LandlordsNY Briefing for October 4th

The New York City Economic Development Corporation wants to partner with a landlord or nonprofit and buy a building in the Garment District. They are willing to put down $20 million or 30 percent of the purchase price (whichever is less) in public funds to make the deal happen.

Because so many garment manufacturing firms have either left for Industry City or the Brooklyn Navy Yard, the city has decided to rezone the area. Many of the blocks in the district will be converted for residential or office usage. However, because at least a small garment center is vital to the nearby fashion industry, the EDC believes a garment manufacturing hub needs to remain within the area.

This building will serve as this hub.

The EDC will give preference to nonprofits and properties with over 100,000 square feet. More importantly, the owner will have to give tenants 15-year leases with rents capped at $35 per square foot. In exchange, the owner will receive a 15-year tax break.

The Commercial Observer has more.


Mortgage rates slid slightly this week. According to data released by Freddie Mac, the 30-year fixed-rate average slipped to 4.71 percent with an average 0.4 point. It was 3.85 percent a year ago and 4.72 percent last week. The 15-year fixed-rate average dipped from 4.16 percent a week ago (and 3.18 percent a year ago) to 4.15 percent with an average 0.4 point. Finally, the five-year adjustable rate average climbed to 4.01 percent with an average 0.3 point. A week ago, it was 3.97 percent; it was 3.18 percent this time last year. This is the highest the five-year adjustable rate mortgage has been since 2010.

The minor decline in 30-year and 15-year rates is assumed to be just a minor aberration from an upward trend.

The Washington Post has more.


In a Landlords New York Minute – A (Very) Brief Look Around the World

Ireland has sided with United Kingdom Prime Minster Theresa May’s plan to create an all-UK customs union with the European Union following Brexit, Chinese entrepreneurs are worried that the government may reverse some of the free-market policies that have allowed capitalism to flourish in the world's second largest economy, Bloomberg reports that Chinese spies stole corporate secrets from several tech companies including Apple and Amazon, French President Emmanuel Macron is hoping to buoy his support among the French working class by giving them a significant tax break after he suffered a dip in popularity due to his moderately pro-business agenda, four men attempted to steal $500 million from Angola’s central bank, and First Lady Melania Trump appears to have won the collective heart of Ghana. Fred Hopkins, a 74-year-old disabled veteran, shot seven law enforcement officers (including one fatally) in South Carolina during a standoff that was initiated for reasons that remain unclear; Navy veteran William Clyde Allen III sent packages laced with the poison ricin from his home in Utah to Defense Secretary Jim Mattis and the head of the United States Navy, Adm. John Richardson at the Pentagon; the Federal Bureau of Investigation has completed its investigation into the allegations of sexual assault by Supreme Court nominee Bart O’Kavanaugh and the White House contends that the report will exonerate him; and Jackson Cosko, an intern for Rep. Sheila Jackson Lee (D-Tex.), has been arrested for revealing the personal contact information of several Republican U.S. senators on the Senate Judiciary Committee. Many manufacturing centers in the United States experienced a mini-recession in 2015 and 2016, the United States hopes to counter China’s growing influence by spending less than 6 percent of what China does to fund international development and to promote U.S. soft power, U.S. stocks dipped following record highs because U.S. Treasury yields have now pushed to multiyear highs, junk bonds are beginning to falter after plateauing for most of the year, and U.S. student loan debt now exceeds $1.5 trillion. Residents of Kew Gardens have expressed their opposition to closing Rikers Island and reopening a detention center in Kew Gardens, retail vacancies are surging along the Bedford L train stop, Bayonne is being gentrified, the Working Families Party has endorsed Governor Andrew Cuomo, and the Taxi & Limousine Commission is pushing to establish a $15 minimum wage for e-hail companies like Lyft and Uber.

Lockheed Martin has unveiled its design for the new lunar lander, the first exomoon (a moon that exists beyond our solar system) may have been discovered, Japanese researchers have created robots that can install drywall, there are now wasabi- and hot-chicken-wing-flavored Oreos (which should make one think of a Dostoyevsky quote), drunken birds are terrorizing a Minnesota town, there will be a squirrel census in Central Park, 18 percent of Americans plan to dress their pets up for Halloween this year, and there may be too many scientists.

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