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What Recession? Sotheby’s London sets world record

l_homme-qui-marche-iWhile the economy is battered and beaten, and real estate values are in the midst of a worldwide correction, it seems that collectors of fine art, are resetting market barriers themselves.   It is clear that SCARCITY is the common denominator between all things of value, and the recent Sotheby’s Impressionist and Modern Art sale in London, certainly demonstrates this.

In a historic sale at Sotheby’s, Alberto Giacometti’s L’homme qui marche I (Walking Man I) set a world record for a work of art at auction when it sold for $104,327,006 . The sale of that work was swiftly followed by that of Gustav Klimt’s Kirche in Cassone, which made  $43,208,606 – a new record price for a landscape by the artist. These two works headlined a sale that realised a record-breaking total of $235,659,502  – making it the highest value sale ever staged in London.

More Details, Click Here

Posted in Uncategorized.


Rough Economy forces consolidation in Non-Profits

The past few years, I have been involved in a few non-profits with great purpose and mission.   It has become increasingly difficult to raise money due to the competitive nature of the non-profit industry, and because of the drasticly receding economy as a whole.     Fortunately, the non-profits I’m involved in are totally volunteer, and nearly all the monies raised go directly into the core mission.

According to a recent article in the Wall Street Journal, there is a growing trend of non-profit closures and consolidations.  This is more prevelant among the charities with staff and overhead to content with, but non-the-less, the trend is now upon us, and our economy / society will be faced with an everchanging and evolving landscape in this regard.

It is only natural that all industry sectors follow suit and move into consolidation stages as well, as it is primarily the most logical step towards financial recovery and economies of scale.   2010 should be a year filled with major changes and developments worldwide and throughout all industry sectors.

To read the Wall Street Journal article entitled:  ”
Once-Robust Charity Sector Hit With Mergers, Closings”, CLICK HERE

Posted in Market News.


Chance for development stokes debate in Malta

By EMILY DONOHUE, The Saratogian

MALTA — Malta “needs to decide what it’s going to be when it grows up,” says Anthony Tozzi, the town’s building and planning coordinator.

With the largest construction project in the country happening in their backyard, town officials and residents are embroiled in a debate about what development in Malta’s downtown — the 1.8-mile strip centered on Route 9 between Knabner and Cramer Roads — should look like in the future.

Many business owners and residents say all new businesses should be encouraged. Others, including Supervisor Paul Sausville, believe growth needs to be curbed to preserve the town’s rural character.

Matt Little, whose family has owned and operated Just Meats deli in the town for 30 years, said he is “fine with Malta being opened up to every kind of business.”

Just Meats moved two years ago to a new location on Route 9 because new roundabouts near their old location made traffic too hectic for their customers. The roundabouts along that stretch of road were part of extensive infrastructure improvements that have accompanied the GlobalFoundries chip plant that’s under construction.

“I would hate to see our small business or other family businesses pushed out, but I think we have a great client base,” Little said. He added that the deli has already seen an increased lunch crowd since construction began at GlobalFoundries.

Malta’s master plan, adopted in 2005, lays out a vision for the downtown with a “dense development pattern … attractive streetscape and pedestrian access.” The document, which Tozzi calls a “guiding instrument” for his department, also states that “each successful business will improve the quality of downtown, add to the economic viability of the town and create a place where Malta residents can work and live.”

Sausville plans to propose several changes to the portion of the master plan that relates to downtown during rezoning workshops this week. One of those changes is deleting the text referring to a “dense development pattern.”

The town will host three workshops this week to consider rezoning areas of the downtown district. The workshops — set for 6:30 p.m. Tuesday, Wednesday and Friday at Malta Town Hall, 2540 Route 9 — are open to the pubic, but public comment will be limited to the end of the meetings.

Any way you slice it, changes are in store for Malta, particularly for its Route 9 corridor and downtown area.

GlobalFoundries broke ground last summer on a long-awaited microchip foundry located in Malta’s Luther Forest Technology Campus (LFTC). The $4.2 billion project is anticipated to bring 1,400 jobs; local leaders hope ancillary businesses will contribute another 5,000 new jobs to the region. Hudson Valley Community College recently opened a satellite campus adjacent to LFTC called TEC-SMART with a focus on training for careers in the nanotechnology and alternative-energy fields.

