The Real Deal - New York Real Estate News

Delta force: Surging Covid variant spoils return-to-office plans

Posted: 09 Sep 2021 03:00 PM PDT

As recently as July, visions of reoccupied desks and packed commuter lines danced in the heads of employers and office landlords, who clung to hopes that a widespread return to the workplace after Labor Day might still be in the cards. But an explosion of Covid cases driven by the highly contagious Delta variant has forced a growing number of firms to reconsider their plans. With infection and hospitalization rates rising across the U.S. —

Landlords challenge state eviction ban — the sequel

Posted: 09 Sep 2021 02:56 PM PDT

You can put lipstick on an unconstitutional eviction ban, but landlords will still take it to court. In the vicious cycle of New York’s eviction protections, a new state ban, signed into law a week ago, is back in federal court over claims that it still denies landlords due process. Landlord group the Rent Stabilization Association, a plaintiff in the suit, had challenged the state’s previous ban on the same grounds — and won. The

Trio charged with defrauding real estate investors out of $155M

Posted: 09 Sep 2021 02:30 PM PDT

Federal prosecutors in New York criminally charged a trio from a Miami-based company with allegedly scamming investors out of $155 million tied to phony real estate projects. Miami resident Ernesto Weisson, Argentinian national Fernando Haberer Bergson and Roberto Cortes, a Madrid resident, were hit with a three-count indictment alleging they conspired to defraud foreign investors and financial institutions as part of an international fraud scheme stretching from South America to the U.S. and Europe. The

Orchard raises $100M in Series D Funding, says no timing set for potential IPO

Posted: 09 Sep 2021 02:08 PM PDT

Orchard’s IPO is off the table — for now. The proptech startup, the subject of speculation this summer that it would soon go public, said it raised $100 million from new and existing investors, valuing the company at more than $1 billion. An IPO isn’t likely soon, the CEO said. “There’s no specific timing,” co-founder and CEO Court Cunningham said in an interview today. “I do think at some point we’ll be a public company.

Aurora Capital plans 11-story mixed-use building in West Village

Posted: 09 Sep 2021 02:06 PM PDT

Break out the blueprints: There’s a new mixed-use building coming to the West Village. Aurora Capital Associates filed plans for a 106,000-square-foot building in the neighborhood, Department of Buildings filings show. At 120 feet tall, the 11-story building at 134 Jane Street will tower over the neighborhood and will include 15 residences, according to the filings. The building, slated to be designed by BKSK Architects, will also feature 200 square feet of ground-floor retail space.

Multifamily projects dominate biggest NYC filings again in August

Posted: 09 Sep 2021 01:30 PM PDT

The 10 largest new development plans filed in August all included multifamily components, continuing a trend from July, when eight of the 10 largest projects were multifamily developments. Brooklyn and Queens dominated August’s top 10 list with four projects each. The Bronx and Manhattan had one of each. Here’s the full list, ranked by square footage: 1. 589 Fulton Street, Brooklyn The Witkoff Group filed an application to build a 52-story mixed-use tower in Downtown

What happens in Vegas: ICSC brings back in-person annual conference

Posted: 09 Sep 2021 01:05 PM PDT

One of the biggest real estate events of the year is making a comeback. The organization formerly known as the International Council of Shopping Centers — recently rebranded to “Innovating Commerce Serving Communities” — is reviving its annual three-day conference at the Las Vegas Convention Center this December. Typically held in May and similarly rebranded from its former name, ReCon, retail real estate’s biggest bash last occurred in 2019 before ICSC suspended live events for

City Council bill would force hotels to pay severance to laid-off workers

Posted: 09 Sep 2021 12:40 PM PDT

As if New York City hotels have not endured enough during the pandemic, a new bill would put them on the hook for their workers’ severance pay. Intended to both help out-of-work employees and encourage hotels to reopen, the bill introduced by Queens Councilman Francisco Moya would apply to hotels where at least 75 percent of workers are unemployed or at least half of the rooms are not being rented, according to the New York

Yelp downsizes San Francisco HQ, delays return-to-office plans

Posted: 09 Sep 2021 12:00 PM PDT

For its San Francisco office, Yelp has left a poor review. Amid a broader reevaluation of its office footprint, the San Francisco-based tech company is moving to a new location at 350 Mission Street, where it will occupy 53,596 square feet across three floors — about one-third the size of its current office at 140 New Montgomery Street, according to a Yelp spokesperson. “While we plan to continue to have offices in the cities where

CIM Group, L+M Development file plans for 1.3M sf Two Bridges tower

Posted: 09 Sep 2021 11:30 AM PDT

A two-tower, 73-story apartment project in lower Manhattan’s Two Bridges neighborhood is finally moving ahead after years of opposition from local residents and politicians. CIM Group, which is developing the site with L+M Development, filed plans on Wednesday for 261 South Street, city records show. It will join two skyscrapers, planned by JDS Development and Starrett Corporation, on the edge of the East River. The South Street project will feature 1,313 residential units across towers

