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Tag: new york

BARNES Pre-Loved Luxury Show

From Friday, November 15th, 2024 to Sunday, November 17th, 2024, BARNES had the pleasure to host the three-day BARNES Pre-Loved Luxury Show event at the Carrousel du Louvre in Paris.

Present in 22 countries with over 150 destinations worldwide, our teams came together to offer visitors an exceptional experience. Each destination highlighted its unique expertise in prestigious real estate, showcasing rare properties and tailored services. Our advisors shared their passion for excellence, guiding clients through bespoke real estate projects in the world’s most sought-after locations.

BARNES, a specialist in prestige real estate, invited the guests to discover a new sustainable approach to real estate in the world’s major capitals: Paris, New York, London, Madrid, Dubai… These iconic cities combine dynamism, culture and innovation, while offering a wide range of prestigious properties.
One main goal of the show was to highlight how the circularity and re-use of prestige properties are contributing to a more responsible future, while retaining the elegance and refinement of high-end real estate.

BARNES Pre-Loved Luxury Show was focusing on five pillars: preserving, transmitting, and sharing traditions, moments of joy, and precious objects across generations. Each of these represents the art of living in its own way, and they were championed at the inaugural salon dedicated to pre-loved luxury. Exquisite luxury pieces and properties, meticulously crafted, maintained, and restored by talented professionals, were presented for guests discerning appreciation.

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Understanding the 421-a Tax Exemption: Promoting Affordable Housing in New York City

The 421-a tax exemption is a significant real estate incentive program in New York City aimed at encouraging the development of new residential buildings and promoting affordable housing. This program offers property tax breaks to developers who include affordable housing units in their new projects. By reducing the tax burden, the city incentivizes the creation of more housing options, particularly for low- and moderate-income residents.


This post addresses the specifics and benefits of the former 421-a program, which has been recently discontinued. However, it remains relevant as a handful of buildings still benefit from the tax exemption. Extensions have been granted for ongoing unfinished projects, and the state now offers a replacement program labelled 485x (with different parameters). 

Person filling tax documents

What is the 421-a Tax Exemption?

The 421-a tax exemption, also known as the Affordable New York Housing Program, provides a partial property tax exemption for qualifying new residential construction projects. Developers receive this tax break in exchange for setting aside a portion of the units in their buildings as affordable housing. The program aims to stimulate the construction of new housing and address the city’s affordable housing shortage.

Key Requirements of the 421-a Tax Exemption

  1. Affordable Housing Requirement:
    • Developers must allocate a percentage of the total units in the new building as affordable housing.
    • The specific percentage and affordability levels depend on the location and size of the project.
  2. Location:
    • The program applies to new residential developments across New York City, with varying requirements based on different zones and neighborhoods.
  3. Duration:
    • The tax exemption can last for up to 35 years, depending on the specific terms of the agreement and the project’s compliance with affordability requirements.
  4. Construction Deadline:
    • Developers must complete construction within a specified time frame to qualify for the tax exemption.

Benefits of the 421-a Tax Exemption

  • Tax Savings: Developers can significantly reduce their property tax liability, improving the financial viability of their projects.
  • Increased Housing Supply: The program encourages the construction of new residential buildings, adding to the city’s housing stock.
  • Affordable Housing: By mandating a portion of affordable units, the program helps provide housing options for low- and moderate-income residents.

Case Study: A Mixed-Use Development in Brooklyn

Let’s look at a case study to understand how the 421-a tax exemption works in practice.

Scenario: ABC Development Company plans to build a new mixed-use residential building in Brooklyn, consisting of 100 units. They aim to benefit from the 421-a tax exemption to improve the project’s financial feasibility.