With that influx of financial investment and people headed toward Malta in the coming years, the town’s officials and residents want to encourage growth while discouraging sprawl. But striking the right balance and developing a clear vision have not been an easy process.

Earlier this month, Sausville proposed a building moratorium for the town while these possible zoning and master plan changes are considered, but he ultimately backed away from the proposal when developers, real estate agents and other residents said it could have a detrimental effect on the town’s economy.

“I didn’t want builders to continue to invest in a city-like vision when (that vision) might change,” he said in a recent interview.

Sausville said the goal of his proposed changes to the master plan is to reduce ambiguity in the existing document. His proposed changes also include increasing the distance buildings must be set back from the street and reducing the allowable height for new buildings from three to five stories to one to two stories.

Tozzi, the building and planning coordinator, said the current downtown zoning is designed to “create a town center and aggregate population in the town center and concentrate services to keep the outlying and more rural areas the same.”

“The zoning goes further to say development should be good for the town, create walk-ability and a sense of place,” he said.

Sausville campaigned for re-election in the fall on a platform of maintaining Malta’s rural character and controlling development. While campaigning, he distributed surveys with questions about how residents would like to see Malta grow, and he received about 140 completed surveys back.

Though far from a scientific survey, Sausville said the data he collected is “the best we have.” He says respondents overwhelmingly supported what he calls “hamlet-style” development with one- and two-story buildings, a departure from the town’s current master plan.

“It would be disrespectful of me to go out and ask people for their opinions …  and then not honor them,” Sausville said. “I have to operate on the basis of what people tell me.”

To that end, he is proposing adding language to the master plan that would codify the “hamlet-style” idea. He wants to include a sentence stating that Malta should be “hamlet-like with one- and two-story buildings with green space and sidewalks in front.”

Bill Parker, a spokesperson for Malta Concerned Citizens, questions whether Sausville’s surveys are at all representative of the views of the majority of residents.

“We’re very concerned about the town supervisor and just a few constituents trying to … turn back the clock,” Parker said. “We want to see our current zoning stay the way it is and allow our town to develop.”

The town’s downtown is currently zoned to allow “high-intensity development.”

Sausville said he feels Malta needs to consider its future in a regional context. “Why would we want to create an urban environment right in the middle of three urban environments that already exist?” he asked, referring to Saratoga Springs, Ballston Spa and Mechanicville.

Malta’s Town Board has already taken steps to control the town’s growth. Tozzi said one of the most unique aspects of Malta’s development is the use of Planned Development Districts, or PDDs. The PDD process requires developers to go before the Town Board twice and allows the town to require developers to include something that would benefit the town, like a park.

There are 53 separate PDDs in Malta, compared to about a dozen in neighboring Clifton Park. “I think it’s a cultural thing in Malta,” Tozzi said.

The Luther Forest Technology Campus is one example of a PDD — the developers made large payments to Malta to fulfill their requirement to benefit the town. The State Farm Insurance building and Shops of Malta shopping center are also PDDs.

The PDD process “requires the Town Board to be accountable for growth,” Sausville said, adding that it has “worked very well for Malta.”

Parker is not so sure: “By virtue of the PDD process, we have squelched or killed projects,” he said.

The process is “lengthy and cumbersome and more expensive” for developers, he said, and discourages some good projects from locating in Malta.

Parker said many Malta Concerned Citizens members plan to attend the workshops this week to voice their opposition to changing the master plan.

Despite some opposition, Sausville said he feels his changes represent the will of the people, as evidenced by the results of his surveys.

“The aspirations and the vision of the town belong with the people,” he said.

Posted in GlobalFoundries News.


GlobalFoundries inks deal with Qualcomm

Source:  Business Review, by Pam Allen

GlobalFoundries Inc. has landed Qualcomm Inc. as its fourth and latest customer.

Terms of the deal were not disclosed.

GlobalFoundries is the Sunnyvale, Calif.-based chip maker building a $4.2 billion computer chip factory about 25 miles north of Albany in Malta, Saratoga County. The plant, called Fab 2, is scheduled to begin operations in 2012.

