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urban & street art | challenging paradigms

Christian Utz is co-founder of 52Masterworks, a crowd investment art collection platform that serves art collectors and investors.

In 2016, Mr. Utz opened the Museum of Urban and Contemporary Art (MUCA) In Munich.

Speaking with Larry’s List, Christian Utz describes urban and street art, their challenge to paradigms of high and low art, the limited access to (supply of) this form of art, and how urban and street art are largely neglected by current art discourse.

Urban Art reaches beyond any niches. Urban artists often use harsh imagery associated with neglected topics. But, whilst the message is provoking, it is equally approachable and sometimes even compassionate. In the world of urban art, everyone is welcomed to join the artistic conversation – that makes this art form so special.

Street Art challenges the paradigms between high and low art. The consequences of the institutionalization of this art form are the limitation of access to artworks, and especially, the volatility of market prices. I guess it has become much harder for new starters to collect than ten years ago.

Street art as an art form of the 21st century is rightly considered as a globally celebrated phenomenon. Nevertheless, street and urban art is barely part of the present art discourse.

See:

The Collector Who Founded Germany’s First Urban Art Museum | Larry’s List, 22 March 2017

52Masterworks

Larry’s List

Museum of Urban and Contemporary Art (MUCA)

#art #artcollections #streetart #urbanart #collectingart #collectionsmanagement #smartart #urbanluxury #smartluxury #resilience #investing #finance #tech

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smart prosperity | capitalizing on urban resilience

Prosperity will ultimately belong to cities and nations around the world that find ways to capitalize on strategies of resilience against the inevitable impact of climate change.

Those cities will retool themselves for new technologies and global businesses whose employees, reflecting a growing worldwide generational shift, want to walk, ride bikes and take mass transit.

“The challenge …is taking the long view.’

See: “Changing Climate, Changing Cities; Rising Waters Threaten China’s Rising Cities” | Michael Kimmelman, The New York Times, 7 April 2017

#urbanluxury #luxury  #smartluxury #realestate #resilience #urbanplanning #design #development #finance #climatechange

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smart art | purchase channels, concentrations, information asymmetries

By analyzing the performance of early-20th-century British economist John Maynard Keynes’ art collection, and comparing the collection with the simulated performance of thousands of hypothetical art portfolios, economists David Chambers, Elroy Dimson, and Christophe Spaenjers have found that the art market is structured much like a lottery.

Relatively few winners (artists and their collectors) reap enormous gains; the majority of artists are marginal to the overall value of the market.

The Keynes collection was studied as “one of only two complete, or near-complete, financial records of an art collection from initial purchase to final valuation.”

The analysis and comparison with hypothetical portfolios reveals several features of the Keynes collection with implications for the broader market:

  • Purchase channel. Paintings and drawings by Degas, Cezanne, Picasso, and Braque—were largely purchased at auction, where Keynes may have spotted bargains. The works he acquired through other channels, through dealers and on the primary market, underperformed relative to his auction purchases.
  • Concentration. 80% of Keynes total spending on art went to just 10 works

“Changes in the total value of the Keynes collection are largely driven by changes in the market value of a few artists, such as Braque, Cezanne, Matisse, Picasso and Seurat. Conversely, what happens to all the lesser-known artists…is not an important driver of returns.”

The fact that much of the value of the Keynes portfolio lies in a small number of key works, and buying them required significant upfront investment, suggests that successful arts investment appears to be a pastime for the already well-capitalized.

Well-positioned and deeply informed insiders may, however, take advantage of the information asymmetries of the opaque art market, such as knowing when a work might become available or where a willing buyer lies, to effect savvy purchases and “buy low.”

See: “Keynes’s Art Collection Shows Why Art Investing Is Like the Lottery” | by Anna Louie Sussman, Artsy, 5 April 2017

#art #artcollections #luxury #smartluxury #urbanluxury #finance #resilience

 

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smart luxury | the art market is “ready for an upgrade”

Scheduled to open in Manhattan in July of this year, Arcis Fine Art + Collection Arcis will be a 110,000 sq. ft, purpose-built art storage facility within a federally designated Foreign Trade Zone (FTZ) that is insured to hold up to $3 billion in art.

“The foundation of Arcis is providing real, museum-level sustainable storage to the private sector” to serve the needs of international collectors in Manhattan.

