The Real Deal - New York Real Estate News

Sleuth seeking Kossoff victims’ money makes surprising discovery

Posted: 01 Jul 2022 05:45 AM PDT

A month after Mitchell Kossoff was sentenced to prison, the hunt for the millions of dollars he stole from landlords is heating up. The trustee overseeing the bankruptcy of Kossoff’s law firm has made some troubling findings as he tries to recover nearly $1.5 million of the $15 million the attorney pilfered. Trustee Albert Togut alleges that Valley National Bank helped the corrupt Kossoff by enabling a bizarre money triangle, according to a federal lawsuit

HomeLight lays off a fifth of its workers, weeks after raising $60M

Posted: 01 Jul 2022 05:00 AM PDT

The recent string of real estate-industry layoffs continued Wednesday, with staffers at proptech unicorn HomeLight the latest victims. The San Francisco-based startup, which raised $60 million at a $1.7 billion valuation just two weeks ago, laid off 19 percent of its employees, Inman reported. In a LinkedIn post, HomeLight said the cuts were aimed at making sure the company had sufficient capital “to operate independently, regardless of the environment or market around us.” The referral

Berkshire Hathaway HomeServices wants to be a New York contender

Posted: 01 Jul 2022 04:00 AM PDT

Steven James and Brad Loe are looking to make Berkshire Hathaway HomeServices a New York brokerage player. James, president and CEO, and Loe, director of sales, were poached by HomeServices from top posts at Douglas Elliman in 2021 to grow the company’s brand in New York City, where it hasn’t cracked a place among the industry’s elite firms. The brokerage tied for 24th in The Real Deal’s brokerage rankings with $44 million across 30 deals

Ruling stops good cause eviction’s spread across NY

Posted: 30 Jun 2022 02:15 PM PDT

Less than a year after Albany made history as the first New York municipality to pass good cause eviction, a state judge wiped it off the books. Although the ruling involved only the city of Albany’s legislation, it effectively stops the spread of good cause eviction laws across upstate localities — and could lead to more being nullified. The judge, Christine Ryba, found that the measure, known as Local Law F, conflicts with state laws

Expiring Soon: Get $25 off an annual TRD subscription (and one month for $1)

Posted: 30 Jun 2022 12:00 PM PDT

So, any plans this weekend? Keeping it simple in the Hamptons with a barbecue and fireworks at the summer house? Partying in South Beach? Maybe you’re dancing the night away in Ibiza, or sailing the seas of Mykonos. Wherever you find yourself this 4th of July, we’ll be there with you to celebrate America’s birthday — and keep you up to speed on all of its biggest and latest deals. It may be a three-day

No joke: Amy Schumer strikes deal for “Moonstruck” home

Posted: 30 Jun 2022 11:30 AM PDT

Comedian Amy Schumer is likely over the moon after reportedly entering into contract to buy a Brooklyn Heights townhouse made famous by Cher. The “Life & Beth” star fell for the townhouse at 19 Cranberry Street that appeared in “Moonstruck,” the New York Post reported. While the contract has been signed, the deal doesn’t appear to have closed yet, so no purchase price has hit public records. The home was last listed for $11 million.

Order your copy now: “The New Kings of New York” has arrived

Posted: 30 Jun 2022 10:30 AM PDT

In New York, real estate is a blood sport, rife with billion-dollar feuds. Behind every eye-popping apartment sale and new development are crazy stories about the uber-wealthy behaving badly. We’re thrilled to share those stories with the launch of our new book, “The New Kings of New York: Renegades, Moguls, Gamblers and the Remaking of the World’s Most Famous Skyline.” Written by award-winning journalist and longtime TRD contributor Adam Piore, the book sizzles with insider

Barack Obama blasts liberal NIMBYs

Posted: 30 Jun 2022 10:30 AM PDT

Unlike many issues, NIMBYism doesn’t adhere to party lines. But it’s rare for leaders to call out not-in-my-backyarders on their own side of the political spectrum. Barack Obama just did, blasting progressives’ role in the housing crisis. “The most liberal communities in the country aren’t that liberal when it comes to affordable housing,” the former president said during the American Institute of Architects Conference, according to Curbed. He cited “bipartisan resistance” to affordable housing development

SL Green closes on Park Avenue office tower

Posted: 30 Jun 2022 09:30 AM PDT

Manhattan’s largest office landlord has closed the deal on a major Park Avenue purchase. SL Green Realty closed on its $445 million buy of 450 Park Avenue, the company announced Wednesday. The Real Deal reported in March the landlord was in late-stage talks to buy the Plaza District office tower. SL Green is taking a 25.1 percent interest in the property and will lead leasing and management on behalf of a partnership. The rest of

