The Real Deal - New York Real Estate News

Miami Beach orders all restaurants with occupancy over 250 to close or reduce capacity due to coronavirus

Posted: 13 Mar 2020 04:00 PM PDT

The city of Miami Beach late Friday ordered all restaurants and nightclubs with occupancy of over 250 people to cease operations due to the coronavirus pandemic. Restaurants and nightclubs can remain open if they maintain a capacity of fewer than 250 people, according to the city’s announcement. Miami Beach’s mayor and commission extended the city manager’s declaration of the state of emergency, issued on Thursday, amid the global health crisis. The order could include restaurants

Elliman shuts offices, Compass sends staff home as coronavirus cases mount in New York

Posted: 13 Mar 2020 03:37 PM PDT

Residential brokerages are reacting to the growing concern about the coronavirus pandemic in New York with varying degrees of severity. Starting Monday, Compass’ New York regional employees are going to be working from home for at least two weeks, according to memos emailed to staff and agents by regional president Rory Golod on Thursday. A Compass spokesperson noted that agents with key cards will still be able to enter the offices. “Over the next few

$5B American Dream to shut through the month

Posted: 13 Mar 2020 03:19 PM PDT

The long-delayed, $5 billion American Dream Mall is temporarily shutting just months after its grand opening because of the coronavirus. The mall and entertainment center, located in East Rutherford, N.J., partially opened in the fall after over a decade of delays. The closures are slated to begin after the weekend and run through March, though the mall said there have not been any cases of the coronavirus, according to a note posted on the mall’s

Value of Russell Galbut’s Norwegian Cruise Line stock plunges by $21M amid coronavirus

Posted: 13 Mar 2020 02:00 PM PDT

Developer Russell Galbut’s Norwegian Cruise Line stock has plunged over the past several weeks amid the coronavirus crisis, dropping by 81 percent or $20.9M. Galbut, managing principal of Miami-based Crescent Heights, controls 431,001 shares of NCL Holdings stock as of April 1, 2019, according to NCL’s 2019 proxy statement. Galbut is chairman of the Miami-based cruise line and has been a director since 2015, Securities and Exchange Commission filings show. His term expires in 2021.

Real estate stocks split into winners and losers after hectic week

Posted: 13 Mar 2020 01:33 PM PDT

Following a brutal week that saw trading on the New York Stock Exchange halted twice while the Dow Jones Industrial Average’s 11-year bull run came to an end, real estate stocks took a beating as well — but some much more than others. The SNL U.S. REIT Equity index ended Thursday down 18.7 percent from the start of the week, while the S&P 500 fell 16.5 percent as concerns about coronavirus, economic disruption and tanking

NYC’s biggest landlords pledge to halt evictions for three months

Posted: 13 Mar 2020 01:15 PM PDT

The Real Estate Board of New York announced on Friday that more than two dozen of its members, who own 150,000 rental apartments, have pledged to hold off on evictions for the next three months in response to the coronavirus. “No one knows how long this pandemic is going to take to play out,” REBNY president James Whelan said. “Our best guess, in terms of seeing this through, was to look at a 90-day time

Calvin Klein co-founder lists equestrian estate for $100M

Posted: 13 Mar 2020 01:00 PM PDT

The co-founder of Calvin Klein listed an expansive equestrian estate in Westchester County for $100 million. Barry K. Schwartz bought the main parcel of land in 1979 for $3.25 million, and went on to send several horses from the farm to compete in the Kentucky Derby. Now, Schwartz is selling the property because he and his wife don’t spend enough time there, the Wall Street Journal reported. Known as Stonewall Farm, the property features a

Carl Icahn’s biggest short? Commercial real estate

Posted: 13 Mar 2020 12:41 PM PDT

The U.S. commercial real estate market is ripe for a meltdown, according to activist investor and notorious corporate raider Carl Icahn. And he’s putting a lot of money where his mouth is. “You’re going to have this blow up, too, and nobody’s even looking at it,” Icahn said on CNBC. The investor revealed that he’s shorting the commercial mortgage bond market, noting that it was his “biggest position by far.” Icahn, who Forbes estimates is

Coronavirus chaos driving lenders to safer projects amid low interest rates

Posted: 13 Mar 2020 12:30 PM PDT

UPDATED, 5:26 p.m. March 13: Maddd Equities and Joy Construction recently landed a $45 million refinancing for their luxury rental building in Hudson Yards. While the debt package for 445 West 35th Street may look like a standard deal at a standard project, the interest rate, at 2.59 percent, is anything but standard. “When things started to get volatile, I brought in a swap adviser, Kensington Capital Advisors,” said Joy Construction’s Eli Weiss. “The swap

