The Real Deal - New York Real Estate News

WeWork tells members you must pay rent

Posted: 28 Oct 2020 04:15 PM PDT

WeWork has doubled down on its demand for rent from members unable to pay, in some cases threatening debt collection if clients don’t fork over the money. Covid-related eviction moratoriums in many cities, including New York, have been extended, offering some relief to commercial and residential tenants. But WeWork has memberships, not leases so it doesn’t have to abide by those moratoriums. The office-space provider is now taking a tougher stand with members unable to

New round of layoffs as NYC struggles to come back

Posted: 28 Oct 2020 03:50 PM PDT

When Paragon Sports, a Union Square staple, rehired 17 employees this summer that it had temporarily laid off because of the pandemic, it seemed like a sign that the century-old store could be on the road to recovery. But its woes continue: Paragon will once again temporarily lay off those workers in January, while seven other workers will permanently lose their jobs, according to information released Wednesday by New York state’s Department of Labor. A

MTA cuts rent up to 90% for small businesses

Posted: 28 Oct 2020 02:13 PM PDT

The MTA board voted unanimously Wednesday to relieve rent for its small-business tenants at Grand Central Terminal. Under the move, which had been proposed earlier this month, qualifying businesses at Grand Central and all other Metropolitan Transportation Authority locations except the Fulton Street Transit Center will owe no rent for April through July, Crain’s reported. As of Aug. 1, rent will change to either 10 percent of a store’s gross sales or 10 percent of

The best accessories to revamp your workspace

Posted: 28 Oct 2020 02:00 PM PDT

Note: These items are independently selected by our team. However, TRD may receive a commission when you purchase products through affiliate links. Back before the work-from-office days, desk decorating became something of an art form. Whether it was a hand-me-down gifted from a former colleague, a cool calendar or the green pop of a plant, many of us tried to bring personality to our faceless cubicles. Now, it’s time to invest in new items to

Pharrell, David Grutman partner with developer to launch South Beach hotel

Posted: 28 Oct 2020 01:00 PM PDT

Developer Eric Birnbaum brought on star power to launch his Washington Avenue hotel in Miami Beach. Singer-songwriter and producer Pharrell Williams and hospitality mogul David Grutman are partnering with Birnbaum on the Goodtime Hotel, a 266-room hotel on Washington Avenue between Sixth and Seventh streets, which is set to open early next year. Birnbaum’s Dreamscape Companies is the lead developer of the seven-story building, which was designed by architect Morris Adjmi. Raymond Jungles is handling

Equity Residential sees profits drop 58%

Posted: 28 Oct 2020 12:21 PM PDT

Sam Zell’s Equity Residential was hit with a 58 percent decline in income in the third quarter, with urban flight severely impacting its apartment portfolio. The REIT’s net income in the third quarter was $95.4 million, down from $227.8 million in the same period last year, the company reported Wednesday. That’s a significant drop from the second quarter, when the company recorded $271.5 million in income. Its total revenue during the third quarter was $622.4

NYC to allow store owners to sell wares on sidewalks

Posted: 28 Oct 2020 11:31 AM PDT

The city’s successful Open Restaurants program has inspired a similar initiative, this time for shop owners. Mayor Bill de Blasio announced that the city will begin an Open Storefront program on Oct. 31, modeled after the program that has allowed restaurants to serve diners outside at reduced capacity. The new program will allow 40,000 small businesses to sell their goods in front of their stores. “Everyone knows this is such a crucial time of the

Trump strong-armed lenders to forgive Chicago tower debt: NY Times

Posted: 28 Oct 2020 10:45 AM PDT

When the Great Financial Crisis threatened the biggest thing he had ever built, Donald Trump strong-armed his lenders into letting him off the hook on $270 million in loans, according to the New York Times. The tactic was indicative of how, over the course of his real estate career, the president has been able to maneuver out from under significant debts and to use losses to reduce his tax bills. In September 2008 Trump was

Blackstone earnings are up despite commercial real estate woes

Posted: 28 Oct 2020 10:23 AM PDT

Blackstone’s bet on logistics facilities and life sciences continues to pay off despite the broader headwinds facing commercial real estate. The New York-based investment manager reported in its third-quarter earnings call that net income increased to $794.7 million in the third quarter, from $779.4 million the previous year. The company’s fee-related earnings from its real estate assets increased to $283 million, from $187 million during the same time period. Blackstone’s total assets under management increased

Boston Properties’ Q3 income drops 17%

Posted: 28 Oct 2020 09:50 AM PDT

Boston Properties’ income declined about 17 percent in the third quarter, and executives don’t expect tenants to return to their offices in large numbers until late next year. Net income for the quarter totaled $89.9 million, down from $108.7 million the same time last year, the company reported Tuesday. Growth declined due to income drops in the real estate investment trust’s hotel and office sectors. Office occupancy dropped the most in New York City and

