Wednesday 4 May 2011

Wisconsin Realtors' political contribution riles some real estate pros

More than 120 agents and brokers are listed as supporters of Real Estate Professionals for a Better Wisconsin, which is protesting the Wisconsin Association of Realtors' backing of Gov. Scott Walker and its donation of $150,0000 to his campaign, according to the Wisconsin State Journal.

Walker has been at the center of the state's highly controversial efforts to cut its budget, including the cutting of state jobs and limiting collective bargaining for state employees.

"We are petitioning the WRA to stop endorsing individual political candidates, focusing instead on educating the public about issues affecting our industry and where the candidates stand on them," reads a statement on the group's site.

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Workarounds for seller financing pitfalls

DEAR BENNY: I purchased a condo in California in January 2009 and was able to get a second mortgage through the seller to help me purchase. Dealing with the sellers has been a bit of a hassle.

When I contacted the sellers in order to assure that I received a statement of the interest paid on my loan about two months ago, they informed me they were unable to deposit two payments I sent them through my online banking system. One of these payments was in April 2010 and the other in September.

How long does the lender have to inform me of a missed or late payment? Since it has been so long it has been somewhat difficult for the bank to figure out what exactly occurred with the April payment. I am planning on refinancing in order to avoid dealing with this lender. --Brandy

DEAR BRANDY: That's an interesting question that has never come up before. And I must confess that I really don't know the answer. I do know, however, that commercial mortgage lenders who receive more than $600 a year in interest must send their borrowers a Form 1098 by the end of each January. However, if your lender (the seller) is not in the business of lending money, he has no legal obligation to send that form to you.

My suggestion: Figure out how much mortgage interest you paid. You can get some assistance from the calculators at www.mtgprofessor.com/calculators.htm.

To protect yourself, however, you should check with your bank to see if those checks were, in fact, cashed. Most banks allow their customers to research their account online, and this may be helpful to you.

One additional suggestion: Especially when you are not dealing with a commercial financial institution (such as a seller take-back mortgage), check with your bank monthly to see if your payment was negotiated and cashed.

DEAR BENNY: Regarding a recent column, sorry but you are wrong about the capital gains tax on the gifted million-dollar house. The tax would be 28 percent of the capital gain, not 15 percent. The alternative minimum tax (AMT) applies to capital gains, not just income. That million-dollar gain on sale of the house would push your reader way into AMT territory.

I received assets from my father's bypass trust when my mother died. I sold the assets expecting to pay 15 percent on the capital gains. The capital gains pushed me into the AMT and I had to pay 28 percent tax on the appreciation of the assets since my father's death in 1996. Look at page 2, line 53 of the AMT form for the calculation. No one mentions this little trap when they talk about the so-called Bush tax cuts. The bypass trust turned out not to be a great thing tax-wise. --William

DEAR WILLIAM: I don't profess to be a tax accountant, and learn a little every day. I believe you are correct (I did look at Internal Revenue Service Form 6251). However, I cannot provide specific legal or tax advice and accordingly urge readers to consult with their own tax and legal advisers.

DEAR BENNY: I hope you can help me. I am a 78-year-old single woman living alone. Some weeks ago, my next-door neighbor fenced in his backyard with Gothic picket fencing. There was an old wire fence about 4 feet tall on my property separating our backyards. Before he started, he called me over and said he would do whatever I wanted: put the fence on the property line or take down my fence and put his in its place. Knowing he wanted an answer right away (as the installer was there with him), and thinking the fence was probably a foot or two at the most inside the line, I told him he could put it in place of mine.

I now believe the fence may be further into my yard than I first thought. Do you think it would be a good idea for me to ask him to purchase the strip of land, the entire length of which is 139.28 feet from front to back? I'm concerned there may be a problem (especially for him) if and when I sell my property. --June

DEAR JUNE: The first thing you should do is to obtain a survey of your property. A surveyor can quickly determine whether the fence is on your land or not. You can find surveyors in the Yellow Pages (or online) and the cost should not exceed $300-$400.

If the fence is really on your property line, you have three choices. First, demand that he remove it, since he is trespassing on your property. Second, ask him to buy that strip of land, although he may not want to do that. Third, you can just leave the situation as is.

However, the last alternative can cause problems for you if and when you ever want to sell your house. Mortgage lenders usually require that their potential borrowers (the homebuyers) obtain a survey, and if the fence is on your land, your buyer may be concerned about this.

Why? Many states have laws called "adverse possession." This means that if your neighbor openly, notoriously and hostilely puts his fence on your property, and the requisite statutory period of time has elapsed, your neighbor can claim the land as his own. This does require court action, but generally, when a person puts up a fence, the courts don't have to spend a lot of time deciding the case.

If you opt for the third alternative, at the very least you should send your neighbor a polite letter, advising him that you are consenting to his encroachment for the time being, but nevertheless reserve all rights in the future to demand he take it down.

Why this letter? Remember that one of the tests for adverse possession is "hostility." That means that the fence was put up against your wishes. If you consent (and keep the letter in your files), you have removed this defense.

DEAR BENNY: I own a manufactured home and recently paid off my chattel loan. However, in order to clear the lien, our secretary of state requires that I pay an additional cost. The bank stated we might not have to do this. Will this impact selling the home in the near future? --Phil

DEAR PHIL: That's a good question, and I first have to explain what a chattel loan is. Oversimplified, it means "personal property" -- whether that be a car, a refrigerator or a mobile home. It is something that is not real estate. A mobile home can be moved from place to place.

When you get a loan on a house, you give a deed of trust (also called a mortgage) to your lender, who records that document on the land records in the jurisdiction where the property is located. Recording puts the world on notice that there is a lien (a cloud) on your title.

However, when you get a loan for a mobile home, technically there is no mortgage document to be recorded. But the lender still wants to make sure that if you are in default, there is security against your property. Accordingly, many years ago, a system of recording such personal property was developed and was called "chattel loans"; this recording system put the world on notice of your financial obligation to the lender.

In recent years, most states (except Louisiana) have enacted the Uniform Commercial Code (UCC), and chattel loans are now recorded in the UCC filing in each state.

Since I suspect that your mobile home loan was, in fact, recorded in the UCC filing, you have to have it released from the records. Otherwise, when you go to sell your home, that obligation will show up in a search.

Accordingly, I strongly suggest that you pay the nominal fee to the secretary of state and have that loan released from the records.

DEAR BENNY: We have recently paid off our mortgage loan and received two documents from the bank that state the loan was "paid and canceled." We also received a "disbursement check voucher" that states the mortgage was paid in full. Are these two documents all we need or are there more that we need to prove that we own the house outright? --Luis

DEAR LUIS: That is not all you need. As discussed above, your mortgage (called a deed of trust) was recorded in the county where your property is located, and you have to have it released from land records. You can either have your attorney do this, or you can go to the recorder of deeds in your county and they should be able to assist you.

Benny L. Kass is a practicing attorney in Washington, D.C., and Maryland. No legal relationship is created by this column. Questions for this column can be submitted to benny@inman.com.

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New-Home Sales Increased in March, but Stayed Low

Buyers signed contracts in March at a seasonally adjusted annual rate of 300,000, an 11 percent increase from the month before but down from 384,000 in March 2010, the Census Bureau said Monday.

In March 2005, when a lack of income or savings was no deterrent to getting a dream home with granite countertops and a walk-in pantry, families and investors flocked to new homes at an annual rate of 1.43 million houses.

The millions of homes built during the boom have created a drag on the current market as the owners surrender them to foreclosure. Builders cannot compete against relatively new construction offered by banks for large discounts.

The March sales numbers modestly exceeded analysts’ expectations but nevertheless did not impress. “Still miserable,” concluded Joshua Shapiro, chief United States economist for MFR Inc. While February sales were revised up to 270,000 from an initial 250,000, it was still the lowest of any month since records were first kept in 1963.

Builders told potential buyers in March that they might want to make a deal before new rates came from the Federal Housing Administration, which guarantees many loans. That probably contributed to the rebound.

In a separate report issued Monday, the HousingPulse Tracking Survey indicated that nearly half of the housing market is distressed properties. Because banks generally pulled back on foreclosures over the last six months, the survey underlined the long-term pressures facing the market.

If the banks start processing foreclosures faster, that will create further downward momentum on the housing market. A coalition of state attorneys general and the Obama administration is negotiating with the lenders to persuade them to do more loan modifications instead.

Home prices have been falling for the last six months, and the release on Tuesday of the Standard & Poor’s Case-Shiller Home Price Index for February is expected to show another decline. Before that release, Morgan Stanley lowered its forecast for prices by an additional 4 percent. Morgan Stanley analysts now say prices will drop 6 percent to 11 percent from their levels at the end of last year.

The drop in home construction and sales is in some ways good news for would-be sellers, because it means new supply is not coming to a market that already has excess inventory. But lackluster construction is a drag on the larger economy, contributing to high unemployment and weak consumer spending.

It would take about seven months to find buyers for all the new homes now on sale, a period only slightly longer than normal. Builders are clearly skittish about anything for which they do not have a contract.

No relief is in sight.

“Sales remain very low by historical standards and, considering that a number of home builders reported large drops in orders recently, there is likely more weakness ahead,” wrote Jennifer Lee, senior economist at BMO Capital Markets.


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The Hunt: A Pied-à-Terre for East Coast Sojourns

To her, however, a cabin was a small apartment. Her idea of woods was towering high-rises. Her idea of a getaway was New York City.

