The Real Deal - New York Real Estate News

Jeff Sutton’s Midtown hotel project snags Sonder as first tenant

Posted: 30 Nov 2021 02:30 PM PST

Developer Jeff Sutton’s proposed Midtown hotel has reportedly scored its first tenant. Short-term rental provider Sonder signed on to the planned 363-room hotel at 25 West 34th Street in a 15-year deal, a person familiar with the deal told the Commercial Observer. Sutton filed a permit in April for the construction of the 176,000-square-foot hotel. A 16,000-square-foot retail space on the ground floor operated by fashion company Superdry will be controlled by Sutton’s Wharton Properties.

For $85M, Carlyle nabs another LIC resi building

Posted: 30 Nov 2021 02:11 PM PST

The Carlyle Group is wading further into the Queens multifamily market. The asset manager picked up the Jenga tower that is 22-22 Jackson Avenue, a 175-unit rental building, for $85 million this month from Gershon Company, public records show. Jason Hart, Carlyle’s managing director, signed for the buyer. Gershon, the building’s developer, acquired the lot in 2013 for $16.5 million and later secured around $66 million in financing, consolidating two previous loans. For Carlyle, the

City law protecting commercial tenants upheld on appeal

Posted: 30 Nov 2021 01:00 PM PST

In a win for commercial tenants, an appeals court upheld the city’s key pandemic-era protection that landlords had challenged as unconstitutional. Appellate Division judges ruled in favor of ZAVŌ Restaurant & Lounge, whose proprietors had personally guaranteed the lease with its landlord, Olshan Properties. Olshan sought to hold ZAVŌ’s owners, Ilya Zavolunov and his father Michael, responsible for at least $795,000 in bills that had piled up starting in March 2020. The now defunct restaurant

Musk could save $2B in California taxes on Texas move

Posted: 30 Nov 2021 12:30 PM PST

Elon Musk’s claim of residency in Texas could save a $2 billion capital gains tab if he follows through with a pledge to sell a 10 percent stake in the company he co-founded and built into an automotive juggernaut in California. The $2 billion bill was calculated by Bloomberg News as the amount Tesla co-founder Musk would need to pay the more-than-13-percent capital gains tax on such sales that the State of California adds to

Dov Hertz lands $442M loan for Sunset Park warehouse project

Posted: 30 Nov 2021 12:00 PM PST

Dov Hertz has landed a big construction loan for his multi-story warehouse development in Sunset Park. JPMorgan provided the developer’s DH Property Holdings with nearly $442 million in financing for its planned 1.3 million-square-foot Brooklyn distribution hub, sources familiar with the transaction told The Real Deal. The financing will allow DH Property and its partners — Bridge Development Partners and Banner Oak Capital Partners — to start building the four-story warehouse next year. Construction is

Home prices up 20%, but buyers, take heart

Posted: 30 Nov 2021 11:12 AM PST

U.S. home prices remain significantly higher than a year ago, but the growth is easing and perhaps even ending, according to new figures. U.S. home prices increased 19.5 percent year-over-year in September, according to the S&P CoreLogic Case-Shiller U.S. National Home Price Index released Tuesday. The year-over-year rise in home prices was just below the 19.8 percent annual rise in August. “If I had to choose only one word to describe September 2021’s housing price

Last-mile facilities dominating industrial real estate

Posted: 30 Nov 2021 10:00 AM PST

The last mile of the delivery chain is proving to be the most valuable one for industrial properties. A majority of U.S. industrial leasing during the third quarter involved parties hunting for less than 100,000 square feet, according to JLL data reported by the Wall Street Journal. The outlet noted that the size of the properties likely indicates a last-mile facility. The value of such facilities is increasing as demand grows for quicker deliveries and

All Year’s massive Brooklyn portfolio in distress, sparking bidding war

Posted: 30 Nov 2021 09:19 AM PST

For the past year, All Year Holdings’ massive Brooklyn real estate empire has been hanging by a thread as debt woes, threats of foreclosures, and allegations of fraud plague its founder Yoel Goldman. In August, some of the Israeli bondholders who control the company’s debt found an escape route. They solicited bids for the company’s bonds and appeared to strike a deal with Josh Gotlib’s Black Spruce Management. If it is approved, Black Spruce would

Brookfield picks up Clifton industrial complex

Posted: 30 Nov 2021 08:50 AM PST

Some day, the inferno of industrial buying will burn out. Not today, though. Brookfield Asset Management just threw another log on the fire, acquiring a two-building industrial complex in Clifton, New Jersey, for $25.5 million. The alternative-asset giant has been actively investing in industrial properties in the New York metropolitan region. The firm recently closed on a deal to acquire the 57,000-square-foot Marino Plaza I at 65-75 Kingsland Avenue and the 68,000-square-foot Marino Plaza II

Real estate partnership chosen for Governors Island climate hub

Posted: 30 Nov 2021 07:30 AM PST

New York City’s work against climate change could have a new center of power at Governors Island, where a partnership of real estate and consulting companies is set to open a research and training facility. The Trust for Governors Island on Monday announced the arrival of Buttermilk Labs to Building 301. The partnership is set to redevelop the 23,000-square-foot building for use with projects related to environmental sustainability and climate change, according to Crain’s. Buttermilk

Landlords more likely to ignore applicants of color

Posted: 30 Nov 2021 06:35 AM PST

New research outlines how landlords are more likely to ignore renters they perceive as African American and Latino, perpetuating a cycle of residential segregation and diminished income mobility for tenants of color. The National Bureau of Economic Research examined more than 25,000 interactions between fictitious renters — identified by white, Black or Hispanic-sounding names — and 8,476 property managers in the country’s 50 largest cities. In a working paper reported by Bloomberg, the study found