Qualcomm (Nasdaq: QCOM) is among the largest semiconductor companies in the world. The San Diego, Calif. company said it expects to submit designs for it chips later this year at GlobalFoundries’ manufacturing plant in Dresden, Germany. Qualcomm is a fabless chip maker that designs semiconductors for handheld and wireless devices; its foundry partners include IBM Corp. (NYSE: IBM), Samsung, Semiconductor Manufacturing International Corp. of Shanghai and Taiwan Semiconductor Manufacturing Co.

GlobalFoundries secured its second customer—Geneva, Switzerland-based STMicroelectronics, in July 2009, and its third, U.K.-based Advanced RISC Machines, in October 2009. STMicro (NYSE: ATM) is the fifth largest semiconductor company in the world. Chip production for those companies also will be done at GlobalFoundries’ Dresden facilities. Before then, GlobalFoundries’ only customer was Advanced Micro Devices Inc. (NYSE: AMD).

AMD spun off GlobalFoundries in February 2009 as part of its move to adopt a “fabless” business model, a growing trend in the semiconductor industry. The Dresden plants, formerly owned by AMD, now by GlobalFoundries, already manufacture AMD’s products. Sunnyvale, Calif.-based AMD has a 34-percent stake in GlobalFoundries; Advanced Technology Investment Co., an investment fund owned by the Abu Dhabi government, owns the remaining 66 percent.

GlobalFoundries spokesman Travis Bullard said it was too early to tell if production of Qualcomm’s designs would impact operations at the Saratoga County plant.

Posted in GlobalFoundries News.


What NOT to buy in 2010

I recently read a very interesting article on SMARTMoney.com entitled “10 Things Not to Buy in 2010″. Here is the list:

  • DVD’s
  • Home Telephone Service
  • External Hard Drives
  • Smartphone also rans
  • Compact Digital Cameras
  • Newspaper Subscriptions
  • CD’s
  • New College Textbooks
  • Gas Guzzling Cars
  • Non-energy effecient Homes and Appliances

Some of these where pretty obvious like CD’s, DVD’s, Gas guzzling cars.  Newspaper subscriptions we have already seen the significant deteriations of these markets in the last 2 years.   Advertisers are significantly cutting back because there is no easy way to measure effectiveness, and in todays fast paced world by the time the newspaper prints, the news is old and has already been out on the internet and handheld information gathering devices, so consumers are less likely to subscribe anymore.  I get calls every couple of weeks with subscription offers that are ridiculously low, probably so that they have a reason to run the printing press, but I still tell them I’m only interested if it’s free.  In a waste conscious world, the weekly pile up of unread newspapers or newspapers that people are finished with is mindblowing.  Today you can get all the same information faster, with zero waste!  Although there is something to be said for the sound of the crinckle in the AM will sipping a cup of coffee.  Reminds me of  a time gone by.

The one I found most interesting was Home Telephone Service.  I certainly knew this was coming because most people have a cell phone, but for some reason (self included), people still always seem to identify with the phone number “at the house”.  Not sure why we are stuck on this, but it’s true.  Perhaps this is the decade where we ”cut the cord”.  I certainly plan on trying out the MagicJack with a single annual payment to solve the house phone need.  I think that is a great solution provided that they solve the problem of being able to “Port your home number”, which the website claims they are working on. 

Of course the question one always asks when reading an article like this:  Does the publishing of this article speed the reduction in these markets, or are they just reporting on what is already happening.  I think it’s probably a combination of both.

Here is the link if you want to read the full story: http://www.smartmoney.com/spending/budgeting/10-things-not-to-buy-in-2010/

Posted in Market News.


Realogy Brands post strongest result in Most Recognized Real Estate Brands survey for 2009

Recently, there was a survey conducted by RealSure asking agents to rank the top real estate brands in the world for the characteristics of brand identity. Approximately 390,000 votes were cast and it was very interesting to see the way they stacked up. We were delighted to see the strength of the Sotheby’s International Realty brand coming in at number 6, and as the ONLY luxury real estate brand that made the top 10.