Cresset Partners-led Opportunity Zone fund raises $465M; targets $750M new fund

Posted: 13 Mar 2020 12:00 PM PDT

Two investment firms have closed on a half billion-dollar Opportunity Zone fund with projects across the country, and have launched a second fund, with a target raise of up to $750 million. Chicago-based Cresset Partners and Diversified Real Estate Capital raised $465 million for the first fund, just shy of the $500 million goal when it was announced in October 2018. The joint venture’s initial investment, a 46-story apartment tower in Houston that it is

NYC enacts one-week moratorium on evictions

Posted: 13 Mar 2020 11:27 AM PDT

Amid intensifying public calls for a moratorium on evictions, New York City is halting evictions for one week. Lucian Chalfen, a spokesperson for the New York Office of Court Administration, confirmed that the moratorium will go into effect for one week, starting Monday. “Effective immediately, we have imposed a one-week moratorium on evictions in New York City, subject to further extension upon review,” a memo from Chief Administrative Judge Lawrence Marks said. “Simultaneously, we are

Analysis: As coronavirus spreads, here are all the active hot water violations in NYC

Posted: 13 Mar 2020 10:45 AM PDT

Though the Center for Disease Control is urging the public to wash their hands, some renters may not be able to. An analysis of hot water violations issued in New York City so far in 2020 shows that more than two thousand violations issued by the department of housing and preservation for lack of hot water remain open. An open violation doesn’t necessarily mean a problem is unresolved, explained Matthew Creegan, spokesman for New York

Miami mayor tests positive for coronavirus after meeting with Brazilian president

Posted: 13 Mar 2020 10:00 AM PDT

UPDATED, March 13, 1:20 p.m.: Miami Mayor Francis Suarez has tested positive for COVID-19 after attending an event in Miami with a Brazilian government official who later tested positive for the virus. President Trump also met with the Brazilian group, at Mar-a-Lago, during their visit to South Florida. Suarez, who is a real estate attorney with Greenspoon Marder, told The Miami Herald on Friday that he tested positive for coronavirus. He has self-isolated since learning

$4.8B buyback does little to stop SoftBank’s fall

Posted: 13 Mar 2020 10:00 AM PDT

SoftBank is set to buy back $4.8 billion in shares amid demands from an activist investor and a volatile stock market. The buyback would represent 7 percent of the Japanese conglomerate’s shares, which have been plummeting. The WeWork parent has come under fire recently for its handling of the beleaguered co-working firm’s botched public offering last year. The $4.8 billion buyback is a fraction of the $20 billion activist investor Elliott Management initially pushed for,

Coronavirus hits seasonal Coachella Valley tourist economy hard

Posted: 13 Mar 2020 09:30 AM PDT

The coronavirus harms much of the Southern California economy, but few areas as acutely as the Coachella Valley where hoteliers, Airbnb hosts, and hospitality workers depend on tourists’ dollars during what locals call “The Season” — before the summer desert heat sets in. On Wednesday the Coachella Valley Music and Arts Festival and Stagecoach, Coachella’s accompanying country music festival, were postponed until October. The announcement came days after the BNP Paribas Open, better known as

Miami-Dade suspends evictions due to coronavirus

Posted: 13 Mar 2020 09:30 AM PDT

Miami-Dade suspended all eviction activities amid the coronavirus pandemic. The county’s police department announced it would not assist with evictions now that Miami-Dade County is under a state of emergency. Mayor Carlos Gimenez, who self-isolated after a meeting with Brazilian President Jair Bolsonaro’s aide, declared the state of emergency on Wednesday. Gimenez tested negative for coronavirus according to news reports. Police spokesperson Alvaro Zabaleta told the Miami Herald that “the only ones that can follow

Chorus for moratorium on evictions grows louder in New York

Posted: 13 Mar 2020 08:22 AM PDT

The real estate industry is bracing for a moratorium on evictions in the face of a growing public health crisis. Late Thursday afternoon, New York state Sen. Brad Hoylman, who represents Manhattan, introduced legislation to halt evictions and foreclosures. “This bill would place a moratorium on evictions and foreclosures during this time of crisis, preserving access to stable housing, helping save lives, and protecting those in need,” the memo for the bill reads. According to

Investors reach settlement with Bob Gladstone over $1M mismanagement allegations at 212 Fifth

