The Real Deal - New York Real Estate News

Redfin appoints Black HR exec to board following diversity pledge

Posted: 19 Aug 2020 04:25 PM PDT

Following a search aimed at bringing “a diverse perspective” to the company, Redfin has appointed Kerry Chandler, a human resources executive who is Black, to its board of directors. Chandler, who serves as chief human resources officer of Endeavor, an entertainment, sports and media conglomerate, is joining the national brokerage and listings website’s board of directors as its ninth member, the company announced Wednesday. “I love Redfin’s mission to redefine real estate in the consumer’s

Airbnb confidentially files to go public

Posted: 19 Aug 2020 03:04 PM PDT

Airbnb has confidentially filed to go public, following a dramatic dip in revenue as a result of the pandemic. The home-share startup announced the move in a statement on its website Wednesday, noting that the number of shares to be offered and the price range for the proposed offering are yet to be determined. “The initial public offering is expected to take place after the SEC completes its review process, subject to market and other

Hilton and CGI plan $500M fund to acquire distressed hotels

Posted: 19 Aug 2020 02:25 PM PDT

Hilton and a Miami-based partner are planning to launch a $500 million fund to invest in distressed hotels in North America and the Caribbean, The Real Deal has learned. The hotel giant is partnering with private equity firm CGI Merchant Group to acquire about 20 properties in the next few years, said Raoul Thomas, founder and CEO of CGI Merchant Group. The venture intends to take advantage of the buying opportunities the pandemic has created.

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Posted: 19 Aug 2020 01:35 PM PDT

The Daily Dirt, The Real Deal’s subscriber-only newsletter, has readers addicted, as evidenced by some of the fan mail we’ve received. “Love the whole newsletter” “This and only this I read daily head to toe. The GTL reference today and other funny to LMAOs injections brighten my day. The [real estate] news, general news, insights, etc. I want. Keep up the great work.” “Love the Elsewhere in New York section!” True to its name, The

Mall owner CBL Properties nears bankruptcy

Posted: 19 Aug 2020 12:00 PM PDT

Suffocating under retailers’ inability to pay rent and more than $3 billion in debt, CBL Properties is on its way toward declaring bankruptcy. The company announced that it reached an agreement with some of its creditors to hand control to holders of its unsecured notes and that it is negotiating with senior lenders and others who haven’t yet signed onto the deal. The process will attempt to eliminate roughly $900 million of debt, according to

Hudson Yards’ EB-5 investors demand arbitration with Related

Posted: 19 Aug 2020 11:55 AM PDT

A group of Chinese EB-5 investors is demanding arbitration proceedings with Related Companies to determine whether they can inspect the developer’s books. Douglas Litowitz, a lawyer representing the investors in the Hudson Yards megaproject, emailed a written notice this week to Related CEO Jeff Blau and counsel Andrew Harris of Levitt & Boccio. A messenger also served the documents to the developer’s West 55th Street office. The dispute dates back to June, when Related informed

Tech deals give hope to shaky office market

Posted: 19 Aug 2020 11:36 AM PDT

Amazon and Facebook both made major commitments in the past two weeks to a New York City office market with an uncertain future. But that shot in the arm belies the fact that many companies are still in wait-and-see mode. “A lot of tenants are punting on the whole topic and saying they’re going to continue working remotely,” said Grant Greenspan, head of office leasing for the Kaufman Organization. Greenspan added that the jobs associated

Duplex at 220 Central Park South sells for $49M

Posted: 19 Aug 2020 10:50 AM PDT

Vornado Realty Trust’s “financial engine” is chugging along with another closing. A condo at 220 Central Park South sold for $49 million six months after its anonymous buyer went into contract in February, property records show. The 4,820-square-foot unit was bought by a Delaware limited liability company, CPS Realty Partners, which went into contract for the condo weeks before the city shut down to hamper the spread of coronavirus. The transaction pencils out to $10,165

Target will open 27 new stores as Q2 sales soar

Posted: 19 Aug 2020 10:43 AM PDT

The pandemic has dealt a crushing blow to countless retailers, but for behemoths like Amazon, Walmart and Target it has brought outsized profits. Target said it expects to open 27 new stores between now and the end of the year, part of a rosy second quarter earnings report it released Wednesday. The big-box retailer’s net income soared to $1.69 billion April through June, an 80 percent jump year-over-year, the company said. Revenue also spiked to

NYC restaurants: Give us indoor dining or we’ll sue

Posted: 19 Aug 2020 10:35 AM PDT

Restaurant owners are fed up with the ban on indoor dining and they’re ready to take action. In a press conference Wednesday, the NYC Hospitality Alliance threatened to sue the city or state, stating that Mayor Bill de Blasio and Gov. Andrew Cuomo are unlawfully discriminating against restaurants in the city. While the rest of the state partakes in indoor dining at 50 percent of capacity, that has been postponed indefinitely in the city. Asked

Realtor: Bradley Cooper did NOT buy a mansion in Fairfield, so stop coming

Posted: 19 Aug 2020 10:15 AM PDT

A Fairfield real estate agent showing a mansion there is asking fans of Bradley Cooper to stop acting on rumors that the Hollywood star has bought it, according to Westfair. Richard Higgins Jr. of Higgins Group Private Brokerage posted on Facebook that Cooper “has NOT purchased” the mansion “despite the rumors!” He told the New York Post that female fans have circled the mansion and in at least one case dropped off “cookies or muffins

Armed with a modest checkbook but a big pulpit, Jonathan Litt is going after Big Office. Can he prevail?

