The Real Deal - New York Real Estate News

Two more $30M-plus penthouses at 520 Park just sold

Posted: 07 Feb 2019 03:30 PM PST

Two more $30 million-plus penthouses at Zeckendorf Development’s 520 Park Avenue closed over the past week, continuing a string of closings at the luxury tower. One nearly 4,600-square-foot simplex sold to an anonymous buyer for $32 million, according to a record filed Thursday with the city’s finance department. It was being offered for $39.5 million, according to the condominium’s offering plan. And late last week, former Barclays CEO Bob Diamond and his wife Jennifer dropped […]

Stellar Management overcharged tenants with unjustified renovation costs, judge says

Posted: 07 Feb 2019 03:15 PM PST

Manhattan landlord Stellar Management overcharged tenants based on unsubstantiated apartment renovation costs, a housing court judge ruled in a two-year old eviction case last month. Judge Sabrina Kraus said Stellar gave the impression that it paid a contractor $71,000 for Individual Apartment Improvements (IAIs) at a rent-stabilized Upper West Side building when it in fact hired an in-house employee to do the work, allegedly writing checks to three different shell companies that were controlled by […]

Mall owner Macerich expects more store closures in 2019 across portfolio: CEO

Posted: 07 Feb 2019 03:00 PM PST

As shopping malls nationwide have been battered by ecommerce, mall landlord Macerich has sought alternatives by redeveloping some of its properties into creatives office spaces. But that didn’t solve the core problem. Net income fell sharply for the quarter and the year. Macerich’s net income from September through December was down 64 percent, to $11.7 million in 2018 compared to $32.7 million the year before. For the year, it plummeted 58 percent, to $60 million […]

Trump open to changing controversial SALT tax provision

Posted: 07 Feb 2019 02:30 PM PST

Rich people from New York, Connecticut and other high-taxed states are flocking to Florida to buy real estate after President Trump’s 2017 tax law capped deductions of state and local taxes. But now Trump said he is open to changing this controversial provision of the tax law, according to Bloomberg. The move could potentially reduce the amount of “tax migrants” who are establishing residency in the Sunshine State by buying real estate. Trump did not […]

Hyatt New York to be demolished to make way for 2M sf tower

Posted: 07 Feb 2019 02:00 PM PST

Another tower is coming down in Midtown East — this time it’s Donald Trump’s first development. TF Cornerstone and MSD Partners, which controls the assets of Dell Technologies founder Michael Dell and his family, plan to demolish the Grand Hyatt New York to make way for a new 2 million square foot office tower, the Wall Street Journal reported. TF Cornerstone and MSD plan to take over Hyatt’s lease, which expires in 2077 and would […]

EB-5 investors sue NY developer for $50M over failed Chicago tower project

Posted: 07 Feb 2019 01:15 PM PST

A group of Chinese investors is suing a developer to return some $50 million invested in a failed River North tower project. The 60 investors each contributed $550,000 to the Chicago project in hopes of securing an American visa through the federal EB-5 program, but the plan by New York-based Symmetry Property Development was thwarted when Alderman Brendan Reilly (42nd) rejected it in 2017 over traffic concerns, according to Loop North News. The group filed […]

Agent convicted of extorting “The Jills” sent back to jail for violating probation

Posted: 07 Feb 2019 12:30 PM PST

The former Miami real estate agent sentenced to probation for extorting Coldwell Banker’s top-producing team, known as “The Jills,” is now going to jail. A judge sentenced Kevin Tomlinson on Thursday to just under a year, for violating his probation by posting about the duo on social media and failing to pay court costs. A jury convicted Tomlinson in June on two counts of extorting Jill Eber and Jill Hertzberg — the top-producing Coldwell Banker […]

IBM planning new $2B AI research center in Upstate NY

Posted: 07 Feb 2019 12:00 PM PST

New York City is developing a reputation for being a tech hotbed, but don’t sleep on Upstate. IBM is investing $2 billion into a new research hub in Albany focused on artificial intelligence. The new AI Hardware Center will focus on computer-chip research, development, prototyping, testing and simulation, according to Bloomberg. It will be located at the SUNY Polytechnic Institute in Albany. IBM, based in Armonk, has been pushing into new technologies like AI and […]

Could Amazon break into real estate by buying Redfin?

