The Real Deal - New York Real Estate News

Cuomo gives tenants 60 days to answer eviction notices

Posted: 03 Nov 2020 05:02 PM PST

Late afternoon on Election Day, Gov. Andrew Cuomo set a deadline for tenants to answer eviction petitions. His executive order stipulates that any summary eviction proceeding for nonpayment of rent pending as of Nov. 3 must be answered within 60 days. The order does not apply to holdover evictions and others for nonpayment of rent. The extension comes as a pause on Civil Court deadlines was about to run out — which would have opened

Sarah Jessica Parker’s former townhouse sells after years on the market

Posted: 03 Nov 2020 03:55 PM PST

It was on a particularly bad week in August that the former home of “Sex and the City” star Sarah Jessica Parker finally went into contract. Manhattan’s luxury market saw deals hit levels not seen since 2011. For Ruthie Assouline of Compass, whose clients were looking to buy the townhouse at 20 East 10th Street, those conditions were causing tensions. “When you have no data to reference, post such a drastic event as the pandemic,

Thor delinquent on $105M loan at 597 Fifth

Posted: 03 Nov 2020 02:46 PM PST

Joseph Sitt’s Thor Equities has missed two months of payments on a loan tied to the Charles Scribner’s Sons Building in Midtown, the latest in a series of setbacks for the prolific retail real estate investor. Thor is now 60 days delinquent on a $105 million loan tied to the property at 597 Fifth Avenue, according to Trepp, which provides data on CMBS loans. Thor modified its loan on the 80,000-square-foot building in May and

Free rent not entirely free, Knotel’s landlord alleges in lawsuit

Posted: 03 Nov 2020 02:20 PM PST

A Soho office landlord is suing Knotel over nearly $900,000 in unpaid rent, including six months of free rent that was part of its initial lease agreement. Northwind Group, a Manhattan real estate private equity firm, wrote in a lawsuit filed in New York State Supreme Court that the flex-office company stopped paying rent on its office space at 40 Wooster Street in March. The landlord withdrew Knotel’s $206,250 security deposit in May, but Northwind

“How do we survive?”: Subway station retailers struggle

Posted: 03 Nov 2020 01:22 PM PST

Retailers whose shops are located within the New York City subway have returned to one question since the pandemic hit: “How do we survive?” Since March, 77 of the 321 retail businesses that operate underground have permanently closed, the New York Times reported. “We don’t have tourists, people are all working from home. We have nothing,” Jairo Cardenas, whose shoe shine business is within the sprawling Times Square station, told the Times. Restaurants and retails

Real estate pros say Trump better for market than Biden: survey

Posted: 03 Nov 2020 12:10 PM PST

Asked if Donald Trump or Joe Biden would be a better president for real estate, many industry professionals surveyed by The Real Deal picked the president, but more in some cities than others — and not at all in Chicago. Some 465 brokers, executives, and others who make their living in the industry answered the survey question: “Which presidential candidate will have a more positive impact on the real estate market?” Nearly half — 49

Landlords face hard deadline on court-ordered building repairs

Posted: 03 Nov 2020 11:15 AM PST

A state bill to tighten time limits on court-ordered repairs of apartment buildings is poised to be signed or vetoed by Gov. Andrew Cuomo. The legislation would prevent landlords from getting more than one extension to conduct repairs ordered by a court. The lone extension would be for up to 60 days and require just cause. Courts currently often give more time for repairs, which Bronx Assembly member Jeffrey Dinowitz said allows landlords to drag

Harry Macklowe sues Boston Properties for $30M

Posted: 03 Nov 2020 10:30 AM PST

Whoever said real estate is a litigious industry likely had Harry Macklowe in mind. The octogenarian real estate mogul, who reportedly skipped rent payments this summer for his pricey office at the General Motors Building, is suing his landlord at another property for $30 million. Macklowe claims Boston Properties owes him a consulting fee related to a Midtown office tower he sold to the REIT 10 years ago in the wake of the Great Recession,

Core real estate funds delay investors from cashing out

Posted: 03 Nov 2020 09:55 AM PST

Pension fund investors are seeking to take cash out of real estate funds as property values fall, putting managers of those funds in a difficult position. More than 15 of the 25 open-ended “core” funds tracked by the National Council of Real Estate Investment Fiduciaries have investors seeking to collect on tens of billions of dollars worth of investments, the Wall Street Journal reported, citing industry insiders. Those 25 funds had a total of $267.1

Le Pain Quotidien to open 10 new locations

Posted: 03 Nov 2020 09:00 AM PST

In a new twist, Le Pain Quotidien will open 10 new locations in New York City. The new stores will open in stores that previously operated as Maison Kayser locations. Both brands filed for bankruptcy during the pandemic and were subsequently acquired by Aurify Brands. “We are big believers in New York City and are thrilled to add these strong locations in this key market to our LPQ portfolio,” John Rigos, Co-CEO of Aurify Brands,

