The Real Deal - New York Real Estate News

Rare bird: Artist leases entire Hell’s Kitchen building

Posted: 01 Apr 2022 03:56 PM PDT

Renowned artist Hunt Slonem ended his hunt for space by taking all of a Hell’s Kitchen building. The painter, sculptor and printmaker is leasing all 37,000 square feet of Marin Management’s 595 11th Avenue, the Commercial Observer reported. Slonem signed a five-year lease for the property, where the asking rent was between $52 and $55 per square foot. The previous tenant at the building was creative marketing firm Mother New York, which left Manhattan for

Lam Group scores $168M for Apollo Theater residential project

Posted: 01 Apr 2022 01:56 PM PDT

A long-brewing development that will bring apartments, retail and more arts to an uptown cultural center has fresh legs. Lam Group and Exact Capital Group scored a $167.5 million construction loan on the Victoria Tower in Harlem, their ground-up development two buildings east of the Apollo Theater. The building at 233 West 125th Street will include 191 rentals, including 103 set aside for people or couples earning between 50 and 130 percent of the area

One Fifth Avenue co-op sells in less than a day

Posted: 01 Apr 2022 11:00 AM PDT

A full-floor co-op in a celebrity mainstay building sold less than a day after listing. Unit 25AB at 1 Fifth Avenue asked $5.99 million. Listing agent William Martin of Douglas Elliman said the buyers reached out immediately after the listing was posted. “That’s certainly a record for me,” Martin said of the speedy sale. “Even when we’re in a wonderful market as we are today, that’s not the norm.” The unit had been listed for

Jobs report brings good news for real estate

Posted: 01 Apr 2022 10:00 AM PDT

Restaurants, bars and hotels hired 112,000 workers in March, a show of modest strength in the sector as national employment climbed to within 1 percent of pre-pandemic levels. The economy added 431,000 jobs last month with notable gains in leisure and hospitality, construction, building services and rental and leasing, according to figures released by the Department of Labor on Friday. “March was another strong month for the job market,” Mike Fratantoni, chief economist for the

London firm resurfaces in NY with $50M Soho deal

Posted: 01 Apr 2022 09:18 AM PDT

London-based Chelsfield Group picked up the ground lease at 580 Broadway, an ornate office building in Soho spanning 128,000 square feet, for $50 million, real estate records show. Miami’s BridgeInvest provided $35 million in financing for the acquisition. Nathaniel Mosery’s Broad-Prince Realty owns the land beneath the building. “We believe in the vibrancy of Soho,” said Chelsfield America director Paul Apollonio, describing the neighborhood as a place where New Yorkers live, work and play. He

Paramount CEO rode stock price dip to a raise

Posted: 01 Apr 2022 08:15 AM PDT

Timing is everything, as proven by Paramount Group CEO Albert Behler’s pay boost last year due to an options grant coming at the right moment. Behler’s total compensation last year was $9.7 million, a rise from $9.3 million in 2020, Crain’s reported. The bump came due in part to options grant provided to the chief executive on Jan. 11, 2021. Behler had an ability to buy about 780,000 shares at a closing price of $8.63

NJ-based real estate firm continues push into Stamford

Posted: 01 Apr 2022 07:30 AM PDT

UPDATED March 31, 2022, 7:56 p.m.: New Jersey-based KABR Group is making further inroads in another tri-state area market with its second and third multifamily purchases in Connecticut. The private equity real estate firm, in a joint venture with a joint family office, acquired two multifamily communities in Stamford for $41.3 million. The portfolio totals 116 units at 163 Franklin Street and 750 Summer Street. The buildings were formerly known as The Moderne and The

Health care system’s FiDi lease is lower Manhattan’s largest in 18 months

Posted: 01 Apr 2022 07:00 AM PDT

Manhattan’s office market continues to struggle, but that doesn’t mean some tenants aren’t betting on the city’s recovery in a major way. Not-for-profit health care system MJHS signed a lease for more than 138,000 square feet at 55 Water Street, the New York Business Journal reported. According to CBRE, it’s the largest new lease in lower Manhattan in the last 18 months. The lease is for 30 years, according to the Business Journal. Financial terms