Ms. Baiz, who owns a jewelry and diamond wholesaler called Big Sky Gold and Diamond Brokers, has lived her whole life in Great Falls, Mont. Nearly 20 years ago, when she and her husband were having the kitchen of their century-old house remodeled, they hired a contractor who had a gem brokerage on the side. Ms. Baiz, formerly a radio reporter, seized the chance to learn the business, and later branched out on her own.

She had never been to New York until she came for a trade show a dozen years ago. After that, every time she returned for business, she liked the city more. “I had a knot in my stomach getting back on the airplane, because there was so much more that I didn’t do,” she said. “It felt like going to your favorite restaurant, ordering an appetizer and then leaving. I had too much of an appetite for New York.”

So she began visiting for weeks at a time, staying in hotels or taking sublets. Her longest stretch was last year — a 10-week stay in a Chelsea high-rise while she took a writers’ workshop. Ms. Baiz, who blogs at wedgeblog.net, writes for jewelry magazines and Signature Montana magazine.

Her husband, Tom, a lawyer who also works for her, came to visit. Over breakfast at the Aroma Espresso Bar on West 72nd Street, he suggested that she avoid the expense of hotels and the hassles of sublets by buying a small place. With their son and daughter out of college, the time was right.

“While he was in the mood for something,” Ms. Baiz said, they ran across the street to an open house for a sunny studio co-op.

“I stood outside that building and asked people, ‘What is the best thing and the worst thing about living here?’ ” Ms. Baiz said. Location was the best thing, residents told her. High maintenance was the worst. The studio’s monthly maintenance was more than $900.

The Baizes made an offer in the low $300,000s. It was declined. That was when Ms. Baiz, who ended up making four trips from Montana in the course of a year, began the hunt in earnest. Her budget maximum was $400,000, and she was determined to keep the monthly outlay under $2,000.

Her many sublets had taught her what to avoid. After staying in a high-rise, she knew she wanted a prewar building with thick walls and less risk of neighbor noise. After staying near a firehouse, “even though my dad was a fireman,” she said, “I didn’t want to live across from sirens.”

At one Upper West Side place, the seller rejected her offer in favor of a lower one from a colleague. She was disappointed, but “this did give me faith that money isn’t everything, even in New York real estate.”

Near Union Square, the selling agent guaranteed that she could move a wall to create a sleeping nook, but a contractor informed her the wall was immovable. That undermined her faith.

At the Orienta on West 79th Street, the seller accepted her offer of $353,000. Maintenance was in the $800s. She had been told that the co-op allowed pieds-à-terre on a case-by-case basis, but her case was declined.

“I was devastated,” she said. “They had a willing seller and a willing buyer.” Knowing she needed guidance from someone with expertise in Manhattan co-ops, she e-mailed three agents she found online, and chose Robyn Frank-Pedersen, a senior vice president of the Corcoran Group.

Ms. Baiz told Ms. Frank-Pedersen that she didn’t mind a studio, as long as the layout allowed for some kind of sleeping spot, eating area and writing nook. She wanted a diverse neighborhood, one that provided the “yang to Montana’s yin,” she said. “I wanted to walk down my hall at dinnertime and smell at least three continents.”

Ms. Baiz liked the bachelor-pad aura of a place on West 15th Street, even though she originally mistook the Pullman kitchen, behind folding doors, for a closet. The price was around $410,000, maintenance a reasonable $560.

But the building had no doorman. She decided she needed one, primarily to keep houseguests at bay when she was back in Montana. “I didn’t want friends and relatives to look at my apartment as a key exchange, like, ‘Oh, well, just get the keys from Claire and use her apartment,’ ” she said.


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Square Feet: Projects Shelved in the Downturn Spring Back to Life

The developer spent the last several years studying the engineering of a deck over the rail yards on the site, and says it has found a way to build it cheaper and quicker. It will start construction later this year, with plans to deliver a two-million-square-foot office tower designed by Skidmore, Owings & Merrill on the northeast corner of the parcel by 2015. There are plans to eventually construct as many as three towers.

“We will start building the deck on spec but are confident that by the time we get around to building the tower, we will have found an anchor tenant,” said Ric Clark, the president and chief executive. While he declined to give asking rents for the tower, Brookfield has begun preliminary conversations with tenants and expects to be competitively priced with the Hudson Yards buildings the Related Companies is planning a few blocks west.

As rents rebound and vacancies fall in the New York office market, some developers like Mr. Clark who shelved projects in the recession are resurrecting their plans. Several buildings are in the pipeline, and nearly 9.5 million square feet could become available over the next few years — in addition to several million more square feet at the World Trade Center in Lower Manhattan and the Hudson Yards.

A number of factors are driving the trend. Commercial rents are rising in certain submarkets and have held steady in others. Builders who believe the market has turned are preparing sites now in the hopes their projects will come online when higher rents are firmly established.

The city’s aging office stock is another factor. Nearly 83 percent of the office buildings in Manhattan were built more than three decades ago, according to the real estate company Cassidy Turley, and just 6.6 percent have been built since 1990. Many tenants, particularly law firms and financial services companies, crave new space that can be more efficient and tailored to their needs. Finally, construction costs could fall as union contracts begin expiring over the next few months and contractors push to exclude costly labor rules.

“A year ago people were saying the market was so bad they wouldn’t contemplate ground-up construction,” said John F. Powers, the chairman of the New York tri-state region for CB Richard Ellis. “But now, there is upward pressure on rents in some segments of the market, and certainly there is no more downward pressure, so developers are beginning to run pro formas again,” he said, referring to the method of estimating a project’s cost.

In the first quarter of this year there were 15 office leases in Midtown at rents above $90 a square foot, compared with 23 for all of 2010, according to Cushman & Wakefield. At the same time the vacancy rate in Midtown has dropped to 10.3 percent, compared with 12.6 percent at this time last year.

Tenants considering locking in new space now, before rents rise further, include Time Warner Inc., the financial services behemoth UBS and the law firm Mayer Brown. According to Cassidy Turley there are 446 tenants in the market chasing less than 28 million square feet of space.

Particularly well-poised are those developers who had begun preparing before the recession and can resume construction now at points further along. Pacolet Milliken Enterprises, the sister company of the textile firm Milliken & Company, demolished the building at 1045 Avenue of the Americas, a full block between West 39th and West 40th Streets, in 2009. The company has completed the schematic design for a 350,000-square-foot office building at the now-vacant lot, and has hired the Houston-based real estate firm Hines as a consultant.

“We feel very confident about the market and the location,” said Richard C. Webel, Pacolet Milliken’s president. He said the company had been speaking preliminarily with tenants, though it had not yet hired a broker. As for timing, “based on who we have talked to, the market should be there by 2015 or 2016, if not sooner,” Mr. Webel said.

Timing is critical as the market starts to revive, experts said. “The first buildings to be up and running will be most successful in grabbing an anchor tenant,” said Robert Sammons, the vice president for research services at Cassidy Turley.

Boston Properties is banking on this as it revives construction on a 1-million-square-foot office tower at 250 West 55th Street; building stopped in 2008 after the foundation was poured. Since it is partially built, it will be a relatively short time — mid-2014 — until Boston Properties can deliver the building to tenants. Already, it is in lease negotiations with the law firm Morrison Foerster as an anchor tenant.


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Habitats | Carroll Gardens, Brooklyn: The Reconstituted Row House

A friend suggested Brendan Coburn, a former boyfriend whom she described as a “brilliant architect.” Ms. Ceccarelli was impressed by such a glowing recommendation of an old flame, and even more impressed by what Mr. Coburn envisioned.

“He sketched everything out perfectly, to a T,” said Ms. Ceccarelli, now an executive vice president of the Wildlife Conservation Society, which is headquartered at the Bronx Zoo. “Originally, I just wanted to redo the kitchen. But Brendan suggested things like staining the floors black to emphasize the horizontality and make the space seem larger. I was bowled over.”

At the time Mr. Coburn was working from his parents’ apartment in Cobble Hill, Brooklyn, and at night, he and his client, then in their mid-30s, often studied drawings and examined samples of cabinetry and countertops over drinks.

Once his work was done, Mr. Coburn called Ms. Ceccarelli with a proposal. “Could we have dinner and talk about something other than your apartment?” he asked. The dinner turned out to be a bona fide date — no samples of kitchen tile or wood veneers this time. The next day Ms. Ceccarelli broke up with the man she had been seeing, and by March 2001 she and Mr. Coburn were engaged.

But their wedding, which took place five months later, occurred during a tumultuous period. Mr. Coburn’s father had died in May. His brother had divorced. Then came Sept. 11.

“It had been an intense year, with lots of untethering in the world,” Mr. Coburn said. “All these things made us feel that we needed to build a home.” Weeks after the attacks, they began house hunting.

The couple had two criteria. As Mr. Coburn summed them up: “The place had to be a dump, so we could redo it. And there had to be a garden on the south side of the house.” He loved row houses, the defining architecture of his Cobble Hill childhood, but having grown up in one that faced east and west, he knew they could be dark.

The house they settled on, a two-story structure on Sackett Street in Carroll Gardens, had been built in 1847 and according to Mr. Coburn, “had been getting worse for 150 years.” Ms. Ceccarelli agreed. “During the open house,” she said, “people were literally rolling their eyes.”

They bought the building for $575,000 in March 2002, and over the next nine months spent $550,000 to transform it, a cost that would have been far higher had Mr. Coburn not served as both architect and general troubleshooter, working closely with Marty McKenna, his general contractor. They moved into the house in March 2003, three months after the birth of their son, John.

