The Real Deal - New York Real Estate News

Compass adds first independent director to board

Posted: 26 Feb 2020 01:05 PM PST

Under SoftBank’s eye, Compass has added an independent director to its board. Pamela Thomas-Graham, a banking, fashion and media executive, will be the first independent director and first woman on the board, the brokerage announced. She joins executive chairman Ori Allon, CEO Robert Reffkin and SoftBank’s Justin Wilson. Bloomberg first reported her appointment. The announcement comes in the wake of WeWork’s bungled public offering, as SoftBank looks to improve corporate governance among companies it has

Ilan Bracha sells Keller Williams NYC

Posted: 26 Feb 2020 12:45 PM PST

Ilan Bracha has left the building. The co-founder of Keller Williams NYC sold the struggling Manhattan brokerage, The Real Deal has learned. The move caps several tumultuous years filled with agent defections, a revolving door of leaders and a $2 million lawsuit over unpaid rent. Bracha and his business partner, Haim Binstock, transferred ownership of the brokerage to Austin-based Keller Williams Realty International, which then awarded the company to Richard Amato, who owns several other

Eviction bill could stop condo, co-op owners from booting tenants

Posted: 26 Feb 2020 12:30 PM PST

The re-emergence of the good cause eviction bill this month already had New York landlords worried. But now some real estate attorneys are sounding the alarm on what they call a major threat to condo and co-op owners. The bill, which would limit when a landlord can evict a tenant from a market-rate apartment, does not explicitly exempt condo and co-op units. Seiden & Schein’s Alvin Schein said this will effectively “wipe out” these type

Council drives another nail in coffin of Olnick’s Lenox Terrace project

Posted: 26 Feb 2020 12:23 PM PST

The City Council will soon find out if the Olnick Organization’s backup plan for its Lenox Terrace expansion was just a bluff. The landlord’s odds of getting approval for its proposed 1,600-unit development in Harlem dwindled Wednesday when a City Council subcommittee voted unanimously to reject the zoning change Olnick sought. But current zoning still allows for a sizable project. Early this month, Olnick released a rendering of what it would build as-of-right in Harlem

NYCHA hit with class action alleging “deplorable” conditions

Posted: 26 Feb 2020 12:00 PM PST

A class-action lawsuit against the New York City Housing Authority accuses the beleaguered agency of creating “deplorable” living conditions for its more than 400,000 tenants across the five boroughs. The suit, filed Wednesday by law firm Berg & Androphy, claims NYCHA residents are facing a litany of problems including lengthy gas shutdowns, mold, leaks, broken elevators and rodent and bug infestations. Their requests to have NYCHA fix these problems are generally answered slowly or not

Full-floor Sherry-Netherland pad relists — at nearly half its 2015 ask

Posted: 26 Feb 2020 11:31 AM PST

A full-floor home at the iconic Upper East Side hotel and co-op, the Sherry-Netherland, is back on the market with another price chop, as Manhattan’s luxury sales market slump continues. The owner of the mezzanine level of the building, described in the listing as “a townhouse on one floor,” is asking $22 million, or $2,444 per square foot. The price tag has been slashed about 48 percent since the “uptown loft” first went on the

Candidates talk housing issues at Democratic debate

Posted: 26 Feb 2020 10:00 AM PST

In an otherwise bizarre Democratic debate that devolved into a discussion of “personal mottos,” candidates answered a rare question on how they plan to address housing affordability. Though each of the candidates on the debate stage last night have released housing plans — including former Vice President Joe Biden, who released his on Monday — they offered scant details during a heated debate in Charleston, South Carolina. It was the final debate before Super Tuesday

Colony Capital sells stake in RXR Realty

Posted: 26 Feb 2020 07:50 AM PST

Colony Capital has offloaded its stake in New York real estate firm RXR Realty for an undisclosed sum. The investment platform, led by Tom Barrack, sold the 27.2 percent stake to Dyal Capital Partners, Bloomberg reported. The value of the deal with Dyal, which reportedly has closed, is unknown, though a source told Bloomberg that Colony made a profit. Colony last valued the stake at $100.3 million in March. It inherited the stake when it