Posted: 19 Aug 2020 09:15 AM PDT

The morning of July 20 was dry and sunny, perfect for taking in the grand metropolis of New York from its most celebrated vantage point. After plowing $165 million into an extensive renovation of the Empire State Building’s observatory, Empire State Realty Trust had been forced by Covid to close it in March. With the city now coming back to life, the landlord had a lot riding on the reopening of the attraction, which pulled

Authentic Brands raises $600M for retail acquisitions

Posted: 19 Aug 2020 09:01 AM PDT

Authentic Brands Group is on the acquisition hunt, after bolstering its war chest by $600 million. CEO Jamie Salter said the cash injection from BlackRock, General Atlantic and Leonard Green & Partners now brings the apparel licensing firm’s total cash up to $1 billion, according to CNBC. Salter said he’s looking to use that to buy up struggling retailers. Authentic has teamed up with mall owner Simon Property Group on a joint venture, dubbed Sparc,

City Planning Commission approves Industry City rezoning

Posted: 19 Aug 2020 08:45 AM PDT

The City Planning Commission on Wednesday approved the proposed rezoning of Industry City, setting the stage for a dramatic decision by the City Council. Marisa Lago, a mayoral appointee who chairs the commission, emphasized that the city is in dire need of jobs as the pandemic has sent unemployment soaring. She noted that residents of low-income communities and Black, indigenous people of color are hardest hit during times of economic crisis. “I believe the Industry

Steven Mnuchin relists Park Avenue pad for 20% less

Posted: 19 Aug 2020 08:10 AM PDT

UPDATED, Aug. 19, 2020, 6:38 p.m.: The elusive Covid discount has claimed another victim. This time it’s a two-floor co-op at a prestigious Park Avenue address with a renowned owner. U.S. Treasury Secretary Steven Mnuchin has relisted his five-bedroom unit at 740 Park Avenue asking for $25.75 million, a 20 percent cut from when he put it on the market two years ago for $32.5 million, the New York Post reported. Manhattan’s luxury market has

Is the Empire State Building a symbol of Covid woes?

Posted: 19 Aug 2020 07:15 AM PDT

The Empire State Building may be at the nexus of several issues putting pressure on commercial landlords. The landmark tower’s reliance on tourism to drive revenue to its observation deck and the shift toward remote work or satellite offices could make it more vulnerable than some of its peers, according to the Wall Street Journal. As tourism has fallen, revenue from the building’s observation deck has fallen to a mere $86,000 last quarter, down from

Lawsuit says giant mall REITs are licensed to spy

Posted: 19 Aug 2020 06:30 AM PDT

Los Angeles malls are largely closed now, but if they were open mall goers would be spied on. That’s the main allegation in a lawsuit filed earlier this year, which moved this week into California federal court. A proposed class action of mall patrons sued “smart parking” security companies and mall landlords in L.A. County for the unauthorized capturing of license plate images. License plate recognition technology is deployed at large malls for security purposes,

Rising rates push down mortgage refinancing applications

Posted: 19 Aug 2020 06:00 AM PDT

Mortgage rates increased last week as refinancing applications fell and purchase applications held steady. The Mortgage Bankers Association’s weekly survey of 75 percent of the residential mortgage market saw the average 30-year fixed-rate mortgage increase to 3.13 percent, up seven basis points from 3.06 percent the previous week. Jumbo rates also increased by one basis point to 3.41 percent. Despite the uptick in rates, the number of applications to buy homes rose by 1 percent,

Are office landlords turning a corner or rolling over?

Posted: 19 Aug 2020 04:30 AM PDT

Office landlords and leasing agents breathed a sigh of relief this month when Facebook inked a massive lease deal at Manhattan’s landmark Farley Post Office building. The deal with Vornado Realty Trust for 730,000 square feet at the $1 billion-plus redevelopment — which includes new commercial space and the expansion of Penn Station — marks the biggest office lease since the pandemic turned the market into a virtual ghost town for months on end. Come

These Brooklyn neighborhoods saw the biggest drops in home sales

Posted: 19 Aug 2020 04:00 AM PDT

Call it the pandemic paradox: Brooklyn home sales plunged in the second quarter, yet the median price went up. An analysis by The Real Deal of Brooklyn single-family and multifamily property sales shows that overall deals were down almost 52 percent year-over-year. In raw numbers, 680 homes were sold in the quarter compared to 1,410 in the same period last year. Luxury deals were hit the hardest. Normally such a massive drop in demand would