The Real Deal - New York Real Estate News

Mortgage rates are sub-3%. How will buyers and lenders react?

Posted: 17 Jul 2020 04:00 PM PDT

Uncertainty, the very thing that drove the average rate on a 30-year fixed mortgage to a record low this week, could prevent millions of prospective homeowners from pulling the trigger on a purchase. “The rates are great,” said Al Fazio, a real estate attorney in New York City. “Although everyone remains concerned about what tomorrow will bring,” regarding the economy and coronavirus. The 2.98 percent average rate on America’s most popular home loan is the

Flexible leases, greater services: Covid accelerates shifts in office market

Posted: 17 Jul 2020 02:40 PM PDT

In the office market, the pandemic has proved the “great accelerator.” That’s according to Susan Freeman, a London-based partner in the real estate department at Mishcon de Reya, who joined Nelson Mills of Columbia Property Trust to discuss the future of office for a recent episode of TRD Talks Live. The executives said that in both the U.K. and U.S. markets, gradual shifts toward flexible leases and greater services — prompted at first by competition

Palisades Center Mall operator avoids financial calamity (for now)

Posted: 17 Jul 2020 01:50 PM PDT

One of the nation’s largest malls has come to an agreement with its lender to stave off foreclosure. After temporarily closing due to the coronavirus shutdown, Palisades Center Mall owner Pyramid Companies risked defaulting on its $388.5 million CMBS loan. The loan fell into special servicing in April. But according to the standstill agreement detailed on Trepp, Pyramid on June 19 received a moratorium on debt service payments or reserve deposits until September 9. Pyramid

Spencer Rascoff-backed rental platform PocketList launches in LA

Posted: 17 Jul 2020 01:05 PM PDT

A rental listings platform backed by Zillow co-founder Spencer Rascoff went live in Los Angeles this week. PocketList launched with 20,000 units listed on its platform, the company said this week. The platform is designed to speed up tenant turnover by allowing renters to share with other users an upcoming move-out date as well as information about their experience with their units. CEO Nick Dazé said “renters have been forced to wait until the last

What NYC’s phase 4 means for real estate

Posted: 17 Jul 2020 12:15 PM PDT

Reopening just isn’t what it used to be. Phase 4 in New York City begins Monday, but the news has been dominated by the exceptions and conditions imposed by Gov. Andrew Cuomo — notably no indoor dining, and a requirement that establishments may only serve drinks to customers who order meals. The fourth phase — and if you’re wondering, there is no phase five — includes schools from pre-K through higher education, “low-risk” arts and

Upset win in Brooklyn election alarms real estate industry

Posted: 17 Jul 2020 11:45 AM PDT

After the 2018 election led to key victories for progressive Democrats, many in the real estate industry might have wondered whether things could possibly get any worse. It looks like they can. Democratic Socialists of America–backed candidate Marcela Mitaynes toppled Assembly member Felix Ortiz, who conceded the race Thursday. Although the election results have not yet been certified, the Mitaynes campaign reported that their candidate edged Ortiz by 240 votes. Her victory surprised observers, not

Stephen Meister: The underdog’s lawyer

Posted: 17 Jul 2020 11:00 AM PDT

Over his 25-year career in New York real estate litigation, Stephen Meister has represented the likes of Harry Macklowe, Donald Trump, Joseph Moinian, Larry Gluck and other heavy Manhattan real estate hitters. But they have usually dialed him up when debt has piled on, a partner has gotten combative or they need to navigate their way out of a contract. “I just have to be comfortable that I have the facts right,” said Meister. “I

LA’s iconic US Bank Tower in contract to sell for $430M

Posted: 17 Jul 2020 10:15 AM PDT

After 18 months on the market, Downtown Los Angeles’ iconic U.S. Bank Tower has secured a buyer at a significant discount to its pre-coronavirus valuation. The seller, Singapore-based investment management firm OUE Limited, announced the $430 million sale and purchase agreement Friday. The buyer, USBT Property Owner LP, was identified only as an “institutional purchaser.” New York-based Silverstein Properties and other U.S. firms had been reported to be interested in the property. OUE disclosed the

Jon Bon Jovi sells oceanfront Palm Beach house

Posted: 17 Jul 2020 08:53 AM PDT

UPDATED, July 17, 4:15 p.m.: Rock star Jon Bon Jovi sold a new oceanfront home he built in Palm Beach that was listed for $22.9 million, and is said to be the buyer of a larger mansion nearby. Bon Jovi and his wife Dorothea Hurley demolished the previous house at 230 North Ocean Boulevard and built a five-bedroom, five-and-a-half bathroom home on the property. The Shapiro Pertnoy Construction Group built the home. The 5,024-square-foot house, with

