INSIDE VIEW NEW YORK 2018

Lifestyle

Life at the top International design house March & White explains how it applied “elegance with an edge” to super- prime New York development 125 Greenwich Street. By Sophia King For Sale – 125 Greenwich Prices starting from $1,275,000

The story of March & White “We are not compelled to do what is paths once more and went on to yachts that caught the eye of Bizzi which to enjoy the city. Formerly green and brown tones evoke the began long before it officially considered the norm,” says White. “In establish a design house that looks to & Partners Development when a dedicated business destination, urbanity of the city; Aqua’s blues and formed in 2010. fact, we’re both instinctively drawn to implement “elegance with an edge” in it was looking for an interior the New Downtown has enjoyed greys reflect the Hudson River; and do the opposite, to defy convention, all that it does. designer to collaborate with on 125 a steady transformation over the Stratus’s soft whites, blues and greys Elliot March and James White explore other options and take risks.” Greenwich Street. past 50 years that has included the mirror the clouds above. struck up a friendship rooted in a “Creative elegance, though beautiful, opening of a Four Seasons hotel A thoughtful pause. “That applies to 125 Greenwich Street itself constitutes shared passion for creativity and can be found virtually anywhere,” Designed by world-renowned and the renovation of Brookfield both life and work.” a lofty 88 storeys reaching up to design 20 years ago. The pair found explains March. “Elegance with an architect Rafael Viñoly and Place New York, a luxury shopping edge is unique. It’s about employing described as an “exercise in 912 feet, and turns the traditional themselves sitting next to one March nods in agreement. “For us, and dining destination. Today, the creative confidence – as both detailed perfection”, this new penthouse model quite literally on another in the “naughty bin” after life is one vast piece of creative vibrant downtown neighbourhood architects and interior designers – super-prime residential skyscraper its head. Studio apartments are on arriving late to class at architecture field research.” is thriving, offering a generous array school – an unconventional to present something that subtly demanded unwavering attention to of restaurants, bars, shops and the upper floors, with the largest beginning that set the tone for After graduating as architects and defies expectations and leaves a detail and total precision. parks, as well as regular community residences on the property’s lower floors. The top three floors of the what would become a refreshingly going their separate ways for ten lasting impact on all those who festivals and farmers markets. So commenced March & White’s building – known as The 88 – house unconventional partnership. years, March and White crossed encounter it.” next challenge: to design one- But March & White’s appointment 15,000 square feet of amenities and Their approach is obviously working. of-a-kind modern interiors with a on 125 Greenwich presented a a sense of sophisticated exclusivity Despite being relatively young, March yachting twist for the latest iconic challenge: how could they put their reminiscent of a private & White’s expansive and impressive addition to New York’s skyline. own stamp on the development members’ club. portfolio already includes some “The benchmark of New York without undermining its already of the world’s finest superyachts As you would expect from a building continues to be pushed higher and unique aesthetic? and establishments including the of this calibre, The 88 presents higher,” says White. “The city has Devonshire Club, Hyde Park Gate “Collaboration between the an enchanting suite of lifestyle welcomed many new development and Sussex Gardens. architecture and the interiors was experiences. The 86th floor is perfect projects over recent years, and fundamental to our vision,” says for entertaining (and impressing) “For us, creative detail is everything,” each has been more ambitious White. “We wanted a sense of guests, with a private dining room, a says White. “We approach our than the last. We [March & White] total unison and harmony, not screening room and a lounge. The work not only as architects, but knew that when it came to 125 competition.” 87th floor includes a 50-foot indoor also as interior designers and Greenwich, only the highest levels lap pool, a relaxation lounge and a artists. For each project, our entire of quality would do.” After careful research and spa, and the 88th floor features a studio commits to creating sublime consideration, the team found Situated on the corner of Greenwich inspiration in the modern and fitness centre and yoga studio. Of elegance, whether that’s in a home, Street and Thames Street at natural beauty of 125 Greenwich’s course, all three floors of The 88 boast hotel, members’ club or super-yacht.” Manhattan’s lower tip in the surrounding environment to create spectacular views; a welcome slice of It was March and White’s extensive New Downtown, 125 Greenwich three distinct interior finish palettes: tranquillity above the frenzied chaos of experience of working with super- Street is the perfect base from Terra, Aqua and Stratus. Terra’s rich the metropolitan below.