Restaurant chain Cosi files for bankruptcy after store closings

Posted: 26 Feb 2020 07:15 AM PST

Fast-casual restaurant and catering chain Cosi is entering bankruptcy for the second time in four years, weeks after shuttering numerous stores. The company, which has locations across the U.S., filed for Chapter 11 this week with the stated goal of creating “a stronger version of itself,” the Wall Street Journal reported. In a filing, the company reported $30.7 million in secured debt and $6 million to trade creditors. Abandoned leases may cost the company another

Retail magnate Peter Nygard resigns after sex-trafficking raid on NYC, LA offices

Posted: 26 Feb 2020 06:50 AM PST

The FBI and NYPD raided Nygard International’s Manhattan offices Tuesday as they investigated sex-trafficking allegations against its Canadian chairman, Peter Nygard, who stepped down later in the day. Federal agents searched Nygard’s California offices as well, a spokesperson for the company told the Wall Street Journal. Ten women accused Nygard in a federal lawsuit in Manhattan this month of raping women and underage girls at his Bahamas estate. Nygard has not been charged, is cooperating

Modell’s begs landlords to help it stave off bankruptcy

Posted: 26 Feb 2020 06:30 AM PST

Modell’s Sporting Goods is renegotiating leases in a last-ditch effort to avoid bankruptcy. The 130-year-old retailer, which has more than 150 locations across 10 states, sent letters to 19 landlords pleading with them to “dig deeper” so the retailer can avoid filing for bankruptcy March 1, the New York Post reported. So far pledges of help have come from owners of buildings where five stores have launched liquidation sales. More than 2,900 jobs depend on

Planned New York sea wall shelved after Trump mocks it

Posted: 26 Feb 2020 06:00 AM PST

What might have been a multi-billion dollar sea wall to protect New York City was scrapped after President Donald Trump mocked the plan. The U.S. Army Corps of Engineers announced the project was “indefinitely postponed” because it did not receive federal funding for 2020, The New York Times reported. The project called for a potential miles-long concrete wall to be constructed across the entry to New York harbor, and feature retractable gates. An initial cost

Realogy ropes top agent Charlie Attias into Compass lawsuit

Posted: 26 Feb 2020 05:45 AM PST

Three months after Charlie Attias left the Corcoran Group for Compass, the top Manhattan sales agent is being drawn into an epic courtroom battle between the firms. According to court documents, Attias was subpoenaed by Corcoran’s parent company, Realogy Holdings, which last summer accused Compass of “illicit” business practices and “predatory” recruiting in an explosive lawsuit. But in a February 24 letter to Judge Barry Ostrager, an attorney for Attias and Compass said Realogy has

Making your office golf-enabled in 6 steps

Posted: 26 Feb 2020 05:30 AM PST

When real estate’s most high profile leaders aren’t on the links, they can maintain their game with a few accessories that’ll help them stay below par. Below are a few tools for maintaining your handicap in the off-season, when you’re rockin’ that cube life. 1. The Green — the Putt-A-Bout If you’ve ever dreamed about being that executive in the movie who’s practicing his putt while an office underling sheepishly approaches, asking for a favor,

Execs dish on proptech on Day 2 of Future City

Posted: 26 Feb 2020 04:00 AM PST

Real estate leaders and tech startup founders converged Monday at the convention center at the Baha Mar resort for a full day of panels on how proptech is changing the industry. To start the day, Stuart Elliott, The Real Deal‘s editor-in-chief, led a discussion on how high-tech amenities are reshaping commercial and residential development. Lee Bienstock, head of enterprise partnerships at Google, and Peter Weiss, the chief real estate officer at Latch, were among the

Beverly Hills’ Waldorf Astoria planted a mole inside the Peninsula to steal clients, lawsuit says

