The Real Deal - New York Real Estate News

News Corp. looks to Opcity lead-generation to boost real estate services biz

Posted: 07 Feb 2020 02:04 PM PST

News Corp. is banking on lead-generation platform Opcity to boost the fortunes of its digital real estate services, whose revenue dipped 5 percent last quarter. CEO Robert Thomson acknowledged in an earnings call Thursday that quarterly returns were somewhat soft: year-over-year revenue for real estate services fell to $294 million last quarter from $311 million in 2018. But he said the company anticipates a boost from its lead-generation overhaul. “Key indicators for the property market

Ex-con’s campaign funded by real estate principal sued for fraud

Posted: 07 Feb 2020 01:55 PM PST

Three real estate figures have opened their wallets for a controversial figure in New York politics: convicted felon and Queens district leader Hiram Monserrate. And one of them has some trouble of her own, namely a lawsuit alleging insurance fraud. Monserrate, a candidate for Assembly, was forced out of the state Senate more than a decade ago after assaulting his girlfriend, which led to a misdemeanor conviction, and served time for misusing taxpayer funds. That

Maddd Equities, NYCFC nearing deal for Bronx stadium

Posted: 07 Feb 2020 01:51 PM PST

Jorge Madruga and the New York City Football Club are closing in on a deal to build a $1 billion development in the Bronx that will include a new soccer stadium. Madruga’s Maddd Equities and the team’s owners are close to an agreement with the city that will allow the soccer club to build a 25,000-seat stadium in the South Bronx, according to the New York Times. The stadium will be privately funded and part

TRD on TV: Erin Hudson talks broker-fee shocker on CBS

Posted: 07 Feb 2020 01:45 PM PST

TRD reporter Erin Hudson broke the news Wednesday that New York landlords, not tenants, would be obliged to pay broker fees for agents representing property owners. The news from the Cuomo administration came as a shock to tenants and the industry alike and has caused a huge amount of chatter in a city where almost 70% of residents rent their homes. Hudson appeared on CBSN New York Friday morning to explain the possible aftereffects. “Undoubtedly

“Good cause” eviction bill amended, advances in Albany

Posted: 07 Feb 2020 01:16 PM PST

New York landlords’ worst nightmare, the “good cause” eviction bill, is on the move. State Sen. Julia Salazar’s bill was amended Thursday to allow for a rent increase of 3 percent or 150 percent of the Consumer Price Index, whichever is higher — up from 1.5 percent in its original form. Language forbidding evictions of tenants who are hit with “unconscionable” rent increases was also changed — to “unreasonable,” which lawmakers preferred, according to supporters

One year later, Amazon Effect still felt in LIC, citywide

Posted: 07 Feb 2020 01:00 PM PST

For a while, people thought Josh Schuster, the managing principal of Silverback Development, was a genius. Just a few weeks after Amazon announced in late 2018 that it would open an East Coast headquarters in Long Island City, Schuster finalized a deal already in the works to buy a half-built rental nearby for a condo conversion. In early February last year, Silverback started construction, and he filed an offering plan around the same time. “At

Manhattan DA drops charges against developer Michael Shah

Posted: 07 Feb 2020 12:05 PM PST

The Manhattan district attorney’s office dismissed all charges Friday against developer Michael Shah months after an ex-girlfriend alleged that he attacked her. Shah had been arrested in September on harassment and assault charges after Bhavana Chamoli accused him of pushing her into a wall and onto the floor. Chamoli was then arrested in November on charges of assault and criminal mischief after Shah, who heads Delshah Capital, accused her of slapping him in the face

Real estate industry to sue NYS over rental commission ban

Posted: 07 Feb 2020 11:33 AM PST

Faced with the prospect of losing millions of dollars in commissions, the real estate industry plans to sue state regulators to block a new policy that would end some tenant-paid rental fees. The Real Estate Board of New York and the New York Association of Realtors, in conjunction with several major New York residential brokerage firms, plan to file an Article 78 proceeding on Monday to stop enforcement of the guidance, sources told The Real

Ignore or adhere: Brokerages divided in response to rental fee ban

Posted: 07 Feb 2020 11:15 AM PST

UPDATED, Feb. 7, 2020, 3:15 p.m.: Sarah Saltzberg got an email alerting her to state regulators’ new interpretation of the rent laws at just after 9 p.m. on Tuesday. “This blindsided us,” she said. “The sky is blue. Now all of a sudden the sky is red. Change your entire business model.” Saltzberg — one of 25,000 licensed brokers in New York City — leads Bohemia Realty Group, a 100-plus-agent firm that focuses on rentals

Mark your calendars: These are NYC’s top real estate events next week

Posted: 07 Feb 2020 10:50 AM PST

Here are a couple of real estate events coming up next week. Host: Women in PropTech Date: Feb. 12 Time: 8 a.m. to 12:30 p.m. Women in PropTech is holding its Tech-Enabled Brokerage Summit at Commons by Knotel, 33 West 17th Street. Come to this event to network and hear discussions focused on technology as a disruptor in the real estate industry. Speakers include Amol Sarva of Knotel and Whitney Arcaro of RXR Realty. Host:

Broker fees for NYC rentals mystified outsiders. Here’s how other US cities do it

Posted: 07 Feb 2020 09:49 AM PST

New York City’s rental market broker fee system, which has been especially perplexing for out-of-towners, is now mostly a thing of the past. But outside the five boroughs, just how rare is the practice of tenants having to pay landlord listing agents a fee before they can sign a lease? Interviews with real estate agents and industry pros across the country point to Boston as the last major stronghold where the practice is still common.

