The Real Deal - New York Real Estate News

L+M in deal with union laborers to cut wages on affordable projects

Posted: 19 Nov 2020 03:50 PM PST

Roughly two years ago, developer Ron Moelis was late to a fundraiser for then-New York attorney general candidate Letitia James. His timing would prove fortuitous: He was approached by an organizer for a construction union that had historically attacked his company for using nonunion labor. Their conversation would lead to an agreement to hire the union on at least four affordable housing projects — at a substantially lower rate than on its typical jobs. Laborers

San Diego REIT to pour $1.7B into life-sciences real estate

Posted: 19 Nov 2020 03:45 PM PST

The life sciences sector has officially become the in-thing for real estate investors. Highlighting this interest, real estate investment trust IQHQ has raised $1.7 billion, which it plans to use for an existing development pipeline of 4.4 million square feet of life science projects in Boston, San Francisco and San Diego. The $1.7 billion raise comes just nine months after the Solana Beach, California-based company completed its initial capital raise of $770 million. IQHQ, formerly

NAR hit with another antitrust lawsuit over commissions and MLS rules

Posted: 19 Nov 2020 03:16 PM PST

The National Association of Realtors has once again had its competitive practices called into question — this time by the federal government. The Department of Justice announced Thursday that it filed a lawsuit against the trade association, alongside a proposed settlement, that takes aim at NAR’s “anticompetitive rules, policies, and practices,” according to a DOJ release. The proposed settlement from the Antitrust Division mandates that NAR change rules that currently allow brokers to withhold information

Domio not shutting down, plans “financial re-engineering”

Posted: 19 Nov 2020 01:26 PM PST

Reports of Domio’s demise have been greatly exaggerated, according to the company’s interim CEO. In response to a recent report that said the short-term rental company would cease operations and sell its assets, Jim Mrha, Domio’s interim CEO, said that its properties are, in fact, open for business. But Mhra, who joined Domio in March after spending more than 30 years in the hotel industry, also acknowledged that the startup is in the midst of

The rogues’ gallery: The stars and czars who’ve bought at 220 Central Park South

Posted: 19 Nov 2020 12:15 PM PST

The whale Vornado didn’t plan a 23,000-square-foot quadplex at its trophy property, but Citadel’s Ken Griffin changed those plans. In January 2019, he set a U.S. sales record with his $240 million purchase in the building. All the more stunning? The apartment is being delivered as a white box. Griffin has amassed a $1 billion real estate portfolio over the past two years, scooping up pricey properties in Palm Beach, the Hamptons and London. He

New York restaurateur Major Food Group to open three concepts in Miami

Posted: 19 Nov 2020 11:45 AM PST

New York restaurateur Major Food Group is expanding to Miami, with three locations planned in the Design District, South Beach and Brickell, The Real Deal has learned. The company, with concepts that include Carbone, Santina, The Grill and Parm, signed a lease for the space on the northeast corner of 41st Street and First Avenue in the Miami Design District, owner Jeff Zalaznick confirmed to TRD. Craig Robins’ Dacra owns the building, which is catty-corner

Tommy Hilfiger finds buyer for historic Greenwich estate

Posted: 19 Nov 2020 11:00 AM PST

Just two months after listing their huge Greenwich, Connecticut estate, Tommy Hilfiger and his wife Dee Ocleppo Hilfiger have accepted an offer for the property, the New York Post reported. The 22-acre estate hit the market in September asking $47.5 million; a sale price wasn’t disclosed. But the Post, citing a source familiar with the deal, reported that it sold “after just four showings, and three great offers.” The 13,400-square-foot main house dates to 1939

Year’s most expensive home in Sag Harbor sold for $15M

Posted: 19 Nov 2020 10:00 AM PST

The most expensive home sold in Sag Harbor in 2020 went into contract after just 60 days on the market. The 10,000-square-foot residence at 23 Ezekillis Hollow sold for $14.5 million, which was $1 million under its asking price. It is the fourth highest price ever on the North Haven waterfront. The newly built, two-story home sits on nearly two acres and features eight bedrooms and eight full baths. As lockdowns continue to plague the

Macy’s experiments with “dark stores”

Posted: 19 Nov 2020 09:15 AM PST

As Macy’s grapples with a net loss of $91 million in the third quarter, the brand is reimagining what the future of its business may look like. One possible answer: fulfillment centers. As two of its stores went “dark,” or closed to in-person shopping, they were converted into processing centers for online orders. The stores, in Colorado and Delaware, will be used to fulfill online and curbside orders. “We’re experimenting with that,” Macy’s CEO Jeff

US home sales rose again as inventory hit all-time low

Posted: 19 Nov 2020 08:45 AM PST

The housing market continued to roar with 6.85 million homes sold last month, but the shrinking pool of available homes has driven up prices. That number represented a 4.3 percent increase compared to September’s 6.5 million homes sold, and an annual jump of nearly 27 percent, according to the National Association of Realtors’ monthly report. The fifth consecutive month of gains in existing home sales came as supply hit an all-time low with just 1.42

