The Real Deal - New York Real Estate News

Quarters, the “WeWork of co-living,” files for bankruptcy

Posted: 18 Jan 2021 04:05 PM PST

Quarters’ U.S. expansion appears to have ended in bankruptcy. Eight properties and two additional limited liability companies tied to the German co-living firm filed for Chapter 7 bankruptcy on Friday, according to court records. Under Chapter 7 bankruptcy, companies cease operation and liquidate all eligible assets to repay creditors. Quarters, which is the co-living brand of Berlin-based Medici Living Group, raised $300 million for its push into the U.S. in early 2019. That came on

Rack ’em!: NY pool halls ordered shut can temporarily reopen, judge rules

Posted: 18 Jan 2021 03:30 PM PST

A judge ruled that 16 pool halls in New York state shuttered because of pandemic protocols can reopen. The decision came as part of a preliminary injunction connected to a lawsuit opposing the closures, Newsday reported. The New York State Supreme Court judge’s decision will stand while the larger lawsuit is litigated. The Jan. 15 ruling applies only to those 16 businesses — most of them in Manhattan with one in Upstate — that are

Dwyane Wade and Gabrielle Union drop asking on Sherman Oaks manse

Posted: 18 Jan 2021 03:00 PM PST

Dwyane Wade and Gabrielle Union are lowering the ask on their Sherman Oaks mansion. Wade, the former Miami Heat superstar, and Union, an actress, are now asking $6 million for the 8,650-square-foot home, according to the Los Angeles Times. That’s $200,000 less than they had been seeking, and the exact amount they paid for the property in 2018, a year after it was built. Last year, the couple paid $18 million for a 17,000-square-foot Hidden

Editor’s note: Miami mania

Posted: 18 Jan 2021 01:30 PM PST

It seems like the whole world is heading south for the winter — and staying there. Since the pandemic hit, South Florida — despite seeing an enormous number of Covid cases — has benefited with rarely a day going by without news of a mammoth luxury sale or prominent company relocating some of their employees from elsewhere in the country. In our cover story this month, we explore an idea that has gained currency in

Gowanus rezoning on hold — for now

Posted: 18 Jan 2021 01:03 PM PST

A state Supreme Court judge has temporarily halted the Gowanus rezoning proposal. The City Planning Commission can’t certify the rezoning application until after a hearing is held on Jan. 27, according to an order signed by Judge Donald Kurtz on Friday. The order was in response to a lawsuit filed last week by a coalition of neighborhood groups seeking to block City Planning from certifying the application, which would kick off the city’s seven-month land

Billionaire hedge funder Dan Loeb buys waterfront Miami Beach estate: sources

Posted: 18 Jan 2021 12:30 PM PST

Spec home developer Peter Fine sold a Miami Beach mansion to billionaire hedge fund manager Dan Loeb for $20 million, The Real Deal has learned. Fine’s 6440 NBR LLC sold the six-bedroom, 13,386-square-foot home at 6440 North Bay Road to a Delaware entity named after the address. Sources confirmed the buyer is Loeb, founder and CEO of Third Point, a New York-based hedge fund. Loeb is worth about $3 billion, according to Forbes. He founded

Former HFZ exec, alleged mob members plead guilty in construction scheme

Posted: 18 Jan 2021 11:30 AM PST

UPDATED, Jan. 18, 2021, 5:13 p.m.: A former HFZ executive and 11 alleged members of the Gambino crime family pleaded guilty last week in connection to a construction bribery scheme that skimmed hundreds of thousands of dollars from the developer’s luxury condo tower and other projects. John Simonlacaj, HFZ’s former managing director of development, admitted to submitting a false tax return in relation to renovation work at his home. Simonlacaj was accused of accepting free

Pied-à-terre tax revenue estimate slashed by 41%

Posted: 18 Jan 2021 10:58 AM PST

A tax on luxury second homes in New York City would yield far less revenue than expected, an agency charged with crunching numbers for lawmakers has found. The Independent Budget Office quietly dropped its revenue estimate for the proposed pied-à-terre tax by 41 percent this month. The IBO now estimates the tax would generate $232 million annually, down from the $390 million a year it forecast Dec. 1. George Sweeting, deputy director of IBO, said

Condo at 111 West 57th Street tops Manhattan luxury contracts

Posted: 18 Jan 2021 10:30 AM PST

A deal for a 53rd-floor unit at JDS Development’s 111 West 57th Street condo topped last week’s list of Manhattan luxury contracts. The Billionaires’ Row buyers are a married pair of real estate developers who already own a pied-à-terre in New York City and wanted to upgrade, according to the latest market report from Olshan Realty. The couple flew into New York from Aspen and toured properties for two days, said Sotheby’s International Realty broker