Few people strolling along Sackett Street would guess that behind the worn red brick facade with the weeping cherry out front there sits a sleek modern structure in which everything — walls, floors, the top-floor extension — is brand-new. The parlor floor seems as open as a loft, and even on the darkest days, the rooms are unexpectedly bright.

“The big design idea,” Mr. Coburn said, “was to make the house into a light box, one that captures different light all day long and all year round.” To achieve this, he used two major elements.

One involved building a switchback staircase in the middle of the house, punctuated with landings made of slabs of glass and topped by a skylight that lets sunlight flood the room. The other involved constructing huge windows facing the rear garden. “One of the most compelling architectural qualities of row house neighborhoods is the relationship between the house and the garden,” Mr. Coburn said. “And Brooklyn is particularly blessed when it comes to finding and exploiting this relationship.”

For some couples, allowing one member to design an entire building would be a sure-fire recipe for disaster. Marriages have teetered over the choice of doorknobs. Yet Ms. Ceccarelli struggles to remember something about which the two of them disagreed.

“The only thing we didn’t see absolutely eye to eye on was the Viking stove,” she said. “I wanted something sexier, like maybe a Gaggenau. But really, it was such a silly conversation.”

And while Mr. Coburn privately yearns for a proper dining room, as opposed to the table by the front window that seats six, there too the couple were on the same page.

“We had to be honest with ourselves,” Ms. Ceccarelli said. “We hardly ever use the dining-room table. Most of the time when we have guests, everyone sits in the living room and we serve them wine and cheese.”

The parlor floor opens onto a deck that leads down to the garden, designed as a series of outdoor rooms. John has a treehouse, with a secret door so his friend from next door can visit. The tenants in the basement apartment also have outdoor space.

The second floor is home to Mr. Coburn’s tiny office, along with what he describes as the “TV and Lego pavilion.” In the rear is John’s room, outfitted with his father’s wooden building blocks, along with a huge map of the world on which John can trace his mother’s travels — most recently a safari in Bangalore, India — and a large plush tiger. (Having a mother with an office at the Bronx Zoo has its upside.) The top floor is devoted mainly to the couple’s bedroom.

Architects invariably yearn to build something of their own, or at least to get their hands on buildings they can retrofit. Mr. Coburn is no exception. “If it were up to me,” he said, “we’d have a tiny Greek Revival farmhouse somewhere in the country and change row houses every couple of years.”

Ms. Ceccarelli looked slightly ashen at the possibility. “Um, maybe not,” she said. “I didn’t quite sign up for that.”


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Off the Charts: A Reversal for Real Estate After Some Mild Gains

Indexes of the two markets showed this week that the latest declines had almost wiped out the mild gains the two markets had shown after prices appeared to have hit bottom.

The Standard & Poor’s/Case-Shiller index of home prices ended February 3.3 percent below where it was a year earlier, and just 0.5 percent above the low reached in May 2009. The Moody’s/REAL Commercial Property Price Index was reported to be down 4.9 percent over the last 12 months, but still 0.8 percent above its low, reached last August.

In both cases, sales volumes are far below what they were when the markets were booming, and a large proportion of the properties that are being sold were in trouble before the sale. The National Association of Realtors estimates that about 40 percent of existing homes that changed hands in March were either in foreclosure or were so-called short sales in which the house was sold for less than was owed on the existing mortgage.

The commercial property index, which is based on data collected by Real Capital Analytics, shows that 29 percent of transactions in February involved distressed properties — including those already in foreclosure or default, as well as those whose owners had filed for bankruptcy.

“Only when the share of distressed sales meaningfully drops off will we be able to enter the recovery phase,” said Tad Philipp, Moody’s director of commercial real estate research.

As can be seen from the accompanying charts, home prices nationally peaked in 2006 but did not begin to plunge until 2007.

At first, that was widely viewed as a result of problems in the subprime mortgage market. Commercial real estate prices rose until early 2008, but then declined rapidly. The latest values for the indexes show national home prices down 31 percent from peak levels, while the commercial real estate index shows a fall of 45 percent.

The charts show the trend of prices since December 2000. Home prices are about 27 percent higher than they were then, but commercial real estate is up just 6 percent. Meanwhile, in a tortoise-versus-hare tale, home rental rates are higher than they ever were even though they failed to boom when real estate prices soared.

Both indexes are based on repeat sales of the same property, and the relative lack of commercial property transactions — the index counted only 107 in February for more than $2.5 million each — means that the figures are far from exact. But they do show trends.

According to data from Moody’s, hotels and apartments are in the most distress, with about 16 percent of loans in each category classified as delinquent. About 10 percent of loans on industrial property are in trouble, while the figures for offices and retail properties are lower, at around 7 percent.

Over all, the proportion of commercial loans in distress climbed from under 1 percent at the end of 2008 to over 9 percent now. But it has been stable in recent months, providing some hope that the market is no longer deteriorating.

On a regional basis, the same markets tend to have problems in both commercial and residential real estate. The three states with the highest proportion of commercial loans in distress, according to Moody’s, are Nevada, Arizona and Michigan. In Nevada, more than 30 percent of loans are classified as being in trouble, nearly double Arizona’s 16 percent figure.

Floyd Norris comments on finance and the economy on his blog at nytimes.com/norris.


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Demolition contractor dumps debris on real estate company property

Police have arrested a Northwood, N.H., demolition contractor in connection with the illegal dumping of multiple truckloads of burned debris onto the driveway of a local real estate company.

Police charged the man with one count of felony criminal mischief for dumping the charred wood and debris in front of a local Keller Williams Real Estate office; a police representative didn't offer a reason for the deed, according to the Concord Monitor newspaper.

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Off the Charts: A Reversal for Real Estate After Some Mild Gains

Indexes of the two markets showed this week that the latest declines had almost wiped out the mild gains the two markets had shown after prices appeared to have hit bottom.

The Standard & Poor’s/Case-Shiller index of home prices ended February 3.3 percent below where it was a year earlier, and just 0.5 percent above the low reached in May 2009. The Moody’s/REAL Commercial Property Price Index was reported to be down 4.9 percent over the last 12 months, but still 0.8 percent above its low, reached last August.

In both cases, sales volumes are far below what they were when the markets were booming, and a large proportion of the properties that are being sold were in trouble before the sale. The National Association of Realtors estimates that about 40 percent of existing homes that changed hands in March were either in foreclosure or were so-called short sales in which the house was sold for less than was owed on the existing mortgage.

The commercial property index, which is based on data collected by Real Capital Analytics, shows that 29 percent of transactions in February involved distressed properties — including those already in foreclosure or default, as well as those whose owners had filed for bankruptcy.

“Only when the share of distressed sales meaningfully drops off will we be able to enter the recovery phase,” said Tad Philipp, Moody’s director of commercial real estate research.

As can be seen from the accompanying charts, home prices nationally peaked in 2006 but did not begin to plunge until 2007.

At first, that was widely viewed as a result of problems in the subprime mortgage market. Commercial real estate prices rose until early 2008, but then declined rapidly. The latest values for the indexes show national home prices down 31 percent from peak levels, while the commercial real estate index shows a fall of 45 percent.

The charts show the trend of prices since December 2000. Home prices are about 27 percent higher than they were then, but commercial real estate is up just 6 percent. Meanwhile, in a tortoise-versus-hare tale, home rental rates are higher than they ever were even though they failed to boom when real estate prices soared.

Both indexes are based on repeat sales of the same property, and the relative lack of commercial property transactions — the index counted only 107 in February for more than $2.5 million each — means that the figures are far from exact. But they do show trends.

According to data from Moody’s, hotels and apartments are in the most distress, with about 16 percent of loans in each category classified as delinquent. About 10 percent of loans on industrial property are in trouble, while the figures for offices and retail properties are lower, at around 7 percent.

Over all, the proportion of commercial loans in distress climbed from under 1 percent at the end of 2008 to over 9 percent now. But it has been stable in recent months, providing some hope that the market is no longer deteriorating.

On a regional basis, the same markets tend to have problems in both commercial and residential real estate. The three states with the highest proportion of commercial loans in distress, according to Moody’s, are Nevada, Arizona and Michigan. In Nevada, more than 30 percent of loans are classified as being in trouble, nearly double Arizona’s 16 percent figure.

Floyd Norris comments on finance and the economy on his blog at nytimes.com/norris.


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Dusting Off the Maid’s Room

The Laureate, a new 20-story building at the corner of Broadway and 76th Street, has four such apartments — each has four or more bedrooms and is priced at about $11 million. The maid’s room is listed simply as another bedroom, but it is away from the others, closer to the front door and living areas. Two of the building’s penthouse units even have separate entrances that lead directly to the servant’s rooms.

“When we designed this building,” said Shlomi Reuveni, a broker at Brown Harris Stevens Select, which is handling sales, “we felt that the traditional layout with a full dining room, an entry gallery and separate quarters for live-in help was missing from the market. Combining that in a building with modern amenities was even harder to find.”

Other new developments with maid’s rooms in some of their units include condominium conversions of prewar buildings at 845 West End Avenue and 905 West End Avenue, as well as the Sheffield, a postwar tower at 322 West 57th Street.

Demand for family-sized apartments with separate quarters for live-in help has been so marked at the Laureate that the Stahl Organization, the developer, has decided to combine some smaller apartments to create more units that fit the bill, Mr. Reuveni said. Many of the interested buyers are coming from abroad, but others, he said, already live on the Upper West Side and are looking for homes that mirror the classic apartments in nearby prewar buildings. While the rooms could also be used as guest rooms or offices, most prospective buyers have said they will use theirs either for a live-in nanny or a housekeeper.

