The Real Deal - New York Real Estate News

As the real estate data space heats up, Reonomy taps a new CEO

Posted: 11 Jun 2020 03:15 PM PDT

Real estate data firm Reonomy has tapped a new chief executive, as the company looks to scale up and meet higher demands for information as the market recovers. Founder Rich Sarkis, who previously held the CEO title, said in a LinkedIn post that Bill Okun would take over as chief executive. Sarkis will take on the role of executive chairman, focusing on “clients, strategy and partnerships” while Okun handles “daily execution and management of the

Backlash on de Blasio plan for restaurants

Posted: 11 Jun 2020 02:02 PM PDT

Mayor Bill de Blasio will have to put off patting himself on the back for his plan to assist 100 family-owned restaurants: The eateries main trade group is denouncing it. The New York City Hospitality Alliance blasted the mayor’s plan for tying aid to a wage increase that restaurants oppose. The group had beaten back a push for the higher wage, which was led by an interest group. “It’s shocking that the administration is pushing

Bank OZK still making condo construction loans despite pandemic

Posted: 11 Jun 2020 02:00 PM PDT

Bank OZK CEO George Gleason had some things to get off his chest. First, one of the most active condo construction lenders in Miami, New York and Los Angeles is still writing loans despite the pandemic, he said. Second, Gleason maintains the bank only originates low leverage loans to the best sponsors, and to borrowers whose projects are in growing markets. Speaking from Bank OZK’s Little Rock, Arkansas, headquarters at Wednesday’s TRD Talks Live panel,

Brokerage giants Brown Harris Stevens, Halstead to merge

Posted: 11 Jun 2020 01:15 PM PDT

Two of the biggest names in New York City residential brokerage are joining forces. Sister companies Brown Harris Stevens and Halstead will merge under the BHS banner, owner Terra Holdings said Thursday. The combined firm will have 2,500 agents. Last year the brokerages’ sales totaled $9 billion, according to data from Real Trends. The fusion of two mainstay brands — each with a distinctive company culture — comes amid consolidation in the industry and as

Broker-fee ban courtroom showdown pushed — again

Posted: 11 Jun 2020 11:58 AM PDT

The fate of New York’s attempted broker-fee ban will have to wait. The real estate industry and state regulators have postponed the court date over the ban on certain tenant-paid broker fees until September. The parties were previously scheduled to appear in court on June 12. It’s the second time the defendant in the case, the office of New York Attorney General Letitia James, has asked for an extension with the blessing of the industry

Amid backlash, The Wing founder Audrey Gelman resigns

Posted: 11 Jun 2020 11:45 AM PDT

The Wing founder Audrey Gelman is stepping down as CEO of the women’s co-working firm as the company faces backlash over its “systemic” mistreatment of employees of color. In an email to employees, Gelman said her decision to step down was “the right thing for the business” and the best way to bring the Wing “into a long overdue era of change.” Tech journalist Kara Swisher and Vice were first to report the news Thursday.

El-Gamal claims lender violated sharia terms on Tribeca tower loan

Posted: 11 Jun 2020 11:36 AM PDT

Sharif El-Gamal put together one of the most unusual financing packages in the history of New York City real estate when he secured a sharia-compliant construction loan four years ago for his glitzy Tribeca condo tower. Now, as the developer battles with his lender for control of the stalled project, El-Gamal is claiming that the Malaysian bank that made the loan has violated the sharia terms, which require both sides to be more accommodating than

Health screenings, liability forms: REBNY offers guidance for in-person showings

Posted: 11 Jun 2020 11:30 AM PDT

The idea of going back to work raises a lot of tricky questions: Should we shake hands? Are offices too risky? Can in-person deals be conducted safely? As the real estate industry prepares for phase two of the city’s reopening plan, the Real Estate Board of New York has sought to address some of these issues with a new set of guidelines for conducting real estate transactions. The six guidelines — divided up for different

California hotels ready the hand sanitizer and close the gyms

Posted: 11 Jun 2020 11:00 AM PDT

Many California hotel operators have adopted new protocols and procedures in anticipation of reopening to the general public this week. The state government has allowed people to travel starting on Friday. Hotel guests are in for an experience, according to the Los Angeles Times. Capacity limits will be implemented at pools. Gyms and the once-staple breakfast buffet are axed. Like most other businesses, hotels were overhauled to promote cleanliness and encourage social distancing. Cleaning will

ICSC’s layoffs paint dark picture for retailers it represents

Posted: 11 Jun 2020 09:50 AM PDT

Retailers were already suffering in the hands of the coronavirus pandemic. Now, even their trade association is struggling. The International Council of Shopping Centers is laying off 65 employees today, according to a filing with the New York Department of Labor. The group checked the “unforeseeable business circumstances prompted by Covid-19” box that so many employers in the state have in similar filings since late March. That month, the association suspended its annual REcon convention,