Mortgage originations at 2nd highest level in 20 years: Fed

Posted: 19 Nov 2020 08:00 AM PST

Mortgage balances rose in the third quarter as foreclosure filings fell, according to the Federal Reserve Bank of New York. Borrowers took out $1.05 trillion in home loans, according to a new report. The level of mortgage originations, which includes both purchases and refinancing, was the second highest seen since 2000, the Wall Street Journal reported. Donghoon Lee, a research officer at New York Fed, said originations “continued on their upward trend as homeowners continue

Is urban living dead? “I don’t buy it,” says Miki Naftali

Posted: 19 Nov 2020 07:30 AM PST

UPDATED, Nov. 19, 11:20 a.m.: Last week, an unusual sign went up on Madison Avenue. Naftali Group’s latest marketing campaign features Jerry Seinfeld’s August love letter to New York City, and shone a light on the developer’s urban optimism as well. Miki Naftali, who is of Israeli origin but a longtime New Yorker, sat with The Real Deal founder and publisher Amir Korangy to discuss his “a little bit smart, but also lucky” approach to

Republicans’ hopes dim as NY Senate votes are counted

Posted: 19 Nov 2020 07:00 AM PST

Republicans’ hopes of whittling down Democrats’ advantage in the state Senate have been dashed, as absentee votes put incumbents ahead in several competitive races. New York Democrats now lead in 39 races as the counting of mail-in ballots continues. The party now expects to at least match the 40 seats it currently holds, if not gain a seat or two. The numbers could be of concern to landlords fighting tenant-friendly legislation in Albany following last

Real estate braces for new restrictions as virus cases surge

Posted: 19 Nov 2020 06:40 AM PST

New Yorkers are bracing for a second lockdown as virus cases climb across the state. The city’s public school system will shut down as of Thursday after virus cases hit 3 percent over a seven-day average, according to Mayor Bill de Blasio. The announcement was a blow for parents struggling to make sense of fluctuating messaging from city and state officials, as well as disruption to their children’s education. More significant restrictions could be in

“Brooklyn Point is a leap up for him”: Gary Barnett on why he tapped Serhant

Posted: 19 Nov 2020 06:09 AM PST

Ryan Serhant has lined up quite the challenge for his new firm. Serhant has been tapped by Extell Development to handle marketing and sales at its 458-unit Brooklyn Point, which towers over the borough at about 700 feet tall. The celebrity broker, famous for his TV roles and marketing stunts, is an unusual choice for Extell, which often has its discreet in-house team promote and sell its projects. Gary Barnett, Extell’s founder and chairman, admitted

Bain, Magnolia target fixer-uppers with $900M joint venture

Posted: 19 Nov 2020 05:30 AM PST

Bain Capital Real Estate and Magnolia Capital are teaming up to acquire and renovate multifamily assets. The joint venture will deploy $900 million on behalf of investors to purchase garden-style properties built between 1975 and 2000 with a middle-income renter profile, in what the companies deem well-located areas — i.e. suburban areas outside of Gateway cities. It will then pour money into fixing up those properties. Middle-income tenants were largely buffered from the employment losses

The rise of soundstage real estate, by the numbers

Posted: 19 Nov 2020 05:00 AM PST

Private equity giant Blackstone announced in June that it would acquire a 49 percent stake in a portfolio of television and film production spaces in Los Angeles County. Blackstone’s bet on Hudson Pacific Properties’ $1.65 billion portfolio signaled that soundstage space, as the industry calls it, had entered the big leagues. During HPP’s last quarterly earnings call, CEO Victor Coleman said Blackstone’s acquisition “provides validation to the stock market” for his firm’s decision to “assemble

The inside story of the world’s most profitable condo

Posted: 19 Nov 2020 04:30 AM PST

If not for 220 Central Park South, Vornado Realty Trust’s recent financials would have been a horror show. Vornado, one of New York City’s biggest landlords, recorded a $107 million loss in the third quarter on its prime retail portfolio, once-prized Fifth Avenue and Times Square properties that have been paralyzed by the pandemic. It also took significant hits on the shuttered Hotel Pennsylvania and other investments. But thanks to a flurry of closings at

Tribeca condo owners sue Magnum Real Estate, seeking $7.6M

Posted: 19 Nov 2020 04:00 AM PST

Unit owners are accusing Ben Shaoul’s firm of stiffing them on reserve-fund money for the Tribeca condominium 87 Leonard. But the law might not be on their side. The board of managers on Tuesday sued Shaoul’s Magnum Real Estate, alleging the developer was required to put another $1.89 million in sales proceeds into the building’s reserve fund. The board seeks that money plus fines and penalties for a total of about $7.6 million. The boutique