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Most wanted Market intelligence

New York swept the board in our latest City Wealth 1. A global wealth hub 2. Foreign investment is 3…and foreign buyers spend more Index, proving it remains the most important city for No. of households with earnings of US$250,000+, 2017 on the rise… Average price paid (USD) UHNWIs worldwide. 1 NEW YORK 1,167,131 600,000 US URHASERS 2 LOS ANGELES 637,749 NONUS URHASERS Knight Frank’s City Wealth Index, Sales volumes in the final quarter of 500,000 3 CHICAGO 400,416 featured in The Wealth Report 2017 moderated as buyers awaited 4 SAN FRANCISCO 396,431 400,000 2018 identifies those cities around the finer detail of the new tax the world of most importance to legislation. Although the top end 5 WASHINGTON DC 366,560 300,000 the world’s wealthy, both now 6 HOUSTON 298,868 % of the market may be influenced 33 200,000 and in the future, taking into more heavily than other price 7 DALLAS 297,970 RISE IN TOTAL NUMBER OF FOREIGN 100,000 consideration four factors; wealth, bands, we expect sellers will 8 BOSTON 293,276 BUYERS IN THE US OVER FIVE investment, lifestyle and future adjust to the new tax landscape 9 PHILADELPHIA 290,460 YEARS TO 2017 0 economic growth (see main table). 2009 2010 2011 2012 2013 2014 2015 2016 2017 over the course of 2018. 10 LONDON 272,604 At 38,500, the US has more Source: Oxford Economics Source: National Association of Realtors Source: National Association of Realtors Investment in infrastructure is individuals with net assets of driving growth in a number of US$50m+ than any other country 4. Economic outlook is bright 5. Weaker dollar drives foreign interest 6. New infrastructure projects established markets as well as Forecast GDP at 2022 (US$bn) Change in currency vs. USD in year to 1 March 2018 drive growth in the world, and New York opening up new neighbourhoods. remains the country’s wealth 3 Gentrification is continuing LOS ANGELES hub by some margin. More than 1,105 MORE EXPENSIVE 1.16 million households earn apace with neighbourhoods TOKYO 0 1 such as Lower Manhattan and NEW FERRY US$250,000 or more per annum; 1,557 COMMUTER ROUTES almost double the number of Williamsburg, once designated – LOWER EAST SIDE households in the second-ranked exclusively for finance and 3 AND SOUNDVIEW city, Los Angeles. shipping respectively, now prime residential markets in 6 The flow of private capital into their own right. the city – almost US$43 billion BOSTON LONDON 470 9 2 was invested in New York’s real 1,089 LAGUARDIA estate market in 2016 and 2017 – SAN FRANCISCO