The Real Deal - New York Real Estate News

City Council passes limited property tax reprieve, disappointing landlords

Posted: 25 Jun 2020 05:11 PM PDT

The New York City Council today gave landlords a slight reprieve on property taxes, but advocates for the industry called it insufficient. A bill sponsored by Public Advocate Jumaane Williams temporarily gives buildings assessed at less than $250,000 zero percent interest on late payments. A second piece of legislation, sponsored by City Council member Margaret Chin, allows certain property owners affected by Covid-19 to pay 7.5 percent — instead of 18 percent — for delinquent

Judges question need for public review of controversial Two Bridges projects

Posted: 25 Jun 2020 03:00 PM PDT

Two appellate court judges expressed doubt Thursday that four planned Manhattan towers require City Council approval. A panel of appellate justices held a hearing on whether three projects — JDS Development’s 247 Cherry Street; L+M Development and CIM Group’s 260 South Street; and Starrett Corporation’s 259 Clinton Street — must go through the city’s seven-month public review process known as Ulurp. Two of the justices grilled an attorney representing the City Council and Manhattan Borough

Eliot Spitzer, kibbutz life and tequila: Podcast series delves WeWork story

Posted: 25 Jun 2020 02:45 PM PDT

In the early days of WeWork, Adam Neumann gave Eliot Spitzer a tour of one of the co-working company’s Manhattan locations as he pitched the former New York governor on a potential investment. “I was sitting on some kind of ball,” one of the WeWork members at the company’s 222 Broadway location recalled. “I looked to my left and Eliot Spitzer was right there kind of looking across the entire floor with a smile on

Loan wolves: Bankers are stalking developers as debts come due

Posted: 25 Jun 2020 02:00 PM PDT

It was one of many signs last year that a growing number of New York City condo developers are on borrowed time. Bank OZK had committed $108 million to finance a 92-unit condo building at 615 10th Avenue back in 2015. But last April, with the project stalled, the construction lender dialed that back by $20 million, forcing the developer to grab a lifeline from mezzanine lender Mack Real Estate Credit Strategies. The troubles brewing

Tri-State brokers are busier than ever as buyers warm to suburban living

Posted: 25 Jun 2020 12:30 PM PDT

The coronavirus has dramatically reshaped the luxury real estate market in the Tri-State area, and while the pandemic upended much of the economy, industry veterans say they’ve never been as busy as they are now. While the early days of the crisis were marked by a mad rush for a limited supply of rental properties on Long Island and Upstate, transplants from New York City are starting to warm to the idea of staying in

Startup taps industry execs, mayors to pitch security-deposit alternative

Posted: 25 Jun 2020 11:45 AM PDT

Security-deposit alternative startup Rhino has enlisted a team of mayors and multifamily real estate players to make the case for products like its own to be part of governments’ coronavirus response. The “Rhino Housing Innovation Council” will meet for the first time tomorrow. The virtual group will include Steve Lamberti, president of Highmark Residential, the property management arm of Starwood Capital Group, and Joseph Strasburg, president of the Rent Stabilization Association in New York, which

Hey, buddy, you using that sidewalk?

Posted: 25 Jun 2020 11:00 AM PDT

As New York City entered phase two of its reopening earlier this week, the sidewalk space outside a shuttered bodega on the Upper West Side was suddenly abuzz. Near the corner of West 108th Street and Broadway, the Italian restaurant Fuomo had expanded its outdoor dining area to the space in front of its closed neighbors. The city was already plagued by vacant storefronts when the coronavirus forced more shops to shut. But now that

New York courts put the kibosh on foreclosures

Posted: 25 Jun 2020 10:52 AM PDT

For lenders looking to foreclose on New York properties, the message from the courts is: look elsewhere. New guidance issued by New York Chief Administrative Judge Lawrence Marks states that no foreclosures can proceed for the time being unless the property is empty or abandoned. His memo also encouraged lenders to drop pending cases. “No motions other than to discontinue a pending case shall be entertained or decided,” Marks wrote. “No judgment of foreclosure may

