The Real Deal - New York Real Estate News

Midtown building crumbles, followed by fatal scaffolding collapse nearby

Posted: 16 Jul 2020 03:12 PM PDT

UPDATED, Thursday, July 16, 2020, 8:14 p.m.: Scaffolding collapsed in Midtown Thursday, killing one person and injuring at least three others. The incident came within hours of the partial collapse of another building just around the corner. A worker was killed while performing facade restoration work at a co-op building at 136 East 36 Street, according to the Department of Buildings. At least three others were injured when the suspended scaffolding collapsed, the New York

Corcoran exposes Bespoke’s little black book in Hamptons legal battle

Posted: 16 Jul 2020 01:45 PM PDT

A commission dispute from a 2018 sale in the Hamptons has turned into a courtroom brawl and exposed a brokerage’s list of VIP clients. The Corcoran Group claims Bespoke Real Estate stiffed the firm on a $161,000 commission by destroying and lying about the circumstances of a $16.1 million sale, according to a lawsuit filed this month in Suffolk County Supreme Court. What makes the suit explosive, however, is an exhibit filed by Corcoran: a

Aritzia to take over Dean & Deluca’s former Soho shop

Posted: 16 Jul 2020 01:15 PM PDT

Dean & Deluca’s run in Soho came to a dreary end last year when the embattled grocer auctioned off its equipment and shut its doors for good. But now, while many landlords are mired in rent disputes with tenants, the site at GFP Real Estate’s 560 Broadway has found a new tenant. Canadian fashion brand Aritzia — worn by Meghan Markle and popular among Canadian teenagers — has signed a lease to take over the

Chetrit firm to acquire Sheepshead Bay development site

Posted: 16 Jul 2020 01:05 PM PDT

A firm run by members of the Chetrit family is in contract to buy a Brooklyn site and plans a 200,000-square-foot project. AB & Sons envisions a mixed-use development in Sheepshead Bay at the site of a Staples store. The address, 2870 Ocean Avenue, is a 10-minute walk from the Neck Road subway station on the Q line. A team from KSR including Ceasar Salama, Joseph Kassin and Ike Bibi brokered the transaction. “We look

Sizing up Manhattan’s condo crunch following a decade of boom and bust

Posted: 16 Jul 2020 12:45 PM PDT

It was set to be the tallest condo tower in Lower Manhattan, capped with a ring of golden bands that arched toward the sky. But as the new year arrived, with the high-end condo market in freefall, developers Madison Equities and Gemdale Properties pulled the plug last month on their 1,115-foot supertall at 45 Broad Street, citing “market conditions.” In the previous quarter, sales in the Financial District sank almost 45 percent. Now, the project

Hotels’ comeback stalls nationally, skids in NYC and Miami

Posted: 16 Jul 2020 12:15 PM PDT

Hotels’ recovery appears to have stalled. From mid-April through June, occupancy rates climbed steadily following their historic coronavirus plunge. But they fell in the week ending July 4 and last week they were essentially flat, according to newly released data from industry tracker STR. Occupancy rose by 0.3 percentage points to 45.9 percent in the week ending July 11 from the week prior, which ended on Independence Day, STR figures show. Small markets are performing

Co-living execs offer glimpse at occupancy rates

Posted: 16 Jul 2020 10:15 AM PDT

Before the pandemic, co-living executives were looking to capitalize on demand for shared, low-cost accommodation — specifically targeting young professionals in major cities. But now, with thousands of units in the pipeline, the pandemic has called the sector’s business model into question — and executives are predicting a tough 12 to 24 months, according to Business Insider. “There are a lot of people who are concerned, including us, about the impact of the virus on

J.C. Penney implosion hits two New York City malls

Posted: 16 Jul 2020 09:40 AM PDT

J.C. Penney’s bankruptcy is resulting in a bloodbath for its employees and pain for its landlords. The retail chain, which will close nearly a third of its 846 stores over the next two years as part of its bankruptcy restructuring, is laying off all of its employees in its Kings Plaza and Manhattan Mall locations. J.C. Penney’s Manhattan Mall store anchors the retail property and served as the company’s introduction to the borough. The 150,000-square-foot

New Yorkers flood rental assistance program on first day

Posted: 16 Jul 2020 09:34 AM PDT

How desperate are tenants? A program to provide rental assistance to some New York tenants launched today and was immediately overwhelmed by applicants. The program, funded by the Coronavirus Relief Fund in the CARES Act, is administered by the Division of Homes and Community Renewal, the state agency overseeing New York’s rent-regulated housing. After users reported the website had crashed, an agency representative acknowledged the site had “some issues with traffic,” and apologized via Twitter.

