Hartz Mountain Industries and Roseland Property Company will build a 1,000-unit residential complex at 99 Hudson Street in Jersey City, the companies announced Tuesday.

With a price tag of $450 million and a total size of more than one million square feet, the project will be the largest rental project and one of the top five tallest buildings in New Jersey.

Colgate Center is home to 90 and 70 Hudson Street, which were developed by Hartz Mountain and when sold last year were named the most expensive office buildings in New Jersey.  After Hartz’s speculative construction of 70 and 90 in the late 1990s, Goldman Sachs built its tower and a Hovnanian-developed luxury condominium at 77 Hudson.

Roseland Property Company, which manages Hartz Mountain’s residential projects and is a partner in four of Hartz’s residential developments, envisions support retail and entertainment on the structure, which provided parking for residents and guests.

“The waterfront in Jersey City features many compelling pieces, but it lacks a center,” said Carl Goldberg, partner in Roseland Property Company.  “We see 99 Hudson providing the components that would turn an interesting area into a classic neighborhood.”

The project will be developed subject to revival of the NJ Economic Development Agency’s Urban Hub Tax Credit (UHTC) residential program, which was suspended after depleting its $250 million allocation.

“We submitted an application several months ago that fully qualified for the UHTC program,” said Emanuel Stern, president and COO of Hartz Mountain Industries.  “As we have seen through the history of the UHTC program, the economic climate – especially as it pertains to financing – will not permit a project like this to proceed without assistance.

“Our application to EDA for the UHTC program delivers instant economic impact and smart growth benefits that will last for decades, so we are hopeful this necessary program is quickly revived so we can commence construction.”

More than 700 supporters are expected to attend the Seventh Annual Contractors For Kids Reception, the main annual fundraiser for the largest regional charity supported by the construction, design and real estate industries.

Unlike the traditional black tie events of previous years, this year’s reception will be themed “The Best Damn Beach Party Ever” and provide welcome cabin fever relief for sun-starved AEC and real estate industries’ heavy hitters. In fact, tuxedos are prohibited at this year’s party.

The reception will take place at the Atlantis Long Island Aquarium & Exhibition Center in Riverhead, NY on March 2, starting at 7:00 pm. The main reception will be followed by a dance party open to the public, expected to attract in excess of 1,000 people.

For additional information and reservations,please access www.contractorsforkids.com or call 1-888-208-KIDS.

Founded by Stalco Construction in 2005 and based in Islandia, NY, Contractors For Kids (CFK) financially assists families struck by serious childhood illness.

CFK has attracted enthusiastic support from over 300 local builders, architects, engineers, real estate firms, and other businesses. To date, CFK has raised more than $2.6 million from its supporters.
According to Stalco President and CFK Co-founder and Vice Chairman of Executive Board Alan Nahmias, the organization offers help extending beyond payment of medical bills.

“We have reimbursed travel costs related to cutting-edge treatments unavailable locally and provided aid tofamilies unable to submit mortgage payments due to healthcare-related expenses. We also assistparents faced with the heartbreaking task of making funeral arrangements for their children,” he said.

The stories of families who turn to CFK for assistance vary as much as serious illnesses suffered bychildren.

CFK recently assisted a family of a ten-year-old boy suffering from neuroblastoma, a malignant braintumor. Local hospitals were unable to help the little patient. However, a clinic in Texas offered to perform an experimental treatment. CFK provided funds that helped the family travel to Texas andpay for the cost of medical procedures. The treatment reduced the size of the boy’s tumor.

In another recent case, the organization helped a family of an infant boy also diagnosed with neuroblastoma. While the father supported the family, the mother devoted her time to the care ofthe baby boy. The father’s income eventually became insufficient to cover the mounting cost of thecontinuous medial care. CFK assisted the family with payments for healthcare services. The child, currently three years old, is doing well.
CFK also assisted a single mother of a five-year old boy awaiting a heart transplant. The motherand her child, who had already undergone three open-heart surgeries, spent many hours on a publicbus commuting more than 30 miles twice a week to the Stony Brook University Medical Centerfor medical procedures. CFK purchased a car for the young mother. The following year, after the property in which the family rented an apartment had been foreclosed, CFK associates raised monies sufficient for two years of rent in a new apartment.

