The Real Deal - New York Real Estate News

Hudson Pacific is effusive about Blackstone deal, defensive about office space

Posted: 30 Jul 2020 03:58 PM PDT

Hudson Pacific Properties reported a dip in second quarter net income, attributing it to retail tenants that deferred their rent payments because of the coronavirus. But taking into account the massive impact the pandemic has had on retail and office landlords, the real estate investment trust’s net income of $3.7 million and revenue of $199 million in Q2, was not a sharp fall off from the same period last year, when it reported $9.8 million

REBNY to begin issuing fines for problematic listings

Posted: 30 Jul 2020 03:42 PM PDT

A years-long effort to clean up New York residential listings data is taking the next step forward – and it’s a punitive one. The Real Estate Board of New York will begin to issue fines beginning Sept. 15 up to $20,000 per sales listing and $3,200 per rental listing that violates its policies, according to an email the group sent out Thursday. The forthcoming levies are part of an ongoing effort from the trade association

“It’s been a wild year”: Redfin losses significantly lower than expected

Posted: 30 Jul 2020 03:40 PM PDT

Redfin’s second quarter wasn’t quite as terrible as the national brokerage and listings site had projected. The Seattle-based residential firm logged a net loss of $6.6 million in the second quarter of 2020 instead of the $21 to $26 million in losses it anticipated. Redfin also reported $214 million in revenue, an 8 percent year-over-year increase. Back in May, the company projected that it would pull in between $179 million and $189 million. Redfin’s losses

Empire State Realty Trust lost $20M in Q2

Posted: 30 Jul 2020 03:35 PM PDT

After four months without tourists paying a small fortune to peek over the edge of the Empire State Building, it should be no surprise that its owner is out $20 million. Empire State Realty Trust reported a net loss of $19.6 million during the second quarter of 2020, down from $18.9 million in net income a year earlier. The real estate investment trust also announced a series of cost-cutting measures, including executive salary cuts and

Realogy’s Q2 profits plunge after “unprecedented” drop in sales

Posted: 30 Jul 2020 03:25 PM PDT

Realogy’s profits plunged during the second quarter, after coronavirus slowed home sales across the country, the brokerage giant said Thursday. Realogy reported a $14 million loss during the quarter — a huge drop from $69 million in profits during the same period last year. Citing a “massive drop-off” in transactions, Realogy said revenue also fell 25 percent to $1.2 billion, from $1.6 billion a year ago. During an earnings call with analysts, CEO Ryan Schneider

TRD Insights: Homebuyers in Black communities charged higher mortgage rates, report finds

Posted: 30 Jul 2020 01:30 PM PDT

New home mortgage borrowers in majority-Black communities are charged higher interest rates than borrowers in majority-white communities. That was the finding from an analysis of 2018 and 2019 home purchase mortgage data, according to a Realtor.com report. It showed that homebuyers in areas where Black people comprised over 70 percent of the population received loans with interest rates 13 basis points above those homebuyers received in the majority-white neighborhoods. Realtor.com analyzed the data that was

Congress pitches relief to struggling hotel, mall CMBS borrowers

Posted: 30 Jul 2020 01:00 PM PDT

A bipartisan bill introduced in Congress on Wednesday is intended as a lifeline for hotel and shopping-center CMBS borrowers. The measure would provide preferred equity to borrowers hurt by the coronavirus pandemic, taking from a $454 billion pool set aside for struggling businesses in the earlier stimulus bill, the Wall Street Journal reported. Roughly 10 percent of CMBS loans were delinquent by 30 days or more in June, according to Trepp. “The numbers are getting

Navillus CEO, sister arrested in $1M scheme to cheat unions

Posted: 30 Jul 2020 12:05 PM PDT

After emerging from bankruptcy and paying a massive settlement to construction unions, Navillus Contracting faces criminal charges that its president and his sister bilked more than $1 million from various construction unions. Donal O’Sullivan and his sister Helen O’Sullivan, the company’s treasurer, were arrested Thursday for allegedly scheming to avoid making payments to union benefit funds between 2011 and 2017, according to an indictment filed in Brooklyn federal court. Despite having a collective bargaining agreement

