The Real Deal - New York Real Estate News

Columbia Property unloads Chelsea office for $170M

Posted: 07 Dec 2021 01:00 PM PST

PIMCO is trimming Columbia Property Trust’s portfolio as it prepares to close its $4 billion purchase of the Manhattan landlord. Columbia sold the Chelsea office building that serves as headquarters to Red Bull at 218 West 18th Street to Meadow Partners for about $170 million, sources familiar with the sale told The Real Deal. Meadow Partners is buying the property through a fund it operates with the California Public Employees Retirement System. The fund is

Multifamily deals keep investment sales humming

Posted: 07 Dec 2021 12:30 PM PST

Multifamily projects accounted for most of the 11 investment sales recorded last week in the middle range of the market, continuing a trend that saw sales of multifamily buildings increase by 77 percent in the third quarter. Buyers included Silverstein Properties, Maddd Equities and Jeffrey Elghanayan. Brooklyn and Manhattan each notched four sales in the $10 million to $40 million range, while Queens and the Bronx each had two, including logistics firm Realterm buying 106,000

Behind the Vale: Conflict dogs Zelig Weiss and his hip hotel

Posted: 07 Dec 2021 11:45 AM PST

It’s hard to hear yourself think at Broadway and Havemayer Street. A smoky mess of vans, pedestrians, bikes, buses and elevated subway tracks weaves together in a series of near-misses that always appears seconds from catastrophe. Just above the Brooklyn intersection stands 266 Broadway, a nondescript office building home to another tangled web: Zelig Weiss’ Riverside Developers USA. As his firm has grown, so has his maze of shell companies that own each other, transfer

Stephen Ross, Charles Kushner, other titans paid no federal taxes for years

Posted: 07 Dec 2021 11:16 AM PST

Major developers including Stephen Ross and Charles Kushner exploited loopholes to duck federal taxes for years, according to an analysis of private tax data by ProPublica. Ross, the billionaire chairman of Related Companies, reported $1.5 billion of income from 2008 to 2017. But reporting almost $2 billion in losses helped him avoid paying any federal taxes over that decade, the nonprofit site reported. According to ProPublica, Ross didn’t pay federal income tax in 12 years

Cash-out mortgage refinancing hits 14-year high

Posted: 07 Dec 2021 10:45 AM PST

As home values continue to climb, owners eager for extra cash are seeing their dreams come true. Borrowers extracted $70 billion from their home equity through cash-out refinances in the third quarter, according to mortgage data provider Black Knight. Cash-outs accounted for 54 percent of all refinances, the highest quarterly rate in 14 years. But homeowners are not partying like it’s 2005. The $70 billion represented just 0.8 percent of tappable equity at the start

Last call? Cipriani facing possible foreclosure after mortgage default

Posted: 07 Dec 2021 10:00 AM PST

Last call could be coming to two Cipriani locations in New York City as the hospitality company faces foreclosure in the wake of defaulting on its mortgage debt. The Wall Street Journal reported that Cipriani has been in default on $53 million in mortgage debt since May 2020, per real-estate data firm Trepp. The loan is backed by the Cipriani locations at 110 East 42nd Street and 55 Wall Street. Cipriani is being spared by

Northpath Investments nabs Milford Plaza for $11M

Posted: 07 Dec 2021 09:30 AM PST

After an $11 million deal, a shopping center in Connecticut has a new owner: a New York City-based investment firm. Northpath Investments purchased Milford Plaza in Milford, Connecticut from the Hampshire Companies, CBRE announced last week. CBRE’s Jeffrey Dunne and David Gavin were among the team to represent the seller and procure the buyer. Milford Plaza is a 180,000-square-foot shopping center anchored by a G-Mart grocer. Other tenants in the shopping center include Planet Fitness,

“Our existence is a tragedy”: Housing Rights calls for enforcement overhaul from Hochul

Posted: 07 Dec 2021 09:04 AM PST

The tenant advocacy group that’s made a name for itself taking landlords to court is rounding out 2021 with another win for tenants — and a message for the governor. The Housing Rights Initiative this week celebrated its investigation into J-51 rent overcharges that secured a $1 million settlement for a group of Bronx renters. The tenants of 3045 Godwin Terrace in 2018 brought a class-action suit against landlord Richard Albert after HRI revealed the

Hochul opens $539M homeowner assistance fund

Posted: 07 Dec 2021 08:15 AM PST

New York homeowners facing foreclosure or displacement will soon be able to file for aid from a federal government program. Gov. Kathy Hochul on Monday announced the opening of the New York State Homeowner Assistance Fund. The program will soon begin distributing $539 million in aid to low- and moderate-income homeowners. The Division of Housing and Community Renewal will start accepting applications for aid on Jan. 3, Hochul announced. Sustainable Neighborhoods is managing the initiative.

