The Real Deal - New York Real Estate News

Peace prevails: SL Green, Local 79 settle dispute over protests

Posted: 21 Oct 2020 05:10 PM PDT

Shrill whistling, verbal shaming and a giant inflatable rat are now a thing of the past at SL Green’s Midtown headquarters. The developer has agreed to a settlement with labor union Local 79, following more than a month of contentious protests which resulted in both state and federal lawsuits. “After a productive meeting today, Local 79 has agreed to cease its protest regarding construction at 126 Nassau,” a joint statement from SL Green and Local

Passing the crown: Jon Paul Pérez to be Related Group prez

Posted: 21 Oct 2020 03:15 PM PDT

UPDATED, Oct. 21, 12:45 p.m.: Jon Paul Pérez was named president of the Related Group, taking over some leadership of the company from his father, Jorge Pérez. Jorge, who founded the Miami-based real estate giant in 1979, will stay on as chairman and CEO when Jon Paul becomes president in November, according to a release. Billionaire developer Jorge Pérez, known as the Miami condo king, has spoken about his succession plan in the past. Both

Starwood scores $265M refi for portfolio of InTown, Uptown hotels

Posted: 21 Oct 2020 03:00 PM PDT

Starwood Capital Group secured $265 million in refinancing for a portfolio of 58 extended-stay and midscale hotels nationwide, representing a fraction of all the hotels it owns and operates. Miami Beach-based Starwood hopes to execute the first lien mortgage about Oct. 28, according to a report from Kroll Bond Rating Agency. Starwood will use the funds to pay off existing debt, including a loan secured by 50 of the hotels that went into special servicing

Extell brings on Corcoran Sunshine to help market Central Park Tower

Posted: 21 Oct 2020 02:31 PM PDT

When it launched sales in 2018, Extell Development’s Central Park Tower was the most expensive condominium project in the city’s history. Two years later, the developer has announced a shake up of its sales team in the midst of a pandemic that has battered the city’s luxury condo market. In a statement Wednesday, Extell said Corcoran Sunshine Marketing Group would join the developer’s in-house sales team as co-exclusive brokers at the skyscraper at 217 West

City moves forward with first design-build contracts

Posted: 21 Oct 2020 02:20 PM PDT

Nearly a year after Gov. Andrew Cuomo signed a law granting it design-build authority, the city’s Department of Design and Construction has taken the first steps to using it for its most controversial projects. The department announced Wednesday that it has selected three companies to bid on the construction of a jail in Lower Manhattan: Gilbane Building Company, Leon DeMatteis Construction and Plaza Construction. The facility is one of four planned by the city to

Meet the agents Nest Seekers is betting on

Posted: 21 Oct 2020 02:00 PM PDT

Nest Seekers International CEO Eddie Shapiro hasn’t been betting all his money on a single jockey. He’s been actively grooming the next batch of star agents. Below is a look at some of the camera-friendly talent Nest Seekers is grooming. Read related story: What Ryan Serhant’s new venture says about the future of brokerage Erik Conover Agent, New York City Claim to fame: 1.48 million subscribers on YouTube (Ryan Serhant has 1.1 million) Michael Fulfree Agent,

Hotelier Sam Chang’s businesses snagged millions in PPP loans

Posted: 21 Oct 2020 01:35 PM PDT

Properties tied to New York hotel mogul Sam Chang secured millions of dollars in government aid that was intended to help small businesses impacted by the coronavirus. At least eight companies controlled by Chang nabbed between $2.8 million and $7 million in small business loans, CNBC reported. Chang founded the McSam Hotel Group, which made its name developing budget hotels along Manhattan’s West Side. Last year, Chang — who has claimed previously that he’s worth

Shadow Ventures launches crowdfunding for proptech startups

Posted: 21 Oct 2020 12:55 PM PDT

The latest in real estate crowdfunding: an accelerator aimed at helping early-stage proptech startups. Shadow Ventures, an Atlanta-based venture capital firm focused on real estate and construction tech, is raising money from individual investors for a new accelerator program that would help companies that are just starting out. Founder and CEO K.P. Reddy said his goal is to be “the Robinhood of VC,” referring to the stock-trading app. The crowdfunding aspect is rooted in his

WATCH: Million Dollar Listing LA stars dish on the luxury market

Posted: 21 Oct 2020 12:07 PM PDT

In a recent conversation with The Real Deal, the cast of “Million Dollar Listing Los Angeles” had a lot to say about the luxury market — it’s hot. What about condos? Horrible. And the reason high-end buyers are choosing L.A. over New York City? Lifestyle. Josh Altman and Tracy Tutor of Douglas Elliman, James Harris and David Parnes of The Agency, and Josh Flagg of Rodeo Realty gathered for a lively discussion with TRD’s Hiten

Inside Ryan Serhant’s new brokerage

Posted: 21 Oct 2020 11:00 AM PDT

Ryan Serhant’s decision to launch his own brokerage last month reignited a popular debate in the residential real estate industry: What’s the best way to harness an agent’s star power? Though Serhant’s breakaway embodies what brokerage leaders fear when a superstar agent and lead-generation machine needs the firm less than it needs him, it is the exception rather than rule. Most celebrity agents reject the idea of founding their own firm and dealing with the

Vornado sees $100M retail JV loss, $190M in 220 CPS gains

Posted: 21 Oct 2020 10:30 AM PDT

The ultra-luxury condo tower at 220 Central Park South continues to be a key income source for Vornado Realty Trust, as the coronavirus batters its prized retail assets on Five Avenue and in Times Square. The real estate investment trust has recorded an additional $103 million impairment loss on its prime retail joint venture for the third quarter, according to preliminary estimates released Tuesday. Over the same period, unit sales at 220 Central Park South

Safra family finally begins 660 Madison’s office-to-resi conversion

Posted: 21 Oct 2020 09:52 AM PDT

660 Madison Avenue’s offices are emptying out, though not for the reason you might expect. The real estate family office for J. Safra Real Estate is moving forward with plans filed five years ago to convert that portion of the property into residential and hotel units. Affected tenants include residential brokerage the Corcoran Group, private equity firm Lexington Partners, and venture capital and private equity firms led by Edgar Bronfman Jr., Waverly Capital and Accretive.

