The Real Deal New York

  • Is Los Angeles the new Shanghai?

    Chinese developers have accounted for the bulk of DTLA land buys since 2014
    September 30, 2016 10:31AM
    Rendering of the Metropolis project (credit: highrises.com)

    Rendering of the Metropolis project (credit: highrises.com)

    From the Los Angeles website: For Greenland Group executive Winston Yan, the revival of Downtown L.A. looks awfully familiar.

    “It reminds me of what’s happening in Beijing and Shanghai,” said Yan, whose company is developing the $1 billion Metropolis project downtown. “Now it’s happening here.” [more]

  • From the archives: Real estate’s love-hate relationship with Mayor Bill de Blasio

    Two years into his term, the mayor has proven to be far more pro-development than many expected. So why hasn’t he won over more developers?
    September 30, 2016 10:00AM By Konrad Putzier
    Bill de Blasio (Illustration: John Kuczala)

    Bill de Blasio (Illustration: John Kuczala)

    On an unseasonably mild morning in October, the roughly 50 people who showed up for a press conference at Stuyvesant Town witnessed a strange spectacle: Bill de Blasio, New York’s progressive mayor and self-declared fighter for the working class, chumming it up with Jonathan Gray, the head of global real estate at The Blackstone Group, the world’s largest private equity firm.

    The two men were there to announce Blackstone’s $5.3 billion deal to buy Manhattan’s biggest apartment complex, which included a commitment by the company to preserve 5,000 units of affordable housing. “I know that [Gray] understood from the beginning that there was an opportunity to do something good and lasting here, and he put his heart into it,” de Blasio said.

    Gray, in turn, had his own flattering assessment of City Hall.

    “It felt like working with a very skilled deal team, almost like another investment firm,” Gray recently told The Real Deal. “The most impressive thing was the 24/7 nature of the transaction over more than a week and just how committed they were to doing this.”

    Read the full story from the February 2016 issue here.

  • Kushner praised Wildstein after Bridgegate resignation: lawyer

    Developer allegedly sent gushing email in December 2013
    September 30, 2016 09:35AM
    The George Washington Bridge, Jared Kushner and David Wildstein (credit: Getty)

    The George Washington Bridge, Jared Kushner and David Wildstein (credit: Getty)

    Jared Kushner allegedly praised David Wildstein a day after he resigned from the Port Authority over his role in the Bridgegate scandal.

    On day 5 of the Bridgegate trial, defense attorney Michael Baldassare mentioned an email allegedly sent from Kushner to Wildstein on December 7, 2013 in which he congratulates Wildstein for “the move you pulled.” The content of the email wasn’t revealed, but the attorney said it showed Wildstein “made some admissions” to Kushner. “The truth is, judge, this is what this man thrives for. People like that calling him a badass,” he added. [more]

  • Pan-Asian play: CORE strikes up partnership with JLL to market units to buyers in China and beyond

    JLL sells units directly to buyers via roadshows in cities such as Beijing and Shanghai
    September 30, 2016 09:00AM By Katherine Clarke
    From left: Shaun Osher and Gavin Morgan

    From left: Shaun Osher and Gavin Morgan

    Economists may be warning that the Chinese economy is on wobbly footing, but New York brokers are still looking to tap the Asian markets for condo buyers.

    To that end, boutique residential brokerage CORE and international real estate giant JLL have formed an exclusive partnership to market CORE’s new development projects to the pan-Asian market, CORE CEO Shaun Osher told The Real Deal. [more]

  • Inside TheRealDeal
  • Council, City Hall argue over early end to Shorris hearing

    Deputy mayor left hearing over Rivington House after two-and-a-half hours - but did he lie?
    September 30, 2016 08:37AM
    From left: Melissa Mark-Viverito, Rivington House and Anthony Shorris

    From left: Melissa Mark-Viverito, Rivington House and Anthony Shorris

    In the aftermath of Thursday’s hearing on the Rivington House scandal, reps for the Mayor and City Council speaker traded barbs over an alleged attempt to “mislead” the chamber. [more]

  • Ashkenazy, Deka put Marriott East Side on the market

    Pair paid $270M for the property in May 2015
    September 30, 2016 08:03AM
    From left: Ben Ashkenazy and the New York Marriott East Side on Lexington Avenue

    From left: Ben Ashkenazy and the New York Marriott East Side on Lexington Avenue

    Ashkenazy Acquisitions and Deka Immobilien put the New York Marriott East Side hotel on the market a mere 17 months after buying. [more]