  • Planning the Project: ABC Development decides to set aside 30% of the units (30 units) as affordable housing. These units will be rented to tenants with incomes at or below 130% of the area median income (AMI).
  • Applying for the Exemption: ABC Development submits their project plan to the New York City Department of Housing Preservation and Development (HPD) for approval. They outline the total number of units, the number of affordable units, and the targeted income levels for affordability.
  • Receiving Approval: After reviewing the application, the HPD approves the project, confirming that it meets the requirements for the 421-a tax exemption. ABC Development can now proceed with construction.
  • Construction and Leasing: ABC Development completes the construction within the required timeframe and begins leasing the units. The affordable units are rented to eligible tenants at reduced rents, while the remaining units are rented at market rates.
  • Tax Benefits: With the 421-a tax exemption in place, ABC Development enjoys a significant reduction in property taxes for up to 35 years. This tax break enhances the project’s profitability and helps offset the lower rental income from the affordable units.

Outcome: ABC Development successfully leverages the 421-a tax exemption to create a mixed-use residential building in Brooklyn. The project not only adds 100 new housing units to the city’s supply but also provides 30 affordable units for low- and moderate-income residents. The tax savings help make the project financially viable, benefiting both the developer and the community.

421-a tax exemptions do not only concern rental buildings. A handful of condominiums (new developments) have benefited from this program, therefore extending the tax exemptions to the individual owners of the units. These tax exemptions remain with the unit, and any subsequent buyer will also benefit from them until expiration.

BARNES New York has assisted clients in buying units in 421-a approved buildings, and can curate a list of options for interested buyers, whether for primary residence, pied-a-terre, or investment purposes. 

Conclusion

The 421-a tax exemption is a vital tool in New York City’s efforts to address its affordable housing crisis. By incentivizing developers to include affordable units in their new residential projects, the program helps increase the supply of housing options for residents across income levels. Understanding and utilizing the 421-a tax exemption can be a win-win for developers and the community, fostering the development of vibrant, inclusive neighborhoods. 

BARNES New York is your ideal real estate partner to assist with many scenarios for your real estate project, including the 421-a tax exemption. Please contact us to learn more.

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BARNES New York at the NYC Real Estate Expo – October, 16th 2024

BARNES New York had the pleasure to be a platinum sponsor of the yearly NYC Real Estate Expo.

This year’s edition of the NYC Real Estate Expo took place on Wednesday, October 16th, 2024 at the New York Hilton Midtown, and BARNES New York, alongside BIM Property Management, had the honor of being a platinum sponsor with two booths where our team had the chance of meeting colleagues and professionals from the real estate industry.

BARNES President, Thibault de Saint Vincent, was invited to be a guest speaker in the main room alongside Vince Rocco, for a conversation regarding International Luxury Real Estate. He was followed by Yann Rousseau, BARNES New York Managing Partner, who participated in a panel with industry peers – Stefani Berkin from R New York, Nile Lundgren from SERHANT, Nikki Field from Sotheby’s International Realty, Alexander Zakharin from Nest seekers International, and Eric Benaim from Modern Spaces – around the topic: “NYC real estate market forecast: what to expect”.

Joachim Gruet, real estate salesperson at BARNES New York, had the honor to be the host speaker at the Bryant Room, where he introduced guest speakers and conversation topics.

The NYC Real Estate Expo is a yearly event gathering professionals in the real estate industry and the general public from across the country. This year’s edition featured 225 vendors, 150 speakers and resulted in more than 12,000 attendees.

BARNES New York team
BARNES President, Thibault de Saint Vincent in conversation with Vince Rocco.
BARNES NY and BIM booths at the NYC Real estate Expo
BARNES NY managing partner, Yann Rousseau doing a podcast with Vince Rocco
BARNES NY team
Yann Rousseau, managing partner, at a roundtable at the NYC Real Estate Expo.

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Understanding the 1031 Exchange: A Powerful Tool for Real Estate Investors

A 1031 exchange, named after Section 1031 of the U.S. Internal Revenue Code, is a strategy that allows real estate investors to defer paying capital gains taxes on an investment property when it is sold, as long as another “similar” property (for investment purposes) is purchased with the profit gained by the sale. This tax deferral can be a powerful tool for investors looking to grow their real estate portfolio without the immediate tax burden.

What is a 1031 Exchange?