CHEAPER AIRPORT Going global 535 12 RECONSTRUCTION confirms the extent to which PARIS International demand in the US 836 WASHINGTON DC New York remains firmly on the 555 radar of global investors, and the is rising at a faster pace than CHICAGO 15 703 DALLAS NEW YORK economic outlook for the city domestic demand. According to 592 1,800 EUR NY MN HF A RU INR AU HK is bright. According to Oxford data from the National Affiliation Economics, in 2022, New York is of Realtors, the number of Source: Oxford Economics Source: Knight Frank Research, Macrobond 3 SHERIDAN forecast to have the highest GDP international buyers purchasing EXPRESSWAY of any city worldwide. a home in the US surged 33% in OVERHAUL the five years to 2017. THE KNIGHT FRANK CITY WEALTH INDEX Market update Currency shifts remain a critical OVERALL WEALTH INVESTMENT LIFESTYLE FUTURE Prime prices in New York ended determinant of demand and 1 NEW YORK 1 NEW YORK 1 NEW YORK 1 NEW YORK 1 NEW YORK the dollar’s performance has 2017 4.3% higher but despite 2 LONDON 2 LOS ANGELES 2 LONDON 2 SAN FRANCISCO =2 LONDON 4 the city’s latest round of upbeat come into sharp focus in the last BROOKLYN-QUEENS 3 SAN FRANCISCO 3 HONG KONG 3 HONG KONG =3 CHICAGO =2 TOKYO economic indicators, some year. Against a basket of major CONNECTOR (BQX) 4 LOS ANGELES 4 LONDON 4 SAN FRANCISCO =3 SINGAPORE 4 LOS ANGELES segments of its property markets currencies, the US dollar dipped are facing challenging conditions. 10% on average in 2017, allowing =5 CHICAGO 5 SAN FRANCISCO 5 LOS ANGELES 5 LONDON 5 PARIS =5 SINGAPORE 6 CHICAGO 6 DALLAS 6 TOKYO 6 SAN FRANCISCO Below US$3m and above US$30m key nationalities to take advantage 7 PARIS 7 SINGAPORE 7 SYDNEY =7 PARIS 7 BOSTON the market continues to record and purchase US homes at a 5 relative discount compared to a 8 TOKYO 8 HOUSTON 8 MIAMI =7 WASHINGTON DC 8 CHICAGO healthy sales volumes, but the PENN STATION mid-segment of the luxury market year earlier. In the year to March 9 HONG KONG 9 DALLAS =10 WASHINGTON DC 9 MADRID 9 DALLAS OVERHAUL (US$3-US$10m) is facing strong 2018, Eurozone, British and 10 WASHINGTON DC 10 TOKYO =10 ATLANTA 10 HONG KONG 10 SINGAPORE headwinds, due primarily to the Chinese buyers enjoyed some Sources: Knight Frank, Macrobond, Wealth-X, New World Wealth, RCA, Oxford Economics, Five Star delivery of a large volume of new of the largest discounts (see For the full rankings see The Wealth Report 2018 Alliance, Mastercard, Michelin, Times Higher Education, 2thinknow innovation cities index 2016-2017 inventory in recent years. figure 5). Source: Knight Frank Research