Additionally, take a look at the strength of the Realogy brands where they have the number 2,4,6,8, and 10 spots. Very powerful organization, and very powerful referral sources. Here is the ranking:

  1. Keller Williams Realty
  2. Coldwell Banker Real Estate
  3. RE/MAX International
  4. Century 21 Real Estate
  5. Prudential Real Estate
  6. Sotheby’s International Realty
  7. EXIT Realty
  8. ERA Real Estate
  9. Weichert Real Estate Affiliates
  10. Better Homes & Gardens Real Estate

Here is the link to the article:

Posted in Real Estate News.


House Flipping Makes a Comeback

Source – Wall Street Journal By JAMES R. HAGERTY

SCOTTSDALE, Ariz. — Four years after the collapse of the U.S. housing bubble, flipping homes is back in fashion.

Jon Mirmelli, a Phoenix real-estate investor, learned late in the morning of Sept. 28 that a never-occupied custom house on the northern fringes of this Phoenix suburb was going up for auction around noon the same day. The six-bedroom home, built on a three-acre desert plot, has a kitchen with two dishwashers, four ovens, “antibacterial” copper sinks, and a master “spa” bathroom with space for a flat-screen TV visible from the tub.

The minimum bid, as set by a unit of Citigroup Inc., which had a $1.3 million mortgage on the home, was $379,900. After several minutes of bidding among investors and their representatives, some wearing shorts and flip-flops, Mr. Mirmelli won the home for $486,300. A week later, he agreed to sell it for $690,000 to a woman who moved in this month.

During the housing boom, millions of Americans tried to make money by buying and then quickly reselling new houses and condominiums. That kind of flipping stopped several years ago as home sales stalled amid a surge in foreclosures and curtailed lending.

Now, a different breed of flipper is proliferating: one who seeks bargains at foreclosure auctions. Unlike the boom-time flippers, the latest generation needs cold cash, lots of local-market knowledge and strong nerves.

Investors compete mostly with other full-time professionals who monitor foreclosure auctions at county courthouses across the country. The bidders often haven’t had a chance to inspect the property or determine whether it’s occupied by tenants, who may be hard to evict.

Sometimes “you have half an hour to make a half-million-dollar decision,” says Damon Lines, an executive at PostedProperties.com, a Phoenix firm that provides information to foreclosure investors and bids on their behalf. “That’s something most people can’t or aren’t willing to do.”

In the states where home prices have fallen the most, many local real-estate markets are dominated by foreclosed property, dragging down the value of neighboring homes. Barclays Capital estimates that banks and mortgage investors have 639,000 foreclosed homes for sale across the U.S., largely concentrated in Florida, California, Arizona and Nevada. That’s equivalent to more than 10% of expected U.S. home sales this year.

Read More

Posted in Real Estate News.


Lake George Auction TODAY!

Today is the day for Lake George vacation home buyers to secure an incredible piece of real estate on Pulver Road, off Pilot Knob Road. With nearly 2700 square feet of living space on just under an acre of land and with 168 feet of lake front, this really is the most compelling buying opportunity available on Lake George at this time. The home is a 1916 authentic lakehouse true to it’s original character, with mature trees on the property, two amazing views, and an incredible deep water Adirondack style boat house.

The subject property is up for auction at 2pm and will be sold to the highest bidder.

The real estate market in general has created an opportunity for new and innovative techniques, such an auction format, to move the market. While real estate auctions have been used for many years to liquidate distressed, condemmed and foreclosed properties, Select Sotheby’s International Realty has partnered with Concierge Auctions to deliver a very high touch, professional auction service designed to trade distinctive, luxury properties that are pristine in style and character. The focus on this service is to provide sellers who have recognized that the lengthy time on market that can often times couple a traditional listing for a high end home with an option to monetize the real property on a time schedule that the seller selects, rather than waiting for a buyer to come along.

The program has been very well received by all stakeholders, and the buying population has positively responded as well. This process has generated a significant amount of local and regional attention, and a significant amount of traffic at the property in a short window of time.

The results will be available within a couple of weeks. The auction will be at 2pm today. Last minute participates can still register. Call John Burke at 518-928-2233.

For more information, please visit: LakeGeorgeAuction.com

Posted in Real Estate News.