The Sheffield has four large apartments that come with a dining room, a playroom/family room, a library, and a fourth bedroom that has been labeled a maid’s room. “We were trying to play off the vernacular of the Classic 7,” said Jacqueline Urgo, the president of the Marketing Directors, which is handling sales at the Sheffield.

The apartments, listed for about $7.5 million each, are designed to feel like “a single-family home in the sky,” Ms. Urgo said. “More and more parents are choosing to raise their children in Manhattan, and we have seen a need for these very large spaces.” Many potential buyers have live-in nannies, “because people have full lifestyles and maybe you have two working parents,” she added. “This type of apartment does fit a need.”

Maid’s rooms built in the 1910s and 1920s tended to be barely six to seven feet wide. Apartments that came equipped with them have three or more family bedrooms and might originally have had more than one maid’s room. At 905 West End, the developer Samson Management took a Classic 8 — which had three bedrooms, a living room, a dining room, a kitchen and two maid’s rooms off of the kitchen — and shifted and expanded the bathroom that had been shared by the maid’s rooms, combining the remaining space to create one larger room.

“This way, for people who can have live-in help, they don’t need to fit them in a tiny box; they can have a proper bedroom,” said Louise Phillips Forbes, an executive vice president at Halstead Property who is heading up sales for the building. Listed as four-bedroom apartments, they range from $2.74 million to $2.925 million.

“People like it for the long-term play,” she said. “They can use it for an au pair or live-in nanny while their kids are young, and when a child gets old enough, he or she can have that space, or it can become an office.”

Traditional maid’s rooms get no light, said Iva Spitzer, an executive vice president the Corcoran Group, who has helped convert many prewar buildings and is helping to sell 845 West End. “They have a closet that you could fit a pair of sneakers and jacket in, and they have a sliver of a bathroom that is so small they couldn’t fit the sink in the space, so the sink is in the bedroom.”


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Design Notebook: Kips Bay Decorated, and Curated

This week, one of his pieces — a cascade of rectangles tumbling down the sky blue walls of a swoopy circular staircase — can be seen in an unlikely place, the rotund front hall of a double-wide town house on East 63rd Street in Manhattan, the site of the Kips Bay Decorator Show House, now in its 39th year.

That a young conceptual artist like Mr. Nihalani would be on view at this show house, which has traditionally been better known for its designers’ pelmet art or their collections of 19th-century botanical prints, is an acknowledgement that designers are increasingly flexing their curatorial muscles to animate clients’ spaces with contemporary art. It also suggests that Kips Bay organizers are reaching for a younger audience.

“It’s more about curating a room than decorating it” is how Wayne Nathan describes his job. Mr. Nathan, who brought in Mr. Nihalani, is one of 21 designers participating in this year’s show house. You could call him an art fair veteran (Art Basel Miami Beach and Frieze, in London, are his habitual shopping grounds). Nonetheless, on this room he collaborated with Helen Varola, an art adviser and curator, though the slick pink disk that looks like a giant Skittles at the foot of the stairs here — a Mattia Bonetti coffee table — is his own.

Ms. Varola noted a long tradition of artists playing with domestic objects or, as she put it, of “artists exploring how design functions as a subversive tool and expanding their practice into domestic settings.” She ticked off examples, from Surrealists like Méret Oppenheim (who made that furry teacup) and Warhol (who made wallpaper) to, say, contemporary artists like Andrea Zittel (who makes entire rooms). So it seemed intuitive to Ms. Varola, who was asked by Kips Bay organizers to lead an art tour of the rooms next Tuesday, that decorators would be overtly acknowledging that tradition with interactive pieces like Mr. Nihalani’s or with video art.

“It’s all about reinvigorating space,” she said. “Transforming décor into a matrix of associations.”

Playing in Campion Platt’s terse library upstairs was a video piece by Alex Prager, a young self-taught photographer of staged narratives (Cindy Sherman meets Gregory Crewdson) who was included in a show at the Museum of Modern Art last fall. The short film, of spectators at a horse race, was Mr. Platt’s nod to John Hay Whitney, the clubby, horsey and progressive philanthropist and newspaper publisher who was once an owner of this house. (The house was lent to Kips Bay by the family of Disque Deane, a real estate developer and financial adviser who died last year.) Also on view was a painted drama of ’60s-era womanhood by the time-traveling artists McDermott and McGough, called “You Said Your Lips Were Mine Alone to Kiss.” Tubular wall sconces designed by Mr. Platt looked like sex aids; the Venetian plaster walls, done by Ricardo Brizola, looked like ancient porcelain.

In a small study by Aurélien Gallet, a 30-year-old art appraiser, furniture designer and decorator showing at Kips Bay for the first time, a neon-and-mirror wall sculpture by Iván Navarro, a Chilean artist, invited you to peer into infinity.

As the designer Richard Mishaan put it: “My job is to give context to people’s collections, to find the commonality in disparity.”

Mr. Mishaan had drawn the prize, the 40-foot living room once decorated by Sister Parish for Mr. Whitney. Or was it a booby prize?

Nodding at the florid gilded mirrors at one end, he said, “At first I thought, ‘Oh, no!’ But you know what? Everyone has stuff. Everyone I work with has their collections. It doesn’t matter what it is; giving it context is my task.”

Furthermore, he said, pointing out the dark blue Leleu dining table, the vintage Moroccan rug, the mercury glass mushrooms sprouting on a sideboard and the blown-glass tears sliding down grass cloth walls (both pieces by Rob Wynne), “All good things go together.”

Mr. Mishaan had done some of his art shopping at Other Criteria, the Gagosian emporium, with a quartet of Damien Hirst butterfly prints. He had also made his own artwork, printing photographs he had taken of significant architectural ceilings — one by Tiepolo, for instance — on canvas and mounting them in ornate gilded frames.

“I call those Guilty Pleasures,” he said.

On another wall were two rather stunning Abstract Expressionist paintings. It took him two weekends to paint those, he said: “Nobody can understand what they are. They’re like, ‘Clifford Sills? Helen Frankenthaler?’ I’m like, ‘Whatever you want them to be.’ It’s more about the vibe it gives your room.”

Amanda Nisbet, a gregarious Upper East Side decorator with a taste for baroque minimalism, had also made her own artwork, superimposing her face on a copy of a voluptuous nude by Boucher.

“My daughter would just die,” said Ms. Nisbet, the mother of two teenagers.

There was a Marilyn Minter photograph over a gold-flecked bed; on the walls, Ms. Nisbet’s own fabric, called Pink Lemonade, looked like a child’s finger painting.

The house has a complicated layout and a layered architectural history — style overlaid upon style, like the cities of Troy. Built in brownstone in 1870, it was enlarged into a second lot and refaced in painted stucco in 1919. In 1955, when Mr. Whitney bought the place, the architect Ellery Husted gave it a brick front, and Mr. Whitney imported and installed a paneled library from England. He also hired Philip Johnson to design a fourth story. As it happened, however, Johnson’s modern glass room was too stark and modern for the Whitneys, who asked Sister Parish to mediate. Needlepoint pillows and throws were involved, according to a Kips Bay press release.

This week, the ghost of Philip Johnson would seem to have won out, or so it appeared to a reporter who stumbled up into the sunshine on the fourth floor, after climbing another swirling staircase, this one cocooned in shiny black paint and a giant yellow Ikat-print wallpaper put there by Janet and Carolina Rauber, a designing sister act who had assembled a collection of man-high gold finials at the base of the staircase, reminiscent of “Alice Through the Looking Glass” chess pieces.

David Bowie’s “Young Americans” roiled the fourth-floor room, which had been divided in two by a raw-edged wood bookcase, and decorated by Brad Ford and Robert Stilin. Mr. Ford told Kips Bay organizers he would agree to decorate his side of the room only if Mr. Stilin took on the other, and indeed the two halves were much of a piece: Amagansett beach house meets TriBeCa loft, a nod to the appetites of the young money manager or entertainment lawyer who would appreciate Mr. Stilin’s taste in art — Richard Prince, Gregory Crewdson, Alec Soth and Damien Hirst, all plucked from the Gagosian Gallery — and Mr. Ford’s deceptively post-collegiate taste in furniture.

After pointing out his Gagosian finds, Mr. Stilin wondered aloud about the provenance of Mr. Mishaan’s Abstract Expressionist paintings downstairs. Then, in a bit of the art one-upsmanship, he noted proudly that his Damien Hirst butterfly was an original, not a print.

But back to the furniture: That massive slab of wood under the four-foot Noguchi shade on Mr. Ford’s side of the room is also a turntable — yup, a record player — and one of an edition of five custom-made pieces, lent to Mr. Ford by BDDW, beloved outfitters of deep-pocketed TriBeCa residents (you can have the table for $45,000). He had arranged his vinyl collection (Patsy Cline, Michael Jackson) on the raw wood shelves. “I love a live edge,” said Mr. Ford, a soft-spoken, Arkansas native, running his finger along a shelf.

Downstairs, another young American was finishing up her room. The manly paneled library Mr. Whitney had brought over whole from England had been re-gendered by Celerie Kemble, a Harvard-educated 37-year-old decorator with an appetite for education reform and other progressive causes, whose clientele is largely drawn from the world she inhabits — a Palm Beach/East Hampton/Manhattan axis.

