The Real Deal New York

  • MSD Capital pays $63M for stake in Grand Central Terminal

    The stake was held by Lehman Brothers
    July 27, 2016 06:04PM By Kathryn Brenzel
    Grand Central (inset: Michael Dell)

    Grand Central (inset: Michael Dell)

    Michael Dell’s MSD Capital has purchased a stake in Grand Central Terminal for $63 million amid a bitter battle over the station’s air rights. [more]

  • BlackRock narrows HQ search down to three locations

    Asset manager considering 1 WTC, Hudson Yards and Manhattan West
    July 27, 2016 05:40PM
    One World Trade Center and BlackRock's Larry Fink

    One World Trade Center and BlackRock’s Larry Fink

    Asset manager BlackRock narrowed its list of potential new headquarters locations down to three: The Durst Organization’s One World Trade Center, the Related Companies and Oxford Properties Group’s Hudson Yards and Brookfield Property Partners’ Manhattan West.

    The company currently occupies around 700,000 square feet in two buildings – 55 East 52nd Street and Rudin Management Company’s 40 East 52nd Street – where its lease expires in 2023. The Real Deal reported in February that it tapped a JLL team headed by Peter Riguardi to find a new, larger office space.  According to the Wall Street Journal, BlackRock is looking to lease 850,000 square feet at a possible annual rent of around $60 million. [more]

  • Heiberger buys Sitt out of Town Residential stake

    Deal marks the end of a five-year long partnership
    July 27, 2016 05:20PM By Katherine Clarke

    From left: Andrew Heiberger and Joseph Sitt

    A battle that threatened several times to tear apart Town Residential has finally reached a conclusion. [more]

  • Fed opts not to change interest rates

    Banking system says there are now fewer reasons to be worried about the US economy
    July 27, 2016 05:13PM By Business Insider
    Janet Yellen

    Janet Yellen

    There are now fewer reasons to be worried about the U.S. economy, according to the Federal Reserve.

    “Near-term risks to the economic outlook have diminished,” the Fed’s policy statement said on Wednesday.

    As expected, the Federal Open Market Committee left the benchmark fed funds rate unchanged in a 0.25 percent to 0.50 percent range. [more]

  • Inside TheRealDeal
  • Queens i-sales market saw fewer dollars, deals in first half of 2016

    Across the board, borough's numbers are down year-over-year
    July 27, 2016 04:50PM By Kyna Doles
    Ariel Property Advisors

    (credit: Ariel Property Advisors)

    The Queens investment sales market saw fewer buyers and dollars in the first half of 2016 year-over-year, according to the latest mid-year report from Ariel Property Advisors. [more]

  • Adams & Co. just signed a tenant at 1115 Broadway — and you won’t believe who it is

    Landlord inks 48K sf lease with clickbait platform at “Halloween Tower”
    July 27, 2016 04:25PM
    James Buslik 1115 Broadway

    From left: James Buslik and 1115 Broadway in Nomad

    Adams & Co. signed another tech tenant at 1115 Broadway, the NoMad office building known as the “Halloween Tower” for its history of being a haunt for costume-making companies.

    Taboola, a clickbait platform that drives traffic to websites, leased 48,010 square on the seventh and eighth floors of the building, the New York Post reported. [more]

  • Hamptons Roundup Georgica Pond Main

    Georgica Pond residents Steven Spielberg and Harry Macklowe

    Demand for luxury properties drops while mid-tier homes make gains

    Hamptons sellers beware. The East End saw its fourth straight double-digit sales drop in the second quarter as year-over-year sales plummeted 21 percent for a total of 561 transactions, according to a Douglas Elliman report. Jonathan Miller, the report’s author, attributed that decline to softening at the top of the market. Miller noted, however, that this slower stretch followed an extraordinary three-year period marked by a growing global appetite for luxury properties. [more]

  • Blackstone shopping 1065 Sixth Avenue

    Bryant Park office tower could fetch $700M: report
    July 27, 2016 03:45PM

    1065 Sixth Avenue in Midtown

    The Blackstone Group is shopping 665,000-square-foot office tower 1065 Sixth Avenue, which sources say could trade for as much as $700 million.

    The 38-story property, built in 1957, is on the same block as 3 Bryant Park, which the fund manager sold to Canadian investment firm Ivanhoe Cambridge for $2.25 billion last year.

    Real Estate Alert first reported the news. HFF has the listing. [more]

  • Rabsky in talks to sign trampoline park at W’burg complex

    Developer planning a second building on 3-acre site for creative office space
    July 27, 2016 03:25PM By Mark Maurer
    101 Varick Avenue

    Sky Zone trampoline park (credit: Sky Zone) and aerial view of 101 Varick Avenue in East Williamsburg

    Sky Zone, a national chain of indoor trampoline parks, is negotiating to bounce into a new space at an East Williamsburg warehouse now owned by Rabsky Group, sources told The Real Deal. [more]

  • Cracking shells: US Treasury widens LLC disclosure law throughout NYC, LA

    Title companies directed to identify all-cash buyers for three months starting Aug. 28
    July 27, 2016 03:00PM By E.B. Solomont

    FinCEN’s Jamal El-Hindi

    In its effort to root out dirty money flowing into luxury real estate, the Treasury Department said it will expand a pilot program requiring title companies to identify the true buyers behind anonymous, all-cash deals.

