The Real Deal - New York Real Estate News

Investors reward Lemonade with $3.8B valuation

Posted: 02 Jul 2020 03:00 PM PDT

Venture-backed insurance seller Lemonade got a sweet reception from investors on the day of its initial public offering. Listed on the technology-heavy Nasdaq index, the company (LMND) ended the day with its shares trading at $69.38, more than double its amended target price of $29. That target gave the company a valuation of $1.6 billion, down from its $2.1 billion valuation in a 2019 funding round with Softbank. But its closing price gives Lemonade a

Judge rules evictions guidance unconstitutional, moratorium invalid

Posted: 02 Jul 2020 02:30 PM PDT

A Suffolk County judge’s surprise ruling may offer hope to landlords looking to move certain evictions forward. In a June 30 decision, Judge C. Stephen Hackeling addressed the conflict between guidance from the New York administrative judge and Gov. Andrew Cuomo on what evictions are permitted. Hackeling states that the court’s guidance can’t overrule the governor’s executive order, but also identifies certain aspects of the order as “invalid.” As part of his May order, Cuomo

Business leaders see trouble as homeless flock to Manhattan hotels

Posted: 02 Jul 2020 02:00 PM PDT

As the city’s restaurants and shops look to bounce back, they’re contending with some serious quality-of-life issues. Nearly 20 percent of the city’s hotels are providing shelter for homeless New Yorkers. The impact on the surrounding streetscape is hard to miss. “When you’re in the business as long as I’ve been, you get to recognize what somebody on heroin looks like,” explained Dan Biederman, head of three business improvement districts in Midtown. “There are a

Related lays out $200M debt settlement plan for Tel Aviv bondholders

Posted: 02 Jul 2020 01:48 PM PDT

As the coronavirus crisis was intensifying in late March, auditors raised the alarm that a Related Companies subsidiary might struggle to pay off $200 million in Israeli bonds that would come due in the fall. Related Commercial Portfolio assured investors that it was pursuing numerous options to ensure it met its obligations, and after months of negotiations, bondholders now have a specific proposal to vote on. The proposed debt settlement envisions an early redemption of

Real estate stocks benefit from second quarter rally

Posted: 02 Jul 2020 01:15 PM PDT

While hospitality companies and retailers have been among the hardest hit by the coronavirus, real estate stocks in the second quarter largely tracked the broad market rally. Buoyed by unprecedented government support of the economy, those Q2 market gains were the highest in two decades. “Since the pandemic sell-off reached its nadir in late March, REIT shares have gained 40%,” said Michael Knott of Green Street Advisors. The gains kept real estate on pace with

Justin Bieber reportedly drops $375K for a three-week stay in Montauk

Posted: 02 Jul 2020 12:35 PM PDT

Justin Bieber appears to be the latest celeb to lock down a summer getaway in the Hamptons. The 26-year-old pop star is reportedly paying $375,000 for a three-week stay at a five-bedroom home in Montauk. The house wasn’t on the market and the owners agreed to move out to allow His Biebness to enjoy summer in the Hamptons, the New York Post reported. Bieber’s camp denied the story, though a rep for Bieber’s real estate

Protesters target Bloomberg, Ross and Schwarzman at their Hamptons homes

Posted: 02 Jul 2020 12:15 PM PDT

Protesters are demonstrating in the Hamptons, and wealthy residents aren’t simply ignoring them. Private security contractors are getting tons of calls from Hamptons homeowners to guard their estates, according to the New York Post. About 200 marchers and 100 drivers visited some of the Captains of the Universe in the Hamptons on Wednesday. In protesting income inequality, demonstrators have targeted the homes of wealthy and influential vacationers including former New York City Mayor Michael Bloomberg,

Inside a $1.8B new development odyssey

Posted: 02 Jul 2020 12:05 PM PDT

When Michael Rosenfeld made the deal for the site of the Century Plaza condo back in 2008, he knew it was one that would define his legacy. “This is a rare opportunity to buy a jewel in my hometown,” he told the Los Angeles Times after closing on the acquisition of the landmarked Century Plaza Hotel for $366.5 million, with backing from New York-based D.E. Shaw. Rosenfeld cited the area’s bustling office and residential market

Manhattan home sales experience record decline

Posted: 02 Jul 2020 11:00 AM PDT

Manhattan home sales plunged by the sharpest decline in 30 years this spring as the coronavirus left brokers and buyers on the sidelines. The number of closed condo and co-op sales during the second quarter of the year tanked more than 54 percent from the same time last year, according to a report from Douglas Elliman and appraiser Jonathan Miller. Just 1,357 sales closed, compared to 2,957 closed deals in the second quarter of 2019.

