Most observers last year predicted that interest rates would rise in 2014 as the Federal Reserve removed its stimulus, but the exact opposite happened. Rates are lower now than they were at the beginning of last year, offering borrowers even cheaper capital. But 2015 may be the year when rates do gradually march upward from
What was the best thing that happened to you or your firm in 2014? The best thing that happened to Berko & Associates is 2014 was our extraordinary growth in both our associates as well as our deals. We are set to transact $300 million in sales and finance this year, a 100% increase from
Brooklyn has long been a “second choice” for commercial development, as residential developers can achieve north of $65 per s/f and commercial developers can only recoup around $40 per s/f on average. In 2004, Downtown Brooklyn was rezoned to include 4,500,000 s/f of commercial space, yet only 300,000 s/f of that amount has actually been
The retail sector is has seen a new awakening at the hands of rising tourism and consumer confidence. New retail construction and renovations throughout the boroughs have actually not caused in increase in absorption or vacancy rates, in fact, quite the opposite. As retailers have grown their businesses online, they have also now begun to
Name: Lee Silpe Title: COO | Senior Analyst Company/firm: Berko & Associates Year Company was founded: 2005 Years with company/firm: 4 Years in field: 4 Years in real estate industry: 4 Address: 18 East 41st St, New York, NY Telephone: 212-687-0777 Email: Lsilpe@berkoassociates.com URL: www.berkoassociates.com Twitter: @leesilpe Which project, deal or transaction was the “game
As worlds collide in New York City and suits brush up against dressed down start-up professionals and technology companies, office owners both here and Brooklyn are taking advantage of the movement, and creating space within their buildings specifically tailored to this new breed of tenant. The tech boom in New York is clearly visible, and
Downtown retail is the new “must-have,” with titans of real estate scrambling for a piece of the action. One major driving force behind retail acquisition is the rejuvenated Financial District, with luxury shopping center Brookfield Place and the Westfield Group’s World Trade Center drawing excitement and super high end retailers to the area (Hérmes, headed
Sales of investment grade properties in N.Y.C. for the trailing 12 months totaled $34 billion across all commercial asset classes. This amount represents an increase of 35% year-over-year. The key contributors to the flourishing N.Y.C. sales market: the lack of properties available, and the steady access to capital from both domestic and international lenders. The
Residential developers are scrambling for a piece of the action, looking to stake their claim to what is seemingly a “crazy” market, since when questioned, that seems to be the first reaction to any question regarding the state of the market. Development sites in the most desirable neighborhood have reached the $1,200 per buildable s/f
Bridge loans are becoming a new standard as the N.Y.C. property market has gotten so competitive that the need for immediate access to debt has risen greatly. Bridge loans are short-term loans that by definition, is not the type of loan product or origination source, but the use of the loan itself. Bridge loans can
Positive economic trends and growth throughout 2013 and early 2014 will drive hotel revenues higher in 2014. Strong growth in the construction of new hotels in and around Manhattan signifies the forward thinking investor sentiment that the capital markets will remain steady for the foreseeable future, even with the regime change in the Federal Reserve.
The residential sector has exploded across the country, with close to 170,000 class A units coming to market in major metros in 2013, and an additional 220,000 expected in 2014. A vast number of class C assets are expected to be renovated into class A/B, as has been the value add proposition for many national
The retail investment sector is ready to burst, and investment sales brokers agree that there has been a clear rise in requests for suitable retail investment properties. One major driving force behind retail acquisition is the re-born availability to finance large acquisitions of not only single properties but large portfolios of retail-heavy assets. Banks are
Executive of the Month: Berko, president of Berko & Associates: Bringing an investment-banking approach to commercial real estate; growing firm includes city’s top mortgage bankers, investment sales professionals and advisors. New York, NY As an Israeli youngster visiting relatives in the United States, (Yossi) Berko knew he would be a real New Yorker someday. Today,
In their hunt for cheap financing, New York developers are increasingly turning to the Israeli bond market. Last week, the Tel Aviv daily Haaretz reported that the Witkoff Group and the Lightstone Group are considering selling bonds in Israel for 500 million Shekels, or $141.6 million, each. They would follow in the footsteps of Extell,
Healthy activity in construction spending has led to a renewed faith from commercial lenders looking to take advantage of a robust sector in the market. The low cost of capital and fervent return of the CMBS market have both aided in increased liquidity and easier lending, although standards have become much more stringent than before.
Sales of investment grade properties in New York City for the first half of 2013 totaled just shy of $18 billion across all commercial asset classes. This amount represents an increase of approximately 40% year-over-year. The key contributors to the flourishing N.Y.C. sales market: the lack of quality inventory, and the steady access to capital
There seems to be a new standard in the price of development rights in prime New York City locations, and the days of sub-four hundred dollars per buildable foot are long gone from the rear view mirror. Sales for development rights in trendy locations have consistently traded above $600 per s/f. Tough pill to swallow?
In 1968, New York City led the nation as the first major city to implement a tactic to Transfer Development Rights, better known as a TDR program. We all know that air rights can be transferred to an adjacent building, or, from corner to corner (as long as the “Granting” and “Receiving” properties are located