The Real Deal

Fannie Mae charged with neglecting three dilapidated NYC buildings

November 06, 2009 06:30PM

Fannie Mae has been charged with neglecting to pay for basic repairs in three New York City rental buildings after moving to foreclose on the properties in March. The buildings -- two of which are on the city's list of worst-kept properties -- have been rendered dilapidated and a Bronx judge has ordered Fannie Mae to respond to charges that it has allowed the buildings to remain structurally unsafe, with several city housing violations. Attorney Marc Landis, the court-appointed receiver who filed the charges, estimated that $324,475 will be needed to make the necessary repairs at the buildings, each purchased by real estate investment firm Ocelot Capital at the height of the housing boom. Fannie Mae, which purchased the mortgage from Deutsche Bank before the buildings were abandoned by Ocelot, will appear at a hearing Nov. 23 to answer the charges. [Crain's] Tags: fannie mae marc landis ocelot capital

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Obama signs first-time homebuyer tax credit extension

November 06, 2009 06:00PM

President Barack Obama has signed into a law a bill that extends the first-time homebuyer tax credit to April 30 and strengthens anti-fraud measures, he announced today. The bill also stretches out unemployment benefits by up to 20 additional weeks and cuts taxes for struggling business owners. The new law comes on the heels of news that the national unemployment rate has eclipsed 10 percent. Obama said despite sustained job losses, the economy grew last quarter in large part due to a rebound in the housing market. The extended homebuyer tax credit, which was previously slated to expire at the end of this month, will be instrumental in ensuring a continued recovery, he said. Tags: april 30 first-time homebuyer tax credit obama administration

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Midtown office rents plummet as vacancies skyrocket, report shows

November 06, 2009 05:30PM

Just one month after declines in rents in Midtown seemed to be leveling off, the average asking rents in October fell sharply as vacancies rose by their largest amount in nearly a year, a new report by commercial services firm CB Richard Ellis shows (see the full report after the jump). The average asking rent in Midtown fell by 99 cents per square foot in October to $56.89 per square foot, while the vacancy rate rose by .7 points to 10.3 percent, the CBRE report, covering October, shows. In September, brokers were buoyed by statistics that showed the average asking rent in Midtown declined by just 6 cents per square foot, to $57.88 per foot. But that price support did not continue last month. The drop in price decline in Midtown was the largest since August when it fell $1.46 per square foot, the figures show. The increase in vacancy is the largest since December 2008, when the rate rose 1 point to 7.6 percent from 6.6 percent a month earlier, CBRE data shows. The weakness was not as pronounced in Manhattan overall. The average asking rent fell by 88 cents per square foot from September to October, and the vacancy rate rose by .5 points to 9.8 percent. TRD Tags: CBRE Midtown rents vacancies

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DOB list of stalled construction sites hits 531, Times Square gets new budget hotel ... and more

November 06, 2009 05:00PM

1. Hamptons property sees $7 million price increase to $25 million [Curbed]
2. Apple Core opens budget hotel, the Hotel @ Times Square [Crain's]
3. Silver talks Paterson into loosening grip on Battery Park City Authority money, sources say [Downtown Express]
4. Manhattan Inn restaurant and piano bar opens in Greenpoint [Eater]
5. Blackstone gets stake in two Glimcher malls [Dealbook]
6. By year's end, residential inventory to drop below pre-2006 levels [Business Week via Realtor]
7. Andy Roddick and wife Brooklyn Decker shop for condos in Brooklyn [Post]
8. DOB list of stalled construction sites hits 531 [Brownstoner]

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Top five sales agents of the week

November 06, 2009 04:30PM

The Real Deal has ranked the top listing agents of the week based on the highest priced residential deals filed with the city.

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Abigail Disney sells pair of West End co-ops separately after string of price cuts

November 06, 2009 04:00PM

Abigail Disney, Walt Disney's grandniece, has sold her pair of 300 West End Avenue co-ops for a combined $7.2 million, but not before a string of hefty price cuts. Disney purchased the two semi-combined, nine-room units from singer Harry Belafonte for $10.75 million in 2006. They hit the market again in April 2008 for $13.45 million. The price was cut to $11.95 million, and then to $10.95 million before finally selling last month to two separate buyers. Amy Gold and Brett Gorvy, deputy chairmen at Christie's, purchased the B-line apartment for $3.45 million, and the A-line apartment sold for $3.75 million. Dolly Lenz of Prudential Douglas Elliman had the listing. [NYO] Tags: 300 west end avenue abigail disney amy gold brett gorvy christie's dolly lenz harry belafonte prudential douglas elliman

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NY construction company gets into real estate finance and sale-leaseback business

November 06, 2009 03:30PM By David Jones

Structure Tone, one of the nation's leading construction management firms, is partnering with Corporate Lease Properties to finance new real estate projects or sale-leaseback deals. Structure Tone officials said the venture will allow it to provide alternative financing to corporations leasing space to strong creditworthy tenants, and therefore help move projects along that require new construction financing or just enough money to build out space for a new tenant. Officials declined to comment on any specific deals; however, they said they have a number of deals in the pipeline and are focused on deals in Tier 1 cities, including New York, Boston and San Francisco. "It's the right time to invest in real estate," said Brian Donaghy, chairman and president of Structure Tone. "We want to be in a position where we have our platform ready and greased to do deals." Structure Tone has managed some of the largest construction projects in New York, including the Bank of America tower and managed tenant build-out projects for Moody's Corp., MTV Networks and other major companies. More Tags: arc global partners brian donaghy corporate lease properties h. cabot lodge iii structure tone w.p. carey & co.