Commercial property tax delinquencies jump 50%

Posted: 03 Nov 2020 08:25 AM PST

Delinquency rates on commercial property taxes have increased by about 50 percent since last year, according to an analysis by Crain’s. Commercial properties — including retail spaces, offices and factories — were the most behind on their tax bills, with a 3.6 percent nonpayment rate on the first tax deadline in July. As of Oct. 15, the number of properties in arrears rose to 4 percent, according to Crain’s. Property taxes account for more than

Deutsche Bank wants to cut ties with Donald Trump: report

Posted: 03 Nov 2020 07:30 AM PST

Deutsche Bank AG reportedly wants to end its relationship with President Donald Trump after the U.S. presidential election in an attempt to quash negative publicity from its association with the developer-in-chief. Deutsche Bank has about $340 million outstanding on three loans to the Trump Organization, Reuters reported, citing senior bank officials. In total, Deutsche Bank has loaned Trump over $2 billion. The loans are backing Trump’s golf course in Miami, as well as hotels in

Dynamic Star plans 26-story office tower in Long Island City

Posted: 03 Nov 2020 06:45 AM PST

Developer Dynamic Star is looking to build a new office tower on top of the old Eagle Electric warehouse in Long Island City. The real estate investment firm will need to secure a rezoning for the site at 23-10 Queens Plaza South in order to build a new 26-story tower, Commercial Observer reported. It bought the site in 2019 from a partnership led by Kevin Maloney’s PMG Holdings for $27.5 million. Dynamic Star wants to

Election puts real estate’s generous tax breaks in spotlight

Posted: 03 Nov 2020 06:15 AM PST

For many in the real estate industry, having a developer in the Oval Office has brought an uncomfortable amount of media attention to a long-standing practice: avoiding taxes. A series of recent articles in The New York Times and other outlets have showcased the many ways developers and investors use tax breaks to lower their bills — sometimes to zero. And with the election in motion, some are feeling nervous. “It kind of reminds me

Netflix landlord in Bushwick snaps up property across street

Posted: 03 Nov 2020 05:45 AM PST

The investors who brought a Netflix soundstage to Brooklyn just picked up another property nearby — a sign that they could be eyeing an expansion for the popular production and streaming company. Joseph and Glenn Lostritto’s Steel Equities recently bought the large warehouse at 375 Johnson Avenue in Bushwick for $20 million, sources told The Real Deal. The property, at the intersection with Bogart Street, is catty corner to the site where Netflix inked a

Americans stand united on one thing: NIMBYism

Posted: 03 Nov 2020 05:00 AM PST

Political polarization is at a fever pitch, but Trump and Biden supporters seem to have found common ground on one issue: NIMBYism. Nearly 75 percent of U.S. residents oppose policies to increase housing density in their own neighborhoods, though more than half think the government should provide developers with incentives to build more housing. Opposition to more tightly-packed communities is bipartisan and holds true for homeowners as well as renters. That’s according to a survey

Manhattan office leasing decline is double that of Great Recession

Posted: 03 Nov 2020 04:30 AM PST

At the onset of the pandemic in March, few anticipated that Manhattan offices would remain mostly unoccupied deep into the fall. New data show just how bad: At this pace, leasing volume in 2020 will be 52 percent lower than the year before, according to Franklin Wallach, Colliers International’s senior managing director for New York research. That compares to a 26.9 percent plunge from 2007 to 2009 and a 14.1 percent decline after the 2001

Mortgage lenders tighten screws on NYC home buyers

Posted: 03 Nov 2020 04:00 AM PST

This spring, Kevin Brunnock considered himself one of the city’s lucky brokers. He was working with a client who wanted to keep searching for a home despite the pandemic. If the right property came along, the client was ready to commit sight unseen. In June, they found such a place: a two-bedroom condo on the Upper West Side owned by Nigerian-born supermodel Oluchi Onweagba. The 1,300-square-foot apartment had a terrace overlooking the Hudson River and

Unibail-Rodamco-Westfield says its real estate is worth 11% less than last year

Posted: 02 Nov 2020 07:36 PM PST

Unibail-Rodamco-Westfield saw U.S. rental income tumble 39 percent year-over-year in the third quarter, the company disclosed Sunday. The retail landlord and investor reported that rental income from U.S. operations, including from 39 Westfield-branded malls, fell to $464 million. Across its overall portfolio, which includes major retail holdings across Europe, the company’s rental income fell to $1.43 billion in the first nine months of 2020, 38 percent lower than the same period last year. The company