Simon and Taubman gear up for legal throwdown

Posted: 11 Jun 2020 09:23 AM PDT

Nearly two decades ago, the Taubman family ferociously fended off a hostile takeover of their mall company from Simon Property Group. Now the roles are reversed: The Taubmans are gearing up to force Simon to complete the $3.6 billion acquisition it abandoned. Hours after Simon announced it had scuttled the deal Wednesday, Michigan-based Taubman Centers issued a statement saying it aims to force Simon back to the table to complete the deal — or pay

The Playboy Club was a chance at redemption for Adam Hochfelder — here’s what went wrong

Posted: 11 Jun 2020 08:35 AM PDT

Adam Hochfelder pulled up to The Real Deal’s New York office in his Bentley on a mission. Prior to that Friday morning in June, the real estate investor and developer had been calling TRD’s publisher multiple times a day from a rotating cast of phone numbers, worried about reporting on his latest project. Hochfelder — who went to prison in 2010 for bilking investors and lenders and was back in court on another fraud charge

Jersey City moves forward with $40M renovation of Loew’s Theater

Posted: 11 Jun 2020 07:30 AM PDT

After years of litigation, Jersey City is pushing forward with plans for a $40 million renovation of the historic Loew’s Theater. Jersey City Mayor Steven Fulop is now on the hunt for a commercial operator to help run the venue with a non-profit organization, according to the Wall Street Journal. Friends of the Loew’s has been in charge of the theater for decades, saving it from demolition in the 1980s. Fulop’s previous attempt to hire

Top 5 TRD YouTube videos you may have missed

Posted: 11 Jun 2020 06:45 AM PDT

As the real estate industry got creative during coronavirus, The Real Deal staffers started working overtime, covering everything from mortgage rate records to nationwide protests. But with so much news content, you may have missed one medium that’s been booming: TRD‘s YouTube channel. We’ve launched several new series to keep you connected. Check out a few of our top videos below, and be sure to subscribe to our channel. #5: TRD Quarantine Cribs – Corcoran Group’s

Czech billionaire cashes Macy’s shares after less than a month

Posted: 11 Jun 2020 06:00 AM PDT

Daniel Kretinsky was in it for a good time not a long time. After the Czech billionaire’s firm purchased a 5 percent stake in Macy’s last month, the company said this week that its stake was down to 0.7 percent. The exit was lucrative, according to Bloomberg, which reports that Kretinsky made some $36 million. Vesa Equity Investment’s bet on Macy’s aligned with a 65 percent surge in the stock. The shares were reportedly sold

TRD Insights: Most expensive active projects in NYC

Posted: 11 Jun 2020 05:30 AM PDT

Now that New York City has started to reopen, work can resume on some of its biggest and most expensive developments, almost all of which are offices or mixed-use. Here’s a breakdown of the top jobs still in progress, ranked by estimated cost of active construction, according to the Department of Buildings. 1. 30 Hudson Yards (aka 500 West 33rd Street) Developer(s) and owner: Related Companies, Oxford Properties Group, Allianz Insurance General contractor: Tishman Construction

By the numbers: Breaking down WeWork’s financial woes

Posted: 11 Jun 2020 05:00 AM PDT

WeWork’s critics have long argued that the co-working giant would end up in bankruptcy in an economic downturn the way flex-office provider Regus did in 2003. The 10-year-old company, largely inflated by more than $9 billion from SoftBank, has seen its valuation plummet in the past year. Now, as former General Growth Properties CEO Sandeep Mathrani tries to make WeWork profitable during the pandemic and economic uncertainty, here’s a look at some of the big

Title insurance is broken. Here’s how this $623M startup hopes to rebuild it

Posted: 11 Jun 2020 04:30 AM PDT

As a child, Max Simkoff would venture out for fishing trips, mostly along Oregon’s Deschutes River. On a couple of occasions, he found himself camping right outside the ashram of the Rajneeshees, the followers of a controversial movement founded by the Indian mystic Osho and recently depicted in Netflix’s “Wild Wild Country.” For half a decade, the Rajneeshees grew in power and wealth, lived by their own rules, quickly stifled any dissent and created a

Manhattan rental vacancy is highest in 14 years

Posted: 11 Jun 2020 04:00 AM PDT

It has been a while since it was this hard for landlords to fill an apartment in New York City. Manhattan’s vacancy rate hit a new high in the 14-year history of a monthly rental report as new leasing activity in the borough was down 62 percent last month from a year ago. It was also 54 percent lower in Brooklyn and 61 percent lower in Queens. Though large, the year-over-year declines were not as

Proptech startup Lane raises $10M for office platform

Posted: 11 Jun 2020 03:00 AM PDT

A platform akin to an operating system for offices closed on a $10 million funding round as the coronavirus pandemic began shutting down workplaces. The company, Lane, launched in 2014. Its clients include Brookfield Property Partners, Colliers International and Convene. Headquartered in Toronto, the proptech firm has offices in New York City and Denver and over 300 million square feet of property in North America using its software. Lane’s platform digitizes property management functions such