Posted: 13 Mar 2020 07:45 AM PDT

It’s a sold out, ultra-luxury residential development with the world’s richest man in the penthouse. But a group of investors in Bob Gladstone’s converted condominium at 212 Fifth Avenue this week accused the developer of mismanaging the project’s finances and misappropriating funds, prompting what appears to be a hastily assembled settlement Thursday. The dispute came to a head Tuesday when a group of investors filed a lawsuit against the Madison Equities CEO, stating they had

ICSC suspends real estate’s biggest trade show due to coronavirus

Posted: 13 Mar 2020 07:42 AM PDT

The largest gathering for real estate dealmakers in the United States is suspending its annual convention in Las Vegas this year due to the coronavirus pandemic. The International Council of Shopping Centers on Friday sent a memo to members announcing it is postponing its annual REcon convention in late May, which usually draws tens of thousands of attendees to Sin City. “RECon will not take place in May, and we are currently evaluating potential new

NYC’s largest Chinese restaurant closes amid global health crisis

Posted: 13 Mar 2020 07:00 AM PDT

New York’s largest Chinese restaurant has shuttered. Chinatown restaurant Jing Fong, which can seat up to 800 guests, closed on Thursday due to a drop-off in business due to coronavirus, the New York Post reported. The final decision to close was made yesterday after Gov. Cuomo announced a ban on gatherings of more than 500 people. The owners said business had dropped 30 to 40 percent in the restaurant’s Upper West Side location, which will

Coffee Talk: Justin Ehrlich and John Gomes on NYC neighborhoods and doing deals during an election year

Posted: 13 Mar 2020 06:30 AM PDT

Luxury residential brokers and distress investors may seem an odd couple, but for Eklund-Gomes’ John Gomes and Churchill Real Estate’s Justin Ehrlich it’s been a perfect match. The Real Deal sat down with Gomes and Ehrlich to talk about their friendship, business partnerships and coffee preferences. The pair, who are working on several projects together right now, reflected on the industry’s mood when they met, recession fears gripping the industry and whether or not to

Hunting a near-extinct species: The New Jersey starter home

Posted: 13 Mar 2020 06:00 AM PDT

For brokers in northern New Jersey, starter home deals move with remarkable velocity. “The minute we have a starter home for sale now, it hasn’t been a week, and we have offers,” said Deborah Bruen, who heads up a team at Coldwell Banker in Morristown. Single-family homes are still the preferred choice for new buyers, and inventory is particularly low. The number of single-family homes available for sale dropped about 23.5 percent from December 2017

Financier offers $100K to broker who brings him a buyer

Posted: 13 Mar 2020 05:30 AM PDT

Randall Yanker is willing to pay you to get his apartment sold. The financier is offering $100,000 to the broker who brings him a buyer with a fully-executed contract to purchase his penthouse at the Ritz-Carlton Residences in Battery Park City by the end of March. The 4,293-square-foot condo is asking $8.975 million. Yanker, who was formerly CEO of Lehman Brothers Alternative Investment Management and a vice president at Salomon Brothers, co-founded a private investment

Any coronavirus-related tips? Write to us

Posted: 13 Mar 2020 05:00 AM PDT

As the coronavirus wreaks havoc on global markets, The Real Deal is following how the pandemic is playing out in the real estate industry. We’re looking to get granular, with coverage ranging from how office landlords are keeping tenants safe to what safety nets exist for struggling retailers. For residential or tech-related tips, reach out to E.B. Solomont at eb@therealdeal.com For commercial or development-related tips, reach out to Eddie Small at es@therealdeal.com For New York

Rental firms grieve over broker fees

Posted: 13 Mar 2020 04:30 AM PDT

A judge may have given broker fees a stay of execution, but firms are still reeling from the near-death experience of their business model. Last month’s surprise guidance from state regulators banning most tenant-paid broker commissions has already sparked panic across the industry. Now several rental brokerages are struggling to make heads or tails of the potential impacts, and looking for their best options in a worst-case scenario. For many firms already grappling with last

NYCHA wants to create “citywide clearinghouse” for its 80M sf of air rights

Posted: 13 Mar 2020 04:00 AM PDT

The New York City Housing Authority is trying to make it easier for developers to buy up its 80 million square feet of unused air rights. The agency released a request for expressions of interest this week, seeking proposals from developers who own land adjacent to NYCHA properties to acquire the air rights. Officials estimate that proceeds from the air rights sales could net $1 billion for capital repairs — a fraction of the $40