The Real Deal - New York Real Estate News

City may allow other types of construction

Posted: 30 Mar 2020 03:30 PM PDT

The city may allow more types of construction under the state’s partial ban. In guidance issued by the Department of Buildings on Monday, the agency stated that in addition to utilities, health care facilities, homeless shelters and affordable housing, “other essential construction as approved by the Department” would be exempt from the state’s “New York on Pause” order. Until at least April 15, employees of all non-essential businesses are prohibited from reporting to work. Initially,

Four Seasons, 204 layoffs, as businesses hemorrhage jobs

Posted: 30 Mar 2020 02:30 PM PDT

The Four Seasons Hotel in Downtown Manhattan is the latest casualty of the coronavirus pandemic. Located at Silverstein Properties’ 30 Park Place, the luxe hotel is closed until further notice, according to its website. It plans to lay off 204 workers, a notice filed with the state’s Department of Labor says. On its website, the Four Seasons said it will not take reservations until at least April 21 “out of an abundance of caution related

Jeff Bezos pulls out of $90M deal for Beverly Crest’s “Enchanted Hill” property

Posted: 30 Mar 2020 02:00 PM PDT

In this time of crisis and economic turmoil, even the world’s richest man seems to be cutting back on expensive purchases. Amazon CEO Jeff Bezos has pulled out of a deal to buy the late Paul Allen’s 120-acre “Enchanted Hill” property in Beverly Crest, according to the Los Angeles Times. Bezos and the managers of Allen’s estate were reportedly close to a $90 million deal for the semi-developed property last month. News of the supposedly

Meridian Capital hit with round of layoffs

Posted: 30 Mar 2020 01:15 PM PDT

Meridian Capital, the city’s most active debt brokerage, has decided to reduce “a small number” of support and back-office roles as the COVID-19 pandemic grinds the economy to a halt. “The unprecedented economic realities of this public health emergency have touched literally every sector of the economy,” read a statement Meridian provided to The Real Deal. “ Businesses on every level have a fiduciary responsibility to chart a course today that will ensure it can

Top I-sales brokers on what to do when there are no deals

Posted: 30 Mar 2020 01:15 PM PDT

Commercial real estate brokers need to transact the way a shark needs to swim. So what do some of the city’s top brokers think of a market that’s come to a virtual halt? “It feels like the last few weeks of August,” said Meridian Investment Sales’ David Schechtman, referring to the slow time of the year when most dealmakers are relaxing at their summer homes. “And it feels like it’s going to be this way

“Kicking the can down the road”: Real estate industry says $2T relief plan doesn’t do enough

Posted: 30 Mar 2020 12:30 PM PDT

For much of the real estate industry, the $2 trillion stimulus package President Trump signed into law to bolster the economy doesn’t do enough. The plan offers limited relief to real estate, industry pros said, though the cash payments to individuals and a boost in unemployment insurance could help ease some economic pain for renters, and therefore for landlords and lenders. “It’s a beginning. We need more,” said Thomas Bannon, CEO of the California Apartment

EB-5 is back in the doghouse

Posted: 30 Mar 2020 12:00 PM PDT

EB-5 was left out of Congress’ $2 trillion federal stimulus package bill, crushing developers’ hopes of getting cheap financing as real estate deals come to a halt. The federal program that allows foreign investors the ability to obtain a U.S. green card in exchange for an investment in a U.S. business was not mentioned in the stimulus package that passed Congress on Friday. Politico previously reported that Congress was considering making changes to the EB-5

Extell’s Israeli bonds put on downgrade watch

Posted: 30 Mar 2020 11:45 AM PDT

Another New York real estate developer is attracting concerned looks from the Israeli bond market, as the coronavirus epidemic has brought construction and sales in the city to a near halt. A week after Related Companies’ bonds were downgraded, Gary Barnett’s Extell Development saw its bonds given a negative projection by rating agency Midroog, according to a disclosure published Sunday on the Tel Aviv Stock Exchange. “The rating has been placed under credit review as

Watch tonight: (Work from) home lending on TRD Talks Live

Posted: 30 Mar 2020 11:00 AM PDT

As April 1 draws near and multifamily owners await rent, residential lenders are gearing up to deal with missed payments. With the economy on a coronavirus-induced rollercoaster, the Federal Reserve cut interest rates dramatically and mortgage rates hit an all-time low. Luxury contract signings have plunged as agents and potential buyers are staying home. Tonight on TRD Talks Live, readers have a chance to learn from experts in the residential lending space. Editor James Kleimann

San Francisco’s Oceanwide Center has a new buyer

Posted: 30 Mar 2020 10:40 AM PDT

China Oceanwide’s deal to sell its flagship San Francisco development for $1 billion has fallen through following coronavirus-related delays. But a new buyer has already emerged. Beijing-based private equity firm Hony Capital has signed a framework agreement to acquire the Oceanwide Center project for up to $1.2 billion, the developer disclosed Sunday on the Shenzhen Stock Exchange. Oceanwide’s prior deal, to sell the project to Beijing-based asset manager SPF Group for just over $1 billion,

Macy’s announces furloughs for “majority” of its workers

Posted: 30 Mar 2020 10:00 AM PDT

Macy’s Inc. will be furloughing most of its employees, starting this week, as Covid-19 continues to batter businesses large and small. All of the retailer’s stores have been closed since March 18. Macy’s on Monday said its digital business is still open, but the retailer has “lost the majority of our sales due to the store closures.” It also has suspended its dividend, drawn down its credit line and freezed hiring and spending, among other

