The Tapestry, East Harlem Abracadabra

There’s a hole in the ground in East Harlem at the base of the Robert F. Kennedy Bridge. When it’s filled, you’ll be able to see it coming over from the Bronx, sticking up amidst downtrodden piles of bricks: a shiny new apartment building, affordable and green.

While cranes have gone quiet at projects around the city, Jonathan Rose Companies' Tapestry is rising fast after breaking ground in November. The 185-unit project is going for LEED silver certification, and the developer struck a deal with the department of Housing Preservation and Development that traded a substantial level of affordability for a goodie bag of tax incentives and low-interest loans, plus land parcels sold for a song.

The Tapestry didn’t start out on the fast track to success—four years ago, it was a patchwork of city-owned and private land in one of the more depressed corners of Manhattan. Then it became ensnarled in the debate over the 125th Street rezoning, approved in March, which touched at the heart of what development will mean for the area’s character.

Perhaps one of the only builders who could have pulled this off is Jonathan Rose, whom The Observer interviewed last year about his community-oriented approach to real estate. He’s building up a reputation in developer-shy Harlem, and knows the ins and outs of public financing better than most. As New York contemplates a future with far less private capital floating around for the taking, the Tapestry is becoming a poster child for innovative financing, and the real estate establishment might want to take notes.

Manhattan home prices plunging

With Manhattan real estate prices now estimated to be down by as much as 20 percent since the summer, New Yorkers may sense an opportunity to buy in.

"I'm in the market to buy in the next year or two," said Arzo Anwar, 31, who rents in the Financial District. "I've heard that prices have dropped."

In fact, the current edition of the Federal Reserve Board's Beige Book – an economic snapshot of various regions released eight times a year – paints a picture of a plummeting market.

"Transaction activity has dropped off noticeably, and there has been a large increase in the number of listings," says the report, released earlier this month.

Hunting real estate deals at the tip of Manhattan

When schoolchildren in New York are taught that the Dutch purchased Manhattan Island from American Indians for just $24 and trinkets some 400 years ago, it's unlikely the teacher also mentioned the transaction occurred in Inwood, the borough's most remote neighborhood.

Perched at Manhattan's north end, Inwood blends a unique mix of big-city feel with serene settings. Three beautiful parks, Fort Tryon, Isham and Inwood Hill, surround the Art Deco walk-ups in an oasis of green. Apartment buyers are often attracted to Inwood by the prospect of Hudson River views and good schools, at prices much lower than downtown.

Once the setting of some of the most heated battles of the American Revolution, Inwood transformed from rural to urban in the early 20th century. With the subways came development, and for many years Irish and Jewish families dominated the neighborhood

Exclusive Rental Property in Lower Manhattan

Royalton's building, the Stove Factory Lofts, is a prime NYC rental building located in the heart of the historic South Street Seaport district and offers a variety of apartments and lofts with one to four bedrooms. 1-bedroom apartments (convertible to 2-bedrooms) start at $2650. Shares are welcome - as are pets. Flexible move-in dates are also available.

"They have very adaptable layouts," said Royalton President and Founder Jordan Adoni. "The apartments work for families, shares or students. And we're flexible with putting up walls and adapting the space however necessary."

The building will feature a brand new elevator, state of the art video intercom system and a beautiful new roofdeck with panaromic views including the Brooklyn Bridge, The Woolworth Building and all of the Manhattan Skyline. Each newly renovated apartment includes a washer/dryer, renovated kitchen and bathroom and high ceilings. Some units also have exposed brick and a private outdoor space. Additional amenities include newly installed finishes; marble and granite tiles and countertops; individual heating and cooling systems; and high-speed Internet access.

NYC Commercial Meltdown

According to a recent New York Times article, as we have been expecting, New York City's office market has hit the skids, big time. In my mind, the message here with regard to residential real estate is very noteworthy. Eventually, in a poor demand environment, prices will fall, despite a previously tight supply environment and positive long-term outlook. The New York City commercial market is sending a strong signal not just about the New York residential condominium market, but even the multi-family rental market.

Way back in January of 2008, I penned "Commercial Real Estate - The Next Train Wreck?" In that piece I touched on the Three Cardinal Sins of Real Estate: 1) Overpaying, 2) Over-Leveraging 3) Over-Building. In my opinion at the time, it was obvious that many had broken the first two rules, but that in some markets, particularly New York, the third rule had not been totally violated.

In June I did a follow-up piece on the commercial market and focused on the NYC Office Market. I noted:

Suit: $5M funneled to New York Observer through real estate deal

A record-setting Manhattan real estate deal masked millions of dollars that helped prop up the money-losing New York Observer and covered improper personal expenses, according to a report.

A former top exec in the Kushner Cos., which paid $1.8 billion for 666 Fifth Ave. in 2007, charged in a lawsuit that the company diverted more than $5 million from the financing package to keep the paper going.

Kevin Swill, who was president of Kushner's financing arm, Westminster Capital, asserted that Charles Kushner also paid at least $300,000 from the deal to Mark O'Donnell, the live-in boyfriend of former New Jersey Gov. Jim McGreevey, according to The Star-Ledger of Newark.

Those payments, as well as others covering family loans and Kushner's personal mortgage, allegedly amounted to a "wrongful diversion" of the proceeds from a the office building deal.

Manhattan Awash in Open Office Space

Almost 16 million square feet is currently listed as available in large blocks in 68 office buildings in Manhattan, according to Colliers ABR, a commercial brokerage firm. That is nearly double the space available a year ago, both in terms of the number of large office blocks — which in New York usually means 100,000 square feet or more — and in terms of total square feet.

Those figures are widely expected to go much higher, said Robert L. Sammons, the managing director of research for Colliers ABR. He said it was difficult to get a handle on exactly how much space financial companies alone might put back onto the Manhattan office market over the next year or so.