New York City native Kenneth Horn founded Alchemy Properties in Manhattan in 1990, and in the nearly 30 years since, has been responsible for acquiring, financing, constructing, renovating and marketing over 3,000 apartments. He’s either developed or rehabilitated more than 25 residential and commercial buildings across Manhattan, Brooklyn and Queens, and is personally responsible for the sale of more than $2 billion in real estate.
Perhaps his most notable acquisition to date is the conversion of the Woolworth Building into luxury condominiums. We caught up with Mr. Horn, 60, to talk about the three things that he thinks define luxury, why New York City is always a safe investment and more.
Mansion Global: Describe your dream property.
KH: It depends if it’s in the city or country. In the city, what I like is wide-open space, beautiful views and a great sense of home and warmth. And a feeling that, when you walk in, you’re in a beautiful environment and you feel great about being there. You can look out your window and see New York… and have outdoor space. The ability to have expansiveness, comfort, grace and beauty is key.
In the country, our house in Upper Westchester is perfect for us. It’s in the woods, off a lake. I want to be surrounded by nature, quiet, greenery and water when I’m out of the city.
More:Mauricio Umansky Can’t Believe Los Angeles Home Prices Either
MG: Do you have a real estate property that got away?
KH: There’s one property we did on Court Street in Carroll Gardens, Brooklyn. I’ve selectively bought apartments at properties we developed, and my kids have moved in. But I didn’t buy one there and perhaps we should have. The neighborhood was changing dramatically.
In terms of development, you always throw your hat in the ring and try to buy. If you looked back and say "could of, would of, should of," you’ll drive yourself crazy.
MG: What does luxury mean to you?
KH: Of all the properties we’ve done, the Woolworth is true luxury. When you walk in you’re overwhelmed by texture, fabric and design. Luxury is a combination of those items—design, scale and the material that goes into it. I don’t think anyone could walk into Woolworth and think they could do it in a more luxurious way.
MG: What area do you think is the next hub for luxury properties?
KH: If you go down Broadway from the 30s to the 20s, that whole area is changing. Park Avenue and Fifth Avenue will always remain luxurious, and 57th to a certain extent. I don’t think one can say "such and such" will be the next Park Avenue or Fifth Avenue. It takes time. Buildings can be luxurious, but they don’t spur entire neighborhoods into luxury. Creating a luxury neighborhood is hard.
More:New York Interior Designer on Why a Luxury Home Must Anticipate the Owner’s Needs
MG: What’s the biggest surprise in the luxury real estate market now?
KH: The upper, upper tier—$5,000-$10,000 per square foot is a very, very difficult market. That’s not what’s surprising, so much, but what’s surprising to me is that every once in awhile the ppsf [price per square foot] creeps up for upper middle-class apartments. The question is what’s considered the norm— is it $3,000, $4,000 or $5,000 a foot?
MG: Where are the best luxury homes in the world and why?
KH: If you use the word "best," the next words have to be individual and unique. They can’t be duplicated anywhere. Places that are one-of-a-kind are the best.
If you walk in and say no one can build this again, it’s truly luxury. Buildings like the Woolworth, Chrysler, and Empire State Building can’t be built again. They’d be too expensive.
MG: What’s your favorite part of your home?
KH: The fact that I come home and my wife is there—that was true when we lived in a studio, and it’s true now.
More:Take Your Time When Searching for Real Estate, Says Time Equities Chief
MG:What best describes the theme to your home and why?
KH: Our city home was designed by Benjamin Noriega-Ortiz. He’s done P-Diddy’s and Lenny Kravitz’s homes, and he’s very original and flamboyant and uses color and frivolity. We wanted to walk into our apartment and look at it and smile. It’s not duplicatable. It’s a little out there. Some people say, "who paints a wall orange?" But we did, and it looks beautiful.
In the country, the house is built into a hill with big glass walls. We have no shades. We wanted to feel like we were in a treehouse.
MG: What’s the most valuable thing in your home?
KH: It’s not an object, because objects can be replaced. It’s the fact that our homes are readily available to friends and family. We’ve made both conducive to large gatherings.
MG: What’s the most valuable amenity to have in a home right now?
KH: There’s almost a race in New York to try and come up with the best amenities. Woolworth has a pool, gym, wine cellar, and outdoor space. In a new project on 81st Street, we have a children’s playroom, golf simulator and a recording studio. Most important, though, is the gym. All new buildings have gyms now. They have to.
More:It May Be Up to Private Sector to Confront Climate Change, Says Landscape Architect
MG: Best piece of real estate advice?
KH: To be cautious and lucky. Don’t take undue risks, think them out thoroughly. It’s always better to be lucky than smart. But you can make yourself lucky by being cautious, and not overly zealous or pessimistic. Try to maintain a good equilibrium.
MG: What’s going on in the news that will have the biggest impact on the luxury real estate market?
KH: There are so many factors in local, national and world politics. But I believe that even with everything going on in the world, the U.S. will remain a haven where people want to live and invest. That’s even more the case in New York. You can only build in limited spaces, and I think it’ll always be the best place for investing in luxury properties.
What is the best area now for investing in luxury properties?
KH: Again, it’s New York, because it has lots of commerce and industry. People want to live here, and have apartments, not just for investment but for culture.
More:Click to Read More Luxury Real Estate Professionals Share Their Insights
MG: If you had a choice of living in a new development or a prime resale property, which would you choose and why?
KH: In new developments you have the opportunity to mold an apartment. Personally I’d prefer something new or a conversion. You’re the first one in, you’re getting something that’s contemporary and current. You’re now able to craft apartments in a way that are head and shoulders above what was available even 10 years ago. The market demands higher standards now. There’s a reason there’s a premium to buying new—what you’re buying is a better product.