The Real Deal - New York Real Estate News

Real estate stocks rally on strong May jobs report

Posted: 05 Jun 2020 04:05 PM PDT

Stock markets rallied on Friday following much stronger job gains in May than were expected, with many real estate companies beating the day’s market gains. Economists surveyed by the Wall Street Journal had predicted a loss of 8.3 million jobs last month. Instead, the economy added 2.5 million, helping push the Nasdaq to a near-record high, up 2 percent on the day, almost overcoming its coronavirus losses. The S&P 500 closed 2.6 percent higher, and

As Black Lives Matter protests rage on, NY real estate bleeds blue

Posted: 05 Jun 2020 03:45 PM PDT

Each year, titans of real estate get out their tuxedos and checkbooks and head to a ritzy gala to support their favorite city agency: the New York Police Department. The New York Police Foundation soiree draws thousands of guests and is sponsored by some of the biggest names in New York City real estate. It pulls in millions for the NYPD. “You’d be hard-pressed to find someone in the real estate industry who doesn’t express

Judge says Realogy’s suit against Compass can stand

Posted: 05 Jun 2020 02:49 PM PDT

A New York judge has denied Compass’ motion to dismiss an explosive lawsuit accusing the brokerage of “predatory” poaching and other wrongdoing. Realogy, the parent company to the Corcoran Group and Coldwell Banker, filed the wide-ranging suit last year, alleging its SoftBank-backed rival engaged in illicit business practices to gain market share “at all costs.” In addition to its motion to dismiss, Compass sought arbitration on the grounds that it and Corcoran are members of

Opportunity Zones investors get a Covid-19 lifeline

Posted: 05 Jun 2020 02:25 PM PDT

The federal government has extended the deadline for Opportunity Zone investors and developers to deploy capital and begin construction on projects because of the pandemic. The rules had required that twice a year the government check to ensure Opportunity Zone funds and investors had steered 90 percent of their money into designated projects as mandated. Now, the U.S. Treasury and Internal Revenue Service released modifications allowing those funds and investors to hold their money until

Related marketing Neiman’s Hudson Yards store as office

Posted: 05 Jun 2020 02:00 PM PDT

With Neiman Marcus in bankruptcy, the Related Companies is marketing the department store’s space at the Hudson Yards mall to office tenants. Related and co-developer Oxford Properties are marketing Neiman’s 190,000 square feet and other retail space as office use, according to Business Insider. In total, the developers put 380,000 square feet at the top of the mall — or roughly 40 percent of the shopping complex — on the market. A representative for Related

Related selling Union Square high-rise for $200M

Posted: 05 Jun 2020 01:59 PM PDT

Not all big-ticket New York real estate deals these days are fire sales. The Related Companies has an agreement to sell its Union Square apartment building for about $200 million to a firm representing an overseas buyer, sources familiar with the transaction told The Real Deal. The contract pricing for the residential component of One Union Square South works out to a capitalization rate in the low 4 percent area. That figure represents aggressive pricing

Keep up with our coverage in The Real Deal‘s next complimentary national issue

Posted: 05 Jun 2020 11:45 AM PDT

The Real Deal’s last issue brought all of our markets together as the real estate industry grappled with the impact of a global pandemic. We talked with Starwood chief Barry Sternlicht, broke down Blackstone’s latest business plans, and dove into the key points of distress throughout real estate, among more than a dozen other features. In our next issue we’ll turn towards the grand reopening across the country and what it means for the multi-trillion-dollar

Alicia Glen to launch development firm, MSquared

Posted: 05 Jun 2020 11:15 AM PDT

Former Deputy Mayor and Goldman Sachs alum Alicia Glen is about to launch her own development firm to build middle-income housing in smaller U.S. cities. MSquared — which seemingly refers to the firm’s focus on mixed-use, mixed-income development — will launch next week, Bloomberg reports. The company aims to build housing for the ‘“missing middle,’ an increasingly cost-burdened group that includes essential workers, such as teachers, nurses, police officers, service and retail workers,”’ the firm

Seritage terminates leases on most of its Sears, Kmart locations

Posted: 05 Jun 2020 10:45 AM PDT

The real estate company that Sears spun off five years ago to shore up cash is cutting ties with most of the struggling retailer’s remaining stores. Seritage Growth Properties is terminating the master lease covering 12 of the remaining Sears and Kmart stores in its portfolio, the company announced Thursday. The real estate investment trust will collect a $5.3 million termination fee from Sears’ parent company, Transformco, as part of the deal. The payment is

Construction, retail, restaurants lead May jobs rebound

Posted: 05 Jun 2020 10:10 AM PDT

The U.S. added 2.5 million jobs in May, a surprising bounceback after a March and April that saw 22.1 million total jobs lost and the highest unemployment rate recorded in decades. Experts said the return of restaurant and bar jobs accounted for a large portion of those gains, with construction and retail sectors also seeing boosts. The hotel industry, however, continued to struggle. The unemployment rate fell last month to 13.3 percent as states reopened