Posted: 07 Feb 2019 11:30 AM PST

Amazon has a history of breaking into new industries with a splashy buy, having disrupting the grocery business with the $13.7 billion acquisition of Whole Foods. Should the company do the same to real estate by buying online brokerage Redfin? One analyst thinks so. Jack Micenko, a housing and consumer finance analyst at Susquehanna Financial Group, makes the case for such a move in a new report. Among the various benefits such a purchase would […]

Resi scorecard: Manhattan condo inventory through December 2018

Posted: 07 Feb 2019 11:00 AM PST

NEW DEVELOPMENT CONDO REPORT MANHATTAN Inventory increased as new filings outpaced sales Developers filed three plans with a total of 243 units The state approved five plans with 121 units valued at $785 million Buyers purchased 119 units valued at $743 million SUPPLY MANHATTAN NEW DEVELOPMENT CONDO SUPPLY MOST EXPENSIVE CONDO PROJECTS APPROVED Source: TRData analysis of plans approved to sell by NYS AG in December LARGEST CONDO PROJECTS FILED Source: TRData analysis of […]

Christie Brinkley parting with Hamptons mansion after nearly $8M price chop

Posted: 07 Feb 2019 10:15 AM PST

Model Christie Brinkley is parting ways with her Sag Harbor mansion — for nearly 30 percent less than its original asking price. Brinkley is in contract to sell the property at 1 Fahys Road for just under its most recent asking price of $17.5 million, the New York Post reported. It was first listed for $25 million in October 2016, and the price was reduced to $20 million in 2017. Brinkley previously said she “had […]

Introducing TRD’s tri-state quarterly issue

Posted: 07 Feb 2019 09:30 AM PST

The Real Deal is expanding our coverage of the tri-state area with a quarterly issue looking at the real estate markets in Long Island and the Hamptons, New Jersey, Westchester and Fairfield counties. Each issue will be divided into market-specific sections and packed with the data-driven reporting, analysis and profiles the industry relies on from TRD. The tri-state issues will be published in February, May, August and November of 2019 and 55,000 copies will be […]

Knotel signs on for 5-floor spread near Herald Square

Posted: 07 Feb 2019 09:00 AM PST

Knotel is bringing 39,000 square feet of shared-office space to United Group’s 29 West 35th Street. The new lease spans five floors at the 12-story, 85,000-square-foot office building, located near Herald Square and Penn Station, Knotel announced Thursday. A Colliers International team of Michael Cohen, John Pavone and Jessica Verdi represented Knotel in the deal, while Roni Mova represented United Group in-house. Knotel now has more than 2 million square feet of deals in Manhattan […]

RE/MAX is reorganizing its franchise structure as it targets top agents

Posted: 07 Feb 2019 08:35 AM PST

RE/MAX is shaking up its franchise structure and focusing more of its strategy on training. The brokerage is breaking its franchises into four stages of development, Inman reported. Part of the change includes reworking the regional development and training teams. “The strategy behind what we’re doing here is really focused on the needs-based approach,” said Amy Somerville, the senior vice president overseeing the development and engagement team. “The needs of a new franchise owner who […]

Public Advocate candidate didn’t tell ethics commission about his luxury condos or upstate house

Posted: 07 Feb 2019 08:00 AM PST

A Queens candidate for the city’s Public Advocate has failed to report his ownership of multiple luxury properties to a state ethics agency. Ron Kim, who is one of 17 Democrats vying for the position vacated by Letitia James, now the Attorney General, has registered his voting address at a modest home on Ash Avenue in Queens since 2014, but made a series of real estate purchases the same year that suggest it’s not his […]