“We kicked off the Belgian loafers” is how Ms. Kemble put it. Like Mr. Gallet, this was her first Kips Bay show house, and the lead time, just six weeks, had been punishing. Still, she had corralled an impressive collection of custom-made and antique objects, like an 18th-century leather chair designed, she said, so its owner might keep his sword on. Or her sword, she corrected, explaining that this was now a lady’s library. Bookshelves were lined with cream-colored faux leather, and fitted with Lucite shelves (a decorating tip, she said, is to switch out wooden shelves in dark rooms with Lucite ones). Ms. Kemble had lined the shelves with titles from Assouline, the fashion and art book publisher, and with old copies of The Paris Review. “Nobody makes a better colored spine,” she said of the magazine. “It’s stuff you should read, in colors you can use.”

Above her, a tentacular midcentury Italian chandelier erupted from a ceiling painted with tree branches against a swirling, smoky sky (it was done by Miriam Ellner in verre églomisé, a technique of painting glass with layers of gold leaf and other precious metals).

“We fiddled this into a room for repose and probably some drinking,” Ms. Kemble said, to reflect the library’s new status as a lady’s study. Ms. Kemble, who has three children under the age of 5 and a multistate design business and who, the other morning, was on her way to a school interview for her 4-year-old son, was at that moment crouched in front of a custom-made tufted sofa, braiding its double fringe into a neat twist.

What kind of lady?

Ms. Kemble grinned. “A beleaguered decorator who needs someplace to drink,” she said.

The Kips Bay Decorator Show House, to benefit the Kips Bay Boys & Girls Club, is open through May 26. Admission, $30: (718) 893-8600, extension 245, or kipsbay.org.

This article has been revised to reflect the following correction:

Correction: April 29, 2011

An earlier version of this article misspelled Mattia Bonetti as Matteo Bonetti.


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The Appraisal: A Broker Who Never Forgets

That is because Mr. Berkson, a feverishly fast-talking 36-year-old Long Island native, keeps an extensive database of the 1,200 clients he has worked with, as well as the thousands of apartments he has visited and photographed over the past eight years. Each day, he enters detailed notes about his clients and scans in every document he receives, like tax returns and financial statements for co-op board and rental applications. Then he carries this information around on a hard drive in his briefcase.

Reactions from clients, he said, ranged from “ ‘Wow, you’re really organized’ to shocked at the level of detail,” Mr. Berkson said while scrolling room by room through photographs of the many apartments he has visited. “You say toh-MAY-toh. I say toh-MAH-toh.”

Salaries, employers, birthdays and spouses’ birthdays are just the start. Plugging the hard drive into a computer at one of Citi Habitats’ offices, he pulled up the completed application of three women trying to rent a three-bedroom, two-bath apartment downtown for less than $6,000 a month, including letters of employment, bank statements and pay stubs. Mr. Berkson then pulled up the photograph of one client’s Lhasa apso, so he could quickly show landlords that the dog weighed less than 20 pounds.

He said his intention was only to help his clients beat out others in a cutthroat real estate market. “When you want to run a race, you don’t stretch when you’re running, you stretch before,” Mr. Berkson said.

He knows that losing his database would be disastrous for his clients and for his reputation of having a sterling memory. The hard drive is protected by security passwords, and if it is not with him it is locked in a desk.

Kevin Balfe, who said Mr. Berkson had helped his family rent two apartments on the Upper West Side in the past six years, was impressed that Mr. Berkson remembered that he and his wife wanted a second bathroom more than they wanted good views. “He is walking around with data that I trust is going to be kept private,” Mr. Balfe said.

Still, he said, it is no scarier than faxing personal information to landlords and brokerages, not knowing what will become of it. “To get the apartment you want,” he said, “to me there’s a tradeoff between personal privacy and ability to make a fast offer. It’s worth the trade-off.”

Mr. Berkson’s dogged collection of detail may have come from his brief career in film, which included stints working in Los Angeles for MTV and Miramax and as a production assistant for the forgettable 1996 film “Kazaam,” where his jobs included making Shaquille O’Neal a perfect vanilla milkshake. But he missed his family and felt frustrated working for other filmmakers, and returned to New York to build a real estate career.

Kristin Kilbourne, who rented three apartments through Mr. Berkson on the Upper East Side from 2004 to 2009, said that he was able to describe most of the apartments she looked at before she even stepped inside, and that he remembered the name of her puppy, Sadie. Mr. Berkson said Ms. Kilbourne sent him a dozen referrals.

When Eshai Gorshein asked Mr. Berkson, whom he had previously met, to help find him an apartment, Mr. Berkson recalled how Mr. Gorshein preferred quiet apartments because of a bad experience he had had with a noisy college roommate. And when Mr. Gorshein’s mother later sought help from Mr. Berkson, he was able to recall the job she held 30 years earlier because Mr. Gorshein had mentioned it in conversation. The referrals Mr. Gorshein made resulted in about five more deals for Mr. Berkson.

He said he realized that gathering this data made many clients uncomfortable, especially when they were coming from out of town. His father had the same concerns when Mr. Berkson was starting out in real estate and needed his father to be a guarantor on a lease, which required him to hand over his own financial information to his son’s landlord.

But Mr. Berkson’s clients need not fear that his database will go astray, he said: “I treat it like my life.”

Real Estate by Day

Scott Kreitzer, an agent for Prudential Douglas Elliman, was busy enough juggling parenting duties for his 4-year-old son and trying to rent or sell about two dozen apartments. Then, in March, Mr. Kreitzer, a saxophonist, was hired to perform in the musical “Memphis.” Now, he juggles Sunday open houses around matinees and has also picked up business from a bass player in the orchestra, whose Harlem apartment he is trying to sell, and from Lauren Kinhan, a singer, who is trying to rent out an apartment she owns in Midtown West.


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In the Region | Westchester: Board Scales Down Plan for Reader’s Digest Site in Chappaqua

CHAPPAQUA

ALMOST seven years after developers paid $59 million for the 114-acre Reader’s Digest property in this affluent hamlet, drafting plans for 348 condominiums and town houses next to the publisher’s former headquarters, the town board of New Castle has finally ruled on the application.

The board did not reject Summit Development and Greenfield Partners’ plans for residences on the property — since renamed Chappaqua Crossing — out of hand. But it strictly limited the number of units that may be built and the part of the property where development may occur.

The developers were aware of the town’s resistance to the scale they had in mind, twice reducing the size and scope of their plans, most recently seeking 199 units. But that was still too many for the board, which early this month announced that it would allow 111 condos and town houses, on just 31 of the 114 acres.

The reason, according to Barbara S. Gerrard, New Castle’s supervisor, is not that the board opposes affordable multifamily housing in Chappaqua, a hamlet of mostly single-family homes — though that is what the developer, known as SG Chappaqua, alleges in two lawsuits. Nor is it that neighbors at public hearings vehemently opposed the plans, citing concerns about increased traffic and overcrowded schools.

Ms. Gerrard said residential development was reined in to leave sufficient land for commercial development in a town where businesses — mostly the small shops in downtown Chappaqua and in Millwood, another hamlet — contribute less than 3 percent to the tax base.

With an eye toward generating more commercial revenue to support the town’s $36 million annual budget, the board also lifted restrictions on how many commercial tenants SG Chappaqua may house in the property’s central structure, a three-story red brick office building with a towering white cupola.

Occupied mostly by Reader’s Digest from 1939 until it declared bankruptcy in 2009 and broke its lease with SG Chappaqua, the structure now has only three tenants in 95,000 of the 700,000 available square feet. Town zoning had limited occupancy to a maximum of four tenants in no more than about 470,000 square feet of the building.

Clearly, the departure of the Digest, a major taxpayer for 71 years, has had a profound effect. Ms. Gerrard described the decision to allow 111 multifamily homes as “difficult but necessary.” Many residents had wanted the property to remain as rolling hills and manicured lawns.

“As a former tax attorney,” Ms. Gerrard said, “I know how hard it is to make everyone happy. I also know that if the two ends of the spectrum walk away from the table not really satisfied, then you probably did a fair job, and if one end is ecstatic, then you should review your decision.”

SG Chappaqua, which has refused to comment on the case, is dealing with its unhappiness in Federal District Court in Manhattan and State Supreme Court in White Plains. Both suits were filed in February, months before the board reached its decision.

Among other things, the state lawsuit accuses New Castle of discrimination for violating a settlement reached last year by Westchester County with the federal Department of Housing and Urban Development to create fair and affordable housing in 31 Westchester communities that have few black or Hispanic residents.

The settlement was designed to prevent the further concentration of affordable housing in cities like Mount Vernon and Yonkers, which already have a preponderance of low-income blacks and Hispanics. New Castle is almost 90 percent white, and its median household income is $193,866, among the highest in the county.

Also, SG Chappaqua, thwarted in its attempt to build upscale residences, is demanding that the town buy the property. In addition to the $59 million it paid Reader’s Digest for the acreage and the buildings, SG Chappaqua says it has spent $10 million on architects’ and lawyers’ fees and environmental reviews, among other things.

The other lawsuit charges the town with violating the federal Fair Housing Act.

New Castle is preparing its rebuttal and “expects to vigorously defend the action,” said Clinton B. Smith, a lawyer with Wormser, Kiely, Galef & Jacobs in Manhattan and White Plains.

Victor Siber, a longtime Chappaqua resident, called the developer’s accusations of discrimination a “red herring,” noting that 20 percent of the residences approved for Chappaqua Crossing are to be sold below market rate.

Robert Greenstein, a Chappaqua homeowner and a Manhattan lawyer who collected 900 signatures on a petition opposing the developers’ plan, approved the board’s decision. “This is not about a town being elitist,” he said. “I don’t buy the developer’s argument that we’re against affordable housing.” He noted that the hamlet also planned to build affordable units outside the Digest site.

