The Real Deal - New York Real Estate News

WeWork now has a glut of NYC availability

Posted: 21 Jul 2020 03:10 PM PDT

WeWork’s availability rate in New York City is more than 20 percent — or nearly double Manhattan’s overall rate, adding to the beleaguered co-working giant’s problems. The firm has some 1.9 million square feet of space in New York that’s either available or will become so in the coming months, according to Business Insider, which obtained leaked marketing materials. That’s more than 20 percent of WeWork’s portfolio in the city, and far exceeds the availability

Gap claims it doesn’t have to pay rent at any of Brookfield’s malls

Posted: 21 Jul 2020 02:15 PM PDT

Gap Inc. is firing back at landlord Brookfield Property Partners, a month after the latter sued the retailer for withholding rent. Five of Gap’s chains — Gap, Athleta, Banana Republic, Old Navy, and Janie & Jack — sued Brookfield affiliates, claiming that its obligations to pay rent ended when government restrictions forced the company to close stores across the country, according to Crain’s Chicago Business. In a complaint filed in Cook County Circuit Court, Gap

Biden’s tax plan would “pull the rug out” from under the real estate industry: insiders

Posted: 21 Jul 2020 02:14 PM PDT

Joe Biden went after one of the real estate industry’s favorite tax benefits Tuesday when he proposed funding a child- and elderly-care spending platform by closing off a loophole used by property investors. The presumptive Democratic presidential nominee proposed eliminating 1031 “like-kind” exchanges for investors with annual incomes greater than $400,000, as part of his plan to finance $775 billion in government spending over the next 10 years on child care and care for the

TRD Insights: Home loan forbearance hits lowest level in months

Posted: 21 Jul 2020 02:00 PM PDT

Mortgages in forbearance dropped to the lowest level in two months. Home loans in forbearance made up 7.8 percent of servicers’ portfolios for the week ending July 12, according to figures released Monday by the Mortgage Bankers Association. That’s down from 8.18 percent for the week ending July 5 and from 8.39 percent for the week prior. About 3.9 million homeowners are now in forbearance plans. Homeowners often request forbearance in times of hardship, when

City unveils landlord-tenant mediation program to avoid evictions

Posted: 21 Jul 2020 01:41 PM PDT

Looking to avoid a surge in eviction-related filings, New York City on Tuesday unveiled a mediation program for landlords and tenants aimed at addressing rent-related issues affecting the hardest-hit communities. At a press conference, Mayor Bill de Blasio said the Landlord-Tenant Mediation Project would serve hundreds of residents a month, providing housing security to tenants across the city. “This project will ensure that New Yorkers aren’t forced from their home during this unprecedented health and

LIC penthouse deal is priciest Queens sale in two years

Posted: 21 Jul 2020 01:15 PM PDT

Despite sales hitting record lows last quarter, one deal in Long Island City hit a new high. A penthouse at the The View, an 18-story condo at 46-30 Center Boulevard, sold for $3.45 million, or $1,527 per square foot, according to property records. The transaction is the most expensive deal Queens has seen since 2018, when a unit in the same building sold for $3.8 million. The penthouse in the latest deal is also notable

The REInterview: Social Construct’s founders on making multifamily construction an assembly line

Posted: 21 Jul 2020 01:00 PM PDT

“Nothing can be said to be certain except death and taxes,” goes the old chestnut. If you’re a real estate developer, you could add one more to that category: that your cost of building will keep going up. The primary reason for this is the cost of labor. A construction site is a minefield of uncertainty, and the back-and-forth required to build housing in cities such as New York and San Francisco means that labor

Chelsea manse once listed for $37M sells after 41% price chop

Posted: 21 Jul 2020 12:15 PM PDT

After more than four years on the market, an opulent West Chelsea mansion has finally sold at a steep discount. The five-story townhouse at 357 West 17th Street came to market in late 2016 with an asking price of $36.8 million. At the time, the sellers, developers Girona Ventures and Wonder Works Construction, threw in a Bentley to sweeten the deal. Though the luxurious home reportedly piqued Lady Gaga’s interest, it languished on the market

A boomtown for a bygone era: Koreatown developers face a reckoning

Posted: 21 Jul 2020 12:00 PM PDT

When protests in Los Angeles following George Floyd’s death at the hands of Minneapolis police officers turned to vandalism, Koreatown was left untouched. The lack of disruption during the weekend after Floyd’s death was notable. Koreatown has historically been a flashpoint for racial tension including during the 1992 L.A. riots when properties were set ablaze amid searing images of store owners waving guns. The calm seemed another sign of Koreatown’s post-riot bloom, a recovery driven

Vornado: Coronavirus responsible for $306M loss on value of prized retail JV

Posted: 21 Jul 2020 11:38 AM PDT

The “tragic abyss” that coronavirus has created for Vornado Realty Trust’s finances now includes a massive writedown on some of the city’s most valuable retail real estate. The real estate investment trust has recorded a nearly $306 million impairment loss on its Fifth Avenue and Times Square retail joint venture, according to preliminary estimates released Monday. That equates to a net loss of $1.50 per share, SEC filings show. Meanwhile, Vornado has continued to see

“Don Peebles’ diversity capital call: Developer says push for equal economic opportunity is “not going away” “

Posted: 21 Jul 2020 11:15 AM PDT

Developer Don Peebles founded his eponymous firm in 1983. Since then, the Peebles Corporation has built out a portfolio that totals $6 billion and spans more than 7 million square feet in Boston, Los Angeles, Miami, New York, Philadelphia, San Francisco, Washington, D.C., and Charlotte, North Carolina. Peebles has long been outspoken about the need for real estate companies to address the lack of economic opportunity for minorities in the industry. He once served on

