The Real Deal - New York Real Estate News

Tenants in four East Village buildings owned by Kushner Companies have filed a class-action lawsuit against the developer, alleging that it illegally collected more than $4 million in rent in buildings where shoddy construction work was done. The lawsuit, filed in New York State Supreme Court Tuesday, further alleges that the developer filed fraudulent documents with New York City’s Department of Buildings and never received a proper certificate of occupancy after completing construction work in

JPMorgan Chase sent some employees home this week after a worker tested positive for Covid-19, just days after the bank directed some of its staff to return to the office. The bank alerted employees on Sunday that a worker on the fifth floor of the company’s 383 Madison Avenue building had been infected, Bloomberg News reported. The communication came less than a week after JPMorgan told some employees in the sales and trading divisions to

The pandemic hasn’t kept Americans from buying new homes, as Lennar Corp. reported earnings, orders and deliveries rose in the third quarter, following two previous periods of growth. Record low interest rates, buyers’ interest in houses with new technology and better internet connections, plus an overall lack of housing for rent and sale are fueling demand for new homes, executives told analysts during a conference call on Tuesday. “We expect home sales to remain strong

We’re excited to announce that TRD’s brand new weekly newsletter on all things CRE has launched. The Commercial Catch-Up will get you up to speed on the most important commercial real estate news you need to know in less than 5 minutes. Delivered to your inbox on Mondays, each edition of the Commercial Catch-Up will include the biggest CRE news of the week. This week, we investigated ICSC’s “incredibly tragic day”; analyzed whether falling CMBS

Chicago’s affordable housing program has failed. That was the takeaway from a citywide task force formed by Mayor Lori Lightfoot, which determined that an ordinance requiring developers to build more housing for low- and moderate-income households has created just 1,000 homes in 13 years, according to WTTW News. Meanwhile, the city’s affordable housing shortfall has surged to nearly 120,000 homes. The ordinance requires developers to designate between 10 and 20 percent of new residential units

Zumper, a rental platform backed by Kleiner Perkins and the Blackstone Group, may have systematically prevented thousands of low-income renters from finding apartments on its platform, according to a report. According to Business Insider, the San Francisco-based startup reportedly instructed employees to screen for tenants who received Section 8 housing vouchers and automatically disqualified those who inquired about available units. The firm labeled those renters “unserviceable,” according to the report. Zumper categorically denied the allegations,

The City Council has until early November to vote on the proposed rezoning of Industry City, but support from some members could hinge on Mayor Bill de Blasio’s getting involved at the last minute. So far, he has been missing in action, members lamented Tuesday. During a hearing, Council members repeatedly asked why the de Blasio administration has not been involved with the private application to rezone the 35-acre Brooklyn campus. Council member Carlos Menchaca,

Vornado Realty Trust’s 220 Central Park South continues to fetch eye-popping prices, providing the firm a cash cow amid a crisis that has punished New York City’s luxury real estate market. An anonymous buyer closed on a $61.6 million unit on the ultra-exclusive condo’s 69th floor, according to property records. The price — agreed to two years ago — comes out to about $10,380 per square foot. The buyer, identified as AEH Jay Corp., went

Flywheel Sports and its affiliates have filed for bankruptcy, joining a list of fitness studio operators crushed by the coronavirus. The spin-cycle studio brand’s Chapter 7 filing would lead to liquidation of its assets. The documents were filed late Monday with the U.S. Bankruptcy Court in New York. Todd Meyers, attorney with Kilpatrick Townsend & Stockton of New York, is handling the case for Flywheel. He confirmed the Chapter 7 filing but declined to comment

Junior mezzanine positions on four of HFZ Capital’s New York condominium projects are being marketed through a foreclosure sale, The Real Deal has learned, a possible sign of the distressed deals that investors have been anticipating. Marketing materials from Newmark Knight Frank reviewed by TRD show that four junior mezzanine loans are being offered for a combined $89.5 million through a UCC foreclosure sale. The loans are tied to four of HFZ’s luxury condo properties

