The unofficial announcement that the real estate executive Adam Hochfelder won’t be renting his apartments anymore, shouldn’t make major changes in the real estate market. Hochfelder is putting 3 500 apartments on sale in order to increase his budget for 1.2 billion dollars. With 28,000 transactions per year, real estate market has enough capacity to undergo this increased offer, but the possible sales under the table can cause bigger damage.
Mr. Hochfelder changed the decision he made about house renting, and as ‘New York Business Journal’ wrote, he chose to put the apartments on sale instead. These apartments are rented to eligible tenants and the idea is to enable them to buy the apartments and become regular owners. For this reason, contracts will be made with several banks which are going to credit the tenants. Although, selling prices aren’t mentioned yet, allegedly, Hochfelder is going to offer a discount of 15 per cent.
“We can’t tell what the impact on the market will be, until we see where are these apartments located, but I believe there won’t be serious problems ,” said Helen Keit – a licensed real estate broker. She added that this could be an additional incentive for the real estate market and related sectors. “What is most important now, is this process to be transparent. Lack of transparency can bring more harm to the market, than the flood of additional 3500 apartments,” said Keit. So far, no one expects major changes in the market.
“At first there won’t be particular pressure. Maybe there will be possibility to buy apartments at lower prices and put them back on sale. But the question is whether all of this would be realized,” said Keit. The idea tenants to become owners of the apartments where they live is supported by Coldwell Banker Prime Properties too. ‘Additional 3500 apartments on sale do not cause any problem to the market. Real estate’s prices are constantly changing, but the market is not like in the old days anymore. Nowadays people are looking for qualitative real estates, according to the location and their needs’ says Sheri Heath, Residential Property Manager.
Hochfelder is an investor, owner & developer of real estate and hospitality properties, including luxury residential and hotel properties, commercial buildings and the owner of some of NYC’s top-rated restaurants. If you want to learn more about him, take a look inside the life of Mr. Hochfelder, in the latest interview he gave for social lifestyle magazine. Here he talks about his fast rise to fame, his family and involvements in various philanthropic initiatives.