Zelig Weiss returns with bid to buy William Vale in Williamsburg

Posted: 01 Apr 2022 06:30 AM PDT

Zelig Weiss has made a surprising comeback attempt to take control of the William Vale hotel in Williamsburg. Weiss, who co-developed the swanky hotel with Brooklyn landlord Yoel Goldman, made an all-cash offer to buy the property late last year, despite facing a lawsuit alleging he diverted money from it. Israeli bondholders, who held the debt, rejected Weiss’s bid in favor of a proposal from Monarch Alternative Capital and Richard Wagman’s Madison Capital. But now

Bankrupt hotelier Howard Wu stiffed operator of $23M: suit

Posted: 01 Apr 2022 06:00 AM PDT

Three and a half years ago, Howard Wu’s Los Angeles–based hospitality firm, Urban Commons, made its first foray into New York City, acquiring the Wagner Hotel for $147 million. But things went south fast, according to Highgate Hotels, the hotel operator he inherited at the Downtown Manhattan establishment. The pandemic emptied the hotel, forcing it to close in April 2020. While some hospitality businesses in New York have since come back, the Wagner never did.

Sale of Tudor-style estate hits Westchester County peak

Posted: 01 Apr 2022 05:00 AM PDT

A Tudor-style estate claimed the title for priciest sale so far this year in Westchester County. The home at 21 Stratford Road closed Tuesday for $8.825 million. It is the highest priced home sold in Harrison in the past 25 years, according to the OneKey Multiple Listing Service. The home was listed for $8.9 million. Made up of stone and slate, the Tudor-style home was built in 1928 before being redesigned and modernized in 2006

Pieds-à-terre are having a moment

Posted: 01 Apr 2022 04:00 AM PDT

Danielle Marx missed the vibrancy of Manhattan’s city streets so much that she decided to give up her Carroll Gardens condo for one in Chelsea. When Marx, the president of a manufacturing and merchandising firm, moved to Brooklyn several years ago, she wanted more outdoor space and a breather from Manhattan’s relentless bustle. But now that she has a house in East Hampton, she’s happy to give up her outdoor space and quiet sidewalks for

Startup raises $15M to slash building systems design, construction costs

Posted: 31 Mar 2022 02:32 PM PDT

Buildings are cities unto themselves, with costly, complex infrastructure. Designing and installing the wiring, ducts and other elements that serve as their streets, stoplights and subway lines typically amounts to 40 percent of a development’s total cost. One startup says that with automation, it can lower those expenses by “at least” 12 percent, possibly saving owners millions. BeamUP, a Tel Aviv-based proptech firm founded in 2019, launched its platform this week with $15 million in

Website digs up more dirt on CoStar CEO

Posted: 31 Mar 2022 01:53 PM PDT

Former CoStar employees are firing more rounds at the chief executive of real estate data firm CoStar. A former communications director at the company claimed CEO Andy Florance brandished a black semiautomatic pistol during a March 2020 video meeting, as well ammunition for the weapon, Insider reported. CoStar claimed it didn’t happen, but text messages sent by the ex-spokesperson immediately after the call corroborated the account, as did two former employees who received the messages.

Landlords’ profits drop nearly 8%, most in 17 years: rent board

Posted: 31 Mar 2022 12:33 PM PDT

A report by the city’s Rent Guidelines Board released Thursday showed rent-stabilized buildings’ net operating income fell 7.8 percent in 2020, the largest dip in 17 years. Profits plunged as rental income declined 3.8 percent year-over-year after the Rent Guidelines Board froze rents for one-year leases in the period. Owner groups warn that the withering returns show the city’s stabilized housing stock could be on the brink of “collapse” as landlords struggle for revenue to

