The Real Deal - New York Real Estate News

WeWork considers freezing China expansion plans

Posted: 01 Oct 2019 02:18 PM PDT

WeWork is discussing a freeze of expansion plans in China, where it has 60 locations, sources familiar with the matter told The Real Deal. Executives are also considering stalling expansion plans in Hong Kong and South Korea, according to a source. However, the discussions are ongoing, and no final decisions have been made. WeWork did not immediately provide comment. A spokesperson for SoftBank, which is the majority investor in WeWork’s Asia operations, declined to comment.

Editor’s note: Recession fears and shelved IPOs

Posted: 01 Oct 2019 02:00 PM PDT

“I don’t know why anyone was paying [Adam] for the word ‘we.’ The only word he knew was ‘I.’” Those were the reflections of a former WeWork executive on the company’s co-founder Adam Neumann, who grew one of the world’s most-hyped startups into a $47 billion behemoth with a presence in 111 cities — until it all came crashing down last month. Neumann was removed as CEO as he sought to take the company public

Jacob Chetrit buying Daily News building from SL Green for $815M

Posted: 01 Oct 2019 01:59 PM PDT

Jacob Chetrit is buying 220 East 42nd Street from SL Green Realty for $815 million. SL Green announced Tuesday that the property went into contract, but did not identify the buyer. The deal should close in the first quarter of 2020, according to SL Green. Sources told The Real Deal that Chetrit is the buyer. SL Green and the team at Cushman & Wakefield marketing the property had given pricing guidance of about $900 million.

NYC apartment prices hit 4-year low, Pacific Park developers reveal new plans: Daily digest

Posted: 01 Oct 2019 01:56 PM PDT

Every day, The Real Deal rounds up New York’s biggest real estate news, from breaking news and scoops to announcements and deals. We update this page throughout the day, starting at 9 a.m. Please send any tips or deals to tips@therealdeal.com This page was last updated at 5:30 p.m. Video produced by Sabrina He AirBnb is leaning towards an non-traditional path for its 2020 IPO. The San Francisco-based short-term rental startup is making preparations to conduct a

Nothing’s Forever: NY, LA, Chicago, SoFla stores among those on Forever 21’s closure list

Posted: 01 Oct 2019 01:52 PM PDT

Forever 21 identified a trio of New York City stores on its list of 178 locations in the United States that the struggling retailer has slated for closure. The brand also slated 20 stores in the Los Angeles area, along with nine in Chicago and three more in South Florida. In Manhattan, the fast fashion pioneer included its stores at Allied Partners’ 568 Broadway in Soho and Westfield’s World Trade Center Mall on a list

Top broker in Greenwich jumps to Houlihan Lawrence

Posted: 01 Oct 2019 01:35 PM PDT

One of the top brokers in tony Greenwich, Connecticut is switching sides. Joy Kim Metalios’ team has moved from William Raveis Real Estate to Houlihan Lawrence, the brokerage announced Tuesday. The Metalios Group closed $78 million in sales last year, the only team in Greenwich to make Real Trends’ 2019 ranking. Metalios said the switch was due to Houlihan’s dominance in the market, though she noted that she spoke to “every office in town” before

These startups were banking on WeWork. Now they’ll be sold at a discount

Posted: 01 Oct 2019 11:55 AM PDT

WeWork isn’t the only company whose value sank when the co-working giant stumbled. Some firms it bought with a mix of cash and stock options are suddenly worth a lot less, at least on paper. And now they are on the chopping block as the office-space startup tries to right itself after weeks of turmoil and an abandoned IPO. WeWork is also looking to cut costs and raise capital, potentially by laying off thousands of

Business groups seize chance to amend commercial waste bill

Posted: 01 Oct 2019 11:30 AM PDT

Industry groups are trying to exploit an opening in the fight over private waste collection. Almost 30 business organizations asked the City Council on Monday to allow for more than one carter in the 20 zones it plans to establish for commercial waste collection. The letter was prompted by an admission last week from Council member Antonio Reynoso that he is open to changing the clause in his bill that calls for one exclusive hauler

Thor sells Bensonhurst big-box store for $75M

Posted: 01 Oct 2019 11:10 AM PDT

Joe Sitt’s Thor Equities has sold a big-box retail property in Bensonhurst that is leased to BJ’s Wholesale Club for $75 million. Midtown-based Algin Management purchased the property at 1752 Shore Parkway, property records filed with the city Tuesday show. Representatives for Thor and Algin could not be immediately reached for comment. Thor put the property up for sale earlier this year with Newmark Knight Frank. READ MORE Thor Equities on the verge of losing

Amazon’s shopping cart now includes new grocery store leases in LA area

Posted: 01 Oct 2019 11:00 AM PDT

Amazon continues to gobble up the e-commerce market but is also investing more into brick-and-mortar grocery stores, starting in Los Angeles. The Everything Store has inked over a dozen leases for grocery stores in L.A. locations, some opening by the end of 2019, according to the Wall Street Journal. The company is also eyeing Chicago and Philadelphia as early locations. Other places include the New York City area, New Jersey and Connecticut, the Journal reported.

