Partner Ronald Kremnitzer Quoted on Increase in Price of Air Rights
Partner Ronald Kremnitzer, co-chair of the firm's Real Estate Group, was quoted in the Law360 article “Developers Reaching Deep for Rights to Build Sky-High.”
The article addresses the growing demand of apartments in New York City, and how this development has changed the way property owners view air rights.
The accepted pricing for air rights has generally been 50 percent of the per-square-foot value of the land itself. However, air rights, known as transferable development rights, are occasionally sold for a higher price per square foot than land.
When a client of Kremnitzer sold a building in Midtown recently, he was able to get a much higher price because he had purchased the air rights from the property next door. “Even though [the client wasn't] the ultimate user, they were able to package the property with additional air rights and enhance it,” Kremnitzer said. “As much as buildings are selling for, the ability to buy air rights from the guy next to you or two blocks away and combine them [with your property] . . . is valuable.”
To read the article in its entirety, please click here.