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BlackRock sells UWS building for $7M loss

November 06, 2009 02:45PM By Adam Pincus

A BlackRock investment fund sold an 81-unit apartment building on the Upper West Side at 10 West 74th Street for $38 million, or $7 million below its purchase price in 2006. The buyer was identified as West 74 LLC -- an entity affiliated with investor Elias Kalimian, principal with Midtown-based Elk Investors -- and the sale went into contract in August before closing Oct. 29, city property records published today show. The fund of the powerhouse investment management company bought the property in September 2006 for $45 million, city records show, and in 2007 valued the property at $56 million, according to a federal Securities and Exchange Commission filing. The building was held by the BlackRock Diamond Property Fund, the SEC filing shows. The appropriate representative from BlackRock was not immediately available to comment, a spokesperson said. Recent apartment listings include a one-bedroom for $3,500 a month and a two-bedroom for $5,500, according to data from Streeteasy.com. Darcy Stacom, a vice chairman at CB Richard Ellis, was the sales broker. Elk Investors owns other properties in Manhattan including an office building at 489 Fifth Avenue at 42nd Street and an apartment building at 131 East 83rd Street at Lexington Avenue. The company did not immediately respond to a request for comment. Tags: 10 west 74th street 131 east 83rd street 489 fifth avenue CB Richard Ellis blackrock blackrock diamond property fund darcy stacom elias kalimian elk investors securities and exchange commission streeteasy.com west 74 llc

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Going after borrowers gets personal

Lenders suing for more than $400 million in loan guarantees November 06, 2009 02:30PM By Adam Pincus

From the November issue: Contrary to popular belief, commercial lenders did not throw out all of their standards in the recent cycle of easy credit. When developer Aby Rosen structured his $133 million loan for the acquisition and development of the Shangri-La hotel at 614 Lexington Avenue in April 2007, the mortgage document included a personal guaranty to cover losses in the event of a default. Similarly, when Kent Swig negotiated $49 million in loans with Lehman Brothers Holdings to develop a hotel and condo project at 45 Broad Street in the Financial District in 2006 and 2007, the bank demanded a similar guaranty in the mortgage documents. And other big-time borrowers such as developer Yair Levy and investor Steven Elghanayan have made the same types of commitments to convince banks to make loans on their projects. more Tags: 127 madison avenue 45 broad street 614 lexington avenue 654 broadway Aby Rosen Harry Macklowe Kent Swig bank of smithtown cardinal real estate investments cit group david schechtman eastern consolidated kyle ransford lehman brothers long island city oved & oved scott tross shangri-la hotel sheffield57 steven elghanayan swig equities trevor stahelski yair levy

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Q & A with Related President Jeff Blau

November 06, 2009 02:00PM By C. J. Hughes

Save for a few short-term dips, the real estate market in New York has run full steam ahead since the recession of the early 1990s, when Jeff Blau joined the Related Companies out of college. And what a run it's been for the 41-year-old president of the privately held real estate juggernaut, which developed One Union Square South, the mixed-use tower that helped revitalize its downtown neighborhood, and Time Warner Center, which played a similar role at Columbus Circle. On the purely commercial side, Related has also developed the Gateway Center, a three-month-old mall by Yankee Stadium that's brought big-box retailing to a low-income area. Blau talked to The Real Deal about the economy, how distressed assets may provide opportunities and the importance of affordable housing. More Tags: Hudson Yards Time Warner Center gateway center jeff blau one union square south related companies yankee stadium

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Dia finds new home in its old one

November 06, 2009 01:30PM

The Dia Art Foundation will return to 545 West 22nd Street, building a new space on the footprint of the Chelsea exhibition site it current owns and rents out to the PaceWildenstein gallery. The gallery's lease is up in 2011. Dia has been on the hunt for a new home in the city since 2004. After outgrowing its two Chelsea locations, Dia initially planned on opening a museum at the entrance to the High Line. The Whitney Museum has since commandeered that site after the Dia lost two directors in a row in addition to its largest benefactor, Leonard Riggio, former chairman of the board. Dia does not plan to hire a star architect -- instead, said current director Philippe Vergne, they are looking for a "utilitarian envelope for art" with "no bling." He said the museum hopes to break ground in 2012. [NYT] Tags: 545 west 22nd street High Line dia art foundation leonard riggio pacewildenstein philippe vergne whitney museum

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Mann sued over Apthorp brokerage fees

November 06, 2009 01:00PM By David Jones

Developer Maurice Mann is facing a lawsuit for allegedly failing to pay $400,000 in commissions and fees to Blue Rock Properties, a Manhattan-based brokerage that in 2007, helped arrange financing for the acquisition of the Apthorp on the Upper West Side. Mann, the general partner of Mann Realty Associates, led the investment group that acquired the landmark rental building, at 390 West End Avenue, for a record $426 million. Mann has since lost the role of managing partner at the Apthorp to Africa Israel, the Israeli real estate and diamond conglomerate led by billionaire Lev Leviev. Leviev is currently awaiting word from the New York State Attorney General about whether he will declare the condominium plan effective, amid serious concerns about whether the developer was able to find enough buyers to make the building financially viable. More Tags: africa israel apollo real estate advisors apthorp arnon harazi blue rock properties lawrence fabian lev leviev mann realty associates maurice mann prudential douglas elliman steve novick stuart saft vector group

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