New Hoboken Luxury Development "The Artisan" Sells For Big Bucks

     Hoboken, one of the most exciting and visited nightlife spots in New Jersey, is drawing in more and more upscale renters constantly. Proximity to New York, popular bars and restaurants, city like atmosphere, and a great view of NYC just over the Hudson are all reasons why people want to live in Hoboken. Due to the high rent demand in Hoboken, the need for new upscale development was overdue. That need was realized by Argo Real Estate along with the help of Alpine Development when they teamed up in 2012. 

    

 The result was The Artisan; a 102,000 square-foot mixed use development that was financed by a $16 million loan. What exactly is The Artisan? Located at 1400 Clinton St & 1440 Grand St, The Artisan includes two separate four story apartment towers, joined by a two story base which houses retail space. Amenities of The Artisan include a lounge, fitness center, private courtyard, private parking, and a business bar for all to enjoy. The apartment began their availability in October 2013 and just five months later, the place was fully booked. 

     Five months! That is pretty crazy, however it portrays the true demand for upscale luxury rental living in Hoboken. In that five months, 59 total units were filled with 1 Bedrooms going for $2,500/month, 2 Bedrooms $3,300/month, and 4 Bedrooms $4,700/month. These prices near the lofty monthly rates of NYC itself, and they were snatched up in no time. 

This project was a huge success, once the news broke of the building being rented to full capacity, a Chicago real estate investment firm opened up the checkbook and bought it. 

     

     How much is this development worth? LeSalle Investment Management spent a hefty $33.5 Million to purchase The Artisan. LeSalle, a company that oversees $47.6 billion of public and private property equity and debt investments, is a leading global real estate investments manager. This is more proof, not that any was needed, that Hoboken is thriving and most likely will continue to develop towards the upscale lifestyle.

Condos Take The Spotlight In Housing Recovery

     Even with the housing Recovery in consideration, over the last few years the condo sector has been far from impressive in both growth in sales as well as growth in development. The blame for this, however, is not to be put solely on the housing crash, but the lack of physical buyers that would be interested in this particular form of housing. Condos are most popular among two groups; people looking to downsize and live in a low-maintenance community (Currently this group is the Baby Boomers), and young professionals who are just entering the housing market. 

     Although almost everyone was affected by the economic collapse, these groups of young professionals and Baby Boomers are most relevant in regards to condo growth and development. Over the past few years, following the housing crash, many young professionals were held back financially, whether that meant trouble finding a job, trouble gaining job security, loss in investments, etc. On the same note the Baby Boomers, who were expecting to retire, also had their future affected by job security, loss of investments, etc. Recently, we are seeing indications that these issues are steadily diminishing.

     Condo sales are moving up quickly, especially within the last year, due to the increased demand by none other than....That's right, you guessed it...the Baby Boomers & Young Professionals. According to preliminary data issued by the National Association of REALTORS®, condo and co-op sales in July 2013 were up 23% from July 2012. Although some regions posted larger gains than others, there was at least a 20% gain recorded in every region year over year. In the nation, the average price for condos and co-ops was $209,600 in July, which marks an approximate 15-16% increase year over year. 

    As with anything, when sales & value go up it sparks demand for an increase in production. The National Association of Home Builders refers to an index that measures builder confidence for the sector and the recent reports show a boom in builder optimism during the second quarter of 2013. The focus for builders seems to be high-rise condo complexes. The growing interest in high-rise construction goes hand-in-hand with a slowly recovering housing market for new residential home construction. 

Celebrity Estates! The Tiger Woods Mansion

     The infamous Tiger Woods, one of the most accomplished athletes in sports history. Tiger is not only an accomplished athlete; from sports drinks to clothing lines this man has created an empire. Even after his fairly recent issues that relieved him of many endorsement deals, and the divorce that sent ridiculous amounts of money to his former wife, Tiger's wealth remains intact and will continue to build towards the future.

   
     Tiger's mansion stands among the best out there. At an astonishing $60 Million price tag, this modern estate is perfectly designed for the golf enthusiast; mainly due to the fact that Tiger himself, along with the Tiger Woods Design team, helped to develop the property. Tiger's goal: to replicate the look of a real professional golf course right in his own backyard. The result: Incredible success! The plans began with the land itself, a flat 3.5 acre area that transformed into a family friendly practice facility with tournament conditioned turf and bunkering to replicate various major courses. The rest of the landscaping features a tennis court, gym, diving pool, lap lane, running track, and of course a small golf course for Tiger to practice on.
     The inside of the home is just as intricate as the outside. There are four different buildings that are joined to the main home area, which include a boathouse, golf training studio, a garage, and an oversized guest house. The basement of the home includes amenities such as a cinema, large wine cellar, and of course a game area with all the newest and best toys for Tiger's children. As Tiger is a man of privacy, the entire estate is surrounded by large trees and shrubbery for solidarity and safety.

More Underwater Homes Floating To The Surface

     With the housing recovery firmly on track and home prices rising at a consistent pace for over a year now, underwater home owners can now see the light at the end of the tunnel. For those of you who do not understand the term "underwater", it refers to the concept that the homeowners owe more towards their mortgage then what the current value of the home is worth. A recent report from RealtyTrac has shown that 10.7 million households, as of September 2013, owe 25% more on their mortgages then the value of the home itself (The 10.7 million accounts for 23% of all homes nationwide that have mortgages). Although this seems to be a staggering number, it is actually a great improvement seeing that in May 2013, just a few months ago, the number was 11.3 million and September 2012 the number was 12.5 million.

     

     It has been a long six years since the housing collapse that caused countless homeowners to sink underwater on their mortgages. As I have mentioned in many of my previous posts, the issue of the housing inventory shortage has plagued buyers for quite some time, and having millions of home owners underwater is a big part of the problem. A majority of the home owners currently underwater would like to sell their home and move on, however that cannot be done until they resurface on their mortgages.

     Good News! The same report from RealtyTrac shows that the recent spike in home prices has moved a good amount of these underwater households much closer to resurfacing on their mortgages. An approximate 8.3 million households, that have been underwater, are expected to gain enough equity back in their homes to be able to sell within the next 15 months; without having to succumb to a short sale. This is great news for the housing market because this means that we are getting much closer to a more abundant housing inventory. 

“Steadily rising home prices are lifting all boats in this housing market and should spill over into more inventory of homes for sale in the coming months,” says Daren Blomquist, the vice president at RealtyTrac.