January 31, 2014--Sneaks

Near where we live in downtown Manhattan, on Lafayette Place, there are a couple of stores that sell athletic shoes.

A few times a year when we are walking south to get to Balthazar or the Smile for morning coffee, we see lined up on the sidewalk at those shops hundreds of young people, kids really--some in tents since they have been living on the street for a couple of days--camped out in all weather, which is frequently nasty, waiting, they tell us, to be among the first to get the newest edition of Air Jordans or some such.

List price, especially if they are in their original wrapper and box--these J's are not for use in schoolyard games, but collectors' items--they are as coveted by these kids as is an Andy Warhol to hedge fund managers that is up for auction at Sotheby's--at the store, the Jordans these days go for up to $150.

And then one can find them offered on eBay the next day for at least twice that. Again, if they are in the original, unblemished box.

Some of the kids on line tell us that they are really placeholders or agents for others. They've been promised a couple hundred bucks to wait out in the rain by someone willing to pay them $500 for a pair. Again, if and only if they are in a pristine box.

Not bad. Five hundred bucks to sit out in the rain or snow for a couple of days.

"Hey, can anybody here find a straight job?"

"Not me, man. I'm livin' again with my Mom."

There are enough models to make your head spin and like any other commodity (that, ultimately is what the Jordans are) there's a lot of inside knowledge and background any investor or collector needs to know in order to get good value and upside asset potential.

Like the Air Jordan XIII's, for example, which . . .

. . . were released in 1997. This model was known for its cushioning along the feet, designed by Hatfield. The black panther was the inspiration for the Air Jordan XIII, the sole resembles the pads on a panther's paw. But also the panther is the hologram on the back of the shoe which imitates a panther's eyes in the dark when light is shined on them. They were rereleased in 2005, which coincided with the release of the Air Jordan 8s shoe. 

In the movie He Got Game, the Air Jordan XIII was worn by Jake Shuttlesworth (Denzel Washington). Ray Allen, who played Jake's son Jesus in the film, wore them when he broke Reggie Millers's all-time record for made three-point shots during a game against the Lakers in Boston during the 2011 season. The Jordan brand re-released the Air Jordan XIII at the end of 2010, which included the French Blue/Flint Grey, White/Red-Black, 'Playoff' color way and the Black/Altitude Green color way. 

The Air Jordan XIII was originally released from 1997 to 1998. It was retroed in 2004, 2005, 2008, 2010, 2011, and 2013.

Got that? You better if you're even thinking about investing.

I was reminded about this glimpse of the underground economy by a story the other day in the Times about P.J. Tucker of the Phoenix Suns basketball team and his sneaker collection.

That's what they are--sneakers--not "athletic shoes." Athletic shoes are for over-weight, over-pampered kids from uptown prep schools.

Tucker has more than 2,000 pairs in his collection. 2000! Not all Jordans but a lot of those nonetheless.

And he's not alone. Many NBA and MLB stars not only cash in through sneaker endorsements but have huge collections of their own.

Evan Tucker, the Philadelphia 76ers point guard also has at least 2,000 in his. He confesses that he gorged on 57 pairs recently in a single afternoon of shopping at Sole Control. No sleeping on Lafayette for him.

He stashes them all over the place but mainly in four big closets in his basement, while waiting to figure out a permeant place to display them.

Learning that Jeremy Guthrie of the Kansas City Royals has a special vault for his kicks, Turner says, "I want to do something dope like that for mine."

October 1, 2103--Dog Wars

"Did you see what they got for the apartment across the hall?" Rona was reading her favorite section of the Sunday Times--Real Estate.

"Not yet. I'm still reading about Iran."

"It's not as nice as ours and it went for . . ."

"Don't tell me. I have a weak heart. But I do know that prices for any apartment Downtown have gone through the roof and anything for sale is rarely on the market for more than a few days."

"I really don't get it," Rona said. "In truth there's nothing special about our building except maybe one thing."

"What's that?"

"Location. For some reason everyone in Manhattan seems to want to live Downtown and there are relatively few places; and, also, because of zoning they aren't building any more apartment houses."

"Location, location, location. A place like ours in Cleveland would probably go for $200,000."

"If that. But one more thing."

"What's that?"

"We're a pet-friendly building."

"Good point. More and more places in the city don't allow pets."

"And we do allow them. So those who have dogs and don't want to live in the suburbs are willing to pay a premium for buildings that allow pets. Like our building."

"So I should like the fact that those two guys down the hall, living in a small one-bedroom, had three hunting dogs who howled at the moon in the middle of the night?"

"Thankfully they finally moved out. But, yes, from an economic point of view we should be happy we're friendly to dogs."

"I hate having so many in the building, but I guess you're right," I sighed. "Lucky us."

"But listen to what else is going on," Rona had continued to thumb through the Real Estate section.

"Fire away."

"In a lot of fancy Manhattan buildings that don't allow pets people are claiming they need so-called 'service' and 'companion' dogs."

"No surprise. I knew this was about to become a big issue. Finding alleged medical reasons to get around house bylaws."

"Including St. Bernards."

"St. Bernards as companion dogs? I love it. And probably in a 700-square-foot apartment where the dog requires at least 200-square-feet for himself."

"Be serious," Rona said, "There are lots of situations where having a dog is good for one's health and safety. Seeing-eye dogs, for example."

"Without doubt, but I'm sure if you read the entire article we're not talking just about dogs for blind people."

"You're right," Rona said, "There are examples cited in the article where apartment owners say that having a dog helps get them out of the house--they have to be walked two or three times a day--and that having to walk one's dog provides them with the opportunity to exercise. Which in turn is good for their health."

"And, I assume, they use this reasoning to seek approval from their co-op boards to get a waiver to allow them to have a dog."

"Yes. Though listen to this--someone claimed that he had a version of Parkinson's that made him unstable on his feet. The board asked for a letter from his doctor to verify this. And based on it granted a waiver. But then a couple of weeks later they saw the person with 'Parkinson's' running in Central Park without his dog."

"I love it. So what did they do?"

"The rescinded the waiver."

"It's really complicated. There's evidence that older people who live alone live longer and are healthier if they have a pet than those who don't."

"Any kind of pet?" Rona asked.

"I don't remember."

"So maybe people should start off with goldfish to see how they do."

"You're bad."