In simple terms, a 1031 exchange allows an investor to sell a property, reinvest (part or all of) the proceeds in a new property, and defer the applicable capital gain taxes. The primary benefit is the ability to use the full amount of the sale proceeds to purchase a new property, thus potentially increasing the investor’s buying power.

Key Requirements for a 1031 Exchange

  1. Like-Kind Property: The properties involved in the exchange must be of “like-kind,” meaning they must be of the same nature or character, even if they differ in grade or quality. For real estate, most properties are considered like-kind to each other. Primary residences are excluded, as well as “fix-and-flip” properties.
  2. Timing Rules:
    1. Identification Period: The investor has 45 days from the date of selling the original property to identify potential replacement properties.
    1. Exchange Period: The investor must complete the purchase of the replacement property within 180 days from the sale of the original property.
  3. Qualified Intermediary: The exchange must be facilitated by a qualified intermediary who holds the funds between the sale of the original property and the purchase of the replacement property.
  4. Title Requirements: The title of the new property must be in the same name as the title of the property sold.

Benefits of a 1031 Exchange

  • Tax Deferral: The most significant benefit is the deferral of capital gains taxes, allowing more capital to be reinvested.
  • Portfolio Diversification: Investors can use 1031 exchanges to diversify their holdings by investing in different types of real estate or different geographic locations.
  • Increased Buying Power: By deferring taxes, investors can use the full amount of their sale proceeds for the purchase of new property.

Case Study: From Single-Family Rental to Commercial Property

Let’s look at a case study to understand how a 1031 exchange works in practice.

Scenario: Jane owns a single-family rental property that she purchased for $200,000 ten years ago. The property has appreciated in value and is now worth $400,000. Jane wants to sell this property and purchase a commercial property to generate higher rental income.

  • Selling the Original Property: Jane sells her single-family rental for $400,000. Normally, she would have to pay capital gains tax on the $200,000 profit (the difference between the sale price and the original purchase price; property fiscal depreciation may need to be taken into account as well).
  • Identifying Replacement Property: Within 45 days of the sale, Jane identifies a commercial property valued at $500,000 as her replacement property.
  • Using a Qualified Intermediary: Jane uses a qualified intermediary to hold the $400,000 proceeds from the sale of her single-family rental.
  • Completing the Purchase: Within 180 days, Jane uses the $400,000 held by the intermediary and an additional $100,000 of her own money to purchase the commercial property.

Outcome: Jane successfully completes a 1031 exchange. She defers paying capital gains tax on the $200,000 profit from the sale of her single-family rental and reinvests the full amount into a higher-value commercial property. This allows her to leverage the tax deferral to potentially generate greater rental income and continue growing her real estate portfolio.

Conclusion

The 1031 exchange is a valuable tool for real estate investors looking to defer taxes and maximize their investment potential. By understanding the rules and leveraging the benefits, investors like Jane can strategically grow their portfolios, diversify their investments, and increase their buying power. Always consult with a tax advisor or a qualified intermediary to ensure compliance with the specific requirements and to optimize the benefits of a 1031 exchange. 

BARNES New York has already assisted multiple clients with their 1031 endeavors, and can therefore help you with the full process and assist in pairing you with the right partners. Do not hesitate to contact us to receive further information.

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“Invest in New York” Conference in Luxembourg

On September 17th, our team had the pleasure to travel to Luxembourg to meet BARNES Luxembourg and host an ‘Invest in New York’ Conference at their office located on the Avenue de la Porte-Neuve. The event was a success, with collaborators and professionals from the country and nearby towns.

The two BARNES offices joined forces to showcase the vibrant investment opportunities in New York. Attendees were treated to insightful presentations and discussions, highlighting the dynamic growth and immense potential of New York’s market.

The presentation was followed by a cocktail and hors d’oeuvre inside the Luxembourg office.

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BARNES New York Manager having a conversation with guests
BARNES Luxembourg storefront
Guest enjoying a conversation
Food buffet at the event
BARNES New York Agent

FACC Summer Social Event

On August 22nd, BARNES New York had the pleasure of being a bronze partner at the FACC Summer Social Event organized by the French-American Chamber of Commerce, alongside CIC and JetBlue.