LeBron wanted it and California’s governor signed it. What the college athlete compensation law means to real estate

Posted: 01 Oct 2019 10:30 AM PDT

California’s landmark student athlete compensation bill has now been signed into law, and while the NCAA has strong objections, one very high profile athlete is making his feelings known. Gov. Gavin Newsom signed the “Fair Pay to Play Act” into law on Monday, and marked the occasion with an appearance on L.A. Lakers superstar LeBron James’ HBO show, “The Shop.” The new law — which will allow college athletes to earn money from their names,

The Real Deal‘s October issue is now available to subscribers!

Posted: 01 Oct 2019 10:00 AM PDT

The Real Deal’s October issue is now live, and digital subscribers are getting the first look at what’s inside. Subscribers now have access to stories including: – Our cover package on A-Rod’s real estate playbook — including his first big push into the New York City market – WeWork landlords brace for the worst as the co-working company cancels its IPO and shakes up its C-suite – Ranking NYC’s top real estate attorneys in the

The Daily Dirt: WeWork isn’t going public (for now)

Posted: 01 Oct 2019 09:30 AM PDT

It’s official: WeWork isn’t going public this year. Last week, the co-working giant was turned inside out. CEO Adam Neumann stepped down, agreeing to move to a non-executive chairman position. Several top executives also left and reports surfaced of impending mass layoffs. And Monday, with the dust still unsettled, the company pulled its plans to go public. Co-CEOs Artie Minson and Sebastian Gunningham, said in a statement that they “decided to postpone our IPO to

HUD Secretary Ben Carson joins Grant Cardone and a power panel for TRD Miami Forum

Posted: 01 Oct 2019 09:00 AM PDT

Ben Carson, head of the U.S. Department of Housing and Urban Development, will be among the roster of speakers at The Real Deal‘s annual Real Estate Showcase & Forum in Miami. This is the sixth year TRD is hosting the Miami forum, which is one of the most highly attended real estate events in the state. This year, the event will be held on Oct. 17 at Mana Wynwood, where panelists will include Grant Cardone,

Doronin lands $750M construction loan for Crown Building conversion

Posted: 01 Oct 2019 08:10 AM PDT

Vladislav Doronin landed a $750 million construction loan for his luxury condominium conversion of the Crown Building. Bank OZK provided a senior loan of $300 million and the investment firm Cain International provided $450 million worth of mezzanine debt, Doronin’s OKO Group announced Tuesday. Cain International, an investment firm partly owned by Los Angeles Dodgers’ owner Todd Boehly’s Eldridge Industries, had previously provided Doronin and his partner Aman with a $285 million loan to finance

CoStar pushes into hotel space with $450M acquisition of STR

Posted: 01 Oct 2019 08:08 AM PDT

CoStar Group, the $22 billion giant most known for its data on office and retail properties, is making a big push into the hotel industry by acquiring one that industry’s largest research and analytics firms. CoStar has agreed to acquire Tennessee-based STR in a $450 million all-cash deal that is expected to close in the fourth quarter, the companies announced Tuesday. The Wall Street Journal first reported the news. “We’re trying to get really high-quality

Hakimian Org plans 346-unit mixed-use project in Woodside

Posted: 01 Oct 2019 07:35 AM PDT

The Hakimian Organization is planning a 346-unit mixed-use development in Queens. The real estate firm pre-filed plans for the 12-story project with the Department of Buildings on Friday. It will span roughly 286,000 square feet, 18,000 square feet of which will be commercial space. Hakimian paid $33 million in September 2018 for 72-01 Queens Boulevard, which contains about 300,000 buildable square feet. Aufgang Architects will design the project, and construction is expected to start before

Chicago’s biggest real estate corruption scandals over the last decade

Posted: 01 Oct 2019 05:30 AM PDT

The major corruption scandal that has unfolded in Chicago over the past year reveals how powerful real estate figures can become tied-up in the city’s second-to-none corruption record. In January, Alderman Ed Burke (14th Ward) was charged with bribing and extorting developers to win business for his property tax law firm. This came out of a yearslong FBI investigation into the connection between city politicians and real estate figures throughout the city. The findings, as

NYC’s foreign investment landscape in the era of trade wars and heightened nationalism

Posted: 01 Oct 2019 04:45 AM PDT

More than half a year after China imposed strict capital controls, the country’s nearly $1 trillion sovereign wealth fund reportedly struck a deal to invest in a prime Times Square office tower. China Investment Corporation’s bid for a 49 percent stake in 1515 Broadway — home to Viacom’s world headquarters and the famed Minskoff Theater, where “The Lion King” performs — valued SL Green’s 54-story asset at nearly $2 billion in the summer of 2017.

Tallying NYC’s top commercial lenders in a shaky market

Posted: 01 Oct 2019 04:00 AM PDT

In January, French investment bank Natixis agreed to provide a $95 million loan for 500 North Michigan Avenue, a 24-story office building on Chicago’s Magnificent Mile. The deal would be a relatively small notch in the belt for a commercial lender with increasing clout in major U.S. markets. But weeks later, the bank walked back its offer — a puzzling move in an industry where being able to deliver loans is crucial to reputation. Then