Mr. Greenstein said commercial development would relieve the tax burden on homeowners.

A resident of Chappaqua for seven years, he said, he pays about $35,000 a year on his five-bedroom colonial, built in 2004. “Compared to other communities, our taxes are very high,” he said. For example, in Armonk, home to the corporate headquarters of I.B.M., the taxes on a comparable seven-year-old colonial are about $27,000.

“What we need is an I.B.M.- type company of our own,” Mr. Greenstein said.

But for now, as the legal actions work their way through the courts, most residents would like to see the property’s rolling hills and gardens better maintained, said Mr. Siber, who lives on nearby Cowdin Lane. “It’s not a wasteland, but it’s not maintained anymore like it was,” he said.

Geoff Thompson, a spokesman for SG Chappaqua, says the company employs four workers full time to maintain the grounds.


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Posting: Developers Create Neighborhood Feel With Condos and Shops

WHEN Eric and Paul Silverman began developing here in 1981, they realized that building housing alone was not enough to attract new residents to what was then a very troubled city. Instead, they focused on projects that combined residential and retail to create a neighborhood feel.

The two brothers’ latest project is Hamilton Square, 124 apartments and stores about six blocks from the Hudson River waterfront in a historic district of elegant late Victorian town houses.

About two-thirds of the apartments, ranging from studios to three-bedrooms, are in what was once a hospital, with wings built in 1927 and the 1980s; the rest are new construction. Their loftlike interiors, with exposed concrete ceilings and ductwork, and an assortment of homegrown retailers on the project’s ground floor, are attracting buyers who say they feel at home, even if they are coming from Manhattan.

“On the Upper West Side now, we have a lot of banks and so forth,” said Marsha Cutler, who after living there for more than 15 years will move next month with her husband, Carlos Lamourt, into a 1,650-square-foot Hamilton Square two-bedroom with a 1,000-square-foot terrace. “But Hamilton Square is almost what the West Side was 10 years ago — a lot of independent stores.”

One-bedrooms range from $385,000 to $599,000; two-bedrooms are $565,000 to $875,000; and three-bedrooms $900,000 to $1.35 million. All apartments have eco-friendly features like bamboo flooring over cork, recycled glass countertops and cabinets made with wood from Connecticut. Baths have radiant-heated floors; units have washers and dryers.

Ms. Cutler said she and her husband had been looking for a home in New Jersey to be closer to their two granddaughters in nearby Bloomfield. Both had enjoyed Jersey City’s restaurants while visiting friends there, and they found the train commute to their jobs near Pennsylvania Station would take the same amount of time as the trip from the Upper West Side.

“I personally love the scale of a historic district,” she said, “and by Hamilton Square, it’s just beautiful. You’ve got all the brownstones; you’ve got the park; you have a lot of families; you have a lot of independent stores.”

Many Manhattan buyers at Hamilton Square are seeking more space, including closet space and outdoor space, as well as larger kitchens, said Sawyer Smith, the director of sales.

Alan Ginsberg, a Brooklyn native who rented in Chelsea for 23 years, found Hamilton Square through friends residing in Jersey City.

“They said, ‘Why don’t you come and look here?’ ” Mr. Ginsberg said. “I said: ‘Absolutely not. I’d never do it. I’m a New York native, and I’ll never live in New Jersey.’ ”

But, finally persuaded to look, Mr. Ginsberg said he had been immediately attracted to the spaciousness and style of his 1,000-square-foot one-bedroom at Hamilton Square, with views of the Statue of Liberty and the Verrazano-Narrows Bridge. He moved in last October. “I love, love, love my apartment — the view, the space, the price, the convenience,” he said.

Mr. Smith, the sales director, is also one of the retailers whom the Silverman brothers attracted to the development. He and a partner, Alex Chang, formed Smith & Chang General Goods, which sells everything from kitchenware to bath products to antique furniture and locally made jewelry.

Although the Silvermans prefer having several established retailers in each of their developments, they often nurture new retail businesses like Smith & Chang, said Eric Silverman, a principal in the brothers’ company. They provide start-up capital and financing for improvements, or offer help with marketing, networking, event planning and encouraging residents to become customers.

In the case of Smith & Chang, they had the owners decorate some model apartments in Hamilton Square, which has drawn many customers, said Paul Silverman, also a principal.

“A lot of people who live here like to buy things from them, or ask them to decorate,” he said. About 62 units have closed at Hamilton Square, he said, and the developers have plans to build 100 more apartments.

Among established businesses in Hamilton Square are Tribeca Pediatrics and Newport Pharmacy; among new businesses are Hamilton Health and Fitness, Downtown Coop and Madame Claude Wine. The Silvermans helped a former Rockette, Amy Burnette, establish a performing arts studio, Next Step Broadway, in another location before she moved to Hamilton Square.

The area’s revival is being further helped by a $3.2 million renovation of the five-acre Hamilton Park, to the west of Hamilton Square, which added a children’s spray park and two dog parks, among other improvements.

But Jersey City’s evolution toward a livable city suburb has been slower than neighboring Hoboken’s. Even in the last decade the few families who used the park would leave by 5 p.m., said Alice Troletto, who owns Madame Claude Wine with her husband, Mattias Gustafsson. “We didn’t want to stay,” said Ms. Troletto, who raised two children in Jersey City. “It was too scary.”

Now the park is filled with children and families at all hours. “It’s been a great catalyst for the neighborhood,” Paul Silverman said.


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This Property Is Condemned

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Currents | Deals: Sales at Ligne Roset, John Robshaw and Others

Floor samples are on sale at the Ligne Roset store in SoHo through Sunday (the leather Harry armchair, originally $3,750, is $2,195; the Eaton 63-inch table, regularly $3,540, is $2,479); 155 Wooster Street (Houston Street), (212) 253-5629, ligne-roset-usa.com.

During the John Robshaw sample sale, May 3 to 6, bedding, pillows, table linens and robes will be sold at deep discounts (Jade pattern quilts, originally $325 to $435, will be $80 to $100; Diggi Coral duvets, regularly $375 to $525, will be $80 to $100; Walnut Running Stitch coverlets, above, originally $410 to $525, will be $80 to $100; Dervish bean bags, regularly $200, will be $75); 245 West 29th Street, (212) 594-6006, johnrobshaw.com.

Outdoor patio furniture is marked down as much as 70 percent during the spring sale at Modani Furniture, through May 15 (the Coronado patio set, which includes two armless chairs, three corner chairs and a coffee table, was originally $3,740 and is now $1,490; an outdoor bar and six stools, regularly $3,490, is $1,290); 40 East 19th Street, (212) 796-6926, modani.com.

At Doris Leslie Blau’s spring sale, May 3 to 22, some 80 custom and antique carpets will be discounted as much as 50 percent (a pair of Art Deco rugs by Paule Leleu, originally $15,000, will be $7,500; a 14-foot-9-inch by 9-foot-10-inch Art Deco area rug also by Paule Leleu, regularly $65,000, will be $32,500); 306 East 61st Street, (212) 586-5511, dorisleslieblau.com.

Good deals may be reported to deals@nytimes.com


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Currents | Q&A: Sam Ostroff on Making Steel Sculptures for the Home

We met Mr. Ostroff, who is 30 and lives in Northampton, Mass., some weeks ago, at the Architectural Digest Home Design Show, where the work he was displaying included doors he had taken out of his own home — which, in a photo, looked like a New England saltbox house, not the usual backdrop for Art Nouveau.

It turns out that Mr. Ostroff learned metal fabrication in the machine shop of his father, a mechanical engineer, and left college after a year to devote himself to his work. Recently, we talked to him about his designs.

There seems to be an Art Nouveau thing going on in your work.

Yup, I describe my style as Art Nouveau-inspired, but I don’t think it was — I think I simply identify with it, and the designs and the theme that I am working with are just inside me. Like any artist, I feel deeply compelled to get them out.

You live in a fairly typical-looking house, but there’s a lot of your own work built into it. From your photos, I can see that there is an elaborate stainless steel balcony.

My house is an American four-square — in the 20s, you could buy these Sears kit homes. If you look at it from the outside, it’s perfectly square, four square dormers on the roof. But in every direction, on every floor, there is a sculpture or a pair of doors or a railing.

Connecting that upper patio to the lower patio is a stainless steel spiral staircase. I was commissioned at about the same time we were building this addition to make three spiral staircases for a client here in Massachusetts. I just built an extra one on the side. The commissioned staircases were stainless steel and interesting, but the one I brought for my own house I fleshed out with more ornate details.

What happened to the doors you were displaying at the Architectural Digest show?

They got a great response, then I brought them back to my house. I am so emotionally invested in that stuff, I could never part with it.

How much do you charge for your pieces?

For a similar interior door, it would be $15,000 to $20,000. Fireplace doors and a surround — that is, like, $12,500. I designed a pair of fireplace doors as a display piece for the show, which also fit our fireplace at home, which was the last untouched part of our living room.

There’s an old surfing song that goes, “New York’s a lonely town when you’re the only surfer boy around.” Do you ever get the feeling you were born not only in the wrong place, but in the wrong century?

Yeah, I do, because a lot of the music I listen to was written in the 1800s, early 1900s: Beethoven’s later works, Rachmaninoff, Liszt, Chopin. My thesis at Hampshire College was that music exists in time, and sculpture exists in space, but with some of the designs that I am doing I am almost composing a piece of music in space. Some of the designs, your eye looks at them and I think your brain can almost interpret them as music.

