The Real Deal - New York Real Estate News

In an apparent bid to gain votes in suburban areas, President Donald Trump repealed an Obama-era fair housing rule. In a press release announcing the measure, the Trump administration wrote that the new rule “eliminates the excessive burden put on local communities and gets rid of the top-down approach that dictated zoning for communities.” The decision, which was preceded by a partial rollback, dismantled what remained of an Obama-era rule requiring localities to proactively assess

Among coronavirus-battered retailers, the Gap has been one of the most high-profile proponents of the idea that the pandemic has canceled its rent obligations. Legal experts have been skeptical, and a judge’s decision this week over rent owed at the Gap’s Times Square flagship store would indicate the courts are, too. On Wednesday, the judge ordered The Gap and its Old Navy subsidiary to keep paying their landlord nearly $3 million a month in rent

Bank OZK, one of the nation’s largest construction originators, is eyeing lending opportunities in the multifamily sector despite the coronavirus-fueled volatility. Those opportunities just aren’t in New York City. At the bank’s second-quarter earnings call Friday, chief operating officer Brannon Hamblen — president of its real estate specialties group — said the company was “more on the cautious side in the more dense urban settings.” The bank was still lending the second quarter. The Little

The latest earnings reports are approaching for major real estate services firms like CBRE, JLL and Cushman & Wakefield, but there likely won’t be much in the way of optimism in the industry. The U.S. economy bore the brunt of the coronavirus pandemic in the second quarter, and some analysts expect those April through June declines to be more drastic than the ones experienced a decade ago, according to Business Insider. “During the last recession,

It’s been another solid month for big-ticket sales at 220 Central Park South. Deals for two condo units at Vornado Realty Trust’s Billionaires’ Row tower closed this month for a combined $109 million. Both buyers are unnamed in property records. The pricier of the four-bedroom units, on the 68th floor, traded for $55.5 million. The buyer, a foreign limited liability company KMZM LLC, went into contract for the property in October 2018. The 5,935-square-foot unit

This story was originally published in October 2019. During a recent earnings call, Starwood Property Trust CEO Barry Sternlicht broached a touchy topic in the real estate world: the possibility of a recession. The head of the $56 billion real estate investment trust told investors and analysts that “the only thing we have to worry about is a calamitous recession,” warning of a slowing economy largely thanks to the national political environment. Specifically, Sternlicht said

The owners of 400,000 New York City rent-stabilized apartments reported that rent collection improved markedly in early July, while a national survey found collection in market-rate apartments slipped. Their trade group Community Housing Improvement Program reported that 17.7 percent of residential tenants paid no rent in the beginning of the month, down from roughly 25 percent during the same periods in April, May and June. That represents a 29% improvement in the non-payment rate. The

Vornado Realty Trust, which manages over $7.3 billion in assets, is suing a Midtown eatery for $87,000 in unpaid rent. The Steven Roth-led firm is taking Dig Inn to court for the rent, which the fast-casual chain stopped paying in February, Crain’s reported. In addition to the back rent for its 11 Penn Plaza locale, Vornado is seeking $25,000 in holdover fees. According to the court filings, Vornado gave Dig Inn until July 8 to

A familiar team is vying for the bankrupt men’s clothier Brooks Brothers Group. An entity backed by Authentic Brands Group and Simon Property Group submitted a $305 million bid as part of a court-supervised auction for the troubled brand, Bloomberg reported. Brooks Brothers announced its Chapter 11 bankruptcy July 8. Simon Property Group, the country’s largest mall operator, has frequently paired with Authentic Brands to rescue bankrupt retailers. Their offer, known as a stalking horse

For the women abused by Jeffrey Epstein, the $110 million listing of his homes in New York and Palm Beach represents a chance for reparations. The late financier’s estate has promised the proceeds will flow into a compensation fund for his victims and creditors. For residential brokers, it’s the opportunity of a lifetime — one that some have been pursuing since Epstein died in jail last summer. Listing agents Adam Modlin in New York and

The luxury jeweler Chopard is giving some sparkle to a suffering market with a new lease at the Crown Building, where it will open opposite Tiffany’s and Trump Tower. When it debuts at Fifth Avenue and West 57th Street next March, the jeweler will have 2,422 square feet between the ground floor and lower level. The news was first reported by Women’s Wear Daily. Sources said the rent is around $3,500 per square foot. While

