The Real Deal - New York Real Estate News

Resi brokerages decry StreetEasy’s latest fee as “blackmail”

Posted: 23 Jan 2019 04:08 PM PST

Some predicted it. Many dreaded it. And now that it’s here, some are calling it a form of extortion. A day after StreetEasy introduced a fee that will let agents bypass Premier Agent, the city’s top residential firms sharply criticized the program — dubbed Agent Spotlight — saying it would pit brokers against each other and was forcing agents to pay for exclusivity on hard-fought listings. “At its core, StreetEasy is asking that agents pay […]

Here’s one way to change rent regulation: Hold $16M hostage

Posted: 23 Jan 2019 02:30 PM PST

The Cuomo administration is seeking to ensure rent regulation is reformed, in part, by trying to keep $16 million from the body that enforces rent rules. The state’s proposed budget includes a clause that would hold $8 million this year, and another $8 million the following year, from the Office of Rent Administration and another fund controlled by the state’s housing regulator if the “Rent Regulation Act of 2019” doesn’t pass. The “Rent Regulation Act” […]

Westchester & Fairfield Cheat Sheet: Toll Brothers and JPMorgan team up on $157M Harrison luxury tower, Bruce Willis lists Bedford estate for $13M … & more

Posted: 23 Jan 2019 02:00 PM PST

Toll Brothers, JPMorgan team up on $157M Harrison luxury tower Home construction giant Toll Brothers and J.P. Morgan Asset Management have formed a joint venture to develop a 421-unit luxury apartment building in Harrison, according to GlobeSt. Toll Brothers broke ground on the $157 million project, known as the Carraway, after acquiring and demolishing a three-story office building on the property in August 2017. The joint venture has now secured a $102 million construction loan split between Wells Fargo, National […]

Jamaica is getting another resi development

Posted: 23 Jan 2019 01:45 PM PST

Another apartment complex could soon go up in Jamaica. A new building application filed with the Department of Buildings on Wednesday calls for an eight-story, mixed-use building at 88-11 179th Place, near Hillside Avenue. The roughly 52,000-square-foot development will have 49 units, retail space and a day care. Priya LLC, with Palwinder Singh as partner, was recorded as the project’s owner. A person who answered the phone number listed on the application declined to comment. […]

Chicago alderman was FBI mole in property tax extortion case against colleague, report says

Posted: 23 Jan 2019 01:15 PM PST

Working with the FBI, Alderman Danny Solis secretly recorded colleague Alderman Ed Burke for two years before Burke was charged with trying to extort a restaurant owner in exchange for property tax appeal work. Solis (25th) helped federal investigators build their case against Burke (14th), who allegedly delayed the processing of city permits for a South Side Burger King because the franchise owner wouldn’t hire Burke’s law firm, according to the Chicago Sun-Times, which reported […]

London, New York top list of global CRE investment in 2018: report

Posted: 23 Jan 2019 12:30 PM PST

Global commercial real estate investment topped $730 billion last year in the top 30 cities, as investors around the world poured in a record amount. The news wasn’t all good, as investment was expected to fall this year. London maintained its position in the top spot from 2017, according to a newly-released JLL report, which ranks 30 cities with the largest investment worldwide. New York overtook Los Angeles for the second spot in 2018 — […]

Ken Griffin sets US home record with $238M buy at 220 CPS

Posted: 23 Jan 2019 11:37 AM PST

Hedge funder Ken Griffin has closed on a massive penthouse at 220 Central Park South, paying a record-shattering $238 million, according to sources familiar with the deal. The Citadel founder has long been rumored as the buyer of the condominium’s most lavish spread — a 23,000-square-foot quadplex encompassing the 50th through 53rd floors of the limestone tower, developed by Vornado Realty Trust and designed by Robert A.M. Stern. The asking price was $250 million. The […]

Developer of East Village hotel blames a “grass roots campaign of fear and misinformation” for project holdup

Posted: 23 Jan 2019 11:30 AM PST

The development firm trying to build a hotel in the East Village says its project was rejected over politics, not facts. Kalodop II Park Corp., which has spent years working on a proposal for an eight-story hotel at 27 East 4th Street, is suing New York City, the City Council and Councilmember Carlina Rivera over the rejection of their ULURP application for the development. The firm began seeking approvals to convert its one-story parking garage […]

David Werner in contract to buy 40% stake in 237 Park Ave

Posted: 23 Jan 2019 10:30 AM PST

David Werner is in contract to buy roughly 40 percent of 237 Park Avenue, valuing the Grand Central-area office building at $1.25 billion. Werner put together a syndicate of investors to buy a stake from owners RXR Realty and Walton Street Capital, sources told The Real Deal. Scott Rechler’s RXR Realty and Walton Street – the Chicago-based real estate private equity firm – will retain the remaining 60 percent ownership stake in the building, according […]

Brooklyn’s investment sales market saw more than $7B in deals last year

Posted: 23 Jan 2019 10:20 AM PST

Property trades in Brooklyn followed the same direction as the city’s broader investment sales market: up. The borough saw $7.4 billion in total dollar volume in 2018, a 15 percent increase from 2017, according to TerraCRG’s annual report on the borough. This marks an end to a two-year decline in dollar volume in the borough. Transaction volume continued to slide, however, with 1,197 commercial deals taking place throughout the year. This was a 12 percent […]

Ashford picks up Midtown hotel for $195M

Posted: 23 Jan 2019 09:30 AM PST

Ashford Hospitality Trust Inc. is officially in business in New York City. The Dallas-based real estate investment trust paid $195 million to buy the newly built 310-room Embassy Suites by Hilton New York in the Garment District, the company announced Wednesday. It’s the firm’s first acquisition in the Big Apple. “The hotel is a high-quality, well-positioned asset that we expect will benefit from the positive trends occurring in the dynamic Manhattan market,” Ashford CEO Douglas […]