Wealthy Investors Plan to Buy More Real Estate, Barclays Says

Source: Bloomberg
By Peter Woodifield

Nov. 30 (Bloomberg) — Individuals with more than $800,000 to invest plan to increase their property holdings because they foresee better long-term returns than from stocks and bonds, according to a Barclays Plc global survey.
Twice as many people plan to raise their investment in commercial and residential property as intend to reduce it, the Barclays Wealth unit said in an e-mailed statement today. The richer the individual, the greater the proportion of wealth is placed in real estate, the survey found.
“I was surprised how big a share of their wealth property represents,” Mike Dicks, the London-based head of research at Barclays Wealth, said in an interview. “It’s not what I would tell grandma. None of our data suggests that would be a good allocation.”
The global recession pushed down commercial and residential real estate prices in every region except Asia. The value of U.S. shops, offices and warehouses fell 21 percent in the first three quarters of this year, following a 12 percent decline in 2008. Belief that properties are now undervalued was the second most common reason cited for increasing investment.
Real estate investment among wealthy individuals is set to rise to 30 percent of the average portfolio for the next few years from 28 percent now, according to the survey. That excludes properties used as a principal residence. Most rich people, other than the extremely wealthy, should have no more than 10 percent of their assets in property, said Dicks.
‘Emotional Attachment’
“An emotional attachment to bricks and mortar,” can mean that rich investors are often unwilling to sell real estate at short notice and may be less rigorous in measuring its performance as an asset, according to the report.
Investors from Canada and the Persian Gulf were the most likely to increase their property allocations, with an average rise of 4 percent, the report said. Spain was the only country in the survey where more individuals said they would reduce the proportion of real estate investment, said the wealth management division of London-based Barclays. About 60 percent of rich individuals in that country have more than half their assets in property.
Almost 30 percent of British and Indian investors have more than half their wealth tied up in real estate. About 40 percent of the total respondents worth more than 30 million pounds ($49 million) have a similar allocation, Barclays Wealth said.
U.S. Attractive
Three out of four investors surveyed said residential property is looking attractive and two-thirds are keen to explore investing in commercial real estate, the survey said. About 75 percent said they feel hampered by borrowing costs.
The U.S. was the most attractive real estate market for investors outside their home country, the survey showed. The country was seen as having the highest potential for return on investment.
Barclays Wealth surveyed 2,000 people. Forty percent were worth 500,000 pounds to 1 million pounds. An additional 40 percent were worth between 1 million pounds and 10 million pounds. Ten percent had assets of as much as 30 million pounds and the rest were wealthier than that.

Posted in Market News, Real Estate News.


Move up Buyer Tax Credit Expected to Boost Real Estates Middle Market

On November 6th, the Worker, Homeownership and Business Assistance Act of 2009 was extended to include an addditional 6 months for the First Time Home Buyer Tax credit of $8000, and a new $6500 tax credit for those that already own a home and wish to upgrade between now and April 30, 2010.   This news is expected to positively impact the housing market, with a specific focus on the group who would traditionally by moving to their next larger home to meet the demands of a growing family.

In concert with these incentives, it continues to be a great time to buy.  Inventory is in great supply and their is competition among sellers that want to move their homes to negotiate and get into a transaction.   The move up buyer tax credit is expected to provide a much needed boost specifically to the luxury home industry.   With prices down, and sellers becoming more realistic on the times in front of us, coupled with the tax credit and historically low interest rates, there has never been a better time to purchase a home in the previous decade.

Here are some highlights of the Move Up Buyer Tax Credit comment to the Act for quick reference

  • Credit is calculated as a 10% credit up to a maximum of $6500
  • The income limit to qualify is $125,000 for an individual and $225,000 for a married couple filing taxes jointly, using the Modified Adjusted Gross Income calculation.  There is some consideration above this income cap but there is a phaseout of $20K on both brackets.
  • The maximum purchase price of the home can not exceed $800,000
  • The closing for a qualified transaction does not have to occur until June 30, 2010 provided that their is a bonafide contract to purchase in place by April 30, 2010.  This should make it possible for new construction products to benefit from the stimulus.
  • A taxpayer can claim the credit on a previous years tax return by filing an ammended return.

For more information, please visit the following link for answers to Frequently Asked Questions:

http://www.federalhousingtaxcredit.com/faq2.php

Posted in Real Estate News.