Archived Posts from "'Real Estate'"

Iconic Fashion Lounge: Doomed

Iconic Fashion Lounge in Hoboken Doomed {2011-2014}

Less than two and a half years at 509 Washington Street, ladies clothing and accessory store Iconic Fashion Lounge is doomed.

Iconic Fashion Lounge Hoboken NJ Doomed 2014 509 Washington Street for rent

Why was it unsustainable? What could survive next?

For starters, it’s obvious that “social networking” couldn’t help Iconic Fashion Lounge. I guess when everything in the world is absolutely “fabulous,” things tend to get watered down tremendously losing any sort of uniqueness.

Next, take a look at the Realtor listing for this place (and try not to spit your coffee on the screen:)

“Prime Washington Street storefront location. Spacious approximately 1350 sq ft storefront space, with office space plus basement storage and backyard available ASAP! Perfect for clothing store, hair & nail salon, children’s classes or any other retail. Owner is asking $5750 per month for rent plus 2 months security deposit for a 3 year lease. Broker’s fee is 1.5 months to be paid by tenant.

Sky High Rents on Washington Street in Hoboken NJYou’re down $8625 (gone forever) right out of the gate.

Then another $11,500 is tied up for the security deposit. That’s over $20,000 CASH right from the get go.

Yeah, I know retail markup is really high – usually around 300%, but with sales, theft and so on – you’d be lucky to net 200% overall. So how much do you need to sell before you make a profit (including rent, utilities, overhead?) You probably need to take in about $15,000 in sales to break even. And that’s with NO employees. So let’s say they sold $1000 of stuff per day. Net profit (gross income) would be around $90k annually – and that’s before all the rest of the people take your money. Tough being a small business owner, right?

What do you do during slow months or weeks of agonizing mismanagement of the city by the Mayor?

This is why Hoboken nail salons and hair-cutting places can survive longer. Much lower over-head.

509 Washington Street Hoboken NJ retail space for rent

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Hoboken NJ

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More Hoboken Waterfront Towers Coming?

Superior Court Judge: Monarch Approved in Hoboken; Planning Board #FAIL

Well, there you have it. Today, NJ Superior Court Judge Nesle Rodriguez gave the green light for the Monarch Project to commence on the uptown Hoboken waterfront. The Judge approved the application from Ironstate Development, citing that the Zimmer-appointed Hoboken Planning board did not hold the meeting they promised prior to a given deadline. In other words, “Hoboken dropped the ball.”

Who knows – maybe there are some Zimmer diary entries for this whole debacle as well. But we’ll probably have to wait eight months for the Mayor to write ‘em up.

Enjoy the development Hoboken!

Monarch Project Approved in Hoboken NJ

Click to see original Monarch Updates…

Hoboken NJ

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North End redevelopment in Hoboken

Zimmer: Christie starved Hoboken of Sandy relief over Rockefeller development

Take a look at this story at MSNBC – where Hoboken Mayor Dawn Zimmer alleges she was bullied by the Chris Christie administration into supporting the Rockefeller project uptown. Remember, almost a year ago we said that the “redevelopment study” was fishy – (3 blocks approved for only Rockefeller – everyone else “denied”).

True or not – it just shows you how horrid the state of “politics” is in this state and country.

However, some other questions begging to be answered here:

  • Why did Zimmer wait so long to take action on this? Do we want a Mayor that doesn’t move until the timing is “politically strategic?” What else is she not coming forward with?
  • Can her “diary” truly be used as legitimate “evidence?” I mean anyone can creatively make one up at any time. No way to prove that it was written when it was. Seems contrived.

Either way – “the cat is out of the bag,” and the political theater continues in New Jersey. Wonder how many heads will roll?

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Hoboken NJ

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Diamond Gymnastics

Diamond Gymnastics coming to old Grand Bakery spot

This new “kids gym” moving into the old Grand Bakery location at 8th & Willow finally has a name: Diamond Gymnastics.

Diamond Gymnastics Hoboken NJ

2nd Diamond Gymnastics location in New Jersey

Diamond Gymnastics already has 14,000 sq. ft. location in East Hanover, NJ. All sorts of kiddie activity to get them off their lazy Xbox playing butts! I think it’s cool that the kids get to bounce around on trampolines and uneven bars. But not sure if the Hoboken spot will have the rock climbing wall as well (it’s considerably smaller.)

