The Real Deal - New York Real Estate News

Landlords call for up to 6.5% rent hike on stabilized apartments

Posted: 26 Apr 2022 02:30 PM PDT

Like their counterparts in the housing market, New York City landlords know now is not the time to accept a first offer. Two weeks after the Rent Guidelines Board’s staff floated rent hikes of up to 4.5 percent on one-year leases for the city’s rent-stabilized apartments, the Rent Stabilization Association, a landlord group, has countered with a proposal to raise rents by up to 6.5 percent. In its testimony, the group argued that steeper hikes

U.S. home prices surged another 20% in February

Posted: 26 Apr 2022 01:30 PM PDT

Rising mortgage rates haven’t put a damper on home prices — yet. The S&P CoreLogic Case-Shiller Index posted a 19.8 percent annual gain in February. The figure is an increase from the 19.1 percent gain posted in January and the third-largest reading posted in 35 years. The 10-city composite, comprising the 10 largest metros, gained 18.6 percent year-over-year, up from 17.3 percent in January. Meanwhile, the 20-city composite posted an annual gain of 20.2 percent,

Deerfield nabs big refi at life sci property

Posted: 26 Apr 2022 12:30 PM PDT

Sometimes, it only takes one. Deerfield Management was able to score its entire refinancing for 345 Park Avenue South, a mammoth $440 million loan, from a single lender. AIG provided the 15-year debt for the 12-story, 326,000-square-foot building refashioned as a life-sciences campus, Commercial Observer reported. The deal closed last week. CBRE’s James Millon and Tom Traynor arranged the debt. Deerfield, run by James Flynn, used proceeds from CMBS loans and $112 million of equity

Chinese furniture magnate purchases Central Park Tower pad for $15.3M

Posted: 26 Apr 2022 11:30 AM PDT

Yao Liangbo has a new home to furnish. The vice chairman of Oppein Home Group, one of China’s largest makers of kitchen appliances and home furnishings, purchased unit 47C at Extell’s Central Park Tower at 217 West 57th Street for $15.3 million — $4,500 per square foot — according to property records filed April 14. The asking price was $16.5 million. Janice Chang of Douglas Elliman had the listing. The 3,400-square-foot corner unit has three

Cushman must play ball in Trump property probe: Judge

Posted: 26 Apr 2022 10:30 AM PDT

Letitia James has got Cushman & Wakefield in a corner. The New York Attorney General announced Monday that a court ruled the commercial real estate giant needs to comply with her office’s investigation into Donald Trump and the Trump Organization. The decision comes weeks after James went to state court to compel Cushman to comply with her subpoenas for her civil inquiry. A court has ruled that Cushman & Wakefield must comply with our investigation

The sin I live in: Times Square looks to Las Vegas for inspiration

Posted: 26 Apr 2022 09:30 AM PDT

As Times Square plots its post-pandemic future, the tourism and entertainment hub is taking a page out of Sin City. A series of new projects are betting big on tourism and entertainment in the neighborhood as its offices remain largely vacant, the Wall Street Journal reports. Prospects include Manhattan’s first casino, hotels with high-life amenities and major upgrades to tourist attractions. “I hope that anyone who wrote obituaries for Times Square has an eraser,” said

This agent commissions suit could rock the resi industry

Posted: 26 Apr 2022 07:30 AM PDT

A federal court ruling paved the way for homesellers to seek reimbursement on commissions paid to buyer agents, threatening to rock the residential real estate industry. Judge Stephen Bough ruled on Friday that one of two federal commission lawsuits could receive class-action certification, Inman reported. The lawsuit started three years ago, when two homeseller plaintiffs Joshua Sitzer and Amy Winger filed a lawsuit against the National Association of Realtors, Realogy and others, claiming the sharing

