The Real Deal - New York Real Estate News

FTC sues to stop CoStar’s $585M RentPath buy

Posted: 30 Nov 2020 06:04 PM PST

Federal regulators are looking to block CoStar’s $588 million purchase of troubled rental listing platform RentPath, which operates Rent.com and ForRent.com. The U.S. Federal Trade Commission said Monday that it filed an administrative complaint and authorized a federal lawsuit seeking to unwind the deal. According to regulators, the deal would significantly consolidate CoStar’s footprint in the rental listings arena — specifically, for large apartment complexes in 49 metro areas. “CoStar and RentPath operate several of

Law in order: Ranking New York’s legal power players

Posted: 30 Nov 2020 02:45 PM PST

UPDATED, Nov. 24, 1:45 p.m.: When the pandemic hit in March, affordable housing investment firm Yes Communities was negotiating a deal to purchase a portfolio of mobile-home communities across the country for more than $1 billion. But the sale posed a significant challenge at a time when many government offices were closed and in-person meetings were off the table: Denver-based Yes couldn’t record the mortgages because government offices in the states the 49 properties were

Ryan Seacrest reaches for stars with $85M Beverly Hills listing

Posted: 30 Nov 2020 02:00 PM PST

This…is a big listing. “American Idol” host Ryan Seacrest has put his Beverly Hills home on the market for $85 million, more than twice what he paid for it in 2012. The listing is the latest sign that aspirational pricing in Los Angeles’ ultra-luxury market — which has essentially weathered the pandemic — has returned. Seacrest, who has branched off into numerous ventures since “Idol,” acquired the 8,628-square-foot home at 1196 Cabrillo Drive for $36.5

Banana Republic to close Upper East Side store

Posted: 30 Nov 2020 01:33 PM PST

Banana Republic is closing its store at 1529 3rd Avenue, a new filing indicates. The retailer filed a notice alerting the state Department of Labor of the closing, which will occur Jan. 31. Some 62 employees will lose their jobs. The filings cite economic reasons as the cause of the dislocation. Earlier this year, Banana Republic’s parent company Gap announced that it will close 350 of its stores — 220 of its namesake Gap shops,

David Geffen sells “Billionaires Row” dev site for $34M

Posted: 30 Nov 2020 01:15 PM PST

Billionaire entertainment mogul David Geffen sold a development site in Beverly Hills for $33.8 million, more than a year after he bought the mansion-ready property, The Real Deal has learned. The buyer of the 1-acre parcel at 1169 North Hillcrest Road is a Santa Barbara investor, who sources declined to identify. The sale closed Nov. 20. Geffen paid $30 million for the property in what’s considered “Billionaires Row” in July 2019. It includes plans for

Brooklyn sees $49M in luxury contracts signed during holiday week

Posted: 30 Nov 2020 01:00 PM PST

Thanksgiving week yielded 15 deals for Brooklyn’s luxury market. The contracts inked last week for properties asking $2 million or more totaled $48.9 million, according to Compass’ weekly report. The week prior saw 25 deals inked valued at a combined $73 million. The most expensive contract signed last week was for a Brooklyn Heights townhouse at 48 Willow Place. The 37-foot-wide home spans 5,000 square feet with six bedrooms, a Japanese garden, floating walls, a

Argentinian firm revealed as buyer of Related’s One Union Square

Posted: 30 Nov 2020 12:40 PM PST

Argentinian firm Raghsa has been revealed as the buyer of the Related Companies’ One Union Square South. The Buenos Aires-based real estate developer bought the property for slightly more than $211 million, records filed with the city Monday show. Fannie Mae provided a $120 million loan to finance the acquisition. A representative for Raghsa, headed by CEO Moisés Khafif, could not immediately be reached for comment. The Real Deal first reported that New York-based MKF

Pending home sales fall again as prices continue to rise

Posted: 30 Nov 2020 12:18 PM PST

In another indication of a potential slowdown in the country’s hot housing market, an index tracking pending home sales declined for the second month in a row. The monthly metric from the National Association of Realtors fell by 1.1 percent in October, compared to September. The drops followed four months of growth. NAR’s index tracks signed contract activity for single-family homes, condos and co-ops, and is seen as an indicator of future sales of existing

Bronx rent-stabilized multifamily portfolio nabs $186M loan

Posted: 30 Nov 2020 11:47 AM PST

Finkelstein Timberger East Real Estate received a $186 million refinancing package for 16 multifamily buildings in the Bronx. Fannie Mae provided the financing, which has an average fixed rate of 2.98 percent for 12 years with partial interest-only payments, followed by 30-year amortization schedules. Black Bear Capital Partners brokered the transaction for the borrower. The buildings are located throughout the borough, in neighborhoods like Jerome Park, Woodlawn and Grand Concourse. All of the apartments in

CBRE lowers SPAC IPO valuation target to $350M

Posted: 30 Nov 2020 10:30 AM PST

CBRE Acquisition Holdings, a blank-check company formed by CBRE Group, has lowered the target deal size for its upcoming initial public offering to $350 million, according to a filing with the Security and Exchange Commission. CBRE, the world’s largest real estate services firm, initially set the valuation goal for its special purpose acquisition company (SPAC) at $400 million. But according to a new document filed with the SEC on Friday, the company lowered its IPO

