The Real Deal - New York Real Estate News

New law shields restaurateurs, retailers who quit leases

Posted: 26 May 2020 02:37 PM PDT

Mayor Bill de Blasio on Tuesday signed into law a package of Covid-19 relief bills, including one that temporarily bars landlords from going after restaurant and store owners’ personal assets. The law suspends the enforcement of personal liability provisions in commercial leases or rental agreements for a default that occurs between March 7 and Sept. 30. Attempting to enforce such provisions constitutes harassment under the measure. “With the signing of my bill, any small business

Manhattan resi listings are up while contracts “limp along”

Posted: 26 May 2020 02:13 PM PDT

Manhattan sellers may have gotten ahead of themselves. The number of new listings in Manhattan increased for the fourth consecutive week while contract signings fell, according to a weekly report from data firm UrbanDigs. There were 147 homes brought to market last week, an 11 percent uptick from 133 the week before. Though the figures market an improvement since the coronavirus effectively shut down the city, last week’s listings were still down 54 percent compared

Loophole allowed big-name landlords to get bailout funds

Posted: 26 May 2020 01:20 PM PDT

Some lucky landlords have secured bailout funds through the federal government’s Paycheck Protection Program — all thanks to a legal loophole. The program, created through the CARES Act and administered by the Small Business Administration, specifically excluded businesses that primarily develop or lease real estate from the program. However, dozens of real estate companies have received tens of millions of dollars in PPP funds by applying through related business arms, including property management or construction,

Cultural center linked to El-Gamal fights against 45 Park foreclosure

Posted: 26 May 2020 01:09 PM PDT

When a lender moved to foreclose on Sharif El-Gamal’s Tribeca condo tower, it tapped one of the top defenders of besieged condo projects to oversee the development while the two parties were in court. But now, the owners of the Islamic cultural center planned for the site next to Soho Properties’ 45 Park Place want Scott Mollen booted as receiver — the latest procedural parry in the contest over the site. Mollen, an attorney with

Abraham Leser targets $74M refi for Brooklyn, Bronx properties

Posted: 26 May 2020 10:15 AM PDT

Capital markets around the world are struggling with the impact of coronavirus. Still, one New York City landlord is turning to Tel Aviv for its latest refinancing. Abraham Leser’s Leser Group is examining the possibility of issuing a new bond series on the Tel Aviv Stock Exchange, which will be secured by a first mortgage on two properties in Brooklyn and one in the Bronx, the developer disclosed last week. A rating document published Monday

Outdoor space seals deal in tough luxury market

Posted: 26 May 2020 09:45 AM PDT

When a buyer was weighing whether to make an offer at GID Development’s 2 Waterline Square condo in early March, one thing tipped the balance. “The terrace was the reason he bought this,” said Corcoran Sunshine’s Norma-Jean Callahan, who along with Jose Alvarez is representing the developer. The deal was one of only three above $4 million in Manhattan last week, according to the latest market report from Olshan Realty. The pandemic has not only

Brooklyn luxury home sales remain 80% below last year

Posted: 26 May 2020 08:30 AM PDT

Activity in Brooklyn’s luxury market returned to its typical pandemic level last week after just one sale the week before. But it is still way down from a year ago. The borough saw four deals last week for a total of about $9.4 million — two townhouses, one condo and one co-op, according to the latest report from Compass. The report looks at homes in the borough asking $2 million or more based on the

Tightening mortgage market threatens economic recovery

Posted: 26 May 2020 07:45 AM PDT

The Federal Reserve’s move to cut interest rates to near zero in mid-March was expected to give the housing market a much-needed boost. But things may not work that way. The $2 trillion CARES Act, which allowed homeowners with loans backed by government agencies to request forbearance for up to a year, has had unintended consequences for the mortgage industry’s complex ecosystem, the Wall Street Journal reported. That may hamper the post-coronavirus economic recovery. Major

Title insurance startup Spruce raises $29M in Series B

Posted: 26 May 2020 06:30 AM PDT

As the coronavirus pandemic has highlighted the inefficiencies of traditional pen-and-paper closings, another startup has secured funding in its quest to digitize and streamline title and escrow procedures. Digital title startup Spruce has raised $29 million in new funding as part of a Series B funding round, the firm announced last Thursday. Scale Venture Partners led the funding, in which Zigg Capital and Bessemer Venture Partners also participated. “In these uncertain times, innovative mortgage lenders

Activist investor Jonathan Litt is shorting big NYC office landlords

Posted: 26 May 2020 06:00 AM PDT

Activist investor Jonathan Litt, who in recent years has pushed to turn around struggling retailers, now has a new sector in his sights. Litt’s hedge fund, Land & Buildings Investment Management, is taking short positions in New York City landlords Empire State Realty Trust, SL Green Realty and Vornado Realty Trust, the Wall Street Journal reported. “Numerous headwinds have weighed on New York office landlords in recent years as rent growth has stalled and values

Hamilton Heights development site led mid-market deals last week

Posted: 26 May 2020 05:00 AM PDT

There were four mid-market investment sales in New York City last week: a Hamilton Heights development site, a pair of Upper West Side multifamily buildings and a Bedford-Stuyvesant commercial building. Here are the details: The Jay Group purchased 620 West 153rd Street in Hamilton Heights from Anbau for $28.75 million. The development site has a zoning floor area of 150,144 square feet, and JLL’s Bob Knakal, Jon Hageman and Patrick Yannotta brokered the deal. The

“A recipe for disaster”: Fighting property taxes in a pandemic

Posted: 26 May 2020 04:30 AM PDT

It’s cumbersome. Antiquated. Arcane. And definitely not Covid-ready. The system for challenging property assessments in New York City was already behind the times when the pandemic struck. It has for decades relied on in-person hearings and staffers poring through hundreds of thousands of documents — not exactly conducive to work-from-home. For the New York City Tax Commission, which receives tens of thousands of protest filings annually from property owners, the coronavirus outbreak was also terribly

Attorneys find ways to “eject” tenants without Housing Court

Posted: 26 May 2020 04:00 AM PDT

Housing Court remains closed and an eviction moratorium runs through Aug. 20, but attorneys say they have other ways to get rid of tenants. Starting this week, the broader court system is accepting new non-essential cases via electronic filing. That leaves the door open for evictions via state Supreme Court, attorneys say. It is not customary to file residential eviction cases in that venue, but a court spokesperson said it is allowed. And in a