Signature Bank “pleasantly surprised” by multifamily rent collections

Posted: 21 Jul 2020 10:25 AM PDT

Signature Bank, one of New York City’s most active multifamily lenders, was “pleasantly surprised” by rent collections during the last quarter. Its $15 billion multifamily portfolio, which accounts for 30 percent of its total holdings, saw rent collections top 80 percent during the second quarter, the bank reported during an earnings call Tuesday. Still, $9.4 billion of the loans in Signature Bank’s $50 billion portfolio remain in deferral. That’s down from $10.9 billion at the

Knotel seeks to raise $100M in a serious down round

Posted: 21 Jul 2020 10:15 AM PDT

Knotel is reportedly trying to raise $100 million in funding in a round that would significantly lower its valuation, as the co-working firm grapples with plunging revenues and mass layoffs. The company has been in talks with a European firm for the funding since the beginning of the year, according to Forbes. The new investment would be at terms that could cut Knotel’s current $1.6 billion valuation in half, the publication added, citing a source

Adam Neumann listing Bay Area “Guitar House” for $27.5M

Posted: 21 Jul 2020 09:35 AM PDT

WeWork co-founder Adam Neumann is having a busy month. He’s putting up another property for sale — an 11-acre estate north of San Francisco. The Corte Madera, California property is home to the “Guitar House” designed by architect Sim Van der Ryn. It’s set to hit the market for $27.5 million, around $6 million more than Neumann paid for it in 2018. The property hasn’t yet been listed on the MLS. Last week he and

Home insurance startup Hippo raises $150M ahead of IPO

Posted: 21 Jul 2020 08:20 AM PDT

Home insurance startup Hippo is hoping to ride the coattails of rival Lemonade with an initial public offering next year. The Palo Alto, California-based startup said Tuesday it raised $150 million, valuing the company at $1.5 billion, Bloomberg reported. Dragoneer and Ribbit Capital participated in the round, alongside Felicis Ventures and Iconiq Capital. Hippo intends to go public next year. The round brings Hippo’s total funding to $359 million since 2015. Previous investors include homebuilder

40% of bank execs plan to reduce real estate footprint: survey

Posted: 21 Jul 2020 08:00 AM PDT

While banks have begun the slow, careful process of returning employees to the office, most executives aren’t expecting everyone to come back. A survey by professional services firm Accenture found that about 61 percent of bank executives don’t expect to call all employees back to the office. And more than 40 percent of those surveyed are also planning to reduce their real estate footprints accordingly. Many firms are considering a model in which employees come

Silverstein Properties confirmed as buyer of LA’s US Bank Tower

Posted: 21 Jul 2020 07:15 AM PDT

Silverstein Properties has made its first acquisition in Los Angeles, and it’s an iconic one. The New York-based developer is the confirmed “institutional purchaser” that’s paying $430 million for Downtown LA.’s US Bank Tower, according to the Los Angeles Times. Singapore-based investment management firm OUE Limited announced the sale agreement last week without disclosing the buyer, and the deal is expected to close in September. The sale price is a 34-percent discount from the OUE’s

Sheldon Silver gets 78 months in prison

Posted: 21 Jul 2020 06:30 AM PDT

After two convictions and nearly five years of courtroom battles, former New York State Assembly speaker Sheldon Silver is finally going to prison. Silver, whose 2018 conviction in real estate and money laundering schemes was upheld in January, was sentenced to 78 months in prison on Monday. His lawyers had sought a term of home confinement for their client, citing the risk of contracting coronavirus in prison. “I do not want Mr. Silver to die

Biden’s $775B “caring economy” plan to be funded by RE taxes

Posted: 21 Jul 2020 05:45 AM PDT

Democratic presidential nominee Joe Biden has unveiled another piece of his economic plan — and it will be financed by taxes on real estate investors with incomes of $400,000 and above. The $775 billion “caring economy” plan, which seeks to support care for children and the elderly, would target tax breaks for “like-kind” 1031 exchanges, a senior campaign official told Bloomberg. The plan would also prevent investors from deducting real estate losses from their taxable

From LA to NYC, landlords are suing to resume evictions

Posted: 21 Jul 2020 05:00 AM PDT

Landlords across the country have filed lawsuits seeking to overturn state and local eviction moratoriums, saying the measures jeopardize their businesses, discourage renters from paying what they owe and are unconstitutional. The cases, filed in at least nine states, come as landlords grapple with their own mortgage obligations while having to negotiate payment plans with tenants hard hit by the coronavirus. In New York, three landlords filed a federal lawsuit challenging the constitutionality of New

Real estate is acknowledging its diversity problem. Now what?

Posted: 21 Jul 2020 04:30 AM PDT

The protest movement that swept the globe in the wake of George Floyd’s death put corporate America under a microscope. Like most of the business world, the real estate industry has long been controlled by white men, and the power of personal and professional networks has only reinforced racial disparities. For many minorities in the business, the lack of diversity has meant barriers to entry, barriers to ascension and routine workplace racism — both overt

MeetElise, an AI-powered leasing startup, raises $6.75M

Posted: 21 Jul 2020 04:00 AM PDT

It’s rare that apartment seekers limit their searches to business hours. But a New York startup, backed by two of the country’s biggest landlords, has built an AI-powered leasing assistant available to field queries 24/7. MeetElise said Tuesday that it closed a $6.5 million Series A funding round led by Navitas Capital, with participation from AvalonBay Communities and Equity Residential, which have deployed the company’s digital assistant “Elise” throughout their portfolios. Founded in 2017 by