  • Ranking NYC’s all-time condo kings

    A first-ever analysis of the developers who’ve built the most units in Manhattan in the last 50 years
    September 30, 2016 07:30AM By Adam Pincus
    From left: Gary Barnett and One57, Stephen Ross, Harry Macklowe and 432 Park Ave

    From left: Gary Barnett and One57, Stephen Ross, Harry Macklowe and 432 Park Avenue

    From the September issue: Residential condo development is the riskiest sector within the risky business of real estate. Evidence for that is found in both the outsized returns builders can achieve with a success and the ruin they can bring upon themselves and their partners if they fail.

    It’s why in Manhattan’s ultra-competitive real estate world it’s the players who develop flashy condo towers who achieve celebrity status. In the last 12 months alone, roughly $4.7 billion in new condos sold in Manhattan, city property records show.

    But while the industry’s peanut gallery speculates on winners and losers in today’s market, The Real Deal went back over 50 years — to when condos first began selling —to see how today’s top developers (from Extell Development to the Related Companies to Harry Macklowe) fit into the historical landscape. We also wanted to see where some of New York’s most famous developers, most notably Republican presidential nominee Donald Trump, landed in the mix. [more]

  • Developers find sweet relief in $1M to $3M new development condo market

    Prices are dropping in Manhattan and rising in Brooklyn
    September 30, 2016 07:00AM By Rich Bockmann
    The Pierhouse at 90 Furman Street at Brooklyn Bridge Park and Oosten at 429 Kent Avenue in Williamsburg

    The Pierhouse at 90 Furman Street at Brooklyn Bridge Park and Oosten at 429 Kent Avenue in Williamsburg

    Buyers in the third quarter were hungry for new development condominiums priced between $1 million and $3 million, and developers were there to meet them with an influx of new supply.

    In Manhattan, 54.7 percent of all contracts signed during the third quarter fell into that middle-market range, up from 51.4 percent at the halfway point of the year, according to Halstead Property Development Marketing’s quarterly new development report. [more]

  • Most popular stories on The Real Deal

    September 30, 2016 06:30AM

    Current reader favorites:
    1. Sam Zell panel devolves into bizarre discussion about sex with Chinese men
    2. Kushner asking $85M for four-building Astoria portfolio
    3. Banks and mezz lenders buddying up in a tense market
    4. Tishman Speyer files plans for $3.2B Hudson Yards tower
    5. Nobody wants to buy this $12.5M BK mansion with ties to mobsters, Russian heiresses

  • Morgans Hotel Group shareholders OK purchase by SBE

    Nazarian's acquisition is valued at $800M
    September 29, 2016 06:20PM
    10/07/13 Exterior, Hudson Hotel, 356 west 58th street, Manhattan. NY Post Brian Zak

    Hudson Hotel (inset: Sam Nazarian)

    Shareholders voted to approve SBE Entertainment Group’s acquisition of Morgans Hotel Group on Wednesday, in a deal valued at about $800 million. [more]

  • China’s richest man warns the country is facing a RE bubble

    Wang Jianlin says prices are rising in Chinese cities but dropping in smaller towns
    September 29, 2016 05:30PM
    Chinese billionaire Wang Jianlin

    Chinese billionaire Wang Jianlin

    Wang Jianlin — who built a massive fortune developing real estate in China — says the market is now facing the “biggest bubble in history.”

    Jianlin, who is the country’s richest man, says the problem is that prices are continuing to rise in cities like Shanghai, but are dropping in thousands of smaller cities where there are vast numbers of vacant properties. Click here to watch the video.

  • LA hotel backers are beginning to worry about oversupply

    Developers are building thousands of rooms in the city
    September 29, 2016 05:03PM By Cathaleen Chen
    A rendering of the lobby of the Waldorf Astoria being built in Beverly Hills.

    A rendering of the lobby of the Waldorf Astoria being built in Beverly Hills.

    From the Southern California Market Report: The Los Angeles hotel market isn’t huge by comparison with that of New York or Chicago, but developers appear to be intent on rectifying that. With nearly 100 hotels planned, many of them for the city’s central business district, some market watchers are starting to talk about oversupply.