Fear and loathing at ICSC’s resurrected Vegas conference

Posted: 07 Dec 2021 07:30 AM PST

The eve of ICSC’s conference in Las Vegas is traditionally a last bastion of hedonism for real estate bros. Music, liquor and cigar smoke flow through the Wynn hotel’s “European Pool,” where retail giants like Winick Realty Group host cabanas — and where bathing suit tops are famously optional. This year, things are different. The Wynn’s pools were quiet and mostly empty on a picturesque, 70-degree Sunday. New York-based debt brokerage, investment, and retail leasing

Decarbonizing real estate: What’s here — and what’s hype

Posted: 07 Dec 2021 06:45 AM PST

In real estate, green isn’t the new black — not yet. But if the capital markets continue demanding greater sustainability and increasing the pressure on portfolios with high carbon emissions, it may soon be impossible for owners to stay in the black if they don’t go green. Last month, many of the global economy’s movers and shakers convened with heads of state and policymakers at the United Nations climate change conference, known as COP26. Pledges

Treasury to expand reporting on shell companies in real estate deals

Posted: 07 Dec 2021 06:22 AM PST

President Joe Biden’s administration is reportedly set to make life more difficult for those looking to make all-cash real estate purchases in the United States using shell companies. The Treasury Department is looking to develop reporting regulations for all-cash deals, Bloomberg reported, citing two senior administration officials. The report comes as the Treasury Department’s Financial Crimes Enforcement Network on Monday gave advanced notice for proposed rules ahead of a public comment period. Bloomberg reported that

WATCH: SmartRent’s Lucas Haldeman on multifamily’s tech era

Posted: 07 Dec 2021 05:30 AM PST

The residential real estate sector is becoming more institutionalized, with greater consolidation of ownership among the largest players as Wall Street spurs a number of novel business models such as iBuying. But institutionalization and wider adoption of technology go hand-in-hand, according to Lucas Haldeman. “You can’t make this an institutional asset class without embracing smart technology,” Haldeman said in an interview with The Real Deal‘s Hiten Samtani. “The costs are too high. You can’t solve

Rent-controlled units need 11% rent hike, but landlords will get 1%: analysis

Posted: 07 Dec 2021 05:00 AM PST

Landlords whose tales of soaring expenses were largely ignored by the Rent Guidelines Board can now say, “Told you so.” A statewide analysis of rent-controlled apartments — a subset of rent-stabilized housing — shows the deficit between expenses and revenue may be even steeper than owners claimed. The board’s vote in June dealt a major blow to landlords, who sought a 2.75 percent increase, in line with the 3 percent rise in costs estimated by

Why Blackstone bet $6B on Home Partners of America

Posted: 07 Dec 2021 04:30 AM PST

When Blackstone Group makes a play in a new sector, people pay attention. From warehouses to life sciences to troubled casinos, the company’s deals generate headlines and typically herald major trends. But when the news broke that the investment giant was jumping back into single-family rentals with a $6 billion bet on Home Partners of America, it wasn’t quite clear what made Home Partners’ 17,000 homes worth so much. When the deal was announced in

Future City: Proptech unicorns multiplying

Posted: 07 Dec 2021 04:00 AM PST

Lessen is more Lessen, a real estate management platform that connects property owners to service providers, nearly quadrupled its previous fundraising with a $170 million Series B round, valuing the company at more than $1 billion. The Scottsdale, Arizona-based startup is the latest unicorn to come out of a record year for proptech investment, which has seen upwards of $10 billion of equity and debt capital flow into the space. Lessen’s Series B was oversubscribed,

Indoor farm in Newark trades hands for $21M

Posted: 06 Dec 2021 03:30 PM PST

A vertical farm in Newark — one of the largest in the world — has traded hands for $21 million. Newark-based developer and investor RBH Group sold the 65,539-square-foot headquarters of AeroFarms at 212 Rome Street to Boston-based Cabot Properties. Cabot is fresh off the $2.8 billion sale of a 124-property portfolio to Blackstone Group. The firm specializes in industrial real estate. Its largest markets are Dallas, Chicago and Los Angeles, and the portfolio deal

