The Real Deal - New York Real Estate News

Rent board casts preliminary vote in favor of freezing rents

Posted: 07 May 2020 06:26 PM PDT

In a preliminary vote, the Rent Guidelines Board approved a proposal that would freeze rents on stabilized apartments and lofts for a year. The board voted 5-4 to endorse freezing rents on one-year leases and the first year of two-year leases signed on or after Oct. 1, 2020. During the second year of two-year agreements, rent would rise 1 percent under the proposal, put forward by David Reiss, the board’s chair. While not binding, preliminary

“Unlawful” and “hypocritical”: WeWork members threaten legal action over fees

Posted: 07 May 2020 04:30 PM PDT

A group of WeWork members is threatening the co-working giant with legal action if it continues to collect fees even though the coronavirus has prevented them from using the space. In a letter to WeWork’s general counsel on Thursday, an attorney for the members said WeWork’s collection of fees was “unlawful” because state and local authorities have directed nonessential personnel to stay home. It is also “hypocritical,” said the attorney, Jim Walden, since WeWork itself

Cushman’s income drops 70% in Q1

Posted: 07 May 2020 04:10 PM PDT

Cushman & Wakefield reported net income of nearly $7 million in the first quarter of 2020, down 70 percent from the same time last year. Revenue remained relatively flat at just shy of $1.9 billion, but the firm posted larger operating losses. The steady stream of revenue from property management, which made up a little more than half of the quarter’s fee revenue, helped mitigate the losses in leasing and capital markets due to the

RE/MAX ready for “full brunt” of pandemic: CEO

Posted: 07 May 2020 02:42 PM PDT

The future is bright, but the second quarter won’t be. That was the mix of cautious optimism and realism offered by RE/MAX CEO Adam Contos in an earnings call Thursday as he explained that while the housing market would probably rally sooner than expected, the worst of the pandemic’s economic fallout remains to be seen. The company recorded $2.6 million in net income in the first quarter, down from $4.4 million in the same period

Despite revenue uptick, Redfin posts $60M loss in Q1

Posted: 07 May 2020 02:30 PM PDT

Redfin posted a $60 million loss in the first three months of 2020, a period in which the company’s revenues and expenses grew dramatically before crashing in March amid the coronavirus pandemic. The Seattle-headquartered residential real estate brokerage and listings website reported a 73 percent growth in revenue to $191 million, compared to the first three months of 2019. During the first quarter, the company continued the expansion of its instant or “iBuying” platform of

Virus will leave lasting impact on retailers and their landlords, industry pros say

Posted: 07 May 2020 02:30 PM PDT

The near-total shutdown of New York City shops and restaurants during the coronavirus crisis will likely be felt for years to come in the retail real estate world. In the short-term, landlords and tenants will have to come up with creative solutions to help commercial tenants back on their feet, according to some of the city’s top retail brokers who discussed the state of the market for the latest installment of TRD Talks Live. The

Zillow CEO on coronavirus crisis: “We have passed peak fear”

Posted: 07 May 2020 02:20 PM PDT

Zillow’s losses ballooned to $163.3 million during the first quarter despite record revenue from its now-halted iBuying business. That’s a 142 percent uptick in losses from $67.5 million a year ago. Overall, the Seattle-based listings giant said revenue during the quarter rose 148 percent year over year to $1.1 billion. The company’s iBuying division generated a record $770 million in revenue before Zillow suspended home purchases in late March. Until that point, Zillow had purchased

Brooklyn Boulders sues landlord to escape Williamsburg lease

Posted: 07 May 2020 12:30 PM PDT

The coronavirus pandemic has been a frustrating time for gym operators nationwide. So frustrating, in fact, that Brooklyn Boulders now wants out a big lease it signed last year. The rock-climbing gym is suing its landlord to get out of a 30,598-square-foot lease across three floors at the base of 56 North 9th Street, a 45-unit rental building in Williamsburg. The property was built by Jay and Michael Weitzman in 2018. On a conference call

Sidewalk Labs abandons Toronto smart city megaproject

Posted: 07 May 2020 12:11 PM PDT

Alphabet subsidiary Sidewalk Labs is abandoning a 12-acre smart city project on Toronto’s waterfront. Sidewalk Labs CEO Dan Doctoroff said the decision was made in light of “unprecedented economic uncertainty” gripping the globe and the Toronto real estate market, The Information reported. “It has become too difficult to make the 12-acre project financially viable without sacrificing core parts of the plan,” Doctoroff wrote in a blog post. The development has been a source of controversy,

Chetrit goes to the mat with SL Green over busted Daily News deal

Posted: 07 May 2020 11:30 AM PDT

Superman fights for truth, justice and the American way. The investor who abandoned a deal to buy the building Clark Kent’s Daily Planet office was modeled after is fighting for his deposit back. Jacob Chetrit is trying to stop SL Green Realty from pocketing the $35 million deposit the company claims he forfeited when he backed out of buying the Daily News Building, people familiar with the matter told The Real Deal. Chetrit wrote to

Mining company asks court to reveal Beny Steinmetz’s NYC real estate plays

Posted: 07 May 2020 11:17 AM PDT

For years, Israeli billionaire Beny Steinmetz has denied any connection to New York real estate. But a Brazilian mining company that’s trying to collect $2 billion from the embattled diamond trader says Steinmetz has “fraudulently” poured $500 million into New York projects, and it’s asking the courts to help recoup the money. Vale SA, which last year won an arbitration against BSG Resources Ltd., a company tied to Steinmetz, asked the U.S. District Court in

“When it’s really ugly, it’s a good time to invest”: Sternlicht on Starwood’s hunt for opportunities