Mortgage rates hit all-time low

Posted: 02 Jul 2020 10:29 AM PDT

The downward slide in mortgage rates produced a new milestone this week, according to Freddie Mac’s latest primary mortgage market survey. The 30-year fixed-rate mortgage averaged 3.07 percent for the week ending July 2, down 0.06 percentage points from the week before and down 0.68 points year-over-year. It is the lowest rate on record since the survey began in 1971. “Mortgage rates continue to slowly drift downward with a distinct possibility that the average 30-year

Nestio taps new CEO, rebrands as Funnel

Posted: 02 Jul 2020 10:10 AM PDT

UPDATED: July 2, 2:20 p.m.: A decade after starting Nestio to help landlords manage their rental portfolios, co-founder Caren Maio is stepping down as the company’s chief executive. In a widely-shared email, Maio said the company was rebranding as Funnel, and that COO Tyler Christiansen would take over as CEO. Maio will move into the role of president and chairman. “This is just the beginning,” she promised, adding that the company hit an “inflection point”

Silverstein, Kaufman plan $2B Queens development

Posted: 02 Jul 2020 09:15 AM PDT

A team of developers is planning a $2 billion, 2.7 million-square-foot mixed-use development in Astoria. Kaufman Astoria Studios, Silverstein Properties and Bedrock Real Estate Partners unveiled their plans Wednesday for the Queens megaproject, which they’re calling “Innovation QNS.” The development will cover five blocks at the intersection of Steinway Street and 35th Avenue and will include 2,700 units of mixed-income housing, the developers announced. Of those units, 700 will be set aside as affordable housing.

Retail and hospitality led June job gains as virus surged

Posted: 02 Jul 2020 08:38 AM PDT

The U.S. added 4.8 million jobs in June and the unemployment rate fell to 11.1 percent, beating economists’ expectations. Some 7.5 million people have been brought back to work since more than 20 million jobs were shed in April. A surge in coronavirus infections, however, threatens to slow the momentum. “The job market recovered at a much faster than anticipated pace in June, with strong job growth and a surprisingly large drop in the unemployment

Council bill to reopen day care centers would be boost for landlords

Posted: 02 Jul 2020 08:30 AM PDT

Week after week, Tim O’Sullivan has been watching New York’s coronavirus numbers fall and businesses reopen — but not his three Queens day care tenants. “They’ve been shut down for three months,” he said. “They have no indication when they’ll be allowed to open.” In mid-June the landlord managed to bring his plight directly to Mayor Bill de Blasio when 1010 WINS reporter Juliet Papa read his message at a press conference. The mayor had

Desperate to open, gyms plan class action against Cuomo

Posted: 02 Jul 2020 08:13 AM PDT

Thousands of New York gym owners plan to file a class-action lawsuit against Gov. Andrew Cuomo challenging his decision to exclude gyms from the fourth phase of the state’s reopening. SC Gym owner Charles Cassara, who has locations in Hicksville and Farmingdale, had 10 other owners on board with the lawsuit before putting out an appeal on Facebook. Cassara and lawyer James Mermigis now expect to have between 1,500 and 3,000 plaintiffs, Newsday reported. “Phase

Revolts and reopenings: Gateway cities look to reestablish themselves in the era of Covid-19

Posted: 02 Jul 2020 07:00 AM PDT

George Floyd died in Minneapolis on May 25 after being pinned down by three police officers — one of whom kept his knee on Floyd’s neck for eight minutes and 46 seconds. Footage of the brutal arrest sparked outrage across the county, setting off a wave of protests against police brutality and racism. Major cities such as New York and Los Angeles saw some of the most heated demonstrations. The protests in some cases were

Trump tweets that he “may END” Obama-era fair housing regulation

Posted: 02 Jul 2020 06:15 AM PDT

President Trump’s latest announcement regarding his plans for fair housing regulations came in the form of a Tuesday night tweet, Business Insider reported. The president took aim at the Obama-era Affirmatively Furthering Fair Housing (AFFH) mandate, which his administration had suspended in early 2018 until this year. “At the request of many great Americans who live in the Suburbs, and others, I am studying the AFFH housing regulation that is having a devastating impact on

SoftBank-backed Lemonade raises IPO target to $319M

Posted: 02 Jul 2020 05:45 AM PDT

As its anticipated early July IPO date draws nearer, home insurance provider Lemonade is raising its share price once again. A new filing from the SoftBank-backed insurer says that it will sell 11 million shares at $29 apiece, Bloomberg reported. The company had previously raised its price range to $26 to $28 from an earlier target of $23 to $26. The new share price would raise $319 million and give Lemonade a market value of

Restaurants, bars in a “scary situation” as restrictions ramp up

Posted: 02 Jul 2020 05:00 AM PDT

Faced with heightened restrictions due to a surge in Covid-19 cases, coupled with a desire to keep employees safe, some Miami restaurants are calling it quits. Other eateries are mulling closing their dining rooms, temporarily shutting down, or changing their business models entirely. If the state or local governments order another shutdown, it could mark the “nail in the coffin” for as many as half the restaurants, said Felix Bendersky, restaurant broker and owner of

Brian Kingston on Brookfield’s long game

Posted: 02 Jul 2020 04:00 AM PDT

It’s been an especially busy few months for Canadian investment giant Brookfield, which is upping its bets on everything from struggling chain stores to distressed real estate. Brian Kingston, CEO of Brookfield Property Partners, spoke to The Real Deal in June about the company’s rent negotiations with mall tenants, its plans to launch a $5 billion retail relief fund and the countrywide protests over the death of George Floyd. While Covid-19 and the economic fallout