Home-valuation startup closes $65M funding round

Posted: 07 Feb 2020 09:45 AM PST

A fintech firm peddling alternative home valuations for institutional investors just closed a $65 million funding round. House Canary, which automates the sometimes costly and lengthy process of home valuations, just closed a $65 million funding round led by Morpheus Ventures, Alpha Edison, and PSP Growth, the company announced Thursday. The new funding brings its total to $130 million. The startup, which reported that its revenue doubled in each of the last two years, provides

Barnett refis Diamond District assemblage with $340M loan

Posted: 07 Feb 2020 09:23 AM PST

UPDATED, Feb. 7, 2020, 4:15 p.m.: Gary Barnett refinanced his big Diamond District assemblage with more than $300 million from JPMorgan Chase. The bank lent Barnett’s Extell Development $340 million for a baker’s dozen of properties along Fifth Avenue and around West 46th and West 47th streets, property records filed with the city Friday show. Extell and JPMorgan did not immediately respond to requests for comment. Pincus Co. first reported news of the financing. Barnett,

The best apps for residential brokers, according to LA agents

Posted: 07 Feb 2020 08:06 AM PST

Brokers in Los Angeles are constantly on the move, which means they rely on their phones for everything, perhaps even more than the average civilian. Below, agents review the apps that have been lifesavers in the line of duty. To start the day Mindfulness is the buzzword of the moment. Everyone from billionaire investor Ray Dalio to Jerry Seinfeld tout the benefits of creating stillness in the mind. It’s no surprise, then, that L.A.’s agents

City Council wants more oversight of “ghost kitchens”

Posted: 07 Feb 2020 07:15 AM PST

The City Council is looking to increase oversight of the rapid proliferation of “ghost kitchens,” or delivery-only kitchens. In a meeting held yesterday, the Committee on Small Business said it was looking to gauge whether the phenomenon threatens local businesses, Commercial Observer reported. There are different ghost kitchen models: a single operator can manage a shared space, or just a single-tenant prep space without a dining area. In New York, some restaurants that offer delivery

Feds launch investigation into landlords’ lead levels

Posted: 07 Feb 2020 06:30 AM PST

Federal prosecutors in New York City are investigating lead levels in low-income housing. The U.S. Attorney’s Office for the Southern District of New York notified the city in July that it was investigating lead levels in privately owned buildings that receive subsidies from tenants’ Section 8 vouchers, Univision Investiga 41 reported. The probe wasn’t made public until now. The Section 8 program puts low-income renters in private apartments, caps their rent at a fixed percentage

Boston takes a cue from New York, looks to reverse broker fee system

Posted: 07 Feb 2020 06:03 AM PST

First New York, now Boston? Following New York’s example, Boston is considering eliminating its rental broker fees, the Boston Herald reported. Mayor Martin Walsh announced he would form a working group with a variety of stakeholders to study rental fees. In Boston, broker’s fees are often the equivalent of one month’s rent, and come in addition to paying a security deposit and first and last months’ rent upfront. Like other major cities, Boston is facing

Royal couple buys sprawling Southampton mansion

Posted: 07 Feb 2020 05:30 AM PST

It’s a home fit for a princess and after a decade on and off the market, it finally found one. Marie-Chantal Miller, the Crown Princess of Greece, and her husband Pavlos, the Crown Prince, are the buyers of a 13,000-square-foot estate in Southampton that recently closed after multiple price adjustments, a source familiar with the matter told The Real Deal. The royals closed on the home for $16.5 million. That was nearly 40 percent below

Warren Buffett’s grandson and the art of Opportunity Zone social impact investing

Posted: 07 Feb 2020 05:00 AM PST

The grandson of legendary investor and billionaire Warren Buffett is getting into Opportunity Zones, but in an unusual way. Howard W. Buffett is rolling out a software tool that measures an Opportunity Zone investment’s potential social, environmental and economic impact. Through his advisory firm, Global Impact, Buffett developed the software, “Impact Rate of Return,” with financial technology company NES Financial. The project comes at a time when the federal Opportunity Zone program is under investigation

The Closing: Michael Gianaris

Posted: 07 Feb 2020 04:30 AM PST

State Sen. Michael Gianaris has been an elected official in New York for the past 20 years and became one of the most pivotal figures in state politics last year when he played a key role in derailing Amazon’s plan to build half of its second headquarters in Long Island City. The city is still dealing with the aftermath of the Seattle-based company’s abrupt departure last Valentine’s Day — which happened in the face of

Tenant advocates celebrate landlords’ having to pay broker fees

Posted: 07 Feb 2020 04:00 AM PST

Broker fees have long been onerous and annoying for New York City apartment hunters, who often find themselves paying thousands of extra dollars even when they find a place on their own. So when news broke Wednesday that the Department of State ruled the new rent law requires landlords, rather than tenants, to cover the fees of brokers retained by owners, tenant advocacy groups were ecstatic. “For our members, especially who are homeless and perpetually unstably