Paramount staff did not enjoy working from home: Q2 earnings

Posted: 30 Jul 2020 12:01 PM PDT

The coronavirus crisis led to a mandatory work-from-home experiment for office workers across the country, and while some seem to have enjoyed the experience, others have been less enthusiastic. Count employees of office landlord Paramount Group in the latter category, according to its chief executive. “The positive was that work got done, and we did not miss any of our deadlines or delay any of our filings,” CEO Albert Behler said Thursday on an earnings

Bezos buys Beverly Hills bungalow next to his massive mansion

Posted: 30 Jul 2020 11:30 AM PDT

Jeff Bezos has scooped up a Beverly Hills home next door to the 10-acre estate he bought from David Geffen for a record $165 million in February. Amazon’s founder and CEO paid $10 million for the two-story home through a trust, according to Variety. Built in 1930, it encompasses 4,615 square feet, and has three bedrooms and 4.5 bathrooms. The property sold for $5.45 million in 2018 and was then renovated. It never hit the

Former Playmate of the Month buys Palm Beach home

Posted: 30 Jul 2020 11:15 AM PDT

A former Playboy Playmate of the Month snagged a waterfront home in Tequesta for $3.1 million, sources told The Real Deal. Karin Taylor purchased the 6,524-square-foot house at 8818 Southeast Riverfront Terrace for $475 per square foot. David and Lisa Hyman sold the property, records show. Rob Thomson of Waterfront Properties represented the buyer and seller. Thomson declined to comment on the sale. The house was built in 1990 and has six bedrooms and five-and-a-half

Brookfield, creditors reach deal on REIT’s $6.4B credit facility

Posted: 30 Jul 2020 10:35 AM PDT

Brookfield Asset Management has renegotiated a $6.4 billion credit facility for its retail-heavy real estate investment trust, Brookfield Property REIT. The deal imposes restrictions on dividends and requires other Brookfield Asset Management–owned entities to lend at least $250 million to the REIT, the Financial Times reported. In exchange, a group of creditors led by Wells Fargo waived a contractual clause that allowed them to demand immediate repayment of loans if Brookfield Property REIT failed to

Welcome to a world of the à la carte retail lease

Posted: 30 Jul 2020 10:32 AM PDT

In sickness and in health, till short-term, revenue-adjusted leases do us part. One of the U.K.’s biggest retail landlords is moving away from a traditional lease structure across its multibillion-dollar portfolio, opting to give tenants a basket of leasing options with adjustments based on in-store revenue. It’s one of the most significant reevaluations of the relationship between landlord and tenant and is likely to be watched closely by property owners across the pond. Legal &

Zillow’s employees can work remotely forever

Posted: 30 Jul 2020 10:10 AM PDT

In April, as the nation was in the thick of lockdown, Zillow CEO Rich Barton tweeted that his “personal opinions about WFH have been turned upside down over the past 2 months.” He’s now ready to reflect that thinking in long-term company policy. Effective immediately, the Seattle-based listings giant is allowing 90 percent of its 5,400 employees to work from home indefinitely, at least part-time, the company disclosed in a blog post Wednesday. The move

Lawmakers introduce bill to keep rent regulation alive

Posted: 30 Jul 2020 09:36 AM PDT

Two state lawmakers have introduced bills aimed at ensuring the pandemic does not unravel rent regulation in New York. The twin bills, introduced Tuesday in the Senate and Assembly, propose removing the vacancy rate from the criteria for rent regulation until years after the worst of the pandemic is over, according to The City. The rationale for rent regulation is that there is a “housing emergency,” meaning a vacancy rate of less than 5 percent.