Sky buys Greenwich Village mixed-use building in quiet week for i-sales

Posted: 30 Jun 2022 08:45 AM PDT

Last week was a quiet one for mid-market investment sales in New York City despite what has otherwise been a busy month of dealmaking. Four transactions involving commercial properties between $10 million and $40 million hit city records during the week. Three were completed in Manhattan and one in Brooklyn. Below is each transaction, ranked by dollar amount. 1. Frank Wong’s Wong Brothers Realty sold a warehouse and development building at 6201 6th Avenue in

Say goodbye to another property tax break

Posted: 30 Jun 2022 08:00 AM PDT

While the industry fretted over 421a and good cause eviction in the final months of the legislative session, state lawmakers quietly let another real estate measure expire. The decades-old tax exemption program J-51, which incentivized landlords to renovate apartment buildings, dies today. To qualify, work needed to be completed no later than June 29. There was an effort to save the program — one that came closer to succeeding than the bid to rescue 421a.

Checkmate for Papaya King: Extell files demo plans on UES

Posted: 30 Jun 2022 06:45 AM PDT

UPDATED June 30, 2022, 1 p.m.: Hot dog connoisseurs aren’t relishing the likely loss of Upper East Side institution Papaya King. Gary Barnett’s Extell Development filed demolition plans for 171-179 East 86th Street, Patch reported. The site is home to the flagship Papaya King, which has been serving up hot dogs at the location for nearly a century. Or, at least, it was home to the flagship: The previous landlord alleged in 2020 that the

Church seeks to escape hellish partnership with HFZ

Posted: 30 Jun 2022 05:45 AM PDT

Marble Collegiate Church thrived for nearly 400 years. Then it made a deal with HFZ Capital Group. The church partnered with the beleaguered New York City developer in 2013 to build a tower next to the church, in NoMad on the corner of West 29th Street. By late 2020, HFZ had defaulted on $205 million in loans and was engulfed in foreclosures and lawsuits. A year later, Vanbarton Group, the mezzanine lender, foreclosed on the

REBNY, CoStar launch Citysnap listing portal

Posted: 30 Jun 2022 04:30 AM PDT

The Real Estate Board of New York, in partnership with CoStar Group, launched a long-awaited public portal for residential listings. Dubbed Citysnap, the platform is the first search site and app to feature all data from the RLS for both residential rentals and properties for sale. The service potentially fills a void: the confounding absence of a citywide multiple listing service. Previously, infighting between major firms dashed hopes for one. This time, New York City’s

Pay rent, make bank: Stake pioneers cash rewards for renters

Posted: 30 Jun 2022 04:00 AM PDT

Stake, a fintech company that has developed a cash-back program for renters, raised $12 million in a Series A funding at an undisclosed valuation. RET Ventures led the oversubscribed round, which comes on the heels of the New York-based firm’s $4 million seed raise, led by Shadow Ventures, in September. Other Series A investors included Enterprise Community Partners, Hometeam Ventures, Operator Stack, Second Century Ventures and the National Association of Realtors’ investment arm. Shadow and

HUD secretary declares Miami “epicenter” of housing crisis

Posted: 29 Jun 2022 02:51 PM PDT

When U.S. Secretary for Housing and Urban Development Marcia Fudge wanted to get a grip on the nation’s housing crisis, she did not go to New York or San Francisco. Instead, she took her talons to South Beach. “I decided I was going to Miami, to the epicenter of the housing crisis in this country,” Fudge said during a tour of Related Group’s Liberty Square redevelopment project in Liberty City, according to the Miami Herald.

Judge OK’s Gowanus rezoning, calling opponents late and off base

Posted: 29 Jun 2022 01:40 PM PDT

A state court judge on Tuesday threw out a challenge to the Gowanus rezoning, giving local opponents two main reasons for the decision: You are late, and even if you weren’t, you have no case. Voice of Gowanus, Friends and Residents of Greater Gowanus and individuals in the Brooklyn neighborhood sued in February, alleging the city had not adequately considered the environmental consequences of the rezoning. It was their second lawsuit against the plan, which

Watermark Capital sells Holiday Inn in Chelsea for $80 million

Posted: 29 Jun 2022 12:33 PM PDT

Watermark Capital has found a taker for the struggling Holiday Inn in Chelsea. Two Kings Real Estate bought the 226-key hotel from the Chicago-based investment firm for $80.3 million, according to city property records filed Tuesday. Two Kings principal Christopher Wang signed for the buyer. Brendan Medzigian, Watermark’s head of transactions, signed for the seller. Two Kings acquired the property at 125 West 26th Street for 30 percent less than the $113 million Watermark paid