The event brought together more than 100 attendees who enjoyed good vibes, networking opportunities, and professional encounters. The unique setting allowed guests to meet new or existing peers in an informal environment while enjoying drinks and snacks. The FACC Summer Social was a valuable opportunity to engage with professionals from various industries and to connect over shared experiences of conducting business in the United States.

The FACC Summer Social Event was the perfect time to reflect on the first half of 2024 and prepare for the new chapter ahead, with fall just around the corner. The event was filled with high spirits, new connections, and potential future collaborations.

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Barnes Magazine
Our team at the event
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Sunset Cocktail Reception – BARNES New York X BARNES Yachting

On August 27th, at the iconic Chelsea Piers in Manhattan, a stunning sunset cocktail reception took place aboard the luxurious All In and San Lorenzo yachts, hosted by BARNES Yachting and BARNES New York. Guests were treated to an unforgettable evening as the sun dipped below the horizon, casting a golden glow over the Hudson River. Attendees indulged in delicious drinks and exquisite food while discovering the exclusive services offered by BARNES Yachting and ACES Yachting. The breathtaking views of the city skyline from the decks of these elegant yachts made for a truly magical atmosphere, leaving a lasting impression on all who attended.

Why should you buy a house in Montauk?

If you are planning to live in the Hamptons region of New York, you probably need to anticipate your budget to find a home and make it your own. It is not uncommon for people to spend millions upon millions of dollars when they are looking for luxury homes or mansions. 

The area of Montauk is an upscale area, but it’s actually usually more affordable than other parts of the Hamptons. And it features a ton of locations and events that you can’t find anywhere else, including in other parts of the Hamptons.  

For those reasons, and many others, many people are flocking to Montauk and hoping to call it home in the years ahead. The popularity of this location has skyrocketed over the last decade, and it’s been harder and harder to buy a house in Montauk. This is especially true for anyone trying to find luxury houses, luxury villas, and luxury mansions in Montauk. 

The truth is that if you are hoping to buy a house in Montauk, there is a lot you need to know. You need to be familiar with the area, the businesses, and events, and all the things to be aware of when shopping for a home and exploring the area. Luckily, our guide can give you access to everything you need to know about Montauk and the particular real estate market there.  

How much does it cost to live in Montauk? 

Although Montauk might be considered a more affordable area to live in in the Hamptons, you still need to take your budget into consideration. As of Q2 2024, the median home price in Montauk was about $1,800,000 according to the Samuel Miller market report. This includes locations in the most popular neighborhoods, such as East Great Plains, South New London, Taftville, and others.  

The homes in the Hamptons aren’t on the market long. They are typically sold about 130 days after they are listed, which shows the interest in this region. And there aren’t too many homes for sale either, with around 73 listings on the market as of Q2 2024. 

Living in Montauk isn’t inexpensive, but it’s a far more affordable part of the Hamptons than others such as South Hamptons, East Hamptons, and more. This is one of the most attractive features for many when it comes to Montauk. 

Why buy a house in Montauk? 

You will always have something fun, unique, and special to do when you’re living in Montauk. Even people who don’t live in the area sometimes travel great distances so that they can enjoy the businesses and events that are only found in Montauk.

If this part of the country is going to be your new home, you need to be aware of the things that you will get to experience. There is a lot that will keep your days – and nights – busy and exciting.

From local bars to coffee shops, beachfront parties, and parks, Montauk truly does have something for everyone if you know what to look for and where to find it.  

Food 

You have never had pizza like the type you will find at Robert’s Montauk, which is known for its wood-fired pizza and delicious drinks and large bar. This has long been one of the most popular eateries in the area – and with good reason too.  

If you’re looking for delicious cuisine straight from Uruguay, Marram will be right for you and will offer you a slew of delicious daily-rotating dishes with the most delectable delicious meats and roasted veggies.  