Posted: 07 May 2020 11:00 AM PDT

When the coronavirus started to take hold, Barry Sternlicht compared it to World War III. With the pandemic having completely overwhelmed the global economy, Starwood Property Trust’s CEO updated that statement during the company’s first-quarter earnings call on Monday. “We’re about halfway” through the war/crisis, he said, adding that Starwood has been on the lookout for opportunities, especially when it comes to hotel acquisitions. “It’s really ugly…But obviously when it’s really ugly, it’s a good

Newmark profit down, revenue up

Posted: 07 May 2020 10:12 AM PDT

Newmark Group’s first-quarter profit fell 52 percent from a year ago even as revenue grew, said the company, which operates commercial real estate advisory firm Newmark Knight Frank, Thursday morning. Revenue for the quarter was about $484 million, up 8.1 percent from the same period of 2019, when it was about $448 million. However, the pandemic only really began slowing down real estate activity in the second half of March. Net income available to stockholders

Cuomo extends eviction moratorium, promises landlord relief

Posted: 07 May 2020 10:06 AM PDT

Facing pressure from tenant advocates, Gov. Andrew Cuomo extended the state’s moratorium on evictions for at least another two months. The governor said the moratorium on residential and commercial evictions — for non-payment of rent due to Covid-19 — will last through August 20. He also announced a ban on fees for late or missed rent payments during the moratorium, as well as the option for tenants to tap into their security deposits to pay

Realogy CEO says Covid-19 “eviscerated” value of Amazon partnership

Posted: 07 May 2020 09:10 AM PDT

Realogy’s much-lauded partnership with Amazon is the latest victim of the coronavirus. The brokerage conglomerate on Thursday announced that it suspended the partnership, dubbed TurnKey. CEO Ryan Schneider said during the company’s first-quarter earnings call that Covid-19 and the need for social distancing “eviscerated” the value of partnership, which offered Realogy buyers up to $5,000 in Amazon smart-home products, as well as deep cleaning services and furniture assembly. “We and Amazon had a decision point

Neiman Marcus files for bankruptcy, casting uncertainty over Hudson Yards

Posted: 07 May 2020 08:37 AM PDT

Neiman Marcus has filed for bankruptcy, a move that could have major implications for Related Companies’ luxury Hudson Yards mall. The department store chain filed for Chapter 11 protection Thursday in the U.S. Bankruptcy Court for the Southern District of Texas, following weeks of speculation about the debt-laden retailer’s future. In a statement released by the company, Geoffroy van Raemdonck, Neiman Marcus’ chairman and CEO, said the coronavirus pandemic had triggered the filing. “Like most

Joseph Chetrit sells UES townhouse for $25M

Posted: 07 May 2020 07:36 AM PDT

In one of the priciest deals since the coronavirus pandemic hit New York, real estate investor and developer Joseph Chetrit has sold his Upper East Side townhouse for $25 million. A source familiar with the deal said the contract price was initially higher, but was renegotiated because of the pandemic, the Wall Street Journal reported. The buyer is unknown. The 32-foot-wide property, located on East 76th Street, has eight bedrooms, six stories, an indoor swimming

Selina CEO says $60M in funding will get startup through crisis

Posted: 07 May 2020 05:50 AM PDT

Selina, a London-based hotel and co-working company backed by Adam Neumann, has reportedly raised some $60 million in financing. Speaking with Skift, the publication that first reported the news, representatives for the Selina declined to clarify the exact amount, but confirmed it had raised more financing “in that range.” “We have the funds now to get through the crisis and to be strategic enough to get stronger,” CEO Rafael Museri told the publication. Founded in

Realogy reports $462M first-quarter net loss

Posted: 07 May 2020 05:35 AM PDT

Brokerage giant Realogy Holdings reported a net loss of $462 million during the first quarter as coronavirus threatened to freeze the housing market. The company reported a $447 million impairment charge that it attributed to “broad-based declines” in the market, as well as a $38 million increase in interest expenses. But momentum heading into the first quarter propelled Realogy to $1.1 billion in revenue, up 6 percent year-over-year. The brokerage giant — the parent company

Health Care heroes, your next meal is on us: TRD initiative helps industry give back

Posted: 07 May 2020 05:00 AM PDT

It’s a humbling time. For the last decade, the real estate industry has been humming along. We’ve seen historically low-interest rates, record foreign investment and the largest development project in U.S. history come to life. There have been immense challenges, of course, but real estate has remained a great force for wealth creation. And with the world reeling from the coronavirus pandemic, it’s time to make that wealth count for good. As a major platform

The Interview: Bess Freedman on how resi firms will look post-Covid

Posted: 07 May 2020 04:30 AM PDT

It’s been six weeks since New York’s residential firms went dark after Gov. Andrew Cuomo shut non-essential workplaces to curb Covid-19 deaths. In that time, agents have tested the limits of virtual showings and endured a steep drop in deals. Now, major firms are planning the brokerage office of the future — well beyond masks, gloves and hand sanitizer. At Brown Harris Stevens, receptionists will sit behind plexiglass and agents won’t be side-by-side. Instead, work

Trial by fire: Virtual showings put to the test

Posted: 07 May 2020 04:00 AM PDT

Craig Dancewicz has experienced a lot of firsts in the past few weeks. “I never thought that I’d be doing virtual tours from my childhood bedroom in Massachusetts,” he joked before showing off the 46-unit condo he’s handling — in Astoria, Queens — as part of Halstead Development Marketing’s sales team. Dancewicz admitted he’s not much of a techie, but six weeks into New York’s ban on in-person showings, he’s feeling confident in troubleshooting issues