The Real Deal - New York Real Estate News

Real estate stocks close higher on jobs report, despite Trump’s Covid diagnosis

Posted: 02 Oct 2020 04:35 PM PDT

A broad range of real estate stocks ended a volatile Friday ahead, despite major U.S. markets losing ground. While news that President Trump tested positive for the coronavirus fueled uncertainty, the Labor Department’s employment report showed strong gains in the leisure and hospitality sector. The industry added 318,000 jobs in September, far outpacing August numbers, and accounting for nearly half of the total 661,000 jobs added to the overall U.S. economy. Among the 29 real

San Francisco office vacancy hasn’t been this high in years

Posted: 02 Oct 2020 03:00 PM PDT

There hasn’t been this much empty office space in San Francisco since 2011. The vacancy rate hit 14.1 percent in the third quarter, nearly three times what it was a year ago, according to the San Francisco Chronicle, citing Cushman & Wakefield. Several major Bay Area employers have embraced remote working since the pandemic forced offices to close this spring. San Francisco-based Twitter announced earlier this year that employees could work from home indefinitely, while

That was fast: RSA and CHIP appeal rent law decision

Posted: 02 Oct 2020 02:30 PM PDT

Landlord groups today took the first step toward bringing their rent law challenge to a higher court. The Community Housing Improvement Program and the Rent Stabilization Association on Friday filed an appeal to the Second Circuit of the U.S. Court of Appeals, after a U.S. District Judge ruled earlier this week that the government has the power to pass regulations that hurt real estate values. The appeal will trigger a briefing process at the Second

Construction loan tied to “leaning” Seaport condo up for sale

Posted: 02 Oct 2020 02:11 PM PDT

A $120 million non-performing construction loan tied to Fortis’ One Seaport condo in the Financial District is up for sale. Newmark Knight Frank is marketing the construction loan originated by Bank Leumi USA. Investors can purchase the loan, which is “secured by the fee simple interest” of the 98-unit condominium building at 161 Maiden Lane, according to marketing materials. About $90 million of the $120 million of the construction loan has been funded, according to

Report details Hamptons rental boom

Posted: 02 Oct 2020 02:00 PM PDT

The Hamptons’ rental market had a booming season, yet the number of online bookings failed to surpass last year’s, a new report found. Homes did not sit empty. Rather, many owners pulled their homes off the rental market, sending prices skyrocketing for the ones that were available, according to an analysis by StayMarquis of Airbnb and VRBO rentals. And guests stayed longer than usual. The 26,953 online bookings in March through September represented a 37

NYC’s tax lien sale is slated to resume soon. Will Cuomo stop it again?

Posted: 02 Oct 2020 01:33 PM PDT

The state’s suspension of tax lien sales expires this weekend, and thousands of properties could soon hit the auction block. New York City’s tax lien sale has been delayed three times during the pandemic, most recently through an executive order from Gov. Andrew Cuomo that suspended the sale until Oct. 4. It is unclear if the city intends to move forward with the sale, or if the state will extend the suspension further. Representatives for

Airbnb looks to raise $3B in December IPO

Posted: 02 Oct 2020 01:15 PM PDT

Airbnb is looking to raise $3 billion in a December IPO, according to a new report citing a remarkable turnaround for the home-sharing startup. Airbnb plans to file a prospectus in November after the U.S. presidential election, and will look to make its stock market debut by the end of the year, Reuters reported, citing sources who are familiar with Airbnb’s plans. Those sources also said Airbnb could hit a $30 billion valuation — nearly

Brooklyn Hospital Center’s $1B renovation could include 1K affordable units

Posted: 02 Oct 2020 12:53 PM PDT

The Brooklyn Hospital Center’s plans to redevelop its Fort Greene campus are becoming more clear, nearly a year after the hospital first announced it would revamp the facility. The $1 billion plan would involve tearing down existing facilities and replacing them with two larger towers, totaling about 800,000 square feet, that would include affordable apartments and medical centers, Crain’s reported. That would be a big change from the hospital’s current footprint: The two buildings it

One of the largest nonbank mortgage lenders files for IPO

Posted: 02 Oct 2020 12:30 PM PDT

AmeriHome is the latest mortgage lender hoping to cash in on the recent boom in originations and refinancings. California-based AmeriHome filed for an initial public offering on Thursday, but did not list the size of the offering. The company said it will raise $100 million— an amount that is frequently used as a placeholder to determine filing fees. Reuters first reported the story. AmeriHome will look to emulate the success of Rocket Companies, the parent

The latest obstacle for restaurants: No available heat lamps

Posted: 02 Oct 2020 11:52 AM PDT

It’s been an especially challenging year for restaurateurs, and now, another obstacle is threatening their survival: heat lamps — or, more specifically, the lack of available heaters. With outdoor dining becoming permanent and winter approaching, a rush of orders and shipping delays have driven up prices and created backlogs on heaters, according to Bloomberg. “There’s no more left,” Jeff Katz, owner of Crown Shy in the Financial District, told Bloomberg. “Every other city has had