Howard Lorber buys waterfront Sunset Islands home for $12M

Posted: 05 Jun 2020 10:00 AM PDT

UPDATED, June 5, 1:10 p.m.: Douglas Elliman chief Howard Lorber paid $12 million for a waterfront home in Miami Beach, less than a week after investors rejected his and other top executives’ compensation from 2019. Lorber closed on the house on Tuesday. The previous week, a majority of investors at Elliman parent Vector Group rejected executives’ pay, including the $11.7 million that Lorber took home last year. JP Investments I, a company managed by attorney

24 Hour Fitness in talks with bidders ahead of bankruptcy

Posted: 05 Jun 2020 09:18 AM PDT

24 Hour Fitness is in talks with entities to find a stalking horse bidder ahead of a court-supervised bankruptcy. The mid-tier fitness chain, which operates more than 430 gyms, is seeking the stalking horse bidder before it files for bankruptcy, Bloomberg reported. The possible Chapter 11 filing would cut the company’s debt and put lenders in control. Investment bankers at Lazard and attorneys at Weil, Gotshal & Manges are advising the gym on the process.

The Interview: States Title’s Max Simkoff on reforming the murkiest corner of real estate

Posted: 05 Jun 2020 08:47 AM PDT

If real estate is seen as a dinosaur when it comes to adopting technology, title insurance may be the industry’s Argentinosaurus. The residential closing is full of manual processes and fees that complicate and drive up the price of homebuying, and according to Max Simkoff, consumers are losing out. Simkoff is the founder and CEO of States Title, a startup looking to capitalize on the “pain points” in a residential closing process, from title insurance

NYU’s social-distance fix for dorms? Leasing hotel rooms

Posted: 05 Jun 2020 07:50 AM PDT

Colleges across the country sent students home in March because of the coronavirus. Now, they’re debating when to bring them back — and how. New York University is considering renting thousands of hotel rooms near its Greenwich Village campus to serve as dorms, Bloomberg reported. The rooms would allow for more social distancing between students, who NYU expects will return to campus in the fall. Other universities are also weighing hotel rooms as an option

Miguel McKelvey out at WeWork

Posted: 05 Jun 2020 07:27 AM PDT

Miguel McKelvey is leaving WeWork, the embattled office-sharing company he helped found in 2010. McKelvey was one of the few remaining executives at WeWork following its failed attempt to go public and bailout by SoftBank. His departure comes at a time when the company is wrestling with a painful turnaround. “After 10 years, I’ve made one of the most difficult decisions of my life – one that I’m not even sure has sunk in just

Real estate ad dollars vanished as pandemic spread

Posted: 05 Jun 2020 06:45 AM PDT

Eyeballs were looking for real estate to ogle online, but developers pulled back on hawking their properties. The amount developers were willing to spend in April was 26.7 percent lower than in the same month in 2019, a report from real estate advertising agency Knightsbridge Park found. The number of inquiries, known in the industry as goals, from consumers fell by 7 percent. But the total online traffic in April ticked up by nearly 1

TRD Insights: These office landlords are most exposed to Big Tech’s #WFH movement

Posted: 05 Jun 2020 06:00 AM PDT

Big Tech has been a major driver of office leasing activity in recent years. But that may soon change. The coronavirus pandemic has heralded a remote-work revolution, with heavyweights Facebook, Twitter and Shopify all announcing plans to shift toward more permanent work-from-home setups. Now, other tech companies — seeing the potential cost savings — could follow suit. But until then, it’s something that Facebook, Twitter and Shopify’s landlords will watch for. Altogether, the companies lease

“Cancel rent” campaign notches first victory, in Ithaca

Posted: 05 Jun 2020 05:30 AM PDT

Ithaca’s Common Council isn’t waiting for the state legislature to cancel rent for the town’s 7,500 renters — it is demanding that right from the Cuomo administration. The measure, which passed by a 6-4 vote, was supported by the mayor, Svante Myrick, and tenant groups including Housing Justice for All. It calls for the municipality to seek permission from the state to cancel three months’ rent — with no means-testing required — and stop residential

Huge loan for Google campus was Manhattan’s largest in May

Posted: 05 Jun 2020 05:00 AM PDT

The 10 largest Manhattan loans recorded in May totaled $1.37 billion, an 85 percent increase from April but less than half of March’s total. About 45 percent of that sum came from the largest deal, a massive syndicated construction loan for Oxford Properties Group’s St. John’s Terminal that had been in the works since February. Here are the borough’s largest real estate loans for May: 1) Terminal turnaround | $604 million (senior portion of $973

Manhattan developers discreetly shopping bulk condo deals

Posted: 05 Jun 2020 04:30 AM PDT

It’s hard to sell one luxury apartment these days, but what about 20? In New York City, some developers are hoping to clear a glut of unsold units by offering bulk deals at discounted prices. It’s an uncommon move that comes as the city’s weak luxury market is further hobbled by the pandemic. Developers Simon Baron and Quadrum Global are offering a 10 percent discount on the 26 remaining units at their 38-unit Chamberlain condop

What would a WeWork bankruptcy look like?

Posted: 05 Jun 2020 04:00 AM PDT

In April, a Manhattan landlord who leases a large space to WeWork received an email from a broker who was working on behalf of the struggling co-working company to renegotiate its office leases. “I told him politely it’s not happening, so don’t waste your time,” the landlord said, noting that because his lease with WeWork is below market-rent, he’s comfortable taking the space back. “I’m going to play hardball.” Brokers at Newmark Knight Frank and