Why Is High-End Real Estate So Hot Right Now?

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Nov. 25 (Bloomberg) -- Ziel Feldman, founder of HFZ Capital Group, and Kevin Maloney, co-founder of Property Markets Group, discuss luxury property market trends with Pimm Fox on Bloomberg Television's "Taking Stock." (Source: Bloomberg)

Residential developers, mikhail shamolin.

I want to start with you -- why is a high-end real estate so attractive right now?

There have not been any high- end yield -- high-end builds for several years.

The trend is to move back into the city.

They require bigger apartments, means higher prices generally.

That in addition to all the foreign money that has come into the city has just driven pricing to levels we have not seen ever in new york.

However our pricing is still far less than it is a major cities across the world including london and hong kong.

I was looking at high-end real estate and $50 million seems to be immune number these days.

-- and mean number these days.

Is it relevant?

It is relevant to the neighborhood.

You had 157 in the town's building.

On a price per foot basis, it was just over $90,000 -- $9,000 per foot.

$9,000 a square foot?

These are apartments with very high ceilings, great views, all the bells and whistles iris might want.

And throughout new york, we had not seen new construction in four or five years.

It's like how do you get to carnegie hall, practice, practice?

Across the street is the steinway hall.

How did that start?

My partner and i were in partnership to build a very small sites.

We had fully developed and priced that site.

We were ready to come out of the ground and the steinway the thing became available on the marketplace.

We thought of selling lofts, to go higher, go bigger, make the floor space more efficient.

We stopped all work and bought the steinway property.

We made a 17,000 foot tower 50,000 feet.


It's much more efficient.

It probably will be a few hundred feet taller.

You have parking for tesla?

No, we don't. we may have charging stations.

In miami, one of our projects, we partnered with tesla to read we love tesla.

They are very forward thinking.

We think it is a very good brand that fits with our building.

There is the high-rise on brooklyn, the eastside of forced -- four seasons.

The charging station, we have the robotic garage.

It's cutting-edge.

Built for tesla specifically.

What about a charging station at one madison?

Do you think there will be an opportunity to park your tesla at one madison in lower manhattan?

Currently you cannot park -- what is this?

They needed a charge.

What happened?

Real estate development took place.

At the time it was a six story building, and now a building that is not the most efficient to build.

Two builders came in, put it up, almost made it.

The market collapse.

We ended up purchasing it with related companies out of bankruptcy.

Sales a been very healthy.

Sales of been healthy.

Has anyone ever demanded $50 million?

It is not like there are 20 of these apartments?

Citywide is probably more than 20, but there is probably 10 bells and whistles that every luxury apartment needs, whether it is radiant floor heating, a designer kitchen, smart house technology.

All the bells and whistles need to be in this apartment.

You decide who you will sell it to an design the building and the apartment.

Are these being financed?

Most of these buyers are all cash.

50 million -- i know the buyer.

You know the buyer?

Oh, they do not want the publicity.

This text has been automatically generated. It may not be 100% accurate.


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