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COST COOPERATIVE CONDOMINIUM LAWYER CONSULT CONSULT

Bank Fees US$350 - US$750 US$350 - US$750

Application Fee US$350 US$350

Processing Fee $280 NA

Appraisal Fee US$300 - US$1,500 (dependent on US$300 - US$1,500 (dependent on the sales price) the sales price) Resale Buying Guide Credit Report Fee US$9.80 single / US$14.60 joint US$9.80 single / US$14.60 joint Bank Lawyer US$750 US$750

Buying property in New York City should be relatively Lien Search US$250 - US$350 NA straightforward, however, we would always recommend that Tax Escrows NA 2 to 6 months you instruct the services of a reputable agent and lawyer. Recording Fees NA US$200 - US$500

UCC-1 Filing Fee US$100 NA Condominiums and building. The shareholders then in Mansion Tax 1% of the entire purchase price 1% of the entire purchase price Cooperatives turn pay a share of these expenses, when it is US$1,000,000 or more when it is US$1,000,000 or more determined by the number of Mortgage Tax NA 1.80% of amount of mortgage on New York is a city comprised mainly shares owned in the corporation. loans under US$500,000, or 1.925% of condominium and cooperative of amount of mortgage on loans of Share amounts are determined US$500,000 and over apartments, with a smaller selection by apartment size and floor level. of homes called townhouses or Fee Title Insurance NA Approx. US$400 per US$100,000 of Existing shareholders have the right mortgage amount brownstones. It is important to to approve or reject any potential new Municipal Search NA US$350 understand the differences between shareholders. The board of directors the two types of apartment found are elected by all the shareholders in Manhattan before starting the of the cooperative and interview all buying process. prospective new shareholders. Once approved at this level and Condo – A condominium is a all credit checks are verified, multiple unit dwelling in which there The Purchase Process the application package is then is separate and distinct ownership Although cooperatives and forwarded to the board of directors. of the individual units and joint condominiums are two very Closing ownership of the common areas, different types of apartment, the Title Search such as the entrances, laundry steps required to purchase are In the case of a cooperative, if the rooms, elevators and hallways. relatively similar. The purchaser’s lawyer will carry application meets initial approval, The building is managed by the out a title search on the property the purchaser would be invited to condominium association, either Submitting an Offer to ensure the financial checks are an interview with the board or with directly or through a professional In New York City, offers are made satisfactory and that the by-laws of an interviewing committee. This manager. The owners of the orally by an agent direct to the the building are acceptable. should be treated as a business meeting. After approval by the individual units are jointly responsible seller or to the seller’s agent. Contract Signing and Deposit for the costs of maintaining the The seller may counter an offer, board, the purchaser can then Once the contract has been signed building and common areas and beginning negotiations. Once a begin planning for closing. by the purchaser, 10% of the they are individually responsible for price is reached that both parties purchase price is usually required In the case of a condominium, there the maintenance expenses of their agree on, the price terms and as a deposit. The deposit is held is generally no formal interview, the own particular units. closing date are decided upon. in escrow by the seller’s lawyer application is reviewed, and if all and cooperatives, however, of professional reference, the Cooperative – Cooperatives are Choosing the Ownership until the deal is completed. Until all required materials are included the process is quite different. contract of sale, and bank owned by an apartment corporation Structure parties have signed the contract and and in good order, approval is The materials will need to be documents (if taking out finance / typically granted. and are typically more difficult for Employing a property lawyer it has been delivered, the seller can completed and typically include: mortgage) indicating the loan international buyers to purchase. who knows the New York market still entertain and accept offers. The entire process can move an application form, a financial is in place. Individuals do not actually own the is crucial. There are numerous If finance is being sought, at this quickly in a condominium, and bricks and mortar of the building, but statement signed by a Certified ownership structures available stage it should be progressed. Once the ‘package’ is complete, assuming a loan / mortgage can rather the shares in the corporation depending on the purchaser’s needs Public Accountant, and all be secured in a timely fashion, the it is reviewed by a member of the that entitle a long term proprietary and priorities. A lawyer can explain Background & Financial Checks necessary support documents for whole process can move from agent’s management team, and lease. The corporation pays the each ownership structure in detail The purchaser’s agent will pass your financial statement, namely contract to closing in as little as 60 building’s mortgage, real estate and help the purchaser choose on the board requirements and three years of tax returns, bank assuming everything is accurate, days. The cooperative process is taxes, employee salaries and other the most appropriate one for their application materials, which can statements, letter of personal it is then passed back to the more involved and 60 to 90 days or expenses for the upkeep of the specific purchase. be similar for both condominiums and financial reference, letters managing agent for review. more is not uncommon.

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The Closing New Development Documentation is signed and exchanged, the purchaser will receive title, becoming the formal, Buyers Guide legal owner of the apartment.