DOJ accuses broker of housing discrimination

Posted: 02 Oct 2020 10:50 AM PDT

The Department of Justice has accused a Staten Island real estate broker of housing discrimination after a testing program revealed he offered rental discounts and other favorable treatment only to white clients. Denis Donovan and his brokerage, Village Realty of Staten Island, were tested between February and May 2018 for compliance with the Fair Housing Act, according to a lawsuit filed Wednesday in the U.S. District Court for the Eastern District of New York. The

MTA development chief: Capital budget will be “cannibalized” without federal aid

Posted: 02 Oct 2020 09:30 AM PDT

Janno Lieber kicked off the year eager to get started on an unprecedented $54 billion worth of capital projects for the Metropolitan Transportation Authority. That’s all in jeopardy now, according to Lieber, the MTA’s president of construction and development, as the authority’s revenue has plummeted in the pandemic. “We may have to cannibalize the capital program in order to keep the lights on to feed the operating budget, just so we can continue to operate

Leisure and hospitality gain 318K jobs in September as economic growth lags

Posted: 02 Oct 2020 08:30 AM PDT

The leisure and hospitality industry led employment gains in September with 318,000 jobs added to the economy, trouncing the industry’s August performance of 174,000 jobs. Food and beverage establishments accounted for more than half the industry’s growth last month, with 200,000 jobs returning last month. The U.S. economy added 661,000 jobs in September overall, according to Labor Department figures released Friday, and the unemployment rate fell to 7.9 percent from 8.4 percent in August. But

Head of NY construction union accused of leading bribery scheme

Posted: 02 Oct 2020 07:30 AM PDT

The head of a powerful construction union group allegedly doubled as the leader of a bribery scheme that benefited non-union workers and rigged union elections. James Cahill, president of the New York State Building and Construction Trades Council, was among nine construction union officials indicted Thursday on charges of racketeering, bribery and fraud. Two other union officials were charged with fraud and bribery. Cahill is accused of orchestrating an “enterprise” that involved officials of Local

At last: Gowanus rezoning to begin in January

Posted: 02 Oct 2020 07:09 AM PDT

The long-awaited rezoning of Gowanus finally has a start date. New York City’s housing czar, Vicki Been, announced the city would restart community engagement for the rezoning of the Brooklyn neighborhood in January 2021, during a webinar hosted by political magazine City & State, Brooklyn Paper reported. The rezoning would later have to pass through the city’s seven-month uniform land use review process. The elected officials most invested in its completion — City Council members

Extell, Starwood alums seek $500M for “contrarian” investing

Posted: 02 Oct 2020 06:15 AM PDT

Two former executives at Starwood Capital Group and Extell Development are starting a fund to capitalize on undervalued properties in and around New York City. Sush Torgalkar, who until August was CEO at Extell Development, and Lanhee Yung, who was previously head of fundraising and investor relations at Starwood, hope to raise $500 million for their first fund under the auspices of Sage Hall Partners, the New York-based firm the two founded, Bloomberg News reported.

Real estate attorneys predict bottleneck, brain drain after court cuts

Posted: 02 Oct 2020 05:30 AM PDT

Real estate litigants looking to the state Supreme Court to hear their cases face a likely slowdown next year as the courts implement budget cuts. Judge Lawrence Marks, the court system’s chief administrative judge, announced this week that the court system had found a way to make $55 million of the $300 million in cuts Gov. Andrew Cuomo demanded in April, as first reported by the New York Post. That savings came with a lofty

Trump tests positive for coronavirus

Posted: 02 Oct 2020 04:40 AM PDT

President Donald Trump and his wife, Melania Trump, have tested positive for the coronavirus, the president tweeted early Friday morning. “Tonight, @FLOTUS and I tested positive for Covid-19,” he wrote. “We will begin our quarantine and recovery process immediately.” The White House has not said if either is experiencing symptoms. Hope Hicks, a longtime press aide to Trump who recently traveled with him on Air Force One, also tested positive for the virus, the New

See where real estate is dropping megabucks with TRD’s political contributions tool

Posted: 02 Oct 2020 04:30 AM PDT

Real estate is dropping major cheddar on politics this election cycle. As of Sept. 21 — when campaign funds last filed disclosures with the Federal Election Commission — Joseph Biden was about 19 percent ahead of President Donald Trump. Biden has raked in $19.8 million from real estate contributors this election cycle, versus Trump’s $16.7 million, according to data collected by the Center for Responsive Politics. The Real Deal used FEC filings to create a

Manhattan home sales down 46% last quarter

Posted: 02 Oct 2020 04:00 AM PDT

Strong demand to buy homes and limited supply at a national level hasn’t trickled down to the Manhattan market. Listing inventory soared in the third quarter as the number of sales in the borough dropped by nearly half compared to the same period last year, according to Douglas Elliman’s July to September sales report. It marked the second consecutive quarter that inventory rose. On a national level, “Manhattan was the laggard,” said appraiser Jonathan Miller,