What else have you done with the house?

The most recent project was a kitchen renovation. Without a whole lot of direction or planning we decided to rip our kitchen apart, but our house is only so big. The only solution I could come up with was to rip the ceiling out and go up. We sacrificed the bedroom that was over the kitchen, but the kitchen now has a 20-foot ceiling, and I left a little bit of that bedroom floor and turned it into a balcony.

Ah, the balcony, beloved of romantic designers.

With a curved front. I have a church pew in the balcony, and to sit there and watch my wife make dinner below, it’s pretty cool. That railing is the most recent piece, and to stand behind it is very satisfying.

At the beginning of the conversation we were talking about the age of house, and it has been a challenge to design and create pieces in stainless steel that still work with the overall aesthetic of a house built in 1922, but I think it’s a healthy mix of new and old.

We’re getting back to the idea that you may be living in the wrong century.

Yeah, but I don’t know that I could live without my iPhone.

You must go crazy when you visit Paris.

I’ve been to Paris twice. I actually proposed to my wife there.

Where did you propose?

Beneath the Eiffel Tower, which is sort of the world’s largest metal sculpture.

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In the Region | New Jersey: Condo Market Shows Improvement

OUTSIDE a condominium tower on Prospect Avenue one recent Sunday, Robert Young was pulling hard to uproot an open-house sign he had planted earlier.

“I really had to pound it in,” said Mr. Young, an agent at Weichert Realtors, as he tugged at the metal stakes. “At first nobody was showing up, and I saw the wind was knocking the sign flat.” Once he secured it, Mr. Young said happily, several condominium shoppers did appear.

“I think we’re going to sell this puppy,” he added. “It’s got a nice price, mortgage rates are still low and it appears that people are finally recognizing this is a good time to buy.”

Of course that was just one agent wearing his happy face. But there are others marketing condos in northern New Jersey counties — Essex, Hudson and Morris, as well as Bergen — who say traffic has been surprisingly decent at open houses this spring and who see the market picture as improving, if not necessarily pulsating with good health.

Brian Morgenweck, a broker with the Power Realty Group in Hackensack, said that on average in Bergen County condos were spending 117 days on the market, which is under four months.

As of April 20, he said, 1,797 condominiums were listed in Bergen County, versus a high of 1,945 last July, shortly after the expiration of the federal tax credit for home buyers.

“So the inventory of available units is shrinking,” said Mr. Morgenweck, who is the founder of his agency, “and even more importantly sellers are finally coming around to serious reality with their prices.”

Because of the way the market is churning, said the New Jersey market analyst Jeffrey G. Otteau, it is impossible to pinpoint the average or median asking price of condos on the market in Bergen County.

But he did compute the median price for the 192 condos for sale in Hackensack: $222,000.

In two other Bergen communities with substantial numbers of condos for sale — Cliffside Park, with 160, and Edgewater, with 168 — Mr. Otteau said the median prices were $390,000 and $535,000, respectively.

In those three towns, condo prices are running well below those for single-family houses, and in Edgewater, where the median house price is $1.299 million, condos cost less than half that.

“To the extent that condos are holding their own in this market,” said Mr. Otteau, the president of the Otteau Valuation Group in New Brunswick, “the fact that they are less expensive than single-family homes has to be considered a driving factor.”

But to talk of any market’s holding its own, he added, is not to say it is healthy.

At the current rate of sales in Bergen County, for example, it would take 13.3 months for all the units now on the market to be sold — if no other condos were added to the inventory of homes for sale. In Hudson County, which had 1,781 condos on the market in April, it would take 11.8 months to sell them all.

Certain local markets are defying the norm, and performing better than their counties:

Hoboken in Hudson County has 6.2 months’ supply of condos on the market, a healthy number in the eyes of statisticians. Mahwah in Bergen has 6.1 months’ supply.

In Mahwah so far this year 14 or 15 condos have sold each month. The same number sold in Hackensack, but it also had 192 condos remaining unsold after 30 days; Mahwah’s unsold quantity was 90.

In some cases where condos are selling relatively well compared with single-family houses, Mr. Otteau said, the trend may simply reflect how poor the market is for houses. After all, in his company’s latest report to subscribing real estate professionals, he referred to the overall housing market as having a “faint pulse.”

West Orange in Essex County has 99 condos for sale, an inventory that would take an estimated 10.2 months to sell. The average unit is spending 112 days on the market. That compares with an unsold inventory of 279 single-family houses, or 12.4 months’ supply, with houses spending an average of 109 days on the market.

Ellen Oxfeld, a Coldwell Banker agent, said the condo market in West Orange had picked up over the last three months. She cited agency statistics indicating that the absorption rate for condos — meaning how long it takes them to sell — had shrunk to 6.2 months in March, from 8.3 months in February and 14.5 months in January.

“All markets are local,” she said. “And right now, condos are doing fairly well here.”

A month ago Ms. Oxfeld listed a three-bedroom town house condo at Normandie Estates for $379,000. Built in 1998, it last sold in 2003, for $432,000.

In Morristown, too, condos are selling faster than single-family houses. There is a 12.8-month supply of condos on the market, and a 14-month supply of houses. Condos spend an average of 81 days on the market; houses spend 115 days.


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Real estate agent scores a bullseye

A Franklin, Tenn., real estate agent won $100,000 on the History Channel's "Top Shot" reality show by besting 15 competitors in the use of weapons that ranged from sniper rifles and .44 Magnums to tomahawks and blow guns.

Chris Reed, who described himself as "country boy from the cotton fields of the Mississippi Delta" is a seasoned competitor, according to the Tennessean newspaper: He was runner-up in Field & Stream magazine's 2009 Total Outdoorsman Challenge and has won numerous state and national championships in archery and long rifle events.

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House Tour: Millbrook, N.Y.

Jennifer May for The New York TimesTwo houses made into one.

WHAT Five-bedroom house on six acres.

WHERE Millbrook, N.Y., in Dutchess County, 82 miles from Midtown Manhattan.

WHO Though the house needed work, Kinue and her husband, Jordan Fowler, chief executive of Frontier Healthcare Holdings in Manhattan, wanted it from the first moment they saw it. Three years and some ambitious renovations later, Kinue, who goes by only one name for personal reasons, talks about embracing the home’s eccentricities to create a playful environment for their four children.

“With a growing family, we wanted more room than an apartment in the city could offer. But we didn’t want to move to the suburbs. So we decided to look for something outside the city and immediately found this house online. Two weeks later, we bought it.

“It’s actually two houses that were connected in 1910. What’s now the kitchen and boys’ bedroom are in the original farmhouse, which was built in 1750. The rest of the house is what was a Greek revival, built in 1890, that used to be across the street. So it’s definitely a meandering and quirky place. You have to twist and turn to get from one side to the other, and there are lots of secret places and mysterious closets — just the sort of thing that kids love.

“And for us, that’s what this place is all about. Spending time as a family. So we feel so happy that we found our architect, Jimmy Crisp. He really got it. When we renovated the boys’ bedroom, for example, he exposed the beams and hung swings and rings from the ceilings. The kids are quite happy now to show their appreciation for the space by showing everyone their trapezelike tricks! Then there was the kitchen, a room that gave me a heart attack at every turn. But Jimmy endured my last-minute decision to skip an island and fashion a work surface from a big dressing table instead. And he gave me something I had always dreamed of having: a raised fireplace. I love it in there and honestly, so do the kids. I’d say that we spend 80 percent of our time in the kitchen. Of course, as the weather warms up, we’ll spend more time outdoors. Part of the renovation included adding a loggia just off the kitchen, and this year we’re putting in a pool. Meanwhile, the kids are happy to run around the property or to explore the barn, which is pretty rickety, with Jordan, who joins in with them, pretending they are raccoons. Indoors, we have one of the parlors set up with electric guitars, a microphone and keyboard. There are a lot of kid concerts and dances in there! And there’s stuff everywhere. Believe me, it’s a real mission to make it look presentable. But for us, that’s O.K. That’s what we wanted: a kid-friendly house.”


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DealBook: Blackstone Buys Australian Real Estate Firm

The Blackstone Group has agreed to buy the Valad Property Group, an Australian real estate firm, for about $227 million. It will also take on Valad’s $655 million in debt.

The deal comes two months after Blackstone agreed to pay $9.4 billion for the United States shopping mall assets of Australia’s debt-laden Centro Properties.

But the Valad acquisition is a bet on the Australian property market. The firm has about 8 billion Australian dollars worth of assets, most of them in its home country.

Blackstone has offered 1.80 Australian dollars per share in cash, representing a more than 50 percent premium to its most recent closing price, but almost 35 percent less than the firm’s net asset value.

Valad shares surged 0.60 Australian dollars, or 52 percent, to 1.75 Australian dollars in Sydney on the news.

“After receipt and assessment of the Blackstone proposal, the Valad Board considers that it provides the most certain value proposition for all Valad securityholders,” Trevor Gerber, chairman of Valad, said.

A more thorough description of the deal will be sent to Valad shareholders in June, and a shareholder meeting is set to take place the following month.

Blackstone’s extensive property portfolio helped propel the firm’s earnings, reported last week, to their highest since the firm went public, also driving profit, which was up 58 percent.

Fort Street Advisers provided Valad with financial advice, and Mallesons Stephen Jaques with legal counsel.


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Aspen McMansions: a new life as assisted-living facilities?

Money just ain't what it used to be in Aspen, Colo.: The super-rich homeowners who dominated the chi-chi ski capital in recent years lost a bundle in the recession and are unlikely to maintain their role in Aspen's future.