In “Billion Dollar Loser,” WeWork’s “epic rise” and Adam Neumann’s quiet enablers

Posted: 21 Oct 2020 09:00 AM PDT

Real estate executives had their doubts about WeWork, but many weren’t willing to risk missing out on its success. They and others who kept their criticism to themselves helped enable and then felled the co-working giant once it became clear that its crash would be just as extraordinary as its ascent. “They couldn’t explain WeWork’s valuation, but they were fearful that Adam [Neumann] might achieve his ambitions — nothing had stopped him thus far —

Airbnb sues LA “party promoter” for throwing “mansion parties”

Posted: 21 Oct 2020 08:36 AM PDT

Two days after Airbnb announced a global party ban for all its listings, Davante Bell threw a big party at an Airbnb rental. Guests at the Los Angeles County home were invited to pre-order bottle service for the Aug. 22 bash. To maintain discretion, a shuttle would pick them and take them to the undisclosed location. Hundreds of guests showed up at the property in Glendora, and Bell was later issued a $1,450 fine for

Brookfield looks to sell life-sciences portfolio for $3B

Posted: 21 Oct 2020 08:01 AM PDT

Brookfield Asset Management is looking to sell its life-sciences real estate portfolio for roughly $3 billion. The investment giant is working with advisers to market the 2.3 million-square-foot portfolio, Bloomberg reported. Brookfield acquired the properties through its 2018 acquisition of Forest City Realty Trust. The offer comes as Blackstone Group last week agreed to recapitalize a portfolio of life-science buildings for $14.6 billion. The transaction will generate $6.5 billion in profits, four years after Blackstone

Northeast drives gains in building permits, housing starts

Posted: 21 Oct 2020 07:30 AM PDT

Building permits and housing starts in the U.S. jumped in September, largely driven by activity in the Northeast. Privately owned housing starts reached a seasonally adjusted annual rate of 1.41 million units, up 1.9 percent from a revised August estimate, according to Inman. Single-family housing saw 1,108,000 units, up 8.5 percent from August, based on census data. “Today’s U.S. Census data shows that permits, starts and completions were bolstered by record-high builder optimism, and a

Rents fall in cities around the world

Posted: 21 Oct 2020 06:45 AM PDT

Across the country, rents are tumbling. Sales have surged in the New York suburbs, and prices with them. But Manhattan apartments are the cheapest they’ve been since 2013. The number of listings have tripled from a year ago while the median rent has dropped 11 percent, according to Bloomberg. Expensive cities have taken the biggest hit. In San Francisco, the median monthly rent for a studio has plunged 31 percent in a year to $2,285

Tension rises as public housing gets private management

Posted: 21 Oct 2020 06:00 AM PDT

Another 1,718 apartments across 16 Manhattan complexes are moving from public to private management, but some tenants fear promised upgrades are too good to be true. New paperwork has been sent out to residents as the shift moves forward, according to The City. The step is a vital one in converting the New York City Housing Authority developments under the federal Rental Assistance Demonstration program. RAD moves apartment complexes’ funding to Section 8, a reliable

Why the Soho rezoning will pass — and Gowanus, too

Posted: 21 Oct 2020 05:30 AM PDT

Developers prefer clear rules that they can follow to complete their projects. But in a dynamic metropolis such as New York, rules often become outdated as the city evolves. Shifts in lifestyles, technology, values and the economy create an ever-widening gap between what the rules allow and what developers, planners and elected officials want. Updating the rules is a technical process but inherently political. It gets even more so when race is a factor. And

Politics & property: How election results could affect REITs

Posted: 21 Oct 2020 05:00 AM PDT

From the trajectory of the economic recovery to the finer points of local tax laws, the outcome of the 2020 election is expected to have a major impact on the real estate industry, including publicly traded real estate investment trusts. With third-quarter earnings reports just around the corner, REIT analysts with Mizuho Securities USA looked at the sectors of the industry most likely to benefit from a Biden victory or a Trump re-election and selected

The brand dilemma: What Ryan Serhant’s new venture says about the future of brokerage

Posted: 21 Oct 2020 04:30 AM PDT

Only one of New York City’s top agents has half of a firm’s listings: Nest Seekers International’s Ryan Serhant. No one else is even close. The celebrity broker’s team has $583.9 million of Nest Seekers’ $1.16 billion in exclusive listings in the city, according to an analysis of OLR data by The Real Deal. John Burger, with 14 percent of Brown Harris Stevens’ book, is a distant second. The state of affairs has been a

Mortgage applications to buy homes decline for fourth straight week

Posted: 21 Oct 2020 04:00 AM PDT

The number of applications to buy homes dropped again last week, marking the fourth consecutive week of declines. https://therealdeal.com/tag/housing-market/ The index tracking the volume of purchase mortgage applications fell 2 percent, seasonally adjusted, last week, according to the Mortgage Bankers Association’s weekly survey of the U.S. residential mortgage market. The metric, known as the purchase index, was up 26 percent year over year, according to MBA. The index’s annual gains have been steady; it’s the