SEC looking into EB-5 fraud allegations against Queens developer

Posted: 26 Apr 2022 06:30 AM PDT

The Securities and Exchange Commission is investigating a Queens developer following allegations that he used EB-5 program funds to purchase a trio of mansions on Long Island. The SEC alleges Fleet Financial Group’s Richard Xia used investor assets as collateral to secure $30 million of loans to buy the Long Island homes, Crain’s reported. The SEC obtained an asset freeze against Xia and his company, Fleet New York Metropolitan Regional Center, in September. The EB-5

Steve Roth hellbent on flipping Madoff’s former Montauk home

Posted: 26 Apr 2022 05:00 AM PDT

For the umpteenth time, Steve Roth is hoping the stain of Bernie Madoff’s crimes won’t stop a rich buyer from taking their chances at the notorious Ponzi scheme’s former Montauk home. The Vornado Realty Trust CEO and his wife, Daryl, have put the home at 216 Old Montauk Highway back on the market, Realtor.com reported. The owners are seeking $22.5 million for the property, a 25 percent increase from what they tried to sell it

Future City: Venture capital doubles down

Posted: 26 Apr 2022 04:00 AM PDT

Undaunted Venture capital firms poured an unprecedented $4 billion of equity funding into the proptech sector in the first quarter, doubling down on their bets even as rising interest rates and the resulting market turmoil dragged on tech names. The quarterly total, an all-time high, represented a gain of more than 30 percent compared to the 2021 first-quarter sum — and last year turned out to be a record year for proptech fundraising. Investors have

Harlem resi towers project heads to contentious Council vote

Posted: 25 Apr 2022 02:36 PM PDT

A controversial proposal for residential towers in Harlem is now in the hands of the City Council. The City Planning Commission on Monday voted in favor of One45, a two-tower project that could bring more than 900 apartments to West 145th Street and Lenox Avenue, of which more than 200 units would be affordable. Ahead of the vote, City Planning Chair Dan Garodnick said the project was an opportunity to “put a dent” in the

Selling homes? Why use an office?

Posted: 25 Apr 2022 01:45 PM PDT

In a move sure to make their commercial counterparts wince, more residential brokerages are embracing the death of the traditional office. At Avenue 8’s Flatiron workplace, for example, there are no desks in the main area, but rather a giant wooden table and a constellation of sofas. There are a couple of conference rooms, a Zoom room and a kitchen, but no pods or cubicles. And it’s not in a conventional ground-floor retail storefront, but

Townhouses top Brooklyn luxury contracts again

Posted: 25 Apr 2022 12:30 PM PDT

Townhouses topped the Brooklyn luxury market for the second week in a row, according to a weekly Compass report on signed contracts asking $2 million or more. The townhouse at 108 Eighth Avenue in Park Slope was the priciest home in Kings County to go under contract last week, with an asking price of $6.9 million. The 8,000-square-foot townhouse is 20 feet wide and has five bedrooms and five bathrooms. It has mahogany woodwork, original

Hedge fund moving to HNA’s 245 Park

Posted: 25 Apr 2022 11:30 AM PDT

Verition Fund Management decided it needed bigger offices to accommodate a growing staff and found its future just a few steps away. The hedge fund moved into 38,000 square feet at HNA Group’s 245 Park Avenue, Bloomberg reported — more than quadrupling its footprint. The company moved from 8,500 square feet at RXR Realty’s 230 Park Avenue. Terms of Verition’s new lease weren’t immediately clear. Verition’s space at 245 Park opened on Monday and features

Katerra bosses sunk company with “self-dealing”: Lawsuit

Posted: 25 Apr 2022 10:49 AM PDT

While Katerra floundered, its executives diverted the firm’s business to their other companies and used its funds for private jet rides and basketball games, according to a new lawsuit. The lawsuit, filed by Katerra and some of its creditors, accuses ousted CEO Michael Marks and others of “self-dealing and self-interested transactions.” The complaint points to Katerra building apartments for the Wolff Company at a low cost. Wolff was owned by Paxion Capital, a firm run