Posted: 25 Feb 2020 03:00 PM PST

The Peninsula Beverly Hills believes it had its own Aldrich Ames manning the front desk. The ultra-luxury hotel filed a lawsuit this week alleging that a former employee who defected to the nearby Waldorf Astoria, owned by developer Beny Alagem, engaged in a long-running plot to steal “lucrative Middle Eastern clients” from Saudi Arabia and the Gulf. The details of the legal filing, which were first reported by the Wall Street Journal, read like a

Big names, big properties, big price: $26M for Village homes

Posted: 25 Feb 2020 02:00 PM PST

A 19th-century townhouse on West 4th Street has come to market, but this is not your average listing. The property next door is also for sale, offering a deep-pocketed buyer the opportunity to build another megamansion in the West Village. And that property happens to be owned by one of the nation’s most prolific homebuilders. The owner of 294 West 4th Street — via limited liability company Straight Outta Mortlake — has put the three-story

Forever 21’s new CEO is former H&M exec

Posted: 25 Feb 2020 01:50 PM PST

Forever 21 has appointed a new CEO less than a week a bankruptcy court judge approved the fashion retailer’s sale to a trio of investors for $81 million. Daniel Kulle will take the top job after more than two decades at H&M. The announcement was made Tuesday by Authentic Brands Group, which reached a deal to buy Forever 21 with Simon Property Group and Brookfield Property Partners. The sale was finalized last week. Kulle most

Amazon signs 300K-sf lease in Middle Village

Posted: 25 Feb 2020 01:37 PM PST

Amazon is continuing to boost its presence in New York City with a big new lease. The e-commerce giant is taking roughly 300,000 square feet of space in Queens’ Rentar Plaza, according to loan database TreppWire. The servicer on the $132 million loan backed by the complex submitted a note to the database that said Amazon would be taking over the Metropolitan Museum of Art’s 109,000-square-foot space, plus the remaining 190,000 square feet of vacant

CBRE plans cuts to NYC tech team

Posted: 25 Feb 2020 11:48 AM PST

CBRE is planning to lay off more than three dozen employees in its New York office due to a shift in business priorities. The world’s largest commercial real estate services firm filed a notice with the state’s Department of Labor earlier this month stating it planned to let go 40 employees. The company gave its reason for the layoffs as a “reduction in workload due to a change in business priorities.” A representative for CBRE,

Moinian sued for charging market-rate rents despite tax break

Posted: 25 Feb 2020 11:00 AM PST

A lawsuit filed today alleges the Moinian Group improperly charged market-rate rents at a FiDi tower while receiving tax benefits. At 90 Washington Street, where the Moinian Group holds the ground lease, tenant Chad Vignola alleges that he and as many as 500 others were not provided with rent-regulated leases, despite the landlord getting a tax break known as 421-g. The complaint argues the tenants are entitled to monetary damages, interest, and at least $500,000

Sternlicht on retail’s woes: Tenants have done “incredibly shitty job” running stores

Posted: 25 Feb 2020 10:30 AM PST

Troubles in the retail world aren’t going away anytime soon — and retailers have themselves to blame. That’s according to Starwood Property Trust CEO Barry Sternlicht, who spoke at Tuesday’s fourth-quarter earnings call. During the call, Sternlicht recounted a visit to a new clothing store on Lincoln Road in Miami. Sternlicht said he walked around the store and couldn’t find a basic item — shorts — in a medium size. He said retailers then send

Judge deals another blow to Two Bridges towers

Posted: 25 Feb 2020 09:52 AM PST

In another setback for the would-be developers of four towers in Manhattan’s Two Bridges neighborhood, a judge has ruled against them in the second of three lawsuits facing the development. The latest decision, on a case brought by a group of residents and local organizations last March, was delivered by the same Supreme Court judge who ruled last summer that the three separate projects must go through the city’s exhaustive land-use review. The de Blasio

Aby Rosen in talks to buy Paramount’s East Side tower for $400M

Posted: 25 Feb 2020 09:43 AM PST

Paramount Group is in talks to sell its Third Avenue office tower to Aby Rosen, and it’s considering giving him a big loan to finance the deal. Rosen’s RFR Realty is in late-stage talks to buy Paramount’s 36-story 900 Third Avenue for around $400 million, sources told The Real Deal. What’s more, Paramount — the $3 billion publicly traded real estate investment trust — is sweetening the deal by negotiating to offer Rosen a big