Ritz-Carlton New York (Photo Credit: Ritz-Carlton)

By Al Barbarino

Real estate firm Westbrook Partners has paid $105 million for the 259-room, 33-story Ritz-Carlton hotel at 50 Central Park South, city records show.

The seller, Millenium Partners, had purchased the prestigious hotel from Macklowe Properties for $88.8 million in July 2006 (Macklowe paid $69.5 million in August of 2003).

A Millenium spokesperson declined comment; Westbrook Partners did not immediately return phone calls requesting comment.

The 1930’s building, originally the Hotel St. Moritz, includes 47 suites among its features and 259 guestrooms, as well as expansive views of Central Park South. Room prices range from $595 to several thousands of dollars for premier suites.

A number of condos, dubbed The Residences, opened in the building in April 2002. The Residences occupy 12 floors and 80,457 of the building’s 324,293 total s/f, according to PropertyShark.

The condos have fetched tens of millions of dollars, with one unit selling for $30 million in August 2011, city records show.

The Hotel St. Moritz was designed and built in 1930 by the Hungarian-born architect Emery Roth and constructed by the Harper Organization, according to the Yale University Press’ The Encyclopedia of New York City. The building cost at the time was about $6 million.

*this article appeared in the Feb. 22, 2012 print edition of Real Estate Weekly

By Al Barbarino

Every game has its winner and loser. In the game of Manhattan real estate, Midtown South will be 2012’s crowned victor.

Speaking at a Real Estate Board panel called “Believe in growth, where it’s happening, who’s growing, why it’s happening and how to get in on it,” CBRE vice chairman Kenneth Rapp predicted, “We’re going to see [Midtown South] really surge in 2012.”

The panelists said the neighborhood has become a hub of digital media companies where ideas and subway lines are abundant.

l-r: Kenneth Rapp, Vice Chairman, CBRE; Andrew Levin, Co-Chair, Commercial Seminar Committee, Boston Properties; Bruce Mosler, Chairman Global Brokerage, Cushman & Wakefield; William Elder, EVP, Managing Director of NYC, RXR Moderator; John Sikaitis, Senior Vice President, Director of Office Research, Jones Lang LaSalle; Marcus Rayner, Managing Principal, CRESA Partners

“We’re going to see a fundamental shift in Midtown South,” Rapp said.  “I don’t think the Eurozone or the elections are going to affect the technology, creative and new media companies.”

Midtown South got a jolt of energy when tech behemoth Google stomped into town last year. Vacancy rates fell from 8.6 percent to 6.4 percent from the fourth quarter of 2010 to 2011, according to data from Cushman and Wakefield – a national low for any central business district.

There’s also no dispute that Mayor Bloomberg takes every opportunity to play up the scene, as techies wait for Bloomberg’s baby — a joint venture by Cornell and Technion to build a new engineering school — to be delivered on Roosevelt Island.

“This is the most exciting development to be announced in the last ten years,” said Marcus Rayner, managing principal at CRESA Partners New York, LLC. “What you’ve basically done with that is anchor the technology industry in New York… that one development produces 2,600 young, qualified engineers.”

It’s not just Midtown South that will benefit. There was a general consensus among the panelists that all places West stand to benefit from the high-tech surge, as well as an influx of foreign investors and businesses looking for safety.

“This city is very well-positioned, given what’s happening around the world,” said William Elder, a managing director at RXR.  “All this points to capital moving into a safe haven and robust market like New York.”

If there is a loser in 2012, it will be Wall Street — though panelists differed in their opinions on just how big of a hit financial services will take in 2012. For some, impending layoffs and downsizing in the city’s bedrock industry will actually be worse than they appear on the surface.

“The multiplication factor of a financial service job compared to any other job is huge,” Raynor said.  “In this market, you probably have to create twice the number of jobs that you had to create historically to generate the same level of demand (for real estate space).”