Manhattan luxury deals surpass 10-year average over Thanksgiving week

Posted: 30 Nov 2020 10:00 AM PST

Manhattan luxury brokers had cause to give thanks last week. Buyers signed contracts for 14 properties asking at least $4 million during the traditionally slow Thanksgiving period. The prior week had 25 such deals — the most since early March — but the holiday week’s total was above the 10-year Thanksgiving-week average of 12 deals, according to the latest market report from Olshan Realty. “I thought [the number] was decent,” said report author Donna Olshan,

Behind the scenes of the story on Vornado’s 220 Central Park South

Posted: 30 Nov 2020 09:31 AM PST

After 15 years, Steven Roth’s transformation of a drab rental property into the pinnacle of ultra-luxury is nearly complete. Our team uncovered the sometimes steep path Roth’s project took to come out on top of the market. On this month’s TRD Insider call Hiten Samtani will discuss the intimate details of this story with Amy Plitt and E.B. Solomont, followed by a short Q&A from attendees. Note that this event will not be recorded so be sure

All Year misses Israeli bond payment, sending values plunging

Posted: 30 Nov 2020 09:15 AM PST

Delays in a pair of big deals and other pandemic fallout have All Year Management’s Israeli bonds in big trouble — again. Yoel Goldman’s firm announced Sunday that it would be “temporarily halting” payments to bondholders for 30 days, including a payment on its Series B bonds that was due today. The developer is also delaying the release of its third quarter financials and has scheduled a bondholder meeting for Tuesday to discuss the situation.

$78.6M sub-performing loan on Union Crossing up for sale

Posted: 30 Nov 2020 08:45 AM PST

Distress alert: A $78.6 million sub-performing loan on 825 East 141st Street is for sale. The loan on the South Bronx warehouse-to-office conversion known as Union Crossing was originated by Greg Lippmann’s LibreMax in January 2020 for the owners to continue renovating and leasing the building, Commercial Observer reported. The Bluestone Group, Altmark Group, Madison Realty Capital and Galil Management bought the building in 2016 for about $39 million. The partnership then undertook a $45

Can the American Dream mall survive the pandemic?

Posted: 30 Nov 2020 08:20 AM PST

New Jersey’s American Dream mall was projected to have 40 million visitors when it opened in 2019 — and then Covid-19 hit. The mall was already beset by 18 years of starts and stops, and the pandemic put another roadblock in the shopping center’s final stretch toward completion and fiscal viability, the New York Times reports. After years in the making, the $5 billion retail and entertainment complex in the Meadowlands finally started opening its

Retail foot traffic tanks on Black Friday

Posted: 30 Nov 2020 06:45 AM PST

Foot traffic in stores on Black Friday was about a half of what it was last year. But the decline in spending at physical stores was not as bad, according to the Wall Street Journal, citing findings by several analytics firms that track retail. Spending outpaced foot traffic because shoppers were more likely to purchase at the stores they did visit, said Brian Field, a senior director at Sensormatic Solutions, a tracking firm with cameras

Airbnb targets as much as $33B valuation for IPO

Posted: 30 Nov 2020 06:07 AM PST

Airbnb executives plan to target a higher-than-expected valuation range of as much as $33 billion for its initial public offering, which is expected sometime next month. On Tuesday, the company will start marketing its offering to mutual funds and hedge funds, the Wall Street Journal reported. The investor roadshow will take place via Zoom meetings, rather than the usual meetings across the nation. Companies and their underwriters typically set a relatively conservative initial offering range,

Michael Stern pays $24M for future site of 62-story Brickell tower

Posted: 30 Nov 2020 05:00 AM PST

UPDATED, Nov. 25, 9:45 p.m.: Developer Michael Stern closed on an assemblage of properties in Miami’s Brickell neighborhood where he plans to build a 62-story tower, The Real Deal has learned. Stern, who leads New York-based JDS Development Group, paid $9 million for property at 191 Southwest 12th Street. The seller is a company tied to John Polit. Stern also bought adjacent land from Choice Hotels for $14.5 million. Stern will demolish the existing building

The mirage of low interest rates

Posted: 30 Nov 2020 04:30 AM PST

Record-low interest rates have created an unprecedented opportunity for homebuyers. That’s the party line in the residential industry. But that’s not how things are playing out on the ground. Many buyers have little chance to secure the cheap financing that headlines and marketers often claim is fueling the residential market this year. “If you’re not a wealth management client, most people who want to take advantage of the historically low rates don’t know where to

Here’s what 2021 has in store for the CMBS market

Posted: 30 Nov 2020 04:00 AM PST

After a hot start in the first two months of 2020, the market for commercial mortgage-backed securities came to an abrupt halt in March with the arrival of the coronavirus pandemic. Issuance of new CMBS deals has gradually ramped up, but is still a far cry from the heights it reached in 2019. Total CMBS issuance for 2020 is now projected to total up to $55 billion, according to a new report from Kroll Bond