Few eateries will leave a memory as lasting as one made at Montauket, which offer American dishes and live music with a gorgeous view right on the water. Take in the sunset, enjoy some local beers, and look out at the bay. When you’re eating your meal at Montauket, you’ll realize that life doesn’t get much better than this.  

Outdoors 

If you’re looking for something to do outdoors in Montauk, then you are in luck. There is not just one or two things to do in this area, there is in fact so much to do that it will feel like you never have enough time to do it all.  

Of course, you could spend days upon days lounging on the beaches of Montauk, but there is even more to do than just that. For example, you can take a unique Montauk lighthouse tour via bike, or you can explore the history of the area and walk through classic buildings that are more than 100 years old.  

Do you want to get up and close and personal with the seals that live in the area? What about taking a cruise on the water as the sun goes down? Maybe enjoy an outdoor concert with a yummy glass of wine along with friends and family? All of these things are possible in Montauk. There are many year-round and annual activities that people enjoy when moving to the area.

Summary

Montauk is known for its beach-front beauty that is unparalleled, even in other areas of the Hamptons. It truly is a beautiful, picturesque region that is well worth the experience. But if you are hoping to find a luxury house or mansion that can be yours in Montauk, you need to make sure you only turn to the experts. At BARNES New York, you will find a team that knows the market well, what to look for, what to avoid, and what to keep in mind with the luxury real estate market. Contact us today to discuss your future and any possible move to Montauk and beyond.  

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Why should you buy an apartment in Sunnyside? 

If you are looking for a new home in Queens, you might be considering the various neighborhoods in the area. Sunnyside is located in the western part of the borough and has become a popular spot to live in over the years. 

If you are looking for a home for sale in Queens or any kind of Sunnyside real estate, keep reading. Queens is a diverse borough that is home to several different cultures. Not to mention, there may still be a bunch of food trucks serving up several different dishes from all over the world. 

Let’s take a look now at some of the reasons why you should buy an apartment in Sunnyside.

Plenty of housing options in Queens 

Housing for sale in Queens might be expensive and out of your price range. But that shouldn’t be the “be all to end” all for you. So it’s important to explore all your options. 

The good news is that Sunnyside does have a wide range of prices for homes, while you’re close to a ton of amenities and attractions. The median condo sold price in Sunnyside as of July 2024 was $692,410 – which is less expensive compared to Astoria and Long Island City. As for co-ops, it was $318,500 in July 2024, with an abundance of co-op supply.

If you are looking for a single-family home, apartment, or condo, you might find one that fits you best in Sunnyside. 

There’s a strong sense of community 

Queens is known for its strong sense of community. This may be one more good reason why to buy an apartment in Sunnyside. You’ll be meeting with people from different cultures and walks of life. 

They are friendly, diverse, and always make people feel welcome. You can even take part in the local events and activities that take place all year long. Who says you have to travel to Manhattan to have all the fun? 

If condos may not be the best option, buying a co-op in Sunnyside may be a great alternative. Co-ops have stricter rules and regulations compared to condos, but are more affordable than other real estate options.  

If you do have a bit of money off to the side, it may be enough to snag an apartment for sale in Sunnyside. 

Ease of access 

The ease of access from Sunnyside to the entire city is within reach. The neighborhood has about three different subway stations, including 52nd St and 46 St. – Bliss St. You’ll be able to utilize the subway to go just about anywhere in New York City. 

Even better, you can also take the subway to Grand Central where you can hop on a commuter rail that will take you to points beyond New York City including Westchester County and Connecticut. 

There’s also Amtrak and Long Island Rail that will help you get from point A to point B, whatever the destination is for you. With so many transportation options, you might get a little overwhelmed with where you want to go. 

By the way, Queens is also home to two major airports – LaGuardia and John F. Kennedy. Either airport may suit you best, especially Kennedy with its direct connection to plenty of international destinations. 

Summary 

Sunnyside may be one of the best neighborhoods in Queens. You’d be hard-pressed to find an apartment that will make you feel like you’re right at home. If you are looking for that dream place to live, you can contact a real estate agent that knows the area well. 

