The Real Deal - New York Real Estate News

NCAA’s compensation pivot means young athletes could become homebuyers

Posted: 29 Oct 2019 02:09 PM PDT

An NCAA decision Tuesday means college athletes nationwide could soon be allowed to earn compensation for endorsement deals. The landmark decision is a stark reversal of the collegiate sports association’s decades-long stance against compensation for athletes. The NCAA’s governing board directed its three divisions to make changes to compensation rules by no later than January 2021, according to the Wall Street Journal. Some top-tier college athletes may secure lucrative endorsement contracts and some might look

Data Alert! Crunching the numbers on Manhattan condo inventory

Posted: 29 Oct 2019 02:00 PM PDT

New development condo report Manhattan • Inventory expanded as developers filed more units than were purchased • Developers filed six plans with a total of 130 units • The state approved one plan with 10 units valued at $4.8 million • Buyers purchased 107 units valued at $426 million Supply Demand

New details of Boerum Hill’s next big project unveiled

Posted: 29 Oct 2019 01:45 PM PDT

Another 12-story building is going up in Boerum Hill — hard by a similarly sized project. Developer Harry Einhorn plans the 193-unit project for 85 4th Avenue, according to an application filed Tuesday with the city’s Buildings Department. About 125,000 square feet of the site is zoned for residential use, while roughly 5,400 square feet is for commercial use and almost 2,000 for community space. The new development will also have room to park 79

Multifamily market slows to a crawl, Industry City’s iffy rezoning kicks off

Posted: 29 Oct 2019 01:10 PM PDT

Every weekday The Real Deal rounds up New York’s biggest real estate happenings. We update this page throughout the day, starting at 9 a.m. Please send any tips or deals to tips@therealdeal.com. This page was updated at 4 p.m. Video produced by Sabrina He WeWork wants to get into … electronic gaming? The troubled co-working giant applied for a trademark for “Play By We” earlier this year, according to documents published in the UK last week. The

Vornado slashes Forever 21’s rent, dimming 2020 outlook

Posted: 29 Oct 2019 01:01 PM PDT

Another quarter, another Vornado retail tenant bankruptcy. After facing the abrupt closure of two Topshop stores in New York City in the second quarter, Vornado Realty Trust encountered more retail challenges in the third quarter as Forever 21 filed for Chapter 11 bankruptcy protection. But Forever 21 may be able to keep its stores at 435 Seventh Avenue and 1540 Broadway open for a bit longer. “While the bankruptcy process is fluid and is still

HUD wants to jumpstart bank lending on low-income homes

Posted: 29 Oct 2019 12:00 PM PDT

Housing and Urban Development Secretary Ben Carson wants to get banks back in the residential mortgage lending game. One way the agency will do this is by seeking to change the way it handles the False Claims Act. HUD will now enforce Federal Housing Administration violations through “administrative” proceedings, following an agreement with the Justice Department. The move, however, could be seen as a soft approach to banks that violate federal regulations. Since the last

WATCH: Grant Cardone espouses his real estate investing philosophy

Posted: 29 Oct 2019 10:48 AM PDT

Grant Cardone, the real estate investor, speaker, author and business consultant who has amassed more than 2.4 million Instagram followers, spoke about his investing philosophy at The Real Deal’s sixth annual Miami Showcase & Forum.

Don’t call it flipping: Zillow insists its iBuying is different

Posted: 29 Oct 2019 09:40 AM PDT

Zillow’s push into instant homebuying has led to both soaring revenues and losses for the listing giant, and CEO Rich Barton wants to set the record straight on how it makes money from the iBuying craze. At the firm’s Unlock event on Monday, Barton insisted that the iBuying service it launched last year, Zillow Offers, is fundamentally different from a house-flipping business. “We’re not flipping this property,” Barton told Inman at the event. “We’re not

Vacation rental startup Vacasa valued at $1B after new funding

Posted: 29 Oct 2019 08:53 AM PDT

On the heels of buying its biggest competitor, vacation rental startup Vacasa has raised $319 million, valuing the company north of $1 billion. The strategic round was led by Silicon Valley private equity firm Silver Lake, and brings Vacasa’s total funding to more than $500 million, the company announced Tuesday. Prior investors Riverwood Capital, Level Equity and NewsSpring also participated in the round. In an increasingly crowded field of short-term rental companies, Vacasa currently manages

Ribbon raises $330M to aid all-cash buyers

Posted: 29 Oct 2019 08:00 AM PDT

A startup that empowers buyers to make all-cash offers on homes just got a lot more firepower. Ribbon, based in New York and Charlotte, North Carolina, announced $330 million in new debt and equity that it plans to use to fuel an expansion into new markets and enhance product development. The investment includes a $30 million Series B led by Greylock Partners, and $300 million in debt from Goldman Sachs. (The debt facility may be

As Howard Hughes tries to right ship, Seaport remains an albatross

Posted: 29 Oct 2019 07:42 AM PDT

After exploring a sale or spinoff for months, Texas-based Howard Hughes Corporation has decided to change CEOs and refocus on its core business. But its effort to redevelop the South Street Seaport continues to weigh down the struggling developer, leaving the future of that project in doubt. In addition to replacing CEO David Weinreb with former Central Region President Paul Layne, Howard Hughes announced last week that it would sell about $2 billion of “non-core

David Mandelbaum, early Steve Roth backer and Vikings owner, buys $23M pad at 220 CPS

Posted: 29 Oct 2019 05:35 AM PDT

In 1964, real estate investor David Mandelbaum wrote a $250,000 check to an up-and-comer named Steve Roth. This fall, Mandelbaum — now a minority owner of the Minnesota Vikings — snagged himself a $23.4 million pad at the developer’s coveted 220 Central Park South condo tower, according to a regulatory filing. In its quarterly financials, Vornado Realty Trust disclosed that Mandelbaum and his brother each purchased a unit at the uber-luxe tower. (Mandelbaum’s brother paid

S&P hits another record, but real estate stocks don’t follow suit

Posted: 29 Oct 2019 05:00 AM PDT

The S&P 500 rallied to a record high on Monday — though real estate stocks didn’t exactly join the party. Nareit’s All REITs index, a measure of real estate investment trusts, was down 0.53 percent. Equity REITs fell 0.6 percent, though mortgage REITs rose 0.38 percent. And the Real Estate Select Sector Index fell by 2 points by the end of the day. Out of a mix of 28 real estate stocks tracked by The

Power lunch: Barry Sternlicht, Ziel Feldman and Aurora execs talk shop at Pastis

Posted: 29 Oct 2019 04:30 AM PDT

It was drizzling when four development pros recently wedged into a half-moon-shaped banquette at Pastis in the Meatpacking District. Amid the din of an animated lunch crowd, The Real Deal sat with Starwood’s Barry Sternlicht, HFZ Capital’s Ziel Feldman and Aurora Capital’s Bobby Cayre and Jared Epstein, listening in during their unscripted conversation. Keith McNally’s iconic French bistro — a trendy eatery favored by celebrities and New York foodies — reopened after a five-year hiatus

Death march for NYC’s multifamily market continues

Posted: 29 Oct 2019 04:00 AM PDT

Hammered by state lawmakers in June, New York’s multifamily market is showing few signs of life. Dollar volume, deal volume and building volume all dropped by double digits on both a quarterly and year-over-year basis after Albany passed a strict rent law, according to a new report from Ariel Property Advisors. The city saw just 61 multifamily transactions across 88 buildings for $1.1 billion during the third quarter, representing drops of 45 percent, 57 percent