NEW YORK Editors’ CHOICE
An Interview with Kent M. Swig, The Chatwal Hotel co-Chairman, Terra Holdings, LLC; President, Swig Equities, LLC; and President, Helmsley Spear, LLC
EDITORS’ NOTE In addition to his On the commercial side, with few people want to spend the time to do it. ownership of and responsibilities at so much new development, can ex- Developers prefer to come in, pay a premium, Swig Equities and Helmsley Spear, isting buildings still compete? get the site ready to go, and design, build, and The Chatwal Hotel (thechatwalny.com) bridges classic and contem- few across the world, including a professional butlers team to cater to every Kent Swig is an owner and Co- Yes, existing buildings can com- move forward. porary like no other. This beautiful landmark, built in 1905 by Stanford whim and fancy. The Chatwal extends carefully selected amenities ranging from Chairman of Terra Holdings, LLC, pete. For instance, Google’s headquar- On the other hand, it’s a wonderful time White, has been restored and renewed by master architect Thierry Despont welcome drinks upon arrival, to exclusive Asprey amenities, Frette linens, Toto a company that owns and operates ters is a great old warehouse building to be in the residential brokerage business and was relaunched in 2010. For admirers of architecture, lovers of design, bidet toilets, and a selection of books and periodicals to make one feel at home. several real estate service fi rms, in- that contains incredible infrastructure. because that market is very strong. One afi cionados of fi ne cuisine, seekers of wellness, and connoisseurs of great Complimentary WiFi, docking stations, iPads, and a bedside controls console cluding Brown Harris Stevens and Yet, 10 years ago, it would have of the biggest problems we have had as a hotels, the most charming Chatwal Hotel offers a wide array of amenities perfect the choice for both leisure and business travelers. Halstead Property. Swig is also a been considered a relic and of no brokerage firm (Brown Harris Stevens and and touches in a most discreet yet stylish and fashionable setting. The Chatwal offers the serene Red Door Spa by Elizabeth Arden, which principal in The Swig Company, a further use, but with tenants looking Halstead) is a lack of inventory, which results The Chatwal’s 76 keys include the stunning Stanford White Penthouse has state of the art treatment rooms, private steam showers, a saltwater pool, family-owned real estate and hotel for alternative spaces, these types of in rising prices. As a brokerage company, our Suites with huge adjacent terraces and private dining rooms. Together with their and a whirlpool. Providing an opportunity to return to one’s self within company based in San Francisco properties have been reimagined to market share is close to 26 percent, so we’re well-equipped kitchenettes, they are equally ideal for both family gatherings, from the daily demands of life without, The Spa at The Chatwal is a true oasis. and New York. Swig earned a de- Kent M. Swig accommodate today’s space needs. okay as long as the transaction volume is or corporate and social events. A rarity Wellness, healthy cuisine, and eco- gree in Chinese history from Brown The tenancy and mix is changing, there. If the inventory falls too low or market in Manhattan, especially given their most friendly practices are a strong part of the University and attended UC Hastings College of and that is giving benefi ts to the older buildings demand drops away, this doesn’t bode well desirable location, the Suites and terraces culture of this progressive hotel. the Law (San Francisco). that were on the verge of being pushed out of for us. are an exquisite experience in demand The Chatwal houses the famous the marketplace but are certainly back in. Pricing is a separate issue. We’re at a by devotees of classic modern details. Lambs Club restaurant headed by Chef How stable is the market and is this a time Is Midtown East still considered the point in time when the “uber” luxury market The sensational décor, tasteful fi nishes, Geoffrey Zakarian, America’s fi rst Iron for opportunity? prime part of the city? is setting record prices. While this segment and some of the most lavish bathroom Chef. This all-time favorite of the most The market is unbelievably stable, if not Yes, but it’s not always the most desirable of the marketplace is a small percentage in designs are among many aspects that accomplished and famous is a culinary very strong. New York City’s downturn in 2008 anymore. Because of its proximity to Grand terms of overall transaction volume, it has draw the most discerning repeatedly back haven. A stunning 19th-century work- lasted approximately one year: prices fell on the Central Station, Midtown East was and still is a captured the imagination of the press and home to the timeless elegance of this ing fi replace from France in the din- residential side close to 25 percent and volume prime