Homebuying startup Knock pivots to lending

Posted: 17 Jul 2020 08:45 AM PDT

Knock, a home-buying startup, is switching to bridge loans and working with agents, rather than directly with consumers. The company, which offers a platform for consumers who want to buy and sell homes at the same time, will now offer mortgage, bridge-loan and concierge services, Inman reported. The program, Knock Home Swap, will include a mortgage without contingencies, which Knock’s CEO Sean Black said would have competitive rates. Knock, which raised $400 million in a

Bridge Investment wants to raise another $600M for its Opportunity Zone funds

Posted: 17 Jul 2020 08:05 AM PDT

Bridge Investment Group said it plans to raise another $600 million through its Opportunity Zone funds between now and the end of this year. The company announced this week that it had already raised $1.3 billion through the funds since launching in October 2018 with a $500 million target. Most of that money has already been deployed to projects around the country. So far this year, the Salt Lake City-based investment firm has raised about

W Hotel in downtown Manhattan closes forever

Posted: 17 Jul 2020 07:20 AM PDT

The W Hotel in downtown Manhattan is the latest to close its doors for good. The 217-key hotel at 8 Albany Street, which boasts suites with walk-in rainforest showers and reflective snakeskin tiles, will shut down Oct. 13, Bisnow reported. According to a notice filed with the state by Starwood Company & Resorts, 137 hotel workers will be let go. Hotels have been devastated by the coronavirus. The industry saw dismal occupancy rates in March

Chetrit’s $115M Diamond District deal fizzles

Posted: 17 Jul 2020 06:30 AM PDT

A $115 million deal for a Diamond District building that’s lingered on the market since 2017 has fallen through. Ray Yadidi and Isaac and Eli Chetrit had planned to sell 15 West 47th Street to the ELO Organization, but the buyer failed to close, Crain’s reported. The 18-story, 120,790-square foot building, which sits between Fifth and Sixth avenues, has been on the market since 2017. The ELO Organization skipped the closing, which was scheduled to

Jared Kushner will keep his stake in Cadre, for now

Posted: 17 Jul 2020 06:01 AM PDT

Jared Kushner has decided not to divest from Cadre, a real estate tech start up he co-founded. While Kushner still plans to divest from the company in the future, that plan is on hold, CNBC reported. Instead, the company agreed to not seek out any foreign investors, to avoid conflicts of interest generated by Kushner’s position of senior advisor in the Trump administration. “The [divestiture] is still planned and has been on hold only due

Home sales, leasing took a nosedive in Lower Manhattan in Q2

Posted: 17 Jul 2020 05:30 AM PDT

Lower Manhattan’s sales market saw activity and prices plummet last quarter, while its rental market chugged along, according to Platinum Properties’ quarterly report. In Battery Park City, nine homes were sold in the second quarter — a 68 percent year-over-year drop. The median sales price also fell about 14 percent to $923,750 from close to $1.1 million the prior year. The Financial District’s sales market took an even larger tumble. The number of sales fell

TRD Insights: Here’s what tenants pay at Related’s Bronx Terminal Market

Posted: 17 Jul 2020 05:00 AM PDT

As part of its proposal to pay off about $200 million in Israeli bonds that mature this fall, Related Companies has committed to buy back two properties next year from its bond-issuing subsidiary, if necessary. The two properties are an office condominium in Time Warner Center and the 900,000-square-foot Bronx Terminal Market power center in the South Bronx. While the coronavirus shuttered most retailers for months, the Bronx Terminal Market’s anchor tenants — BJ’s Wholesale

New norm? Seaport bar to offer year-round open seating

Posted: 17 Jul 2020 04:30 AM PDT

Restaurants and bars, hit hard by the pandemic, have been reeling for answers on how to bring foodies back. One Seaport development offers a potential solution. Blockhouse Bar, a waterfront restaurant and bar on which the Howard Hughes Corporation could soon begin construction, will be an open space covered only by a wooden roof. “Consumers are going to want spaces like this. I think that from a planning perspective, we have to be open to

Airbnb banked on short-term rentals. Can it continue without them?

Posted: 17 Jul 2020 04:00 AM PDT

Just over a year ago, Lyric was riding high. On the heels of a $160 million funding round led by Airbnb, the short-term rental startup was plotting a massive expansion in the spring of 2019. Employees mused about buyouts and stock options. “It was a big deal,” said a former Lyric executive who asked not to be named. “We were depending on a fundraise to grow the company, plus to have a big and well-known