That's according to a former demographer for the Colorado state government, who told local officials they ought to be courting more tourists and retirees and to stop depending on the financial elite.

The demographer, Jim Westkott, suggested that some local mansions of 10,000 square feet or more eventually might be converted into duplexes, co-ops or assisted-living facilities as baby boomers begin to retire, according to an Associated Press report.

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Living In | East Amwell, N.J.: Altitude’s a Variable, Roominess a Constant

In recent years the preservation of farmlands and open space has become a top priority for towns throughout densely populated New Jersey. But East Amwell in southeastern Hunterdon County was well ahead of the curve, laying the groundwork in the early 1980s for what has remained a largely rural community. At a time when other towns were “chasing ratables” in the form of housing developments and commercial growth, Mayor Larry Tatsch said, East Amwell was creating a master plan that “promoted agriculture and recognized the unique and delicate nature of the Sourlands.”

Through restrictive zoning more than a third of the 28-square-mile township is now preserved. Another third remains as open space, consisting in part of 296 farms — some are home to alpacas, others to retired horses — that range in size from half an acre to 261 acres. The open space also includes a 350-acre golf course, and swaths of privately owned mountainous land too rocky for development.

“We could well have gone the way of neighboring townships if we hadn’t had the visionary perspective way back when,” Mayor Tatsch said.

The township became a case study in farmland preservation 12 years ago when it increased minimum building lots to 10 acres from 3. A group of farmers sued, saying the ordinance would reduce the value of their properties and create a patchwork of 10-acre gentleman farms. In 2005 an appellate court upheld the new zoning. It was about that time that minimum building lots in the mountain region were increased to 15 acres, from 5. The current plan allows for “cluster development” — combining smaller building lots with contiguous open land — but no developers have built in the last decade or so.

The emphasis on preservation has altered life for the 4,013 residents of East Amwell, who have a single schoolhouse and limited public services, and who often rely on volunteers. The town has no water or sewer service; all houses use wells and septic tanks. There is no police force; public safety is provided by state troopers. Two weeks ago, roadways were cleared of litter by dozens of families taking part in the 24th annual roadside clean-up.

It was this slower lifestyle that appealed to James Rizza and his family when they moved here from Franklin Township five years ago. And though moving at that time meant “paying high and selling low,” Mr. Rizza said, he doesn’t regret the $565,000 he paid for his four-bedroom house on two acres.

“My 13-year-old son now leases a cow that he’s going to show at the county fair,” said Mr. Rizza, a landscape contractor. “He wouldn’t be doing that in Franklin.”

When Joanne Hall and her husband paid $175,000 for their four-bedroom colonial in 1986, Ms. Hall recalled, they predicted that in 5 to 10 years the township would be built up. “And here we are, 25 years later, and it’s the exact same as when we moved in,” said Ms. Hall, a broker with Weidel Realtors. Her husband, a computer software consultant, regularly travels into New York City via buses that Ms. Hall describes as crowded with commuters.

“Everybody’s relaxed,” she said. “They’ve got their iPads and laptops, and they’re there in an hour and a half.”

WHAT YOU’LL FIND

Most visitors are struck by the stunning vistas, particularly when coming from more congested neighboring areas like Flemington or Raritan, or from Princeton, which is also nearby.

“People are astounded when they see there’s this much open space in this part of New Jersey,” said Cynthia Bruning, an agent with Weichert Realtors who has lived in East Amwell for 13 years. “If you’re interested in rural living, but still want to be close enough to everything, it’s feasible here.”

The housing stock is as varied as the terrain. In the valley section of the township, where farms dominate the landscape, older farmhouses with two or more outbuildings crop up here and there. In recent years, horse farming has grown in popularity, and there are several large farms where one can board a horse, ride or take lessons. The Amwell Valley Trail Association has pieced together 75 miles of private trails where East Amwell residents can ride or hike for a nominal annual fee.

Smaller farms come on the market fairly regularly, as do houses on 10 to 15 acres. A 12-acre horse farm with a four-bedroom house and stables is on the market for $599,000, as well as a 1998 four-bedroom colonial on 15 acres, listed at $649,900. Scattered throughout the valley are a handful of small developments of 20 to 30 houses, mostly built in the 1980s before new zoning laws took effect; each is on 1.5 to 2 acres.

The Sourland Mountain section, on a ridge 500 feet up, offers a mix of modern architecture, older farmhouses and contemporary log cabins. The former Lindbergh estate, now a boys’ home, is in this area. (In 1932, the 20-month-old son of the aviator Charles Lindbergh was taken from the house by kidnappers. The child’s body was found in the woods two months later.)

The township’s more historic houses can be found at intersections in some of the four or five hamlets that fall within its boundaries — Wertsville, Hamilton’s Corner and Reaville, for instance — and in the village of Ringoes, an unincorporated section of East Amwell with a few stores and about 250 residences. Historic markers note the house on Old York Road where during the Revolution Lafayette convalesced from an illness, as well as the site of the 19th-century Black River and Western Railroad station, which still runs tourist rides on the weekends. There are no rental or multi-unit properties.

WHAT YOU’LL PAY


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In the Region | Long Island: East End Homes Prepare for Guests

“It goes a long way to paying our taxes locally,” said Mr. Stoecker, a senior vice president of Town and Country Real Estate in East Hampton, “and it’s a positive experience all the way around.”

So goes life as summer approaches in the Hamptons. Happy for a windfall, homeowners are cleaning out kitchens and closets in anticipation of paying guests. The homeowners then decamp  for less pricey accommodations or  take vacations with their bounty. In some cases investors are sprucing  up their well-appointed houses, enticing renters willing to pay $15,000 or $50,000 or $100,000 for a month — or  more than $600,000 for a Memorial Day to Labor Day stay (and that’s not including the maid, the pool boy, the gardener or the electric bill).

“We have very few hotels,” said Gary DePersia, a senior vice president of the Corcoran Group in East Hampton. “Renting a house has become a convention out here.” It is also something of a race for the most suitable property, with “people in a frenzy trying to find the right house,” whether that’s a $35,000-a-month rental, or a $300,000-a-season rental.  “Each renter has their own idea of what their Hamptons experience should be,  have a location in mind, a bedroom count in mind and a price in mind,” Mr. DePersia said.

From Westhampton to Montauk, Shelter Island or the North Fork, there are 5,000 to 7,000 rental listings on the market at any given time, Mr. DePersia said, but “in any location, there are only a finite number of good houses.” With prices higher than last year’s and places renting at a faster pace, he said, the winners are houses with amenities like  flat-screen televisions, DVD players, wireless Internet access and fresh-looking furnishings. “People expect the same amenities out here as when they stay in a fine hotel,” he said.

Fifteen years ago, he recalled, most Hamptons rentals were taken for the entire summer. As the economy dipped in recent years, the two-week rental became more popular, as well as options to rent for August only, or for July through Labor Day, to coordinate with children’s day-camp schedules. People “are not going to downsize the house,” so instead they book a shorter stay, he said.

Lawrence Citarelli Jr., the president of First Hampton International Realty, has a $395,000 listing for anyone interested in spending July in a 12-bedroom 12-and-a-half-bath mansion on six acres — with pool, tennis and eight fireplaces (in case it gets chilly).

Mr. Stoecker and Jennifer Wilson, who work as a  team for Town and Country, have an inventory of 93 homes for sale and 785 summer rentals. So far, Ms. Wilson estimated, about 60 percent of rentals have been scooped up, and more than last year are being rented for the whole season.

Indeed, Mr. Stoecker said, this season seems more like the days before the market took a nose dive — with renters who started shopping on Thanksgiving weekend and trudged through the ice and snow, then “pulled the trigger” in January.  He also said that houses south of Route 27 usually rented first and that communities “with the  most inventory are the woodsy sections of East Hampton, Amagansett and Sag Harbor.”

But despite Mr. Stoecker’s enthusiasm, perusals of sites like Craigslist turn up a wealth of options for single-week stays, or even long weekends. One recent example is a historic house on a Peconic Bay inlet in Sag Harbor with “lots of lounging areas,” according to the advertisement. Weeks in May and September are $3,200, in June and July $3,800. Cleaning and utilities are included. (When stays are longer, utilities, housekeepers, swimming coaches, landscapers and pool cleaning services can add 15 percent or more to a tenant’s bill, brokers say.)

One of Mr. Stoecker’s properties, a 3,000-square-foot North Haven house on two acres with a waterfront pool and a private beach on Sag Harbor Bay, belongs to Shannon Such and Howard Deutsch. It is listed for $295,000 for the summer. For the last 25 years it has been rented out for the summer — for 23 of them to the same family.

Ms. Such, a lawyer in Manhattan, says that in the fall, winter and spring her husband spends most of the time enjoying the “almost spiritual” water views at the “light and airy and informal but fun” cottage, while she comes out to the East End on weekends.

Summer is “a beautiful time, but it is a crowded time,” Ms. Such said. “It gives us an opportunity to travel”   — this summer to Peru — and the presence of tenants easily covers the annual cost of maintaining the house. “It is a bit of an annuity.”  

Dee Kerrigan Perfido, a broker-owner of First Hampton International Realty in Westhampton Beach, said she had seen a “nice uptick” in rentals for the first time in three years. Waterfront homes for rent are “going very quickly,” partly because many that sat out the downturn as rentals have now sold. Former tenants are among the buyers. “Renters have decided they liked it here and they’ve bought,” Ms. Kerrigan Perfido said.  


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