Developer Adam Wolkoff buys Larry Silverstein’s $9M Park Ave condo

Posted: 23 Jan 2019 09:00 AM PST

What goes around, comes around. At least in the world of big name developers. The buyer of Larry Silverstein’s condo at 500 Park Avenue has been revealed. The apartment sold for $9.3 to Adam Wolkoff, son of 5Pointz and Heartland developer Jerry Wolkoff, according to documents filed today. News broke last week that Silverstein found a buyer for his Park Avenue home, and documents filed today show his wife Klara Silverstein sold the apartment below […]

Subscribers: Here’s the info for tomorrow’s call on elevator accidents

Posted: 23 Jan 2019 08:30 AM PST

Tomorrow at 2:30 p.m. (EST), subscribers will get an inside look at our January cover story–a seven-month investigation on elevator accidents in New York. The Real Deal’s James Kleimann, Kathryn Brenzel and David Jeans will discuss exactly what has impeded the safety of the city’s elevators in recent years, and more. Call-in number: +1-510-338-9438 Access code: 626 424 967 Do you have questions about elevator safety? What would you like to know about TRD’s reporting […]

Developers of Chelsea Hotel project hit with suit from holdout tenants

Posted: 23 Jan 2019 08:00 AM PST

The holdout tenants of the Chelsea Hotel, who are fighting for rent-stabilized rooms, are now taking legal action. The lawsuit is a last-ditch effort to cement the property’s status as an apartment building for permanent residents, the New York Post reported. Five residents have rent-stabilized leases at the landmark building, which BD Hotels’ Ira Drukier and Richard Born have been redeveloping into a high-end hotel and condo with a bar and spa. The long-term residents […]

NYCHA managers ran Bronx complex “like a jail”: report

Posted: 23 Jan 2019 07:30 AM PST

An investigation into the city’s troubled housing agency found a culture of misconduct and employee mistreatment at one Bronx complex. Managers routinely retaliated against subordinates, rigged contracts and destroyed appliances meant for residents at Throggs Neck Houses, the New York Times reported, citing the findings from the city’s Department of Investigation. They also clocked overtime without working extra hours and held on-site parties. The investigation followed allegations made about the workers at the a 29-building […]

Slippery slope? Unconventional home mortgages are on the rise

Posted: 23 Jan 2019 07:00 AM PST

Unconventional mortgages — the likes of which were criticized for their role in the financial crisis — are making a comeback. These loans are aimed at buyers facing circumstances such as not being able to provide standard proofs of income, the Wall Street Journal reported. And they’re on the rise — even amid higher home prices and interest rates. Aryanna Hering, for example, didn’t have pay stubs or tax forms to validate her income. But […]

Georgetown lands $410M loan for 787 11th Ave

Posted: 23 Jan 2019 06:30 AM PST

The Georgetown Company has landed financing for its office redevelopment at 787 11th Avenue. The company secured $410 million from Societe Generale, which provided the 10-year commercial mortgage-backed securities loan, Commercial Observer reported. “We had great reception,” Jonathan Schmerin, Georgetown managing principal, told CO. “We were looking for a CMBS loan and a number — if not all — of the major Wall Street players shared their indication of interest with us.” Ackman-Ziff’s Russell Schildkraut […]

Real estate data startup CrediFi raises another $6M

Posted: 23 Jan 2019 06:00 AM PST

The real estate data and analytics startup CrediFi just got $6 million richer. The latest round of investments comes on the heels of its $13 million Series B funding round, and it will be used to expand the company’s recruiting efforts and efforts to get to market. Liberty Technology Venture Capital II led the round of fundraising, along with Maverick Ventures Israel and Japanese real estate investor Mitsui Fudosan. The company also received additional funds […]

This congresswoman is working on a bill to target LLCs in real estate

Posted: 23 Jan 2019 05:30 AM PST

A new bill may go after LLCs in real estate. Congresswoman Carolyn Maloney said she’s hoping to introduce a bipartisan bill that would force every LLC to reveal its owners, the New York Post reported. LLCs can be used to purchase real estate anonymously, which has allowed celebrities to stay under the radar but also facilitated criminal activity. Since LLCs, which provide tax incentives and a shield from liability, were legalized in New York State […]

Takes from the REBNY 2019: Execs play a real estate word association game

Posted: 23 Jan 2019 05:00 AM PST

Say the first thing that comes to your mind when you hear the word “vacancy”… The Real Deal played a game with some of the biggest names in the business to get some insight on what they’re really thinking. Check out the video above to see some of the most memorable moments.

At the desk of: Joel Breitkopf

Posted: 23 Jan 2019 04:30 AM PST

Joel Breitkopf is a principal at Alchemy Properties — the real estate firm best known for its conversion of the upper floors of the famed Woolworth Building to condos. Breitkopf joined Alchemy in 1993 and has since been involved in virtually every aspect of its business, from development to marketing to acquisitions. The company — which is currently attempting to sell a Woolworth penthouse for $110 million — has developed 2 million-plus square feet of real estate. […]

Elliman’s Michael Graves leaps to Compass

Posted: 23 Jan 2019 04:00 AM PST

Douglas Elliman’s Michael Graves — a new development and luxury broker with more than $326 million in listings — is moving to Compass. Graves, who joined Elliman in 2013 and once appeared on HGTV’s “Selling New York,” has sold more than $1 billion worth of real estate to date, according to the venture-backed firm. Graves, who resigned from Elliman on Tuesday, said his decision was rooted in the rapid changes taking place in the real […]