They didn’t love it. Kim and Kanye back out of Miami Beach condo purchase

Posted: 07 Feb 2019 07:35 AM PST

Maybe she didn’t love it? Kanye West has backed out of buying a luxury condo at Faena House in Miami Beach, according to Page Six. West will reportedly lose his deposit on the unit, a four-bedroom, 4,700-square-foot condo owned by Alex Blavatnik, brother of energy billionaire and Faena District investor Len Blavatnik. Unit 5A is on the market for $15.5 million. Oren Alexander and Isaac Lustgarten of Douglas Elliman have the listing. West, who saw […]

SoftBank’s value jumps $17B following share buyback, strong quarter

Posted: 07 Feb 2019 07:00 AM PST

SoftBank, the Japanese conglomerate backing WeWork, Compass and Uber, added $17 billion to its valuation, following a successful share buyback and spike in operating profit. The firm, led by Masayoshi Son, recorded a 17.7 percent jump in its shares Thursday, bringing its total valuation to just over $100 billion, according to CNBC. But Son said that the firm is worth almost double that figure, when its stakes in SoftBank Corp, the Saudi-backed Vision Fund and […]

PHOTOS: Inside TRD’s inaugural Future City summit in the Bahamas

Posted: 07 Feb 2019 06:30 AM PST

The Real Deal‘s first executive summit took place last week in the Baha Mar resort in the Bahamas. About 200 of the industry’s top brass from around the country flew in to network, discuss and debate some of the biggest issues in the business right now. From making sense of proptech valuations, optimizing the Opportunity Zone program and the future of all facets of the industry, the three-day event was full of some of the […]

Construction costs continue to climb in NYC

Posted: 07 Feb 2019 06:00 AM PST

Construction costs in New York City have increased steadily since 2010, and last year was no different with a 5 percent jump. A new report released by the New York Building Congress points to a concentration of work in the office, luxury multifamily and infrastructure sectors as part of the reason for rising costs. According to data from Rider Levett Bucknall, the average cost of building office space is $575 per square foot in New […]

Citing commission model, top NJ agent team ditches Keller Williams for eXp

Posted: 07 Feb 2019 05:42 AM PST

A top agent team on New Jersey’s Gold Coast has left Keller Williams for eXp Realty’s virtual brokerage, to escape what the brokers call a restrictive compensation model. David DeVoe, the head of his eponymous team based in Hoboken, which counts 32 agents and 10 staffers, said he had decided to move because of the commission structure at Keller Williams, according to Inman. He predicts that a “wave” of brokers will continue to leave Keller […]

Bentley Zhao tests market for Prospect Park South’s largest condo project

Posted: 07 Feb 2019 05:03 AM PST

UPDATED, Feb. 7, 10:17 a.m.: Bentley Zhao’s New Empire Real Estate Development is moving ahead with plans for his latest Brooklyn condo project — which would be the biggest residential project in the neighborhood of Prospect Park South. The developer filed a “test the market” application for its project at 222 East 21st Street (or 563-571 Ocean Avenue), according to filings with the New York State Attorney General. The submission is not an offering plan, […]

LIC rides the Amazon HQ2 wave, NYC’s sales slump continues and more of the biggest trends in resi right now

Posted: 07 Feb 2019 04:30 AM PST

NYC’s resi sales slump continues Residential sales in Manhattan dropped 3.3 percent in the fourth quarter of 2018, their fifth straight quarter of decline, according to a Douglas Elliman report. Green shoots, however, could be buried in the rubble. One potential sign of improvement is the rate of decline dropped in each successive quarter. “The market seems to be resetting to something more sustainable,” said Jonathan Miller, CEO of appraisal firm Miller Samuel. The outer […]

Brooklyn I-sales saw a surge in dollar volume last year. But there’s a caveat

Posted: 07 Feb 2019 04:00 AM PST

Brooklyn’s investment sales market saw a large spike in dollar volume in 2018 thanks to a series of big deals, but transaction volume stayed mostly flat, according to a new report from Ariel Property Advisors. Overall, the borough saw $7.84 billion worth of deals across 1,079 transactions and 1,404 buildings last year. This was a 24 percent increase in dollar volume, a 4 percent decrease in transaction volume and a 0.3 percent decrease in building […]