A key factor in obtaining authorizations for the FTZ was a proprietary business model. The West 146th Street site, in contrast to locations in Chelsea, was seen as presenting no “accumulation risk. ” Hence insurance broker Willis Towers Watson allowed the highest possible insurance rating.

Executive director Tom Sapienza and the director of operations, Kevin Lay, partnered with the Van Gogh Museum in Amsterdam and Vidaris, the firm that advised the Whitney Museum regarding the envelope of its new building, to create a sustainable microclimate system. The system filters the air three to six times per hour. LEED and BREEAM environmental assessment certifications are in the works.

See:

“Collectors reserve space as New York’s first art freeport prepares for summer launch” | Sarah P. Hanson, The Art Newspaper, 5 April 2017.

“Protecting Priceless Art from Natural Disasters” | How Renzo Piano’s New Whitney Museum Protects Its Art from Climate Change, John Whitaker, The Atlantic, 27 May 2015

#art #collecting #collections #collectionsmanagement #luxury #urbanluxury #smartluxury #realestate #resilience #Manhattan #FTZ #climatechange

 

 

 

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smart luxury | the art of pricing climate risk

BlackRock, the world’s largest asset manager with $5.1 trillion of assets under management across the globe, discusses the art of pricing climate risk.

BlackRock concludes that greater transparency on climate risks and exposures will likely lead to a gradual discounting of companies and assets exposed to climate risk and increase the value of those companies and assets most resilient to climate risk.

“Most industries lag insurers when it comes to properly accounting for and pricing risks of climate-related events. Many equity investors ignore climate risk, and credit investors and ratings agencies do not routinely assess it. Real estate markets often ignore extreme weather risk, even in highly exposed coastal areas. Most asset owners do not measure their exposure to potentially stranded assets such as high-cost fossil fuel reserves that may have to be written off if their use is impaired by climate change regulation.

“Who can blame them? There is little evidence that assets more susceptible to climate change and related regulatory risks trade at a discount to the market. … In other words, we found there has been no climate change risk premium for equities.

“Yet this does not mean there will be no premium in the future. In fact, we think there likely will be one. … Greater transparency on climate risks and exposures will likely lead to a gradual discounting of companies and assets exposed to climate risk — and increase the value of those most resilient to these risks.”

See:

“‘Climate is King’ Says BlackRock; Companies Must Now Address Risk” | by Jan Lee, TriplePundit, 16 March 2017.

“The Price of Climate Change, Global Warming’s Impact on Portfolios” | BlackRock Investment Institute, October 2015.

#risk #climaterisk #pricing #realestate #smartluxury #finance #resilience #BlackRock #art #smartart #collectionsmanagement #luxury #urbanluxury

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smart luxury | the art of pricing art

Artsy discusses the art of pricing art.

Here’s an excerpt highlighting differences between the ways galleries and auctions price art.

It is suggested that collector’s, including perhaps especially those that work in the financial industries, not treat art like a financial investment.

Galleries price works according to the size of the work, the success of the most recent show, and any other relevant career-related variables, such as a recent institutional show or a nomination for an award, said Bowling, who spent seven years at Andrea Rosen Gallery before joining Phillips. In addition, galleries try to keep the prices for their artists on a steady upward trajectory, rather than riding the highs and lows of the broader art market as auction prices more often do. By contrast, auction estimates usually account for buyers’ tastes and appetites, as well as where the art market is in its cycle. “I have to think about many people it will appeal to, how many bidders, how that competition is going to drive up the price, and base my estimate range on that,” she said.

While Bowling describes herself as “the biggest proponent of the gallery system,” she said the straightforward nature of auction pricing can be a great entry point for new collectors. “I think there’s something appealing about the auction environment,” she said. “Here’s the estimate range, we have an auction, and people bid against each other. That’s how the price is achieved.”

Bowling, Campbell, and Levin all stressed one thing: Collectors shouldn’t treat art like a financial investment. (That’s even, and perhaps especially, the case for those who work in financial services, who often cite headlines of multi-million-dollar prices achieved at auction.)

See: “The New Collector’s Guide to Understanding Art Pricing” | by Anna Louie Sussman, Artsy, 3 April 2017

#art #galleries #auctions #finance #pricing #luxury #smartluxury #urbanluxury

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smart luxury | PassivDom, the first totally autonomous house

Word is out of PassivDom, a passive and elegantly luxurious house designed and built in the Ukraine by Max Gerbut, a PhD of Engineering Sciences (physics of the solid state) and his start-up PassivDom.