Chicago leads office-to-industrial conversions, followed by LA, Boston

Posted: 06 Dec 2021 03:00 PM PST

Chicago leads the nation in converting offices for industrial space, followed by LA and Boston as pandemic-era demand for e-commerce surges, according to a report from Newmark. About 3 million square feet has been converted in the midwestern city in the past three years, compared with 2.1 million in LA, 1.7 million in Boston and 1.5 million in both New Jersey and California’s Orange County, Newmark said. Across the nation, at least 45 properties totaling

Miki Naftali makes $73M dev play on Upper East Side

Posted: 06 Dec 2021 02:30 PM PST

Miki Naftali is making another Uptown development play, this time jumping back to the Upper East Side. The Naftali Group purchased a pair of vacant five-story apartment buildings at 1481-1489 Second Avenue from Sky Management for $72.6 million, the Commercial Observer reported. The properties, between East 77th and East 78th Streets, have up to 152,000 buildable square feet, which could be expanded up to 186,000 square feet if Naftali decides to develop affordable housing, according

In rare move, Steve Croman looks to sell large apartment portfolio

Posted: 06 Dec 2021 02:06 PM PST

Aside from his history of scandals, Steve Croman is known for rarely — if ever — selling his apartment buildings. But now, the landlord plans to do just that. Croman is looking to offload 14 apartment buildings in and around the East Village for more than $120 million, The Real Deal has learned. He’s the latest in a group of old-line New York landlords who have moved to part ways with their properties in recent

Bloomberg nabs 191K sf expansion with SL Green

Posted: 06 Dec 2021 01:55 PM PST

New York City’s biggest office landlord has reason to celebrate after Bloomberg LP agreed to take an additional 191,000 square feet at SL Green’s 919 Third Avenue. SL Green announced the deal Monday, in which Bloomberg will occupy the 28th to 33rd floors of the Midtown office tower. The media giant will have more than 748,000 square feet at the building once its expansion is complete. The asking rent in the expanded space was $85

$10M Brooklyn Heights townhouse leads Brooklyn’s luxury contracts into December

Posted: 06 Dec 2021 01:05 PM PST

The most expensive home to go into contract in Brooklyn last week was asking more than the next two homes combined. A Brooklyn Heights townhouse asking $10 million at 126 State Street topped the borough’s luxury contracts between Nov. 29 and Dec. 5, according to Compass’ weekly report. The 6,010-square-foot home, which cost $1,648 per square foot, has six bedrooms and five bathrooms. It has a 62-foot deep parlor and garden floor, as well as

Proptech unicorn Pacaso’s meteoric rise — and fallout

Posted: 06 Dec 2021 12:00 PM PST

Good fences make good neighbors — unless your neighbor is an LLC and their house is a party palace. Yael Bernier of Healdsburg, California, an idyllic outpost in Sonoma Valley, remembers one of the town’s first brushes with Pacaso, the startup that sells shares of upscale houses to aspirational second-home owners, last spring. One of the eight co-owners of a local Pacaso-sponsored property had just arrived from out of town, but the hot tub didn’t

Southold zoning board approves controversial hotel — with caveats

Posted: 06 Dec 2021 11:15 AM PST

Despite local pushback, the Enclaves Restaurant and Hotel in Southold is one step closer to becoming a reality. The Suffolk Times reported that developer Jonathan Tibett has gained conditional approval from the town’s Zoning Board of Appeals for his proposed 44-room hotel and 74-seat restaurant at 56655 Main Road. The approval did not come without conditions, according to the publication. Outdoor events will be prohibited at the venue, and indoor events will be limited to

$22M pad at 111 West 57th tops Manhattan luxury market

Posted: 06 Dec 2021 10:37 AM PST

Early December brought frosty temperatures to New York and cooled down Manhattan’s luxury contract signings. Deals dropped to 34 contracts signed for homes asking $4 million or more in the borough between Nov. 29 and Dec. 5 — the lowest in nine weeks — according to Olshan Realty’s weekly report. The total sales volume was just under $265 million with buyers agreeing to purchase 24 condo units (13 sold by developers), eight co-op units and

New warehouse leases boosted by inflation, supply chain crisis

Posted: 06 Dec 2021 09:55 AM PST

As inflation woes roil the economy at large, industrial real estate players are reportedly seizing on new contracts to pass on the increased costs. Prices for industrial property leases are up 25 percent on average compared to five-year lease contracts that expired in 2021, according to CBRE data reported by the Wall Street Journal. The increases stem from global supply chain issues wreaking havoc on landlords and developers. After e-commerce activity and demand for logistics