For others, the outlook isn’t quite so bad.

“We’re still largely driven by the financial system, as much as the tech sector has grown,” said Bruce E. Mosler, chairman of global brokerage at Cushman & Wakefield.  “That’s not shifting the fundamentals in an enormous way.  We’re still 30 to 35 percent driven by financials.  We’ll see the tech sector take a piece of that in the go-forward, but our roots are still where they are.”

2011 Brooklyn Individual Salesperson of the Year: Deborah Rieders (l-r. -Maurice Singer, Yael Epstein, Deborah Rieders, Corcoran CEO Pamela Liebman, Sarah Shuken)

The Corcoran Group, New York’s largest residential real estate firm, hosted its annual awards ceremony Tuesday, February 7, 2012.

More than 800 Corcoran agents and employees attended the ceremony which was followed by a festive cocktail reception held at 230 Fifth Avenue.

Prior to announcing the award winners, Corcoran president and CEO, Pamela Liebman, thanked the Corcoran agents and employees for another great year, citing multiple successes in 2011, including “the most exclusives and highest sales volume in Manhattan; the most exclusives priced over $4M; twice the number of exclusives of any other firm in Brooklyn; #1 real estate website in New York and for the fourth year in a row, the most agents in The Wall Street Journal’s ‘Top 1000’ rankings.”

Joining Liebman in presenting the awards was executive vice president and director of sales, Tresa Hall.

Carrie Chiang/Janet Wang were named 2011 Top Grossing Agents of the Year for sales in excess of $300,000,000.

2011 Corcoran Deal of the Year & Manhattan Individual Salesperson of the Year: Leighton Candler. l-r. Jennifer G. Reardon, Corcoran CEO Pamela Liebman, Leighton Candler.

Leighton Candler won Manhattan Sales Person of the Year and Corcoran’s Deal of the Year. Deborah Rieders won Brooklyn Sales Person of the Year, and Frank Castelluccio and Aaron Lemma were named Brooklyn Team of the Year. Jing Chen was named Manhattan Rookie of the Year, and Paul Murphy was named Brooklyn Rookie of the Year.

2011 Manhattan Team of the Year: Carrie Chiang / Janet Wang (l-r. Carrie Chiang, Corcoran CEO Pamela Liebman, Corcoran EVP & Dir. of Sales Tresa Hall, Janet Wang)

Total list of Corcoran 2011 Awards:

Corcoran Deal of the Year: Leighton Candler
Top Grossing Agents of the Year: Carrie Chiang/Janet Wang
Manhattan Salesperson of the Year: Leighton Candler
Manhattan Rookie of the Year: Jing Chen
Manhattan Rental Person of the Year: Dennis Hughes
Brooklyn Team of the Year: Frank Castelluccio and Aaron Lemma
Sales Team of the Year: The Rushmore Team

Carnegie Hill Salesperson of the Year: Beth Benalloul
Chelsea Salesperson of the Year: Matthew Mackay
Chelsea Team of the Year: The Noble Black Team
Eastside Salesperson of the Year: Betsy Messerschmitt
Eastside Team of the Year: The Robby Browne Team
Gallery Salesperson of the Year: Gregory Kammerer
Gallery Team of the Year: The Lawrence Schier Team
Soho Team of the Year: LaChance + Associates
Soho Salesperson of the Year: Darren Kearns
Union Square Salesperson of the Year: Sara Gelbard
Village Salesperson of the Year: Gabriella Winter
Village Team of the Year: Meris and Kenny Blumstein and The Blumstein Team
West Side Salesperson of the Year: Scott Stewart
West Side Team of the Year: Hustis/Jovanovic Team
Employee of the Year: Leo Terry

2011 Brooklyn Team of the Year: Frank Castelluccio & Aaron Lemma (l-r. Frank Castelluccio, Aaron Lemma, Corcoran CEO Pamela Liebman, Shanice Catini, Mara Ingram)

