The Real Deal - New York Real Estate News

Gotham Organization sued for unpaid rent at Park Ave South office

Posted: 06 Nov 2020 03:30 PM PST

Developer Gotham Organization is facing a lawsuit over nearly $187,000 in outstanding rent at its 432 Park Avenue South office. An entity tied to Samco Properties — 432 Park South Realty Co LLC — claimed that Gotham has not paid the rent for its office since April, according to a lawsuit filed in New York State Supreme Court on Wednesday. Gotham signed the lease for the property in 2015, and had been paying $41,000 per

Brookfield Property Partners reports $135M net loss in Q3

Posted: 06 Nov 2020 03:25 PM PST

Brookfield Property Partners, one of New York’s largest office landlords, reported a $135 million net loss for the third quarter. That marked a sharp fall from the $870 million profit it reported during the same period last year. But the July through September earnings were also an improvement from Q2, when the company — whose holdings include offices and malls across the country — reported a net loss of $1.5 billion. Executives on Brookfield’s earnings

Alex Sapir’s family closes on luxury condos at Sapir’s Miami development

Posted: 06 Nov 2020 12:45 PM PST

Alex Sapir got a little help from his family. The developer’s mother and sister closed on adjoining units at his luxury condo building in Surfside. The sales mark the first units to close at the beachfront development that was completed last year. Bella Sapir, Alex Sapir’s mother, paid $11.2 million for unit 302 at Arte by Antonio Citterio. His sister, Ruth Sapir-Barinstein closed on unit 301 for $10.9 million. She is a trustee of the

Uber looks to sublet 25% of its 3 World Trade Center office

Posted: 06 Nov 2020 12:15 PM PST

Uber is looking to trim down its lower Manhattan office space by more than a quarter. The ride-hailing company is offering about 80,000 square feet of its 308,000-square-foot office at 3 World Trade Center, Business Insider reported, citing anonymous sources. Uber signed the lease for the space at Silverstein Properties’ skyscraper in October 2019 and is in the process of moving in, the sources told the outlet. Uber has been shedding employees as well. In

Manhattan office availability hits highest rate since 2004

Posted: 06 Nov 2020 11:30 AM PST

Manhattan’s office availability rate hit a high not seen in more than a decade. In October, the amount of available office space in the borough rose to 12.9 percent, the highest since 2004, according to Colliers International’s monthly Manhattan office market report. The glut of available space persisted even as leasing volume rose: It was up by 57.1 percent to 1.76 million square feet, compared to September. But that’s still less than a half of

Hard-hit retail, restaurants, construction show big jobs gains in October

Posted: 06 Nov 2020 11:00 AM PST

A handful of industries that have sustained the most damage from the pandemic reported the biggest job gains in October, pointing to an improving economy despite Covid-19’s surging numbers nationwide. Travel and leisure companies added 271,000 jobs last month, retail added 104,000 positions and construction gained 84,000 jobs, according to data released Friday from the U.S. Department of Labor. The private sector added 906,000 jobs to the economy in October, slightly higher than the 877,000

SL Green’s Hudson Yards deal is breakthrough for Manhattan’s i-sales market

Posted: 06 Nov 2020 10:45 AM PST

In a typical year in Manhattan real estate, when tens of billions of dollars’ worth of property changes hands, an office tower that sells for less than $1 billion would at most raise an eyebrow or two. But in the Covid era, it’s being hailed as a victory. SL Green Realty’s deal this week to sell its Amazon-anchored West Side office tower for about $950 million — roughly $1,550 per square foot — set a

Spitzer snags $388M loan for Williamsburg complex

Posted: 06 Nov 2020 10:20 AM PST

Eliot Spitzer’s development firm has secured a $388 million refinancing package for its massive rental complex at 420 Kent Avenue on the Williamsburg waterfront. Meridian Capital Group arranged the 10-year, interest-only CMBS loan, which was provided by Citigroup, Commercial Observer reported, citing sources familiar with the deal. The new loan replaces a $386 million loan provided by KKR Real Estate Finance Trust in May 2019. The 1.5 million-square-foot complex consists of three glass towers designed