“The staff at Diamond Gymnastics believes that everyone can improve their coordination, body awareness and overall fitness level by participating in gymnastics. The beginner as well as the advanced gymnast will have the opportunity to grow athletically, gain self-confidence and have fun in a safe environment.”

The location will have various summer camps, and is available to book parties. This place should be a huge hit in Hoboken.

Diamond Gymnastics Interior Hoboken NJ

Description: Gymnastics facility for kids.
Address: 8th & Willow
Phone: TBD but call their East Hanover location for info (973)560-0414
Email: DGym37@aol.com
Online: diamondgymnastics.com

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Hoboken NJ

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Sotheby’s Prominent Properties

Sotheby’s Prominent Properties moves offices in Hoboken NJ

501 Washington St. has been home to several businesses over the past eight years. Way back in 2006 it was a frozen treat store called Crema Lita (which also sold “SoHo Cupcakes”), that lasted less than six months. It quickly became Classic Realty Group before eventually the current home of Sotheby’s Prominent Properties.

Sotheby's Prominent Properties Hoboken NJ 501 Wash

Well apparently this property has some nagging problems which make it a chore to occupy, which is why Sotheby’s is relocating to the former Wells Fargo (Riviera Bakery) spot at 321 Washington Street.

Washington Street musical businesses continues!

New location:

Sotheby's Prominent Properties Hoboken NJ 321 Washington

Description: Real Estate
Address: 321 Washington Street, Hoboken, NJ 07030
Phone: (201)680-7270
Online: prominentproperties.com

Hoboken NJ

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Hoboken reval rhetoric

Hoboken Property Taxes “Revaluated” – Now what?

Hoboken Property Tax Revaluation 2014 NJ Hudson CountyProperty taxes, and taxes in general, has always been and will forever be a source of contention in this world. Just, or unjust. Fair, or unfair. Necessary, or unnecessary. We could debate it until we’re all blue in the face. Do we accept status quo? Or challenge the concept entirely? Is it even possible to get the public on the same page for this exceedingly complicated facet of society?

Either way – Hoboken recently went through this big “revaluation” of properties in town. As you can see from the Excel spreadsheet below – the total “assessed” value of properties in town rose dramatically over 350% from over $3 billion dollars to nearly $11 billion dollars. However, that doesn’t mean that your property taxes are increasing by that amount, because the estimated tax rate will be adjusted accordingly provided there is no “tax increase.”

The assessment model was switched to “fair market value.”

Play around with the numbers (in the red boxes) if you wish…

Are market value property taxes even “fair” in Hoboken?

Here’s a simple example of how “FMV” property taxes are absolutely flawed:

Take John, who saved his money and lived within his means. He was able to buy a luxury 2 Bed 2 Bath condo at Maxwell Place assessed at $1.5 million. His new 2014 tax rate will be slightly over $20,000 per year.

Then, take Katie and Susie, the lesbian couple with an adopted child “Odin” in the Hoboken public school system. They also have a 2 Bed 2 Bath condo with the exact same square footage in a lesser neighborhood on the west side of town. Their assessment is only $400,000 – and their tax rate is just over $5,000 per year.

Kate, Susie and Odin use much more of the city than John. They leave diapers in the playgrounds, use the toilets much more, and even get the Hoboken Fire Department to rush to their apartment twice a year as Odin was so “cute” when he learned how to dial 911 on the phone. Why should John pay nearly four times as much?

Always someone with the short end of the stick.

Alternative property taxes?

For the sake of argument, let’s say we absolutely need property taxes – they’re a necessity. Are there fairer methodologies?

  • Underlying Land Value – If we keep the tax strictly to the value of the land – this will promote owners to improve their properties. Now in Hoboken, someone will be apprehensive to make improvements – because they will fear their property taxes will go up too! This could result in degenerating neighborhoods.
  • Income generating properties only – If your land or property produces income, the city (and/or County) can levy a small tax on that. Maybe if the local governments can keep the costs of their programs within the tax revenues produced – it’d be like everyone else who has to “live within their means.” Like for instance, why does the Mayor need an “aide” anyway?
  • A la Carte services? – In my example above, why does John have to pay for our low-ranked school system with no kids? What about parents who send kids to private schools?

In the end – I think this “fair market value” system will turn out to be a disaster. Especially since it’s tied to a VERY unstable and fluctuating Real Estate market. What will happen later in 2014 when another bubble bursts? It’s going to be a logistical NIGHTMARE for city hall. Good luck with that!

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Hoboken NJ

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