Wendy Peters got her start as a teller at Citibank and worked her way up to becoming a branch manager, a position she held for 15 years. Then in 2006, she and her husband, Joseph Peters, decided to launch their own construction management company in Brooklyn, JWP Corporation. Peters talked to The Real Deal about the challenges she and other minority and women business owners face in New York’s construction industry. How did you get

At an invite-only party in March 2019, surrounded by a marching band, tap dancers and a who’s-who of New York’s real estate elite, HFZ Capital’s Ziel Feldman told a reporter that Related Companies had breathed new life into the West Side of Manhattan with the grand opening of its Hudson Yards mall. “Hats off to them for being able to actually open and in a challenging retail environment,” he said. “Everything looks beautiful.” But the

Though New York City reached Phase 4 of reopening this week, office workers have been slow to return. As the city’s largest commercial landlord, executives at SL Green are seeing this first-hand. “Office space utilization is still quite low during these summer months,” CEO Marc Holliday said on a second-quarter earnings call Thursday. “Most of our tenants are telling us that they are planning for a 50-percent, plus or minus, return to the office after

Bank of America and the U.S. Department of Justice reached a settlement over allegations the bank denied mortgages and home equity loans to adults with disabilities who were under legal guardianship. The bank’s alleged actions relating to mortgages ran from 2010 to 2016, and violated the Fair Housing Act, according to the Justice Department. The government also said the bank’s practice regarding home equity loans lasted until 2017. Under the terms of Thursday’s settlement, Bank

As the coronavirus has shuttered stores, reduced foot traffic to a trickle and dampened consumer demand, growing numbers of retailers are looking towards “impossibility of performance” and the doctrine of “frustration” as a way out of pricey leases. But the real estate industry’s top lawyers say judges won’t buy it. “The courts have said that frustration of purpose is really more nuanced in terms of the circumstances where it would come into play,” said Jonathan

In suing their Times Square landlords, Gap and Old Navy cited a city law that protects their lease during the pandemic, even if they didn’t pay rent. Now that may come back to bite them. The law, which prohibits a landlord from harassing a commercial tenant hurt by Covid-19, is among three statutes being challenged by two small landlords. Documents filed in court today say big retailers’ lawsuits show the protections go too far —

In just a matter of weeks, major markets reopened and shut back down. Throughout California, Florida and many other states, the alarms have been ringing once again — especially for retail, hotel and other commercial property owners in big cities. This time around, bars and restaurants have been serving as the canary in the coal mine for many consumer-facing businesses. California Gov. Gavin Newsom announced on July 13 that he’s putting a “dimmer switch” on

New York City’s flatlining real estate market is about to get a jolt. Months into a languor brought on by the coronavirus, one of Brooklyn’s biggest landlords has struck a deal to sell a portfolio of rental buildings for $1.25 billion, sources familiar with the transaction told The Real Deal. It’s the first such deal of its size to come together in the past year, and among the largest multifamily deals ever in Brooklyn. Joseph

An investment firm that was partnering on two of Michael Shvo’s biggest recent office tower acquisitions in San Francisco and Chicago is accusing the developer of canceling their agreements and cutting it out of those deals. BLG Capital filed its suit against Shvo and his investors for allegedly cutting it out of the $600 million Transamerica Pyramid purchase in San Francisco, and the $370 million acquisition of the “Big Red” office tower in Chicago. Serdar

When first looking to raise funds for their construction-tech startup in 2017, Ben Huh and Michael Yarne steered clear of investors from the industry they were hoping to shake up. Instead, the founders of Social Construct went the traditional venture route, believing that outsider money would let them be bolder. “They [venture capitalists] don’t get worried when you quack or when you squeal or when you fly,” said Huh, CEO of the firm and the

The state would get the power to suspend or revoke the license of real estate agents under a new bill targeting discriminatory practices. The Senate approved the bill overwhelmingly Wednesday, 59 votes to 1. The Assembly is expected to pass it today. The bill was sparked by a 2019 Newsday investigation that revealed widespread race discrimination in Long Island’s housing market, including agents steering buyers to certain neighborhoods based on their race. The bill’s passage

In a 5-0 decision, an appellate court reinstated the city’s rezoning of Inwood, reversing a lower court’s December ruling and delivering a key victory to developers and the de Blasio administration. The five-judge panel ruled that the City Council “acted properly, and consistently” in approving the Manhattan neighborhood’s rezoning, according to a decision posted Thursday. Moreover, it endorsed the city’s rationale for the change: that the paucity of Inwood’s housing construction had pushed rents up