    In new geographic targeting orders (GTOs), officials will require the disclosure of buyers in all five boroughs of New York City as well as parts of Florida, California and Texas. Previously, officials targeted all-cash deals by shell companies spending more than $3 million in Manhattan and Miami. That order took effect in March. [more]

  • Edward Minskoff is buying the Bluffs at Playa Vista in LA for $425M

    Developer will pay $850 a square foot for creative office property: sources
    July 27, 2016 02:35PM By Hannah Miet and Katherine Clarke
    Edward Minskoff and the Bluffs at Playa Vista

    Edward Minskoff and the Bluffs at Playa Vista

    From the Los Angeles website: The East Coast is leaning in on L.A.’s Silicon Beach.

    Hot on the heels of Boston Properties’ acquisition of the Colorado Center in Santa Monica, New York developer Edward Minskoff is going into contract to buy the Bluffs at Playa Vista creative office campus from JPMorgan for roughly $425 million, The Real Deal has learned. [more]

  • Peter Marino says accuser in lawsuit is homophobic

    Architect lashes out at former office manager
    July 27, 2016 02:00PM
    Peter Marino

    Peter Marino

    “Leather daddy” designer Peter Marino, who is accused of using racial slurs in his office, is now claiming that the office manager suing him is homophobic. [more]

  • Rupert Murdoch sells West Village home for $27.5M

    Media mogul owned 278 West 11th Street for only one year
    July 27, 2016 01:30PM By Katherine Clarke
    278 West 11th Street and Rupert Murdoch

    278 West 11th Street and Rupert Murdoch

    Rupert Murdoch has made a quick $2.5 million profit on the sale of his West Village townhouse, having purchased it just last year for $25 million.

    The 21st Century Fox and News Corp mogul, who recently stepped into the role of chairman and CEO at Fox News after Roger Ailes left the company amid allegations of sexual harassment, received $27.5 million for the house, at 278 West 11th Street, according to records filed with the city Wednesday. [more]

  • NYC rental market “deteriorating”: Equity Residential

    Boston Properties CEO defends WeWork on earnings call
    July 27, 2016 01:00PM By Konrad Putzier
    Owen Thomas, Long Island City rental towers and David Neithercut

    Owen Thomas, Long Island City rental towers and David Neithercut

    Equity Residential lowered its revenue projections amid “deteriorating” apartment rental markets in San Francisco and New York, the company said on an earnings call Wednesday. [more]

  • AvalonBay boosts concessions amid surge of new rentals

    Residential REIT cut projections, citing weak job growth and increased supply
    July 27, 2016 12:44PM
    AvalonBay NYC

    Timothy Naughton and Avalon Midtown West at 250 West 50th Street

    Amid a surge of new rental product coming to market, AvalonBay Communities quadrupled the amount of concessions it offered to tenants in the second quarter and cut its revenue forecast for the rest of the year.

    The Virginia-based residential real estate investment trust offered $300,000 worth of concessions in the form of free rent, mostly in places like New York, northern California and New England, Crain’s reported. [more]

  • Man at center of 1MDB probe held 85% stake in Park Lane Hotel: report

    Government's move to seize portion of property's equity could be big relief for investors
    July 27, 2016 12:10PM

    From left: Steve Witkoff, the Park Lane Hotel at 36 Central Park South and Jho Low

    The move by the U.S. government to seize a significant stake in the Park Lane Hotel, which is connected to a Malaysian development fund scandal, could be a boon to owners of the iconic Central Park South property. [more]

  • Early plans show two new projects to bring 1.7M sf of residential units to LES

    The developments could add 2,100 residential units to the area
    July 27, 2016 11:30AM
    From left: rendering of 247 Cherry Street on the Lower East Side, rendering of One Manhattan Square and rendering of the Essex Crossing project

    From left: rendering of 247 Cherry Street on the Lower East Side, rendering of One Manhattan Square and rendering of the Essex Crossing project

    Preliminary plans for two new developments on the Lower East Side would add more than 2,100 residential units to the area. [more]

  • Momofuku Milk Bar owner buys $4M Chelsea pad

    Christina Tosi and her boyfriend Will Guidara have bought a penthouse at 139 West 19th Street
    July 27, 2016 11:04AM By Isabel Schwab

    The penthouse apartment at 139 West 19th Street

    From Luxury Listings NYC: That’s a whole lot of cereal milk! Momofuku Milk Bar owner Christina Tosi and her boyfriend Eleven Madison Park co-owner Will Guidara have purchased a penthouse apartment at 139 West 19th Street from Elle magazine fashion editor Lori Goldstein for $3.7 million, property records show. [more]

  • The capital stack for condo construction is becoming more layered than ever

    Complex financing mix now often requires tranches of sponsor equity, mezzanine debt, preferred equity, EB-5 funds and even the prospect of crowdfunding
    July 27, 2016 10:11AM By Kathryn Brenzel
    (Click to enlarge)

    (Click to enlarge)

    From the July issue: When it comes to condominium construction, the many tiers of equity and debt needed to get the job done have become all the more complicated.
    As the amount of money that U.S. banks are willing to lend to developers has decreased tremendously in the past year — especially for ultra-luxury projects — those looking to build condos from the ground up must cobble together financing from a wider array of alternative sources. That includes additional equity partners, high-yield debt funds, hedge funds and foreign investors. [more]

  • JCDecaux takes 47K sf at Empire State Building

    Advertising company will occupy 73rd and 74th floors
    July 27, 2016 09:35AM

    The Empire State building at 350 Fifth Avenue in Midtown

    Outdoor advertising company JCDecaux signed a 46,537-square-foot lease at the Empire State Building, landlord Empire State Realty Trust announced Wednesday. [more]