Billy Macklowe is the founder and CEO of William Macklowe Company, an investment firm which he launched in June 2010 after leaving his family business, Macklowe Properties. Most recently, Mr. Macklowe, who has been in the New York City real estate business for over two decades, partnered with Annabelle Selldorf’s Sel
ldorf Architects for a ground-up development in Manhattan’s Greenwich Village, 21 East 12th St.on a site that was once home to Bowlmor Lanes bowling alley.
The 22-story building has been selling from the top down, with its two trophy penthouses selling first after the building launched in September 2016. They’re currently in contract for $16.5 million and $14.75 million. The building is expected to be completed in the summer of 2018.
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We spoke to Mr. Macklowe about how New York City’s neighborhoods and real estate hierarchy have changed, where the value remains and more.
Mansion Global: Describe your dream property.
Billy Macklowe: I’m building it on 12th Street. My dream property went away when the penthouses sold, much to my wife’s chagrin. For me, it’s about space, volume, light, air and livability. As an urban developer, those are all truly luxuries.
MG: What does luxury mean to you?
BM: Attention to detail, quality of materials and thoughtfulness of design, which also means functionality. It’s about the flow of the kitchen from public to private, how the bedrooms are laid out—whether they’re split to create privacy. Luxury comes out of the environment. I’m a detail person so I notice small details. That’s the difference between a really good job and a lesser effort.
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MG: What area do you think is the next hub for luxury properties?
BM: The Upper East Side is going to be the next Williamsburg; hipsters will find it. I think the new Second Avenue Subway will help that. You’re already seeing development in the works.
MG: What’s the biggest surprise in the luxury real estate market now?
BM: New York has gentrified en masse. Look along the West Side Highway, the Meatpacking District, the Highline. Those areas were never considered residential. Now they have strollers and $4,000-$5,000 per-square-foot homes. We’re also seeing the gravitation from co-op to condo living, where people want privacy above all else. That has upended the real estate hierarchy in New York.
MG: Where are the best luxury homes in the world and why?BM: New York, of course. But for urban living, we also see incredible homes in London and Paris. And on the West Coast, anywhere with water and beachfront is really special, like Malibu. Of course, on the East Coast we have the Hamptons. Hawaii has amazing real estate, too. Places like Colorado and Wyoming have land that goes on forever, with lots of solitude. I’m someone who likes outdoor sports so those places appeal to me.
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MG: What’s your favorite part of your home?
BM: Somewhere between my kitchen and my gym. The kitchen is the true social nexus of a home.
MG: What best describes the theme to your home and why?
BM: It’s very classic but never feels dated. And it’s minimalist, with white walls and dark floors that are animated by great furniture and contemporary art.
MG: What’s the most valuable amenity to have in a home right now?
BM: Outdoor space and his-and-hers bathrooms.
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MG: What’s you best piece of real estate advice?
BM: If you’re buying a home for the first time, stretch. It saves buying again. Buy the best you can in terms of location and what works for you. It’s also a buffer to the volatility of the market. Good product that’s well located always sells.
MG: What’s going on in the news that will have the biggest impact on the luxury real estate market?
BM: Every five minutes there’s new news stories. The best thing that’s happening right now is the stock market is performing on its own and seems to have disconnected itself from the volatility.
MG: If you had a choice of living in a new development or a prime resale property, which would you choose and why?
BM: That’s a tough question. You can always gut something. But I like to build things and create things, and my wife and I work well together. I’ve gutted our apartment twice. We have a home in the Hamptons that we built, and a home in Colorado that we bought that was brand new.
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MG: What area currently has the best resale value?
BM: Greenwich Village and the West Village. There are supply constraints, and everyone wants to be there. That translates into solid resale value. You’re seeing some weakness on the Upper East Side and Upper West Side.