Brooklyn’s luxury resi market sees deals plummet

Posted: 30 Mar 2020 08:33 AM PDT

Activity plummeted for the second straight week in Brooklyn’s luxury residential market as the coronavirus continues to wreak havoc on the nation’s economy and real estate. A six-bedroom townhouse at 81 Pierrepont Street in Brooklyn Heights was the priciest residential property to go into contract in the borough last week for $14.5 million. It spans 8,250 square feet and spent 171 days on the market. Overall, Brooklyn saw just three luxury contracts signed last week,

US will see $20B in retail loans come due starting this week

Posted: 30 Mar 2020 08:15 AM PDT

April 1 is looming large for businesses and individuals across the country, as it marks the first major due date for expenses like rent, utilities and credit cards since governments imposed severe new restrictions over the coronavirus pandemic. About $20 billion in monthly retail real estate loans are due starting this week, according to the Wall Street Journal, citing data from Marcus & Millichap. Several stores and restaurants have already said they will not pay

Redfin sells $110M stake to VC firm

Posted: 30 Mar 2020 07:37 AM PDT

Redfin just got a $110 million shot in the arm from an influential backer, as the discount brokerage looks to ride out economic turmoil caused by coronavirus. The Seattle-based brokerage said Monday that Durable Capital, a venture capital firm led by Henry Ellenbogen, will acquire a stake in the discount firm. The deal includes $70 million worth of common stock at $15.61 per share and $40 million of convertible preferred stock at $1,000 per share,

WeWork lays off 250 more employees, but Covid-19 isn’t reason

Posted: 30 Mar 2020 07:00 AM PDT

WeWork laid off 250 more people on Thursday, but the decision was not made because of the coronavirus. The beleaguered co-working giant cut the jobs in its development department, according to Bloomberg. WeWork was trying to reduce its expenses dramatically last fall after its botched IPO attempt and stopped leasing as many locations, which reduced the need for remodeling and construction. The employees will receive four months of salary and benefits or six months if

HUBBNYC buys Williamsburg mixed-use building for $84M

Posted: 30 Mar 2020 06:45 AM PDT

HUBBNYC is buying a 136-unit mixed-use building in Williamsburg for about $83.8 million. The company is purchasing 123 Hope Street from Adam America Real Estate Group, according to Prince Realty Advisors founder David E. Ash, who represented both sides in the deal. The purchase was announced Friday. The building stands seven stories tall and spans about 126,000 square feet. In addition to the apartments, it includes 11,190 square feet of retail space and 92 parking

Luxury contract signings plunge after brokers ordered to stay home

Posted: 30 Mar 2020 06:39 AM PDT

If the real estate industry needed any more proof of the shattering effect of the coronavirus, a tally of last week’s luxury contract signings leaves little room for doubt. There were just two properties above $4 million that went into contract in Manhattan between March 23 and March 29, according to a market report from Olshan Realty. That was down from 14 the week before, and 21 the week before that. The last time there

WeWork under pressure for staying open in pandemic

Posted: 30 Mar 2020 06:18 AM PDT

WeWork is facing scrutiny for its decision to keep all its co-working spaces in New York City open as confirmed cases of Covid-19 surge. The co-working giant, which has reported several coronavirus cases at its locations, told its customers that it stayed open because some of them operated essential businesses, which were exempt from the governor’s sweeping stay-home order announced March 20. WeWork said its mail service also exempted it from the order. The firm

Airbnb suspends marketing, cuts executive pay in half

Posted: 30 Mar 2020 06:00 AM PDT

Airbnb has suspended all of its marketing in an attempt to save $800 million this year. Its founders will also not take any salary for the next six months, and top executives will take a 50 percent pay cut, according to Reuters. The company has paused hiring as well, with the exception of a few key roles. Airbnb had a phone call on Wednesday with bankers to discuss the extension of a $1 billion debt

“There’s no plan:” Homeless brace for coronavirus

Posted: 30 Mar 2020 05:00 AM PDT

With few political champions and many vulnerabilities to the coronavirus, New York City’s homeless now run a risk of catastrophe. Reports last week documented 59 positive cases in shelters, and the first two deaths of shelter residents from Covid-19 were recorded Thursday and Friday. Social distancing? At one Bronx housing facility operated by the city, 45 homeless families share one microwave. New York City’s more than 62,000 homeless are perhaps more susceptible to the deadly

Pension fund money is getting tangled in some controversial housing deals

Posted: 30 Mar 2020 04:30 AM PDT

Madison Realty Capital, a private real estate investment firm heavily backed by public pension money, has been stuck with a nearly half-empty rental portfolio in Manhattan’s East Village. When the New York-based firm financed controversial landlord Raphael Toledano’s purchase of the 16 buildings in 2015, critics called the deal overleveraged. Madison lent $124 million for a portfolio that cost $97 million. But the lender had its reasons. The firm, led by Josh Zegen, Brian Shatz

Kuwait’s consulate general buys 50 UN Plaza pad for $16M

Posted: 30 Mar 2020 04:00 AM PDT

Kuwait is joining the club of nations whose New York-based diplomats enjoy a short commute and high-rise living at 50 United Nations Plaza. The consulate general of Kuwait in New York has bought a $16.1 million dollar pad at the East Side building. The sponsor unit on the 40th floor appeared on the market last June, asking $18.25 million. Newly available records show it went into contract in August and closed on March 9, a