One of NYC’s widest townhouses sells for $53M

Posted: 29 Jun 2022 11:30 AM PDT

An Upper East Side townhouse said to be one of the widest in New York City has sold for more than $50 million. English antiques dealer Carlton Hobbs sold the home at 60 East 93rd Street for $52.5 million, the Wall Street Journal reported. Hobbs had been using the property as both a home and as a gallery, split about 30/70 in favor of commercial use. The home has a fascinating history, built in the

Real estate’s election winners and losers

Posted: 29 Jun 2022 10:15 AM PDT

The real estate industry watched nervously Tuesday night to see if moderate Democrats could hold off far-left insurgents in the state’s primary elections. For the most part, they did. The results will affect how Albany handles key real estate issues next year, including good cause eviction and the potential return of the property tax break 421a. For that reason, real estate players poured money into attacks against candidates backed by the Democratic Socialists of America

Jim Chanos’ next Big Short: data centers

Posted: 29 Jun 2022 09:45 AM PDT

Data centers may be quaking in their 0s and 1s after a major hedge fund manager revealed his big bet against legacy properties in the sector. Short seller Jim Chanos is raising hundreds of millions of dollars for a fund that will take short positions in U.S.-listed REITs, the Financial Times reported. Chanos, president and founder of Chanos & Company LP known for predicting the collapse of Enron more than 20 years ago, is using

Ovitz revealed as Bon Jovi’s Greenwich Village condo buyer

Posted: 29 Jun 2022 08:30 AM PDT

Who says you can’t go home? An entertainment mogul might have an answer for Jon Bon Jovi after snapping up the rocker’s Greenwich Village condo. Creative Artists Agency co-founder and former Walt Disney Company president Michael Ovitz purchased the unit at 155 West 11th Street in February, the New York Post reported. Bon Jovi sold the unit for $22 million only weeks after putting it on the market. The New Jersey-born singer purchased the unit

Brokerage execs condemn SCOTUS ruling, pledge to cover abortion costs

Posted: 29 Jun 2022 07:45 AM PDT

A growing number of real estate brokerages have promised financial assistance to employees seeking abortions in states that restrict access to the procedure after the Supreme Court effectively overturned Roe v. Wade on Friday. Executives at Brown Harris Stevens, Compass and Serhant informed staff of the policy in the days following the ruling, mirroring a similar announcement from Douglas Elliman last week. In a memo to BHS employees Monday, CEO Bess Freedman called the ruling

Friedland sues Zabar family in UWS dispute

Posted: 29 Jun 2022 07:00 AM PDT

The owners of the famed Zabar’s gourmet food store have left a sour taste with one developer, who is suing the family over an Upper West Side property. Friedland Properties filed a lawsuit against the owner of Zabar’s on Tuesday, the Commercial Observer reported. The lawsuit stems from a dispute over the future of 2231 Broadway, a five-story property across the street from the gourmet emporium. The partners purchased the property together as tenants-in-common in

First signs of rent frenzy ending

Posted: 29 Jun 2022 06:15 AM PDT

After months of soaring rents, firms tracking national apartment prices say national rent growth has slowed, an early sign of a cooling market. A recent report by rental platform Apartment List showed that in June, monthly rent growth for a median apartment — 1.3 percent — was the same as in May, marking the first time this year that it did not increase from one month to the next. Data from Zumper, another rental platform,

Rent stabilization: dysfunctional by design

Posted: 29 Jun 2022 05:30 AM PDT

Landlords and tenants finally agree on something: Rent stabilization is broken and needs reform. But they are ignoring a larger truth: Price controls for housing haven’t worked, aren’t working and never will work. First, a disclaimer. This is not a rant against government programs. Inclusionary housing, where low-rent units are subsidized by market-rate ones, can work. So can publicly subsidized housing. But permanent rent stabilization in New York is not subsidized. Although supporters treat it

Abe Leser’s ailing hospital deal revived for $160M

Posted: 29 Jun 2022 05:00 AM PDT

A moribund nine-figure deal for a Brooklyn medical facility has been resuscitated. Nursing home operator Allure Group bought the SUNY Downstate Medical Center in Bay Ridge for $160 million, public records show. Webster Bank, formerly Sterling National, provided a $122 million acquisition loan. But the transaction nearly died on the table because of a dispute between the seller, Abraham Leser’s Leser Group, and intermediary buyer Pearl Schwartz, a little-known dealer who flipped the contract to

Nation’s highest-taxed office buildings are all in one neighborhood

Posted: 29 Jun 2022 04:00 AM PDT

With its long history and concentration of skyscrapers, Manhattan is home to 82 of the 100 highest-taxed office buildings in the country, according to a new report. In fact, every one of the top 10 is in Midtown, the analysis by PropertyShark found. The list serves as a reminder that for all the headlines about the district becoming dated or losing tenants to Hudson Yards, it remains far and away the city’s and nation’s greatest