When purchasing a new development, it is necessary to engage Closing Costs with a property lawyer who can reference the offering plan of Mansion tax: 1% (US$ 1 million each particular new development as procedures, deposits, and above) and contract procedure vary from property to property. Transfer tax: approx. 1.825% Mortgage recording tax: 1.925% (applied only to mortgaged amount) Engaging a Lawyer both sets of documents on the Buyers attorney fees: estimated US$2,500 - US$4,000 Employing a property lawyer purchaser’s behalf to ensure there who knows the New York market is no undue risk. All questions and Sponsors attorney fees: is crucial. There are numerous concerns can be addressed during estimated US$3,500 - US$3,750 ownership structures available this period of review. In some cases, the agent may be able to negotiate Additional Real Estate depending on the purchaser’s Expenses needs and priorities. A lawyer can a 14-day due diligence period Common charge adjustment: explain each ownership structure for foreign nationals, however, Pro-rated for the month of closing in detail and help the purchaser this is on a case-by-case basis. choose the most appropriate one for Most developers will refrain from Additional Deposits Real estate tax adjustment: their specific needs. entertaining any other offers during & Financing Pro-rated depending on when the the due-diligence period. In new developments, an ‘additional tax is collected Submitting the Offer Signing the Purchase deposit’ (typically an additional Working capital contribution In New York City, offers are made Agreement 5-15% of the purchase price) will charges: (usually) 1-2 months of orally by an agent direct to the seller be required some months after the The signed purchase agreement common charges into the building or to the seller’s agent. The offer signing of the purchase agreement. and initial deposit (typically 10% so they can accumulate capital for should include all relevant terms: i.e. The attorney will advise on specific of the purchase price) need to be when operations commence. price, whether you intend to close payment terms from the outset. If received during the due diligence This amount is not credited cash or with financing, and any financing is required, it should be period. If the purchaser fails to towards any future common charge additional requests such as parking sought out at this stage. submit both within this time, the payment and is paid at closing to spaces and storage. developer may rescind the accepted Receiving the the building offer and consider others. Closing Notice Offer Accepted For sale - 75 Kenmare Miscellaneous condominium The attorney will advise when Prices starting from $1,840,000 charges: vary by building. The agent will let you know when Executed Purchase confirmation is received that Consult your NY attorney an offer has been accepted and the Agreement closings are likely to commence. If financing, the lender will approximately 30 days advance final terms. Short term interest: equal to Under New York law, neither At this stage, the attorney will provide a HUD1 settlement notice of the scheduled interest for balance of month in party in a real estate transaction is coordinate a title search and arrange statement, which outlines the closing date. The agent will Due Diligence which you close. Consult your bound until both parties sign the the purchase of title insurance, final cost to close and certified then schedule a walk through. NY attorney Once an offer has been accepted, contract and the initial deposit is as well as provide closing costs checks required. In addition, the purchase agreement is delivered delivered. The deposit is held in the If the purchaser does not plan to estimate, indicating the total the lender will advise if any final Title insurance: consult your local to the appointed attorney, along with developer’s attorney’s escrow until physically attend the closing, the sum required to close, including documents are needed to clear NY attorney the condominium offering plan. The closing, providing an additional layer a breakdown of transfer taxes, attorney will provide a Power of the loan for closing. due diligence period then begins of protection. The escrow account recording fees etc., and request a Attorney documentation to sign, Miscellaneous costs: estimate and is usually 5-7 days. During details are disclosed in the transfer of funds to the attorney’s The attorney will receive a allowing the attorney to close on US$1,500 in misc. fees throughout this period, the attorney reviews purchase contract. escrow account. formal closing notice; giving behalf of the purchaser. the transaction process.

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Property Wish List

125 Greenwich Charlie West 196 Orchard Street 75 Kenmare • Prices starting from $1,275,000 • Prices starting from $965,000 • Prices starting from $985,000 • Prices starting from $1,840,000 • Designed by world renowned architect, Rafael Viñoly • Designed by ODA Architects • Private courtyards and terraces up to 1,634 sq. ft. • Interior design by Kravitz Design • Tranquil spa with sauna, steam room & • Landscaped courtyard • Approximately 4,100 sq. ft. landscaped rooftop • Landscaped courtyard designed by Future relaxation space • Children’s playroom terrace with sweeping city views Green Studio • 24-hour concierge services • Estimated completion: Q2 2019 •  Equinox Fitness Club & Spa with exclusive, • Underground automated parking garage • Estimated completion: Q4 2019 resident-only discount • Estimated completion: Q4 2018 • Estimated Completion: Q2 2018

200 East 59th Street 30 East 31st Street 200 East 21st Street The Astor • Prices starting from $2,230,000 • Prices starting from $1,750,000 • Prices starting from $1,445,000 • Prices starting from $1,881,000 • Deep wrap-around terraces in every residence • Tranquil viewing garden • Wellness centre with sauna & treatment room • Interiors by Pembrooks & Ives • Private dining room with catering kitchen • Resident’s lounge with double-sided fireplace • Skylit studio with wet bar • State-of-the-art fitness centre • In-lobby concierge services & on-site • Elegant lobby with a 24-hour Concierge • 24-hour attended lobby • 24-hour concierge, mail room, package room & resident manager • Estimated completion: Q2 2019 • Estimated completion: Q1 2019 cold storage • Estimated completion: Q3 2018 • Ready for immediate occupancy

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