Opportunity Zone investments got a boost in 2020

Posted: 18 Jan 2021 09:30 AM PST

It was a good year for Opportunity Zones. More than $12 billion was invested in Opportunity Funds by the end of August, Bloomberg News reported, citing the most recent data available from Novogradac. The tax deferral program, which was formalized in the Tax Cuts and Jobs Act of 2017, got off to a slow start partly because the regulations were unclear. Thanks to the rules finalized in December 2019, along with the strong rebound of

Normandy sued by former partners for hiding Netflix deal

Posted: 18 Jan 2021 08:45 AM PST

In a drama not quite worthy of a Netflix series but serious enough to trigger litigation, Normandy Real Estate Partners is being sued by its former investment partners for $106 million. According to the lawsuit filed last month in Manhattan, Normandy — which was part of an investment partnership called 333 Johnson Property Holdings — sold the holdings’ property at 333 Johnson Avenue to Steel Equities for $52.5 million, without disclosing to other partners including

Union Square Park to gain 2 acres in $100M plan

Posted: 18 Jan 2021 08:15 AM PST

Union Square Partnership has unveiled unfunded plans to make over Union Square Park, including adding two acres to its footprint. Although the plan to grow the park to a total of 8.85 acres has been in the works for more than two years, it has become more relevant since the pandemic began pushing activities outside, according to the Wall Street Journal. The plan would cost $100 million and have to go through the city’s public

Startup wants to bring “micro-warehouses” to vacant retail

Posted: 18 Jan 2021 07:30 AM PST

A startup that focuses on creating last-mile fulfillment centers aims to compete with logistics giants. Fabric, which was founded in Tel Aviv but is now headquartered in New York City, has raised $136 million in funding from venture capital, Business Insider reported. The company has partnered with retailers on last-mile distribution centers, often by repurposing former big-box stores or gyms. (FreshDirect is one of its biggest clients.) Last-mile fulfillment facilities have been in high demand

No check, please: Restaurants grapple with confusing Covid inspections

Posted: 18 Jan 2021 06:45 AM PST

On July 18 at around 4:30 p.m., Bungalow Bar in Rockaway Beach received a visit from the State Liquor Authority. Inspectors from the agency walked through the restaurant with its owners, told a guest to wear a mask when waiting for the bathroom and left. The inspectors didn’t find anything that warranted a citation. But two days later, the Department of Consumer Affairs came to do an inspection of the premises. The day after that,

Fifth Avenue will look different after Trump leaves office

Posted: 18 Jan 2021 06:34 AM PST

President Donald Trump’s administration is coming to an end, and so too are the days of heavy security surrounding Trump Tower on Fifth Avenue in Midtown Manhattan. The blocks around Trump’s flagship tower, on East 56th and 57th streets, have been heavily guarded since the president took office in January 2017. The 58-story mixed-use building houses the headquarters of the Trump Organization and Trump’s private residence, and has been a frequent target of anti-Trump protesters.

Compass investors in line for payday, $100M for a flex-living startup

Posted: 18 Jan 2021 05:00 AM PST

Which Compass investors have the most to gain? Compass investors in line for payday, $100M for a flex-living startup Compass investors could be in line for a windfall when the residential brokerage goes public later this year. Since its launch in 2012, Compass has raised more than $1.5 billion from investors, who collectively hold a 60.25 percent stake in the startup, according to data from Pitchbook. We took a deep dive into its cap table

Booster shot: NYC real estate sees salvation in vaccine

Posted: 18 Jan 2021 05:00 AM PST

It’s one of New York City’s biggest real estate events of the year: Thousands of attendees fill the Jacob Javits Center for the International Council of Shopping Centers retail show. The December event was canceled, as virtually everything was last year. But today, Javits is one of the vaccination sites the real estate industry is counting on to bring New York back to pre-Covid life. In the parlance of real estate, widespread vaccination is seen

TRD’s January issue is live for subscribers!

Posted: 18 Jan 2021 04:30 AM PST

The Real Deal’s January national issue is live for digital subscribers and will begin hitting doorsteps around the country soon. Just two weeks ago, the world bid farewell to what many considered the most trying and tumultuous year of their lifetimes. And with pro-Trump riots in the nation’s capital in early January, it’s been a rough transition, to say the least. Now the real estate industry, like so many others, is looking forward to the