PassivDom is the first totally autonomous house in the world that doesn’t need any fuel combustion even in Arctic climate conditions.

“The module uses only ecologically clean solar energy for all inhabitants’ needs: climate control (heating and cooling), water generation, air quality and oxygen control. The house itself produces electricity for all household appliances.

PassivDom is “designed to self-sustain in all climatic conditions with their own, off-the-grid power sources and self-learning systems networked to the internet of things.“

John Biggs, the East Coast Editor of TechCrunch.com calls it “pretty darn rad.”

Biggs reports,

““PassivDom is the world’s first mobile and transportable house with Passive House parameters,” said Gerbut. “Due to the use of advanced materials and unique developments by our engineers, PassivDom has the highest thermal performance among residential buildings. The walls of PassivDom are as warm as brick. Thermal characteristics are high enough to use 20 times less energy than an ordinary building. That’s why it is possible to realize full off-grid autonomy in a cold climate without complex and expensive engineering heating system.”

“The first model, the modulOne, includes solar panels that power the climate control system, a clean water system that takes moisture from the air and an air quality control system that includes carbon dioxide control. The frame is made of 3D-printed carbon fiber and fiberglass, and the entire house is recyclable.

See:

“PassivDom” (a US telephone number is included)

“PassivDom is a Zombie-proof ‘autonomous 3D-printed mobile house’” | John Biggs, TechCrunch.com, 10 March 2017

“Ukraine startup 3D prints fully autonomous home” | Blouin News, 17 March 2017

#luxury #urbanluxury #smartluxury #realestate #art #resilience #tech #design #materialsscience #climatechange

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cuisine + smart luxury | eight top plant-based proteins

See Liz Moody’s post of today for a great discussion of the top eight plant-based protein sources: the top five complete protein sources and the top three incomplete proteins.

How much protein do we actually need? What is a complete protein? What are we missing from the list?

See what Liz has to say and get some delicious recipes.

#luxury #urbanluxury #smartluxury #resilience

See: “Found: The Top 8 Plant-Based Protein Sources (No Powders Allowed!)” | Liz Moody, mindbodygreen, 14 March 2017

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wi-fi free, custom, tiny-home-building start-up raises $15 million

Boston- and Brookly-based custom-built tiny-home building start-up Getaway  closed a $15 million funding round on February 21.

Getaway was founded in 2015 by Jon Staff (Harvard BA, MBA) and Pete Davis (Harvard BA, JD) at Harvard University’s Innovation Lab.

The custom-built tiny homes are each between 160 and 200 square feet. They are positioned in wooded, natural landscapes and rented out by the night to those who wish to experience the restorative benefits of nature. The benefit of no wi-fi is provided.

L Catterton, a firm that has invested in start-ups such as Pure Barre, Snap Kitchen, and Bliss, invested in Getaway. L Catterton is a partnership of Catterton, a leading consumer-focused private equity firm, LVMH, a family-run group and global leader in luxury and high-quality products, and Groupe Arnault, the family holding company of Bernard Arnault.

Unlike many Silicon Valley start-ups, Getaway has “real costs, real buildings, and physical buildings that exist in the world.”

#luxury #urbanluxury #smartluxury #realestate #resilience #tech #nature

See:

“L Catterton provides $15 mln to Getaway” | Iris Dorbian, The PE Hub Network, 23 February 2017

“Tiny homes, big dreams: Getaway raises $15 million, and has big city ambitions” | Ali Montag, CNBC, 4 March 2017

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fashion + tech | peacock feathers, butterfly wings, & structural colors

The colors of peacock feathers, butterfly wings, and opals are structural or physical colors. They result from light-modifying micro- and nano-structures.

Dyes and pigments, such as those used to color fabrics, are chemical colors. They produce their visual effect by selectively absorbing and reflecting specific wavelengths of visible light. The colors produced might be beautiful, but the environmental cost is high as dyes enter streams and rivers.

A two-step process has been developed to transfer 3-D colloidal crystals, a structural color material, to voile fabrics. The development team says the process does not produce contaminants that could pollute water.

#luxury #smartluxury #fashion #tech

See: “Peacock colors inspire ‘greener’ way to dye clothes” | phys.org, 1 February 2017