NYC on track for phase 3 of reopening July

Posted: 25 Jun 2020 10:20 AM PDT

The city’s reopening is full speed ahead as Mayor Bill de Blasio announced Thursday that phase three is set to start on July 6. That means indoor dining and personal-care services can open for business, Bloomberg reported. Other activities, such as basketball and tennis courts, team sports and dog runs can also resume, according to reports by Bloomberg. “It’s important for everyone that this city keeps moving,” de Blasio said. “Phase 3 will have particularly

Simon v. Taubman could be ready for trial in November: Judge

Posted: 25 Jun 2020 09:39 AM PDT

The debate over whether Simon Property Group should honor its $3.6 billion deal to buy Taubman Centers might be among real estate’s Thanksgiving dinner table discussions this year. That’s because the lawsuit pitting the mall giants against each other could be ready for trial by mid-November, according to the Michigan judge overseeing the case. Simon agreed to buy an 80 percent stake in Taubman in February, just before the coronavirus caused malls across the country

HelloOffice raises $20M in Series A funding

Posted: 25 Jun 2020 09:25 AM PDT

San Francisco–based HelloOffice has raised $20 million in Series A funding. The commercial brokerage, which brands itself as “technology-powered,” will use the funding to invest in its property search and management platform, according to an announcement Thursday. The firm is also looking to expand beyond Los Angeles and San Francisco. HelloOffice CEO Justin Bedecarre said the pandemic had changed the way people think about work and created new demand. “Our investors believe that the time

Small Talk: Welcome back shoppers! Everything is going to be fine!

Posted: 25 Jun 2020 08:45 AM PDT

Hi there, and thanks so much for coming to shop at Crazy Charlie’s Discount Clothing! If I seem incredibly excited to see you, it’s just because of some totally unrelated good news I received a few minutes ago, not because you are the first person other than myself or a loan shark to walk into this store in months! As I maniacally repeat to myself every night until I fall asleep, our business is actually

Kushner Companies’ Times Square retail condo headed to auction

Posted: 25 Jun 2020 07:25 AM PDT

Kushner Companies’ struggling Midtown retail condo is set to go to a Uniform Commercial Code foreclosure auction. The 251,000-square-foot property at 229 West 43rd Street will come up for sale on June 30, according to Commercial Observer, which cited an auction notice from JLL. The auction is being sought by mezzanine lender Paramount Group, which issued a $70 million loan for the project in 2016. This March, it was reported that Kushner Companies had fallen

Chuck E. Cheese parent, GNC file for bankruptcy

Posted: 25 Jun 2020 06:30 AM PDT

Retailer GNC Holdings and the parent company of Chuck E. Cheese have become the latest in a string of high-profile companies to seek bankruptcy protection. According to the Wall Street Journal, CEC Entertainment filed for Chapter 11 bankruptcy this week after widespread closures of Chuck E. Cheese venues because of the pandemic. The company, which is owned by private equity firm Apollo Global Management, is reportedly planning to carve out a restructuring plan with its

Insiders dish on pandemic pricing for NYC homes

Posted: 25 Jun 2020 06:00 AM PDT

Buyers of New York City homes in the midst of a global pandemic are entitled to a discount: The residential sales industry agrees on that. But the size of that markdown is the subject of heated debate. Five percent? Ten? Twenty? As the city reopens, everyone in the business has a take on what pandemic pricing is, though comprehensive market data is weeks away. Agents working on deals now must walk the fine line between

‘Your pedigree is always questioned’: Black real estate execs push for change

Posted: 25 Jun 2020 05:00 AM PDT

From blatant racism to more subtle microaggressions, the predominantly white real estate industry can be an isolating place for Black professionals. “Your pedigree is always questioned, and I have actually felt this way for my entire career,” said Tammy Jones, chief executive officer of Basis Investment Group, speaking on a panel discussion hosted by New York University’s Schack Institute this week. “The only thing that I could do was outwork people,” she added. Now, after

Inwood rezoning battle could take months. Will developers wait?

Posted: 25 Jun 2020 04:00 AM PDT

A resolution on Inwood’s controversial rezoning now appears to be months away, testing the patience of developers who were banking on it. During a hearing this month, an Appellate Division judge hinted at skepticism among her colleagues about the zoning change, which prompted opponents to sue. The de Blasio administration’s revision would allow for new residential properties, potentially transforming — and some contend gentrifying — the area. Justice Rosalyn Richter said that members of the