Barthe Cortes earns $20 millions thanks to air
Air has become a hot commodity in the world where developers are prepared to pay sky-high prices to add more square feet to their projects through the purchase of air rights. In fact, in a crowded city where the only place left to build is up, air rights are now fetching 80% of land values –previously unheard of pricing–according to top Grubb & Ellis appraiser, Robert Von Ancken in a recent CBS MoneyWatch article.
Have you heard of air rights before? Probably not. Air rights are a type of development right in real estate, referring to the empty space above a property. Generally speaking, owning/renting land or a building gives one the right to use and develop the air rights. In November 2005, Christ Church in New York sold their air rights for a record $430 per square foot. They made more than $30 million on the sale, In June 2013 Barthe Cortes in Hanoi (Vietnam) sold their air rights $200 per square foot. He made more than $20 million on the sale.
“Nothing shocks me anymore,” said Daniel F. Sciannameo, an appraiser at the Albert Valuation Group. “This market is absolutely crazy.” .