NYC’s largest multifamily lender says rent collections are at pre-pandemic levels

Posted: 28 Oct 2020 09:27 AM PDT

New York City’s largest multifamily lender said rent collections in its loan portfolio have returned to pre-pandemic levels and the vacancy rate less than 3 percent — but investors remain wary. New York Community Bank reported 5 percent revenue growth in the third quarter, to $295 million. The bank said that 95 percent of the $3.1 billion in loan deferrals that were eligible to come out of forbearance have started paying again. Another $3.1 billion

Related, Cushman & Wakefield use new app to screen workers for Covid

Posted: 28 Oct 2020 08:31 AM PDT

Some big firms are turning to a new health screening app to determine when and how to safely bring employees back to offices. The Health Pass app, developed by biometric company Clear, links personal health data to verified IDs in order to screen workers for Covid-19, the New York Post reported. The NHL used the app to test players and employees during its playoffs in Toronto. Among the companies participating are the Related Companies, Cushman

Portrait of a deal junkie: The Joseph Tabak story

Posted: 28 Oct 2020 08:00 AM PDT

Some real estate players are known for what they build, others for what they own. Then there’s Joseph Tabak, who without a portfolio of trophy properties or any ground-up projects of note has become one of the most highly regarded dealmakers in the business. With a penchant for structuring debt and equity deals and assembling parcels for sale, Tabak has left his imprint on more than $13 billion worth of transactions over this three-decade plus

Property debt investors raising money but still looking for distress

Posted: 28 Oct 2020 07:15 AM PDT

For a few months, real estate debt investors have been raising money and looking for opportunities to spend it. Now it seems things are coming to a boiling point as competition grows to put that cash to work. Borrowers are getting desperate as loan extensions start to expire on malls, hotels and offices, according to Bloomberg. “So much money has been raised and most was raised for distressed returns but there hasn’t been much distress,”

Ex-Zillow execs launch digital mortgage startup with $40M seed round

Posted: 28 Oct 2020 06:37 AM PDT

In Silicon Valley, the typical seed round for a new venture is around $1 million — maybe $3 million. But a new digital mortgage company, started by two former Zillow execs, has just launched with $40 million. Tomo, which bills itself as a fintech startup, announced the eye-watering seed round Wednesday. Trulia co-founder Pete Flint and former Zillow CEO Spencer Rascoff are among the investors. Based in Stamford, Conn., with offices in Seattle and Austin,

Three years after approval, BJ’s Wholesale Club remains unbuilt

Posted: 28 Oct 2020 06:15 AM PDT

A BJ’s Wholesale Club project got the green light from Staten Island officials in 2017. It still has not happened. The 226,000-square-foot development planned for Staten Island’s Mariners Harbor section, which has been approved to be built at 2324 Forest Avenue on 28 acres of wetlands, is the subject of a legal battle, the New York Times reported. Although developer Charles Alpert has said the project will be home to at least 200 local jobs,

Newark restricts businesses again to curb Covid spike

Posted: 28 Oct 2020 05:49 AM PDT

New Jersey’s largest city has shut down again — partially. Newark has seen an alarming spike in cases, causing city businesses to be put on semi-lockdown for the first time since March, beginning Tuesday at 8 p.m., Bloomberg reported. But this shutdown looks different from before, according to the New York Times. Under the order, restaurants and other nonessential businesses must close to indoor customers at 8 p.m. daily. Hair and nail salons may stay

Supreme Court shift could favor rent law challengers

Posted: 28 Oct 2020 05:00 AM PDT

When landlord groups filed a federal lawsuit challenging New York’s rent law last year, they already had their eyes on the U.S. Supreme Court. Now, with the appointment of a sixth conservative judge, their case may have a better shot at being heard by the nation’s highest court. Amy Coney Barrett was sworn in Monday night as the 115th justice in the court’s history. Her confirmation creates a 6-3 majority of Republican-appointed justices, a shift

Poor hospitality: Hotel owners in big cities hit major tipping point

Posted: 28 Oct 2020 04:30 AM PDT

All of the lights in the Hilton Times Square have been pitch black for weeks — one of several ominous signs for hotel owners in New York and other large cities around the country. The owner of the 478-room property, just blocks away from Broadway and Bryant Park, disclosed plans to the state’s Labor Department last month to permanently shut its doors and lay off 200 employees. The real estate investment trust Sunstone Hotel Investors

Refinancings drove up home mortgage apps last week

Posted: 28 Oct 2020 04:00 AM PDT

An increase in homeowners’ bids to refinance drove up the volume of mortgage applications last week. An index tracking home refinance applications increased 3 percent, seasonally adjusted, in the third week of October, compared to the prior week, according to the Mortgage Bankers Association’s weekly survey. The metric, known as the refinance index, was up 80 percent year-over-year. MBA’s purchase index, which tracks the number of mortgage applications to buy homes, was essentially flat with