Buyer in deal for oceanfront Wainscott home asking $37M

Posted: 06 Dec 2021 09:00 AM PST

When there’s water, there’s a way. A Hamptons home asking $37 million, or $18.5 million for each body of water it faces, has gone into contract. The estate, at 38 Association Road in Wainscott, is two oceanfront acres with views of both the Atlantic Ocean and Georgica Pond. The home is 6,500 square feet and has five bedrooms, five bathrooms and one half bathroom. Three of the bedrooms are located on the first floor. Two

Ex-Goldman banker bets $245M on distressed China property debt

Posted: 06 Dec 2021 08:30 AM PST

It was only a matter of time: Months after Chinese property markets imploded, a former Goldman Sachs banker is making a big bet on mainland real estate. Jason Brown, an ex-head of the Goldman Sachs Special Situations Group, has raised $245 million for his Hong Kong-based Arkkan Capital to target stressed and distressed Chinese property, Bloomberg reported. It plans to raise more in the first half of 2022. China’s real estate developers are heavily overleveraged,

TRD’s podcast “Deconstruct” looks at the Hudson Valley craze

Posted: 06 Dec 2021 08:00 AM PST

Want to buy a home in the Hudson Valley? Good luck. This week’s episode of TRD’s podcast, “Deconstruct,” looks at the housing craze that’s gripped the region from Westchester up to Albany as buyers have flocked there from near and far during the pandemic. This demand has had a considerable impact on home prices. In Westchester County, for example, the median sales price leapt from $700,000 in the summer of 2019 to $835,000 this summer

SL Green unloads Midtown building for $117M

Posted: 06 Dec 2021 07:41 AM PST

Four years after picking up 110 East 42nd St. for the second time, SL Green has sold the Midtown office condominium to Meadow Partners. In a transaction announced Monday, the building traded hands for slightly more than $117 million. The landlord said in a release that Meadow Partners is acquiring the ownership interest of the office and garage condominiums “on behalf of a separately managed account.” “We continue to see demand for well-located assets near

NYC talked about converting hotels into affordable housing. Nothing’s happened yet

Posted: 06 Dec 2021 06:44 AM PST

As the pandemic shut out tourists and shuttered hotels, some New York City politicians and housing advocates seized on the properties as an answer to the city’s struggling hotels and homelessness. More than a year and a half after the city’s hotel industry hit its nadir, not a single one has been converted into permanent affordable housing since the onset of the pandemic, the New York Times reported. A slew of zoning and regulatory obstacles

This city now tops San Francisco on unaffordable list

Posted: 06 Dec 2021 05:45 AM PST

Call it counter-intuitive to the extreme, but Long Beach holds a dubious distinction based on data showing it edges out San Francisco on a national list of most unaffordable housing markets. The statistic comes from a report published Wednesday by the website RealtyHop. The analysis is based on median household incomes in the country’s 100 most populous cities compared with local median listing prices pulled from its own database. The just-published December index finds that

Lincoln Equities, HIG nab $163M loan for Hudson Valley industrial complex

Posted: 06 Dec 2021 05:00 AM PST

Lincoln Equities Group and H.I.G. Realty Partners landed $163.3 million in financing for a Hudson Valley distribution center. The loan was provided by Heitman for the acquisition and construction of the industrial property at 50 Prospect Hill Road in Brewster, the Commercial Observer reported. A site plan for the planned Brewster Distribution Center has already been approved. A Cushman & Wakefield team including John Alascio and Chuck Kohaut helped arrange the financing. Construction for the

Boxed out: Supply chain, energy crises rock real estate

Posted: 06 Dec 2021 04:30 AM PST

With huge heating bills looming, Valentina Gojcaj moved quickly to lock in energy rates and keep her tenants warm through the winter months. The mere threat of rising demand amid a global energy crunch has landlords worried that the cost of heating oil could rise to a whopping $4 per gallon this winter, Gojcaj, who owns three buildings in the Bronx, said. She immediately began spot pricing, hoping to secure a low rate in advance.

Data show office workers home for holidays — just like every day

Posted: 06 Dec 2021 04:00 AM PST

There’s no place like home for the holidays, and for most office workers now, that is also true for the days leading up to them. Data from just before Thanksgiving suggest that a fair number of the hardy souls who have been venturing into offices will revert to work-from-home as Christmas approaches. In New York City, for example, an average of 34.7 percent of workers in offices with Kastle Systems card-swipe entry showed up during