Blackstone Group, the world’s largest commercial landlord, has some sobering news. “Over time people will return to office buildings,” said its president, Jon Gray. But, he added, “there will be less density, there will certainly be a lot less new construction.” Gray spoke during the company’s second quarter earnings call Thursday, and reiterated what most Americans have realized over the last six months — the road to economic recovery, especially for cities, will be a

Just a few years ago Ascena Retail Group was one of the largest retailers for women’s clothes. Thursday, it filed for bankruptcy. The company, which owns Ann Taylor and Lane Bryant, will close 1,600 of its approximately 2,800 stores in an attempt to shed $1 billion of its $1.1 billion in debt, according to The New York Times. The company said it was in the process of recovering from earlier troubles when the coronavirus hit.

Even as rivals rushed into iBuying, Realtor.com resisted the home-buying craze. Until now. The listings portal said Thursday that it is launching a seller’s marketplace, where sellers can request offers from Opendoor, EasyKnock, HomeGo and WeBuyHouses.com instead of listing directly on the open market. While Realtor.com, which is owned by Rupert Murdoch’s News Corp., won’t be buying and selling homes itself, it aims to be a “one-stop shop” for sellers, David Master, director of product

Long Island homes sold at record-setting prices last quarter as areas of the tri-state saw increased attention from New Yorkers fleeing the city. In the Hamptons, the median sales price hit $1,080,000, up 9 percent over the first quarter and 27 percent year over year, according to the latest Elliman report. The median price is the highest recorded in over eight years of tracking by the real estate company. And the average sales price increased

Two luxury mansions that belonged to sex offender Jeffrey Epstein are reportedly going to be listed for sale. The financier’s former townhouse at East 71st Street will ask $88 million, according to the Wall Street Journal. His compound in Palm Beach will be listed for $21.995 million. Epstein, who died by suicide last year, owned multiple luxury properties across the world. More of them are also expected to be listed, according to the Journal. Epstein

SL Green Realty is once again looking to its loan book to raise some cash. The REIT is looking to sell a $100 million mezzanine loan on the massive One Court Square office building in Long Island City, according to marketing materials. It’s the latest loan SL Green is looking to sell at a time when few properties are trading. The market for buildings and other hard assets has ground to a virtual halt since

It’s not just tech firms. Corporate America is looking to trim office space as companies shift to remote work and look to reduce costs. An analysis of quarterly earnings calls by Reuters found that more than 25 large companies across different sectors are planning to downsize their office footprint, posing a threat to office landlords’ bottom lines. Ronald Philip O’Hanley, CEO of financial services company State Street, said on his company’s earnings call last week

Starwood Property Trust is reportedly trying to sell a portfolio of loans that it purchased in 2018 as a way to diversify beyond commercial real estate. The firm has engaged an advisor to help it find potential buyers for the portfolio, which is composed of energy infrastructure loans and commitments, according to Bloomberg. When Starwood purchased the portfolio in 2018, it consisted of $2.1 billion in loans and $400 million in unfunded commitments. As of

In-laws may soon be moving out of the house, and into the shed. Accessory dwelling units, also known as “granny flats” or “in-law suites,” are small dwellings built on the same grounds as existing homes. Legislators have pitched them as a low-cost solution to the national affordable housing shortage, allowing homeowners to earn extra income by renting out their accessory units and giving renters access to cheap housing. Local and state governments have passed laws

Commercial landlords may soon need to follow some of the same rules that govern residential property owners when a tenant breaks the lease. On Wednesday, the state Assembly passed a bill that would require commercial landlords to minimize damages against a tenant who vacates their property before the lease expires. When a tenant breaks a lease, the bill would require landlords to “take reasonable and customary actions to rent the premises at fair market value

It took Hakeem Jeffries three tries just to win one of 150 seats in the New York Assembly. Now he is in Congress, chair of the House Democratic caucus, a rising star in the party and a frequent guest on MSNBC. He was the lead Democratic sponsor of the bipartisan criminal justice reform signed into law by President Donald Trump in 2018. His 14th year in elected office has been the most intense. In January,

If Guess thinks that its missed rent payment of almost $900,000 is a pain, what the retailer’s landlord is seeking in a lawsuit must be agonizing. The 514-516 Broadway sublessor, Haim Kedmi, is suing the clothing brand, not only for the rent that they failed to pay due to the pandemic, but for over $6 million of rent and taxes that would have been due up until when the lease is set to expire in