Brooklyn Salesperson of the Year: Deborah Rieders
Brooklyn Rookie of the Year: Paul Murphy
Brooklyn Rental Person of the Year: Vicki Negron
Brooklyn Heights Salesperson of the Year: Cheryl Nielsen-Saaf
Brooklyn Heights Team of the Year: Jim Cornell and Leslie Marshall
Fort Greene Salesperson of the Year: Toni Martin
Park Slope Salesperson of the Year: Jessica Buchman
Park Slope Team of the Year: The Talbott Group
Williamsburg Salesperson of the Year: Tom Le
Williamsburg Team of the Year: The Barak/Blackburn Group

DOUG HEDDINGS

The firm will also add an office manager to oversee administrative functions in the Manhattan office and another in the Hamptons.

“We are actively spreading the word about our recruitment plans so that we can attract the right new additions to the team,” said Douglas Heddings, founder and president of HPG.

“Candidates may be seasoned veterans, or come from professional backgrounds other than real estate, but there are a few non-negotiables: they must wholeheartedly believe in putting the consumer first, not just in words, but in practice; they must understand our team model, including the profit sharing aspect and camaraderie and support that goes with it; and they must have an engaging personality.”

Heddings plans to add five agents in CT/Westchester; five in Rockland; 10 in the Hamptons; and another 15 in New York City.
The group’s staffing announcement comes as it prepares to launch a new website which will enable buyers to search for properties in each of the geographic areas it services from one central e-location.

By Al Barbarino
Today’s brokers must be in-the-know with the ever-changing tech industry — or they risk becoming obsolete in the eyes of their digital clients.

JASON SCHWARTZENBERG

“Understanding them and having a resume that you’ve worked with similar companies in the past — they dig that,” said Jason Schwartzenberg, a corporate managing director at real estate services firm Studley.

Getting on the right side of one of the fastest growing office space users in the country seems like a wise move in a market where traditional New York tenants, such the financial sector, are contracting.

According to Cassidy Turley, tech-driven firms accounted for 28% of Manhattan leasing in 2011, up from 18% last year and helped drive down vacancy rates in midtown south to the lowest in the country.

Schwartzenberg doesn’t just work with digital companies and startups — he worked for them.  In 1999, he packed his belongings into his red 1992 Chevy Blazer and drove from Hasbrouk, N.J. to San Francisco, where he joined a tech startup called Digital Commerce.

In 2001, imbued with the booming California tech scene’s energetic spirit and on the heels of the dot-com bubble, Schwartzenberg moved back east and worked for a range of digital companies and startups as they moved in on New York City. There was Websplit, creator of a web browser; Interworld, a former ecommerce software provider; and, most recently, Torry Harris Business Solutions, a software solutions provider and the only survivor of the bunch.

The companies shared similar strategies, goals and ideals with those Schwartzenberg works hand-in-hand with today at Studley.  For startups, which often operate out of incubators and co-op spaces before they are ready to move into their own spaces, choosing the right space in the right location can mean the difference between growing rapidly and sinking steadily.

“Having gone through that experience for a few different companies, I understand the predicament they are in,” Schwartzenberg said.

Tech-driven firms accounted for 28% of Manhattan leasing in 2011, up from 18% last year and helped drive down vacancy rates in midtown south to the lowest in the country.

“Their businesses and head counts are changing on a day-to-day basis and they need flexibility to do various things.”

Technology, advertising, internet and media companies have basic things in common when they look for office space; they often seek flexible lease terms, expandable or pre-built designs and perhaps high, open ceilings, high-end finishes, glass front offices or game rooms.  But the basics don’t cut it — and neither does an old-school approach.

“Clients need to be able to look at their advisors and not be able to tell the difference between them and their employee,” said Sean Black, a vice president at Jones Lang LaSalle. “They talk the same, they look the same, they understand the issues and at the end of the day they can ultimately execute.”

Black got his start in real estate in the early 2000’s, as digital startup companies zoned in on the area dubbed Silicon Alley — the Flatiron District, SoHo and beyond — and the “tech markets were going crazy.”  The early exposure put him in tune with the issues startup companies face.

Today, digital clients make up about two-thirds of Black’s business and he has been involved in more than a quarter of a million square feet worth of tech deals within the last two to three months alone, he said.