Hope fades for 421a replacement in state budget

Posted: 31 Mar 2022 11:15 AM PDT

The popular property tax break 421a may be sidelined in state budget negotiations, leaving developers with less leverage and time to fight for its renewal. Gov. Kathy Hochul had pitched a new program, 485w, to promote development of multifamily buildings. It required deeper affordability but largely mirrored its predecessor. Advocates and some lawmakers have criticized the proposal and called for the end of the tax break, which expires June 15. According to The City, 485w

SEC proposes more transparency for SPACs

Posted: 31 Mar 2022 10:30 AM PDT

The Securities and Exchange Commission is looking to up the scrutiny on special purpose acquisition companies in another setback for a struggling market. The SEC on Wednesday proposed rules that would require SPACs to provide more investor disclosures with information on ownership of the public shell companies, along with performance forecasts. Some SPACs may also have to register as investment companies, forcing them to face stricter rules. The proposal puts advisers of the blank-check firms

William Vale developer Zelig Weiss plans resi project near Navy Yard

Posted: 31 Mar 2022 09:45 AM PDT

Zelig Weiss, who co-developed the swanky William Vale hotel in Williamsburg, now has his eye on a Bed-Stuy site with a litigious history near the Brooklyn Navy Yard. Weiss’ Riverside Developers is planning a seven-story, 83-unit residential building at 22 Skillman Street, according to permits filed with the NYC Department of Buildings. Daniel Condatore of Mode Architects is listed as the architect of record for the project. It is unclear whether Weiss intends to build

Flood insurance rates to rise as new rules take effect

Posted: 31 Mar 2022 09:09 AM PDT

While changes to the National Flood Insurance Program set to take effect April 1 will raise prices for 80 percent of policy holders, only a few New York City homeowners will pay substantially more. Generally, the increases will be modest, and many will see dramatic decreases. It all boils down to how prone your home is to flooding — and how safe your neighbors’ homes are. “If you live in these risky places your insurance

Ashkenazy loses original Barneys building

Posted: 31 Mar 2022 07:50 AM PDT

It’s officially over for Ben Ashkenazy at Barneys. Lender Argentic Investment Management acquired the Chelsea building that housed the original Barneys New York department store after a $49.5 million foreclosure judgment. Argentic took over from from Ashkenazy Acquisitions through a referee deed, PincusCo reported. The transfer closed two weeks ago at a price of $7 million. The foreclosure had been a long time coming for retail powerhouse Ashkenazy. A lawsuit was filed against the shell

FiDi’s empty offices lift Manhattan’s availability to quarterly high

Posted: 31 Mar 2022 06:45 AM PDT

Manhattan’s office market reached another record in the first quarter — but, in a familiar refrain since the onset of the pandemic, it’s not a good one. The availability rate in the first quarter reached 19 percent, according to Savills Research data reported by Bloomberg. It’s the highest availability recorded by Savills going back to 2000. The Financial District is one of the biggest contributors to the record. More than 25 percent of the neighborhood’s

State bill seeks to eliminate racial restrictions in deeds

Posted: 31 Mar 2022 05:00 AM PDT

In December 2020, a neighborhood group in Brighton, New York, removed language from nearly 300 deeds that barred the homes from being sold to people of color. Lawmakers are now moving to eradicate the discriminatory covenants from deeds throughout the state. The state Assembly on Tuesday passed a bill that would require property owners to remove deed restrictions that discriminate against potential buyers based on race, religion, disability, sex, source of income, marital status or

Apartments in the Bronx, Washington Heights top slow week for investment sales

Posted: 31 Mar 2022 04:00 AM PDT

Much like a lamb, mid-market investment activity slowed to a gentle crawl as the city entered the latter half of March. The three largest portions of a $92 million multifamily portfolio deal in Washington Heights topped the list of investment sales between $10 million and $40 million recorded last week. In Hell’s Kitchen, Yevgeniy Lvovskiy’s ZHL Group picked up a development site, and in the Bronx, a landlord cashed out on an apartment building that