RE/MAX revenue rebounds as firm prepares to sublease HQ

Posted: 06 Nov 2020 09:44 AM PST

Thanks to a strong housing market, RE/MAX Holdings’ brokerage business is returning to pre-pandemic levels. The brokerage reported revenue of $71.1 million for the third quarter of 2020, just shy of the $71.5 million in revenue the company brought in a year prior. The firm’s U.S. closings were up 21 percent year-over-year in September, while the average listing spent 39 days on market. The rate of sales was one week faster than a year earlier,

Billionaire Robert F. Smith revealed as buyer of Elin Nordegren’s former North Palm Beach properties

Posted: 06 Nov 2020 08:00 AM PST

Billionaire Robert F. Smith, who recently agreed to pay a $139 million tax evasion settlement with the Justice Department, is the buyer of two North Palm Beach properties that sold last month for more than $48 million. Smith, the richest Black person in the U.S., bought the oceanfront mansion at 12520 Seminole Beach Road for $41.8 million and the non-waterfront home across the street at 12395 Banyan Road for $6.4 million, according to the Wall

Breather may explore sale or capital raise as flex-office industry struggles

Posted: 06 Nov 2020 07:10 AM PST

UPDATED, Nov. 6, 11:45 p.m.: Flex-office provider Breather has brought on Moelis & Company, an investment bank specializing in mergers and acquisitions, to consider a possible sale or capital raise, Business Insider reported. Both companies declined to comment to BI. The flex-office industry has suffered as employees continue to shun physical workspaces in favor of remote working. As a result, revenue has dropped as much as 60 percent across the industry during the worst of

New York’s own “squad” heads to Albany

Posted: 06 Nov 2020 06:30 AM PST

Numerous progressive state candidates, some endorsed by the Democratic Socialists of America, will take their seats in the state legislature next year and try to push their chambers further left. Meanwhile, Republicans were on track to pick up several seats in the state Senate, pending counts of mailed ballots, but will still be far short of the majority needed to have a significant impact in the upper chamber. In Queens, in Brooklyn and in Rochester,

Cushman reports $37.3M loss in Q3

Posted: 06 Nov 2020 06:00 AM PST

Cushman & Wakefield reported a net loss of $37.3 million in the third quarter, its second consecutive quarterly loss this year. The commercial real estate giant recorded $1.9 billion in revenue in the third quarter, down by 8.8 percent from a year ago. The company attributed that dip to lower brokerage activity due to the pandemic, according to its earnings report. Cushman recorded $321.6 million in revenue from leasing, down by 32 percent from a

Fire and rain and real estate: Investors take closer look at climate risk

Posted: 06 Nov 2020 05:00 AM PST

UPDATED, Nov. 6, 2:31 p.m.: A $1.5 billion loan on a newly opened office building on Manhattan’s Far West Side faces high levels of risk from “heat and water stress.” A $900 million mortgage on a portfolio of Los Angeles production studio and office buildings in Hollywood is subject to “red flag” levels of similar water stress. A $410 million debt package on a life science facility in the Boston area faces red flag risk

Pop-ups offer potential lifeline to luxury streets

Posted: 06 Nov 2020 04:30 AM PST

Madison Avenue is known for high-end shops and advertising agencies, not pop-up retail. But as the saying goes, any port in a pandemic. The business improvement district for the famous corridor, which hosted a modest eight pop-ups last year, has now created a template for short-term licenses. “The idea behind doing this is to try to make this process as simple as possible, especially given the pandemic,” said Matthew Bauer, president of Madison Avenue BID.

NYC rents and inventory dipped in October

Posted: 06 Nov 2020 04:00 AM PST

Rents across the city continued their downward spiral in October, even as the number of apartments on the market began to wane, an analysis by The Real Deal found. In Manhattan, the median rent fell to $3,100, a 3 percent drop since September. The number of listings sunk to 19,500, just below the 20,000 apartments listed the month prior. It’s the second consecutive month where inventory declined in the borough. Brooklyn saw a similar decline