The Corcoran Group and Prudential Douglas Elliman released reports detailing condo and co-op sales and pricing activity for the fourth quarter.

The sales data used by some companies was in some cases skewed higher in the fourth quarter when compared to fourth-quarter 2005 because of a new source of public data on co-op sales that became available earlier this year.

Miller Samuel Inc., a residential appraisal company that prepared the quarterly report for Prudential Douglas Elliman, reported that the average sales price for Manhattan co-op and condos in the fourth quarter grew 3.2 percent compared to fourth-quarter 2005 and the median sale price was up 5.1 percent.

Meanwhile, the average price per square foot declined 0.4 percent, days on market from the last list date increased 9.1 percent and the listing inventory shrank 0.5 percent when compared to the same quarter last year. The report is based on data from 2,441 sales in the fourth quarter.

The average sale price of co-ops grew 2.7 percent in the fourth quarter compared to fourth-quarter 2005 and the median sale price was flat. The average price per square foot fell 4 percent and days on market increased 6 percent compared to fourth-quarter 2005, Miller Samuel also reported.

The average sale price of Manhattan condos rose 7.5 percent; the median sale price was up 14.4 percent; the average price per square foot was up 6.5 percent; sales grew 36.1 percent; and days on market increased 14.9 percent compared to fourth-quarter 2005, according to the report.

The average sale price of Manhattan condos increased 52.3 percent among three-bedroom condos but dropped 26.6 percent among condos with four or more bedrooms in the fourth quarter compared to the same quarter last year -- there were price increases between 4.2 percent and 7.2 percent for condos with fewer bedrooms.

The average sale price of lofts rose 11.9 percent while the median sale price dropped 5.4 percent in the fourth quarter compared to fourth-quarter 2005, according to the report. The average price per square foot grew 15.8 percent and the days on market from last list date rose 19.8 percent for lofts compared to the same quarter last year.

The price per square foot paid for co-ops and condos flew up 19.7 percent in the fourth quarter compared to fourth-quarter 2005 in Manhattan's Uptown area, while climbing 4.2 percent in the downtown area, and falling 3.1 percent in the east area and 1.1 percent in the west area of Manhattan.

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