Unique Homes Blog

Picking Up the Slack

Red lights and yellow cabs may make for congested New York streets, but thanks to a push from foreign buyers, it’s green lights ahead for the Big Apple’s luxury real estate market.

New York always has had the glitz and glamour. But today, its most significant asset is its heavily reduced real estate prices.

“London, Moscow, Paris and Tokyo are significantly more expensive than New York on a per-square-foot basis. Maybe 150-percent more expensive,” says Edward Mermelstein, co-founder of the international real estate law firm Rheem Bell & Mermelstein. “You’re purchasing at a 50-percent discount in New York.”

According to Mermelstein, the big players holding the luxury sector of the real estate market together are foreign buyers, including clients from the Middle East, Asians, and Eastern and Western Europeans.

“Foreign buyers are picking up the slack of the high-end purchasers,” says Mermelstein. “Many of the currencies have gotten much stronger against the dollar so you’re seeing a lot of Europeans, Brazilians and Asians taking advantage of their currency.”

This past fall, Carlos Slim, the world’s richest man and a foreign buyer, bought a New York residence for $44-plus million. At the same time, Mermelstein was helping another foreign buyer close on a more than $18 million property and work contracts for two $10-plus million properties—all in New York.

Recently, Mermelstein has received an influx of calls from sellers in hopes the he can put them in contact with foreign buyers. The reasoning? “These are all cash deals,” he says. “The certainty of closing is much greater.”

Whether the buyer is from around the corner or across the globe, Mermelstein’s advice is “stick to the best location you can afford and buy the best unit in that location.” He adds, “The best units tend to appreciate the most.”

Sonoma Sale Sets Record

By Lauren Varga King

When no expense is spared in the creation of a landmark property, it’s hard to pass up the opportunity to take ownership of it. This was the case recently in Sonoma County, Calif.
Originally listed in 2005 for $35 million, Shanel has been sold and recorded as the most expensive residential home sale in Sonoma County history.

“The owners of this property never questioned what they needed to do to create a high-quality estate,” says Nicki Naylor of Alain Pinel Realtors, the agent to the sellers.

Spanning approximately 362 acres, the property affords moss-covered oak woodland, a fruit orchard, vegetable and herb gardens, a gourd patch and roughly 8 acres of Syrah vines. According to Naylor, the property’s value lies in its land.
“If I had to focus on anything, I would focus on the property,” she explains. “Houses appreciate, but land doesn’t.”

Wrapped around a central courtyard, the home was designed without one 90-degree angle. The layout makes for panoramic views of San Francisco Bay and Sonoma Valley.

“It is an extraordinary property and I haven’t seen anything that well done in Sonoma or Napa,” says Naylor.

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