Watch: Carl Weisbrod on making NYC a ‘magnet for talent’ again

Posted: 30 Jul 2020 09:00 AM PDT

For Carl Weisbrod, there’s no where for New York to go but up. “I think we’ll see some fluctuation in the market here but ultimately I am confident that as it always has, the city is going to come back both in terms of its vibrancy and its wealth,” said the HR&A senior adviser, New York City Economic Development Corporation founder and former head of the City Planning Commission on the most recent episode of

Silverstein Properties raises $30M on Israeli bond market

Posted: 30 Jul 2020 08:15 AM PDT

Silverstein Properties has raised $30 million on the Tel Aviv Stock Exchange, after expanding its Series B bond offering first issued in September. The latest raise generated $30.4 million in demand, with a 3.54 percent interest rate, according to Commercial Observer. When the offering was first issued last year, the institutional bid was vastly oversubscribed, the publication said, citing TASE filings. With the latest raise, the total Series B is now $96 million. The bonds

Foes of Inwood rezoning approval to seek appeal

Posted: 30 Jul 2020 07:46 AM PDT

The neighborhood coalition that opposed Inwood’s rezoning is taking another crack at dismantling it. Members of Inwood Legal Action, which is part of the neighborhood coalition Northern Manhattan is Not for Sale, voted Wednesday night to seek an appeal of last week’s appellate court decision reinstating Inwood’s rezoning. Because that ruling was unanimous, the neighborhood group will need permission from the state’s highest court to argue its case there. “The Inwood rezoning will displace Dominican,

Newmark nabs REBNY prize for deal with NYC Health + Hospitals

Posted: 30 Jul 2020 07:15 AM PDT

The lease deal to consolidate NYC Health + Hospitals’ six administrative offices scattered across three boroughs took almost three years to complete, involved four negotiating parties and resulted in $200 million in cost savings for the nonprofit corporation. It also won the team of Newmark Knight Frank brokers REBNY’s Ingenious award. Newmark’s Brian Waterman, Lance Korman, Ira Rovitz, Romel Cañete and Daniel Keegan won the Henry Hart Rice Achievement Award, the Real Estate Board of

Penthouse at Ian Schrager’s Public Hotel asks double 2017 sale price

Posted: 30 Jul 2020 06:40 AM PDT

Luxury contracts rallied last week to the highest number since the shutdown, and one seller on the Lower East Side is feeling lucky. The anonymous owner of a penthouse atop Ian Schrager’s Public Hotel has listed the aerie for $32 million — double what they paid for it in 2017, according to the New York Post. Spanning 4,200 square feet, the full-floor unit at 215 Chrystie Street features four bedrooms, four-and-a-half bathrooms and a 1,580-square-foot

Former Turner Construction exec pleads guilty in bribery scheme

Posted: 30 Jul 2020 05:45 AM PDT

A former vice president at Turner Construction has admitted evading taxes on $1.5 million in bribes, in a sprawling construction-fraud case. The former Turner executive, Ronald Olson, was accused of taking bribes from subcontractors in return for work on projects at Bloomberg’s headquarters, according to Crain’s. He now faces up to five years in prison. Olson was one of more than a dozen executives at Bloomberg L.P., Turner Construction and their subcontracting companies, who were

Outdoor dining goes professional

Posted: 30 Jul 2020 05:00 AM PDT

Outdoor dining is leveling up. The Rockwell Group, in partnership with NYC Hospitality Alliance and private funders, established Dine Out NYC this summer to design a modular outdoor dining setup. Wednesday, they shut down Mott Street to debut the socially distanced dining area. The designs, which are open-source, feature plexiglass between tables and spaces for sanitation equipment, in addition to flooring, shading and lighting. “What architects have to contribute to the conversation, I think, is

Prologis CEO: Capital is not an issue, it’s finding properties

Posted: 30 Jul 2020 04:30 AM PDT

The onset of the coronavirus wreaked havoc on company supply-chains across the country, a fact that will likely benefit industrial real estate owners in the long-run. “Supply chains are going from just-in-time strategies to just-in-case strategies,” said Prologis CEO Hamid Moghadam, at a Wednesday webinar hosted by NYU’s Schack Institute of Real Estate. “Bottom line, I wouldn’t be surprised if after this people will carry 5 or 10 percent more inventory than before this, regardless

What Albany’s socialist shakeup means for real estate

Posted: 30 Jul 2020 04:00 AM PDT

Socialists proved this summer that they can win elections in New York City. But can they pass bills in Albany? It’s a crucial question for the real estate industry in the wake of several primary wins by Democratic Socialists of America–backed candidates that are tantamount to victory in November. Socialists will hold only a handful of seats in the 213-member legislature, but more moderate Democrats now figure to give their causes more attention to ward