He works with Wework Labs, a co-op space for entrepreneurs; Tremor Media, a digital video tech company; and he moved Foursquare, creator of the location-based social networking site, into their new 56,000 s/f office space at 568 Broadway in the heart of SoHo.

Tweeting regularly, knowing who Gilt Groupe and Foursquare are, and understanding crowdsourcing and flash mobs only scratch the surface when it comes to understanding the tech world and its companies, Black said.

SEAN BLACK

Brokers working with digital companies have to stay ahead of the curve and take an active role in understanding the industry or they will ultimately lose deals and valuable clients.

“The thing about people in the technology sector is that they’re innovative and they’re always looking to the future,” said Black.

“Tech is all about the future. You’ve got to have a mentality that is energetic and appreciates the changes in technology while not being wedded to the traditional ways of doing things.”

Many clients look at their broker as a member of the team who can grow with them.

Schwartzenberg, who estimated about one-third of his business falls in the digital space, has worked with Intent Media, a company that helps e-commerce sites maximize web profits; Brightwire, a real-time provider of events throughout world; Clover, a mobile payments provider; and the Ladders, an employment website.

In 2009, Schwartzenberg first reached out to executives at Jibe — a maker of recruiting software that uses Facebook and LinkedIn to help users find jobs — to help them find office space.  They were in their infancy stages and sharing space at a startup incubator.

It wasn’t until 2011 that the company was ready to move into their own space at 26 West 17th Street. Throughout the process of finding the right location, it was crucial knowing that Schwartzenberg knew the inner workings of the industry, said Joe Essenfield, 33, CEO at Jibe.

“It’s huge, because then you don’t feel like he’s just throwing listings at you,” Essenfield said.  “He makes a much better use of my time.”

Time is crucial for CEO’s and other startup executives, as they scramble to secure new funding and talent. There is little time to tour new spaces, interview architects, furniture people and cleaners. More than ever these demands fall on brokers.

“If I can help people save time and focus on their core business, they appreciate that and in turn you feel good,” Schwartzenberg said.  “In some crazy way you can feel that you were one of the reasons somebody was able to get their company up and going.”

ADAM MERMELSTEIN

The Newark based real estate company TreeTop Development is staking a claim on the New York market with its acquisition last week of a four-property portfolio of mixed use buildings.

The company — which has owned and managed over 3,000 residential homes throughout New York and New Jersey — partnered with New York City-based Latus Partners, LLC, on the deal that includes 1917 7th Avenue, 110 St. Nicholas Avenue, 110 West 116th Street and 120 West 116th Street.

“We’ve initiated an aggressive plan over the past two years to grow our portfolio of homes by purchasing high quality properties in key markets in the New York metropolitan area and these properties fit perfectly in with our investment strategy,” said Adam Mermelstein, co-founder and principal of Treetop along with childhood pal Azi Mandel.

TreeTop will institute a capital improvement program to renovate the buildings and bring the properties up to market standards. The company will renovate apartment interiors as they turnover to include new hardwood flooring, renovated kitchens and renovated bathrooms.

The transaction is the first of several large portfolio-type deals TreeTop is planning in New York City to significantly increase its presence throughout Manhattan in 2012, according to Mermelstein who, along with Mandel has crafted a strategic path for TreeTop Development.

Sensing a shift in the real estate marketplace, the company has implemented an aggressive approach to acquire and transform value-laden properties in the area’s premium locations and take advantage of niche markets.

The vision and insight of the company’s principals have enabled TreeTop Development to grow its portfolio of homes at a time when many property owners have slowed pursuing multi-family investments.

“The strength of Treetop Development has always been our progressive approach to residential investment and development,” said Mandel. “We are constantly seeking out new and challenging projects that will become signatures for surrounding communities. We’re determined to think out of the box.”

AZI MANDEL

The story of TreeTop Development can be traced back to two high school friends who combined compatible business philosophies to create a development company committed to innovative ideas.