Contact us at BARNES New York today, and we’ll make sure we fulfill your needs for finding that perfect apartment. 

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Why should you buy an apartment in Williamsburg?

Over the years, many people have begun to consider Williamsburg to be the hottest and trendiest part of Brooklyn, New York. Known for its distinct personality, style, and the long list of things to do, Williamsburg is really a hotbed of culture and excitement.

Moving to Williamsburg is a smart move for many people. But you do need to keep a few things in mind when you are buying your place in Williamsburg. You’ll have to consider how much you’ll be spending, what you’ll be doing for fun, and where you’ll be living.  

If you are thinking about moving to Williamsburg and buy an apartment in Williamsburg, you need to consider several things and be aware of what you are getting yourself into. It can be a very rewarding and smart choice for you, but you definitely need to do your research. For that reason, let’s take a look at how much it costs to live in Williamsburg and what this wonderful part of New York will provide you.  

How much does it cost to live in Williamsburg? 

Williamsburg is now recognized as the heart and soul of Brooklyn, particularly due to its myriad living options, great cultural opportunities, and numerous restaurants and shops to explore. You can find the ideal place for yourself that puts you smack in the middle of Brooklyn.  

According to UrbanDigs, the median price per square foot in Williamsburg is around $1,545 as of June 2024. This is a 4.4% increase compared to just the year before. The median sale price is of $1.84 million, a 32.5% increased from last year. That indicates that the interest in Williamsburg has grown substantially in just a year, showing some good indications.  

The cost of living in Williamsburg is more than most other parts of New York and other parts of the country. For some people, this could be a deal-breaker. But for others, it’s reason to be even more interested in Williamsburg. They are right to be drawn to this part of town because it offers many special events and locations that can only be found here.

Why buy an apartment in Williamsburg? 

If you are looking to live in a part of New York that is filled with great businesses, warm people, and modern locations, then Williamsburg will feel right at home for you. Here are just some of the many things that bring people to this unique region of Brooklyn. 

Dining 

If you’re looking for a great sandwich that feels right out Philadelphia, Fedoroff’s Roast Pork in Williamsburg is going to get your mouth watering. If Shawarma is more your speed, then Oasa on Bedford Ave will be right for you. From rich Peruvian cuisine to Italian, Chinese, and American steak, there is a restaurant that is right for you in Williamsburg.  

You will never be out of options when it comes to dining in this part of town, whether it be fine dining or something a bit more affordable and low-key. Multiple restaurants have received higher marks and great reviews from websites specialized in fine dining ranking. It really is a great place to explore when you are looking to eat well.  

Shopping 

It doesn’t matter if you’re looking for jewelry, clothing, second-hand accessories, apartment furnishings, or anything else, you can rest assured that you’ll find what you need in a number of Williamsburg shops.  

Williamsburg is known as a place that is very hip with its finger on the pulse of the modern cultural landscape, so you know that what you buy in this part of Brooklyn is going to be the latest and greatest. Some of the most exciting businesses in Williamsburg include Catbird, Spoonbill & Sugartown Books, Rough Trade, Heatonist, and more. Each of them serves something that is unique and special to Williamsburg: personality and style. 

Culture 

The cultural power of Williamsburg is one of its most enticing and exciting aspects. For years now, this part of Brooklyn has set the tone for the rest of the city and, really, the rest of the country and world. This can be seen in the hip ways that people dress and the restaurants they enjoy. The culture in Williamsburg has always been strong.  

Living in this part of the city will guarantee that you are located in a thriving metropolis location that is very engaging and exciting. It is one of the most special parts of New York and, therefore, one of the most special parts of the country. 

Summary 

There are few parts of the nation that are as incredible as Williamsburg. There is a good reason why so many people want to buy an apartment in Williamsburg. If you are hoping to be someone to make a home in Williamsburg, you need to make sure you are doing so the right way. That is why you need to contact BARNES New York. We are a team that knows how to traverse the real estate market, even in the hottest parts of the country like Williamsburg. When it comes to finding the place that is right for you, you should trust us at BARNES New York and reach out.  

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