Fifth Wall closes $100M fund to bring online retailers into physical stores

Posted: 25 Feb 2020 07:40 AM PST

A new generation of e-tailers are looking to make their first, risky step into the world of physical real estate, and one real estate-focused venture capital firm sees an opportunity. Fifth Wall Ventures has closed a $100 million fund to invest in such companies, the Wall Street Journal reported. The fund’s investors include public retail landlords like Acadia Realty Trust and Macerich. The fund will connect those companies with potential tenants as part of its

Cuomo expects NYC to take lead on property tax reform

Posted: 25 Feb 2020 07:00 AM PST

Despite Mayor Bill de Blasio’s latest push to do something about the city’s convoluted property tax system, state lawmakers aren’t expecting anything to happen soon. “I am absolutely not optimistic that there will be legislation this session,” state Sen. Brian Benjamin of Harlem told the New York Times. “This is going to be an important conversation that you cannot rush.” “We don’t have a bill. We don’t have anything to support. You can’t support a

Top WeWork sales exec resigns amid office relationship probe

Posted: 25 Feb 2020 06:15 AM PST

A senior sales executive at WeWork resigned on Valentine’s Day, while under investigation for a romantic relationship with a team member whom he promoted, according to Bloomberg. The struggling co-working firm was planning to fire Grant McGrail, a senior vice president of account sales and strategic alliances, for cause. Business Insider first reported the departure, but not the reasons behind it. The human resources investigation began earlier this month after allegations were raised against McGrail.

Realogy’s 2019 revenue slides 3% to $5.6B

Posted: 25 Feb 2020 05:50 AM PST

Even as the housing market improved and competition grew more “rational,” Realogy Holdings said it generated $5.6 billion in 2019 revenue, down 3 percent year over year. The company also said it lost $188 million, compared to net income of $137 million in 2018, due to accounting expenses and a tax gain related to the sale of its relocation business Cartus for $400 million. That sale comes as the conglomerate — which operates the Corcoran

Dining with VIPs at TRD’s Future City retreat

Posted: 25 Feb 2020 05:30 AM PST

CEOs, developers, landlords and other industry leaders joined The Real Deal at its second-annual Future City event at Baha Mar in the Bahamas this weekend. Proptech was top of mind as attendees gathered at a welcome reception and dinner following presentations from Patrice Derrington of Columbia University and Sam Chandan of New York University’s Schack Institute of Real Estate on Sunday evening. Among those at the dinner included Simon Ziff, Bruce Mosler, Suzanne Amaducci-Adams, Caren

Crowdfunding firm to investors: Cough up $40M or lose it all

Posted: 25 Feb 2020 05:00 AM PST

Troubled crowdfunding firm Prodigy Network has contacted investors for the first time in months — and the news is not what they wanted to hear. In a letter obtained by The Real Deal, the firm asked investors in a commercial building at 84 William Street to come up with $40 million to keep the property afloat. Otherwise, the letter warned, they could lose their investments in full. The other option would be to sell the

Losing the narrative: Mayor’s signature issue slipping away

Posted: 25 Feb 2020 04:30 AM PST

Five months into his mayoralty, Bill de Blasio blasted out a press release that quoted 80 elected officials, developers and advocates praising his new $41 billion housing plan. He’s been taking victory laps ever since to celebrate its progress. But Vicki Been, his deputy mayor for housing and economic development, acknowledged last fall that some New Yorkers aren’t buying it. In fact, many have come to believe that the hundreds of thousands of new apartments

WeWork’s turnaround star will need a new script

Posted: 25 Feb 2020 04:00 AM PST

Sandeep Mathrani carved a slight figure as he took the stage to explain why he had just become CEO of a company with huge financial problems and uncertain prospects. “I decided to take the role because, one, it had great assets,” he said, during the Global Retailing Conference at the University of Arizona. “And two, it had great people.” The year was 2012, and Mathrani was a year into his job at General Growth Properties.