Azi Mandel launched his career in the fall of 2001 by accepting a position with a Manhattan syndicate led by Marc Karasick — a well-known real estate investor who has owned such trophy buildings as the Bank of America Building in San Francisco.

Adam Mermelstein jumped right into the real estate investment field after graduating Yeshiva University in 2001 by buying and flipping rental buildings.

Their paths would cross again when Mandel, while overseeing a complicated deals that included the acquisition, renovation and re-launching of commercial and residential properties throughout New York City, would occasionally be presented with opportunities that he felt weren’t right for the syndicate.

For these transactions, he would call his old high school friend, Adam, whom he knew was aggressively seeking new deals. It wasn’t long before the two began working together.

“We never thought we would start our own company,” recalled Mermelstein, “but we got along very well together and both had very similar business views. After our first couple of joint projects, we decided to launch TreeTop Development in June, 2005. Our plan was to start slowly, but before we knew it, we had seven projects underway.”

In early 2007, sensing instability in the condo market, TreeTop Development made a critical decision that would give them an advantage in the area’s marketplace.

The company would begin utilizing innovative acquisition techniques such as purchasing market-rate and high-performing HUD subsidized rental properties. TreeTop would then transform the properties by modernizing living spaces, common areas and building systems. The end result was an expansion of its portfolio in key strategic markets, including more than 2,000 units in Essex County, NJ.

“Economic concerns and challenges over the past few years have certainly created new opportunities in the real estate industry for multi-family property owners and investors,” said Mermelstein.

“Purchasing high-quality HUD apartment assets is one of these avenues that has enabled us to grow our company. Additionally, we focus on buying well-located, market-rate rental communities at competitive prices that immediately generate capital and possess future upside as well.”

Buoyed by the success of this new HUD strategy, TreeTop began a strong push into new markets, turning its eye to value-laden multifamily rental properties with favorable rents in strategic middle-class northern Manhattan neighborhoods.

The aggressive pursuit of new properties in stable Upper West Side locations has TreeTop in contract for 350 units at the start of 2012 with the possibility of another 500 apartment homes added to its portfolio by year’s end.

Shimon Shkury & Victor Sozio of Ariel Property Advisors served as broker for both the buyer and seller in the 1917 7th Avenue portfolio deal. Steve Fleissig of Greenberg Traurig LLP acted as legal counsel for the buyer.

Steiner will build a 720-unit apartment tower. Rendering courtesy of Dattner Architects.

Developer Douglas C. Steiner has unveiled plans for a new 50-story apartment building he promises will be “the best in Brooklyn.”

Located at 333 Schermerhorn Street, at the intersection of Third Avenue and Flatbush Avenue, The Hub will have 740 rental units as well as retail space and parking for over 250 vehicles.

A groundbreaking is slated for the Fourth Quarter of 2012.

“This will be the best rental building in Brooklyn,” said Steiner, chairman of development company Steiner NYC who also built Steiner Studios at the Brooklyn Navy Yard.

“We love this location. We’re a short block or two from 12 subway lines and the LIRR. We’ll have spectacular views, great layouts and an iconic presence on the skyline. And we’re at the hub of so many great Brooklyn neighborhoods.”

The Hub, designed by Dattner Architects and Goldstein, Hill and West Architects, will have “the largest amenity package of any rental building in Brooklyn,” according to a press release from Steiner.

Highlights include a 24-hour concierge, a landscaped common outdoor terrace with sundeck, a fitness center, yoga studio, locker rooms, a dog run, and a grilling terrace.  Residents will enjoy multiple lounges and bike storage for every unit.

Each residence will be pre-wired for cable, phone and high-speed internet connections. The Hub is a proposed 80/20 project that will offer approximately 144 affordable rental units.

Led by the father-son team of David and Douglas Steiner, Steiner NYC is a privately held development firm that traces its roots to 1907.

Current projects include 58 and 80 Metropolitan, a two-phase, market rate condominium project of 173 units comprising a full city block in Williamsburg, Brooklyn; and 25 Washington Avenue, an approximately 285,000 s/f expansion at Steiner Studios, to include additional stages, support and post-production space.