    Yet the hotel companies themselves clearly remain bullish on L.A.’s prospects, particularly in the downtown area. Some 5,468 keys out of a total of 11,120 in the pipeline for Los Angeles County are planned for DTLA, according to an analysis by The Real Deal in late August 2016 that included proposed projects as well as hotels that were under construction. [more]

  • Clockwise from top left: Stuart Elliott, Ben Shaoul, Kelly Mack and Tom Elliott;  Andrew Heiberger and his son Lucas; Ja'Mir ; and Tom Elliott and Taylor Spellman

    Clockwise from top left: Stuart Elliott, Ben Shaoul, Kelly Mack and Tom Elliott; Andrew Heiberger and his son Lucas; Ja’Mir ; and Tom Elliott and Taylor Spellman

    From Luxury Listings NYC: Last night, LLNYC clinked glasses with real estate movers and shakers to toast a new development Downtown, 100 Barclay in Tribeca.

    To see photos from the event, click here.

  • De Blasio appointee on MTA board skeptical of cost for Cuomo’s Penn Station plan

    The governor-appointed members are not concerned
    September 29, 2016 04:12PM
    Rendering of the Moynihan Train Hall (inset from top: Veronica Vanterpool and MTA's Thomas Pendergast)

    Rendering of the Moynihan Train Hall (inset from top: Veronica Vanterpool and MTA’s Thomas Pendergast)

    An appointee of Mayor Bill de Blasio to the Metropolitan Transportation Authority’s board raised concerns Wednesday about the funding for New York Governor Andrew Cuomo’s grand plans for the new Penn Station. [more]

  • Prana buys five-building Bronx portfolio for $36M

    214-unit multifamily package scattered around Fordham
    September 29, 2016 03:40PM By Mark Maurer
    2101 and 2499 Grand Ave (inset: Prana Investments' Neil McKinnon)

    From left: 2101 and 2499 Grand Avenue in the Bronx (inset: Prana Investments’ Neil McKinnon)

    Prana Investments sunk its teeth into a five-building West Bronx multifamily portfolio for $35.8 million, or about $184 per square foot, sources told The Real Deal. [more]

  • De Blasio administration says new health care facility will make up for Rivington blunder

    The project will also house more than 100 seniors
    September 29, 2016 03:15PM
    Rivington House, Bill de Blasio and 30 Pike Street (credit: Google Maps)

    Rivington House, Bill de Blasio and 30 Pike Street (credit: Google Maps)

    The city plans to build a new affordable housing development and health care facility to make up for the embarrassing and politically consequential loss of the Rivington House. [more]

  • West Elm gets more elbow room at Industry City

    Furniture designer takes another 40K sf in Sunset Park
    September 29, 2016 02:40PM

    Andrew Kimball and Industry City

    Home furnishings chain West Elm has taken another 40,000 square feet at Industry City as a staging ground to help launch its new hotel concept. [more]

  • Tishman Speyer files plans for $3.2B Hudson Yards tower

    The 65-story office tower, dubbed the Spiral, will span 2.2M sf
    September 29, 2016 02:20PM By Miriam Hall
    Renderings of the Spiral at 66 Hudson Boulevard in Hudson Yards

    Renderings of the Spiral at 66 Hudson Boulevard in Hudson Yards

    Everything is spiraling into place for Tishman Speyer.

    The developer officially filed plans Thursday for the Spiral, an office skyscraper that is slated to cost $3.2 billion. Plans filed with the city’s Department of Buildings call for a 2.2 million-square-foot tower, but Tishman Speyer is marketing the property at 2.85 million square feet.  [more]

  • Ashner blasts NYRT’s board again

    Activist investor complains that deal for "shareholder representation" was rejected
    September 29, 2016 01:40PM By Konrad Putzier
    Steve Witkoff, One Worldwide Plaza and Michael Ashner

    Steve Witkoff, One Worldwide Plaza and Michael Ashner

    Another week, another argument over the future of New York REIT. Activist investors Steve Witkoff and Michael Ashner accused the real estate investment trust’s board of “muffling” their voice by refusing to give them representation. [more]

  • EB-5 regional center slaps Dermot with lawsuit over Battery Maritime loans

    Lender claims developer failed to pay interest on $77M
    September 29, 2016 01:13PM By Katherine Clarke and Chava Gourarie

    Battery Maritime Building at 11 South Street

    A major New York City EB-5 regional center has filed suit against entities affiliated with Dermot Company for allegedly failing to pay interest on $77 million in loans granted for its planned redevelopment of the Battery Maritime Building downtown. [more]

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