Blackstone: Give me your tired, your poor REITs

Posted: 25 Apr 2022 09:30 AM PDT

Blackstone sees riches in the volatility of REIT valuations. The investment giant is pursuing private takeovers as the public-market valuations of REITs suffer, the Financial Times reported. Inflation and rising interest rates have led to REIT share prices dropping, presenting the company with bargains if it can take the companies private. Blackstone president Jonathan Gray explained his rationale, telling the publication that the public REIT market is “not necessarily reflective of what’s happening at any

Flurry of $4M+ deals continues in Manhattan

Posted: 25 Apr 2022 09:07 AM PDT

The biggest residential sale since April 2021 entered into contract last week, asking $79 million. The 82nd floor of CIM Group and Macklowe Properties’ 432 Park Avenue was the priciest home to go to contract between April 18 and 24. Its $79 million price tag was reduced from $90 million when it was listed in August 2020, but it still beat out every other resi sale of the past year, according to a report by

Harrison LeFrak headed for big-ticket divorce: report

Posted: 25 Apr 2022 07:38 AM PDT

The real estate industry is set to witness another mega-divorce. Harrison LeFrak, the billionaire scion of the LeFrak Organization, is reportedly set to split from his wife, Katherine Embiricos LeFrak, Page Six reported. The couple had a son in 2019 and married within the last five years. One insider told the publication the decision to part ways was Harrison’s, while another said the decision was mutual. Harrison is the co-managing director of the LeFrak Organization,

City Council considers fat tax cut on hotels

Posted: 25 Apr 2022 06:30 AM PDT

The hotel industry is still struggling to recover from the effects of the pandemic, and its lobbying group has an idea for the city to consider: lower the occupancy tax rate. The Hotel Association of New York City, which represents nearly 300 hotels across the city, has the City Council considering a steep cut to the occupancy tax rate on hotel stays, the New York Post reported. The association is pushing the Council and Mayor

Sam Zell’s EQR wants $750M+ for NYC rental portfolio

Posted: 25 Apr 2022 05:59 AM PDT

Fresh off a big-ticket sale of an Upper West Side apartment building, Sam Zell’s Equity Residential is looking to sell a portfolio of Manhattan and Brooklyn rental buildings for north of $750 million. The Chicago-based REIT put five buildings with a combined 1,180 units up for sale, The Real Deal has learned. The listing comes as EQR continues to reduce its exposure in New York City and similar markets and deploy the sales proceeds into

Big spenders: Real estate lobbying spiked for rent law

Posted: 25 Apr 2022 05:30 AM PDT

The year 2019 was a costly one for landlords — in more ways than one. A new report by tenant advocacy groups shows that landlords splurged on lobbying that year, then dialed it way back. Four industry groups spent more than $4.7 million on lobbying efforts in 2019, when the state overhauled rent stabilization in tenants’ favor. That was $1.7 million more than in 2018, 2020 and 2021 combined. Their spending plunged in 2020 and

With zero units sold, Tribeca project turns to Serhant

Posted: 25 Apr 2022 05:00 AM PDT

Serhant is taking over sales at another building. This time, the brokerage will be marketing 19 Park Place, which at one time was called Tribeca Royale. The condominium will relaunch sales as “Iris TriBeCa,” an identity created by Serhant’s new development team in partnership with ID Lab, the firm’s in-house branding team. It’s the 21st new development in just under 18 months for Serhant, which also manages sales and marketing for the Westly, Jolie at

Insurtech startup TheGuarantors raises $50M

Posted: 25 Apr 2022 04:00 AM PDT

TheGuarantors, a startup that offers a security deposit alternative and lease guarantees to cash-strapped renters, raised $50 million in Series C funding. The raise, led by Portage Ventures, follows the New York-based startup’s $15 million Series B in 2019 and brings its total equity funding to $77 million. The company did not disclose a valuation following the round, which was announced Monday. A handful of “insurtech” startups offer alternatives to security deposits — allowing renters