location, but that’s changing slightly. public, but is not necessarily the key indica- great hotel. Not to mention, ‘The Luxury ing room is sure to melt many a heart. fell on transactions by about 50 percent. In the The transportation network in Lower tor to watch. The bulk of the market remains Collection Hotels’ designation points out Moreover, the seasonal menus consis- commercial segment, leasing hit one of its all- Manhattan is now second to none. There is a local for New Yorkers and this segment is The Chatwal as part of the 100 hand- tently enthrall the most sophisticated time lows with about 13 million square feet of direct one-seat ride to Newark Liberty Airport; very strong. picked most iconic properties worldwide. of palates. The Lounge on the second transaction volume against 34 million square JFK airport is only a 55-minute ride at a cost Is there enough of a focus on afford- The Chatwal is nestled between fl oor offers views and the feel of this feet as one of the highs; and prices on the com- of $7.50; and we have brand new transporta- able housing and can more be done to fa- Rockefeller Center, Bryant Park, and the exciting city’s dynamic pulse through mercial side also fell. tion hubs with the Fulton Street Station and the cilitate that? Theater district, from where the best of gorgeous floor-to-ceiling windows. Yet, the city lost only 136,000 jobs, which is PATH Station, all of which sits on top of the There isn’t enough being done and it’s a entertainment, dining, and shopping are There is also live jazz music featured, among the least number of jobs lost during any greatest network of infrastructure (there is more critical issue for New York City, where hous- all within walking distance. This jewel of The entrance of The Chatwal (top left); The Chatwal lobby (above); accompanying the most beautiful and post-World War II recession. railroad track in Lower Manhattan per square ing is outrageously expensive. In order to keep a hotel has bespoke services paralleled by The Lambs Club restaurant (lower left); living area of The Producer Suite (lower right) “in” crowd from around town.• It was indeed a tough time but New York foot than anyplace on earth). And there are a workforce in New York City who aren’t just City rebounded faster than it ever had after a two newly built ferry stations as well: the Staten commuters, we have to build more affordable recession, and it not only regained its value and Island Ferry Terminal and the new ferry termi- housing, and there are some relatively straight- transaction volume but has now surpassed the nal at Brookfi eld Place. forward, quick solutions to help solve this prerecession peak. The issue with Midtown East is that there problem. The key demographic indicator about New are no new buildings available to accommodate The idea is to stimulate the private devel- York City is our population. The city had lost modern tenant needs. So, the need for a rezon- opment sector to help create affordable housing 1.1 million people in the 1970s due to the economic ing allowing for the replacement of older build- because public housing can’t do it all. downturn resulting from losing 768,000 jobs. It ings with newer ones is critically important in We need to incentivize developers to build took us until about 2003 to regain this population. order to maintain the vibrancy of this central in underutilized areas through the rezoning By contrast, in this recession, we lost 136,000 jobs business district area. process. The trade-off for the rezoning is to but we have been gaining population. This is a Are you looking to be aggressive in the mandate subsidized housing and/or affordable powerful demographic and a stabilizing factor. market today? housing in return for upzoning areas to add We also have a very interconnected world On the development side, I’m a believer more bulk. now, and that interconnection benefi ts cities that there is always opportunity. I’ve never We have to fi nd the opportunities in the like New York. This means we have a very lo- had a problem finding deals, but the mar- city to increase zoning, which doesn’t cost the calized population that has a demand for ser- ket is priced expensively so we have to be city anything, and will stimulate the market- vices, housing, and offi ces, and we also have careful. place to create affordable housing. Otherwise, a national and international demand. When we The art of land assemblage seems to everyone will build for market-rate housing overlay that on top of New York City, it reduces have been lost – people want “ready-made” and we will lose out on the diversifi ed fabric recovery time from recessions and encourages a sites upon which to build. There is an incred- of our population that makes New York City quicker stabilization after a recession. ible amount of value still in assembling, but so great.• VOLUME 38, NUMBER 4 POSTED WITH PERMISSION. COPYRIGHT © 2015 LEADERS MAGAZINE, INC. LEADERS 181