UPDATED: Sept. 15, 5:10 p.m.: iBuying startup Opendoor made its IPO plans official Tuesday, confirming a $4.8 billion deal with a blank-check company. The company’s merger with Chamath Palihapitiya’s Social Capital Hedosophia Holdings II will give Opendoor $1 billion in cash, the companies said. The deal values the San Francisco startup at $4.7 billion, matching its 2019 revenue. Appearing Tuesday on CNBC’s “Squawk Box,” Palihapitiya projected Opendoor’s revenue could hit $9.8 billion by 2023 and

Ryan Serhant is marking 12 years in real estate by striking out on his own. The celebrity broker is launching his own brokerage, Serhant, that will focus on selling New York City properties through the global referral network the broker has cultivated through his real estate course and a suite of marketing divisions. The Wall Street Journal first reported the news Tuesday. In an interview with The Real Deal, Serhant maintained that he is not

UPDATED Sept. 15, 2020, 2:52 pm: A Brooklyn ale house aims to drive a stake into Gov. Andrew Cuomo’s midnight food curfew. The Graham, at 151 Meserole Street in Williamsburg, argues in a federal lawsuit that the coronavirus “does not behave as a vampire, infecting others only when the moon is out.” The bar’s Sept. 14 complaint, filed in New York’s Eastern District, says it is “desperately struggling to pay its rent” and that the

Cushman & Wakefield is betting big on co-working, even as millions of Americans have yet to return to the office amid the pandemic-imposed remote work revolution. The firm has teamed up with startup Industrious to help provide flex-office space for companies and individuals outside the corporate environment, according to the Wall Street Journal. The co-working sector has struggled during the pandemic. Industrious laid off close to 20 percent of its workforce in April, according to

Facebook has snagged another prime piece of real estate — and given the shaky office sector a boost. The tech giant announced that it will buy the brand new Bellevue, Washington, headquarters built by Recreational Equipment Inc., or REI, which the consumer outdoor equipment company never used. Facebook announced it will pay $368 million for the 8-acre campus, according to the Seattle Times. It already leases 850,000 square feet of office space in the nearby

Blackstone is turning its attention to one of the most recession-resistant sectors of real estate. The giant asset manager is planning to buy about 40 mobile-home parks from Summit Communities for about $550 million, according to Bloomberg. Most of the properties are in Florida, the publication reported, citing confidential sources. Blackstone will make the investment through Blackstone Real Estate Income Trust, also known as BREIT. Real estate investment trust Sun Communities also made an offer

Overall apartment availability surged in August but varied greatly from one neighborhood to the next, an analysis by The Real Deal shows. Manhattanites continued leaving their rentals, especially on the Upper East Side and Upper West Side, and landlords dangled discounts in Queens. The Brooklyn rental market was tepid but was the strongest of the three. From July to August, Manhattan’s rental inventory jumped 11.9 percent, the analysis found. The highest number of new listings

With a jury trial looming, Compass is trying to lessen the windfall Avi Dorfman could reap if he proves he co-founded the firm. The brokerage has asked the court to restrict Dorfman’s damages to cash instead of stock. Further, it urged the court to base Dorfman’s damages on Compass’ value in 2012, when he claimed to have worked with CEO Robert Reffkin. “Dorfman’s recovery should not vary based on fluctuations in the value of Compass

In early March, Residences by Armani/Casa’s developers hosted a blowout opening party, featuring a Giorgio Armani fashion show, a performance by Pitbull, and a fireworks display over the beachfront pool deck of the high-rise condo. Agents offered tours of the Sunny Isles Beach tower’s units and amenity spaces. Some attendees wore ball gowns, and the drinks flowed. Miami was back. But then, coronavirus hit, shutting down sales galleries, along with restaurants, hotels, non-essential retail, offices

A hotel project pegged as a catalyst for the revitalization of downtown New Rochelle just filed for Chapter 11 bankruptcy. A company tied to a luxury Wyndham hotel planned for 115 Cedar Street made the bankruptcy filing Sept. 11 in federal court. The hotel’s developer is Ward Capital Management, a real estate investment firm based in nearby Dobbs Ferry. The hotel project — the largest in Westchester County in 20 years — owes creditors $4.67