30-year mortgage rate hits record low

Posted: 16 Jul 2020 08:11 AM PDT

The average rate on a 30-year mortgage, America’s most popular home loan, has fallen below 3 percent. The 2.98 percent is the lowest Freddie Mac has seen in nearly 50 years of tracking. It’s the third consecutive week of decline and the seventh record-low set this year, according to the Wall Street Journal. Rates last hit a record low of 3.07 percent on July 7. Jeff Tucker, an economist at Zillow, told the Journal that

Aby Rosen’s RFR, Nakash family battle over failed sale of W South Beach condos

Posted: 16 Jul 2020 07:30 AM PDT

Two wealthy real estate families are duking it out in a legal battle linked to coronavirus, and it’s playing out at one of South Beach’s most fashionable condo-hotels. A company tied to New York developer Aby Rosen’s RFR Realty wants its nearly $1 million deposit back for the failed purchase of a dozen condos at the W South Beach, citing force majeure due to the pandemic. But the seller, tied to the Nakash family that

Airbnb executive to step down as startup revives IPO plans

Posted: 16 Jul 2020 07:00 AM PDT

Three weeks after detailing how Airbnb almost “lost everything” after the pandemic hit, CEO Brian Chesky is reviving plans for a 2020 public offering. “When the market is ready, we will be ready,” Chesky wrote in an email to staff on Wednesday, according to the Financial Times. “We were down, but we’re not out.” The message came after Chesky earlier announced that the president of Airbnb’s Homes division, Greg Greeley, would step down after two

Retail sales increased in June — but surge in infections could signal trouble ahead

Posted: 16 Jul 2020 06:26 AM PDT

Retail sales increased in the U.S. by 7.5 percent in June, exceeding expectations as stores across the country began to reopen. The total estimated value of the sales was $524.3 billion, statistics released Thursday by the Department of Commerce show. The figures follow a record 17.7 percent jump in May, and June’s dollar volume is the closest to January’s peak of nearly $530 billion. The monthly gains are a positive sign for the sector, and

Openpath raises $36M for hands-free office locks

Posted: 16 Jul 2020 06:00 AM PDT

Openpath, which grants employees hands-free access to their offices, just raised $36 million as landlords race to adopt Covid-inspired safety measures. The Series C was led by Greycroft, with participation from Okta Ventures, LPC Ventures and Allegion Sentre, the company said. The round brings Openpath’s total funding to $63 million. Founded in 2016, the Los Angeles-based startup bills itself as an alternative to key card systems and lets employees tap their phone on a reader

Trump administration sued for lack of PPP disclosures

Posted: 16 Jul 2020 05:30 AM PDT

A California advocacy group sued the Trump administration over not getting data it asked for concerning the massive Paycheck Protection Program. American Small Business League, an organization based in Sonoma County, filed a lawsuit in San Francisco federal court Friday over the Small Business Administration withholding records concerning all Paycheck Protection Program loan recipients, and the loan amount given to each recipient. The group wants a judge to order the Trump administration turn over this

The Closing: Kathryn Wylde

Posted: 16 Jul 2020 05:00 AM PDT

Kathryn Wylde, president and CEO of the Partnership for New York City, considers herself an activist. She and her organization represent some of the biggest names in real estate, including Blackstone, Vornado and Tishman Speyer. The nonprofit advocates for pro-business policies that encourage investment in infrastructure and economic development, and helps finance projects and initiatives through a separate $150 million fund. Wylde now oversees a staff of 45 people and serves on a 100-plus-member board

Submerged in securities: Many CMBS hospitality loans may be underwater soon

Posted: 16 Jul 2020 04:30 AM PDT

Carlos Rodriguez Sr. set off from Costa Rica nearly 25 years ago for what seemed like a surefire bet: developing and operating hotels in Florida, where both tourism and business travel were in perpetual demand due to the area’s warm weather, white sand beaches and proximity to Latin America. Rodriguez, who oversees the hotel investment and management companies Driftwood Capital and Driftwood Hospitality Management — which have a combined portfolio pegged at about $3 billion

Don Peebles looks to deploy capital for $500M diversity fund by year-end

Posted: 16 Jul 2020 04:00 AM PDT

Don Peebles said he’s hopeful the $500 million fund his firm launched last June to invest in projects by minority and women-owned developers will begin deploying capital by year end. The Peebles Corporation diversity fund will target projects ranging between $10 to $70 million in New York, Los Angeles and South Florida. In an interview this week, the Peebles Corp. founder said he’s still in discussions with institutional investors, but expects to start investing by