Macklowe’s $600M art collection lands at Sotheby’s for auction

Posted: 09 Sep 2021 11:00 AM PDT

A real estate power couple’s acrimonious divorce will soon be the art world’s gain when the most extravagant collection ever put up for auction faces bidders starting in November. The Macklowe Collection — courtesy of developer Harry Macklowe and his ex-wife, Linda — has landed at Sotheby’s, the auction house announced Thursday. With an estimated value of more than $600 million, the collection will be sold in two parts: the first in November and the

Rent relief checks go out for the wrong amount

Posted: 09 Sep 2021 10:08 AM PDT

The glitches and delays that have defined New York’s rent relief program have spawned a new headache for landlords: relief checks that don’t match their tenants’ arrears. Overpayments have been common for landlords in the Rent Stabilization Association, said Olga Someras, the group’s general counsel. But the extra money has meant more problems. The state’s Office of Temporary and Disability Assistance, which oversees the program, sent checks to members in early August, then immediately phoned

ABC Carpet & Home seeks Chapter 11 bankruptcy

Posted: 09 Sep 2021 08:26 AM PDT

The pandemic has dealt a significant blow to ABC Carpet & Home, leading the luxury retailer to file for Chapter 11 bankruptcy. The filing was made late Wednesday night, with the company listing $50 million in assets and $100 million in liabilities, according to Bloomberg. Under Chapter 11, ABC Carpet & Home can continue to operate, have some of its debts wiped out and make a plan to repay the rest. As a New York-based

Reuben Brothers to buy Vornado buildings on Madison Ave

Posted: 09 Sep 2021 07:24 AM PDT

Vornado Realty Trust’s recent $185 million sale is coming into focus as the buyer was revealed on three of the five unloaded properties. Reuben Brothers have swooped in to buy 677 Madison Avenue, 759 Madison Avenue and 828 Madison Avenue, according to the Commercial Observer. The price has not been reported, but Vornado is expected to take a $7 million hit on its sale of the five assets. Vornado also sold a loft building at

Gloria Vanderbilt’s NYC pad sells faster than an Anderson Cooper interview

Posted: 09 Sep 2021 06:38 AM PDT

Blink and you missed it: Gloria Vanderbilt’s former Manhattan pad on Beekman Place lasted just a month on the market. The apartment at 30 Beekman Place was asking for only $1.1 million — but came with $4,311 in monthly maintenance fees — when it was listed near the end of July. It’s not clear what the closing price will be, but a contract has been signed, according to the New York Post. An artist and

Target grows footprint in shell of former Sears

Posted: 09 Sep 2021 05:30 AM PDT

A Target in Nassau County has grown by almost 50,000 square feet — before even opening. The store coming to a former Sears site at 1400 Union Turnpike in New Hyde Park was initially planned to be a two-level, 70,000-square-foot store. Instead, it’s set to debut at three levels and 115,000 square feet, according to Newsday. A typical Target is about 130,000 square feet, but the company’s smaller format stores are closer to 40,000. The

Clinton Hill project has been stalled so long, it’s sprouting a tree

Posted: 09 Sep 2021 05:00 AM PDT

A Clinton Hill building site that was supposed to house a nine-story apartment building has been derelict so long that a sapling has sprouted instead. “The tree is now so tall you can see it over the top of the eight-foot construction board,” said Dominic Holden, a writer and community organizer who lives around the corner. Fogarty Finger, the architect, revealed renderings of a 112-unit building at the corner of Grand Avenue and Fulton Street

Disquiet at a dynasty: Inside the succession drama at Hertz Investment Group

Posted: 09 Sep 2021 04:30 AM PDT

UPDATED, Sept. 9, 2021, 3:13 p.m.: When Zev Hertz took the helm of his father’s real estate business last September, he inherited 21 million square feet of office properties and a company with an origin story that could have been written by Horatio Alger. It goes like this: In 1977, Judah Hertz founded Hertz Investment Group with just $1,000, parlaying some property in Manhattan’s then-dicey Soho neighborhood into a commercial real estate powerhouse. Hertz’s office

Manhattan, Brooklyn break August leasing records, but fall short of spring rebound

Posted: 09 Sep 2021 04:00 AM PDT

Most New York City office workers were supposed to head back to their desks in September, but just the delta variant derailed those plans, it may have also hampered the city’s rental market. August, like July before it, saw a decline in new lease activity compared to April, May and June, according to the latest report from Douglas Elliman compiled by Miller Samuel. It’s an inauspicious sign for landlords, as July and August typically see