As 2011 comes to a close, The Real Deal takes a look back at its most popular Web stories published this year. The list is based on page views accrued between Jan. 1 and Dec. 28, and demonstrates the breadth of real estate news that made waves this year. From casinos and 100-percent commission firms, to allegations against real estate heavyweights and extremely tight rental conditions, readers’ biggest interests this year were as unpredictable as the market itself. See the list below, and if you haven’t already, don’t forget to check out the most popular stories published in The Real Deal magazine this year here.
1. New Aqueduct casino in Queens is set to open late this summer
Rendering of the Aqueduct casinoThe prospect of a casino in New York City engendered much excitement in the real estate community with the hope that it would open the floodgates for an entirely new category of development. So it’s only a minor surprise that the announcement of a timeframe for the opening of the Aqueduct casino was The Real Deal’s most popular Web story. Along with releasing a new rendering of the casino, called Resorts World New York, owner Genting New York said it would open in late summer. Though the opening didn’t actually come until the end of October, the early returns indicate the casino is a resounding success.
2. LI-based title company Titelserv closes doors
Titleserv’s Woodbury headquartersIn April, The Real Deal learned that Woodbury, L.I.-based Titleserv had closed its doors after 25 years in business. While it wasn’t the first title company to be a casualty of the recession, it was certainly one of the largest. The firm specialized in providing service for residential deals, and its closure immediately buoyed business for rival firms, according to Manhattan-based TitleVest Agency.
3. Nest Seekers alumni launch firm “catering to the broker side”
From left: David Tobon, Alon Chadad, Moshe Balalo, Andy Kim and Michael Arcos of the firm BluThe Real Deal broke the news in January that five former Nest Seekers agents
were forming a new, residential brokerage following a 100 percent commission model, called Blu Realty Group. Throughout the year, the firm has been involved in several high-profile marketing efforts and sales, grew to more than 50 agents and eventually partnered with Tavalon Tea to open a second office in Trump Place on Riverside Boulevard with a coffee bar.
4. Traditional brokerage opens 100 percent commission firm
Titan founder Amnon HechtSpeaking of 100 percent commission firms, The Real Deal‘s coverage of another firm utilizing the concept, Titan Real Estate, was the fourth most-read Web story of the year. The story broke down the specifics of Titan’s model, but also surveyed established 100-percent commission firms for their take on another brokerage joining the fray. For example, Rutenberg Realty co-founder Kathy Braddock noted that it would be difficult for a new brokerage to launch without an unconventional twist, City Connections founder David Schlamm worried that the firms would eschew selective hiring to turn a profit.
5. Futterman charged with felony drunk driving in Hamptons
Robert FuttermanThe founder, chairman and CEO of commercial brokerage Robert K. Futterman & Associates was pulled over while driving in the Hamptons this summer and charged with a felony for driving while intoxicated with children in the car. Robert Futterman was not the first industry bigwig to face the charge on the East End in recent years, but as head of RKF, he was clearly the highest profile. The New York State Court website shows the next court date is Jan. 27 in Suffolk County Court.
6. Stuckey resigns as NYU Schack Institute head
James StuckeyThe dean of NYU’s Schack Institute of Real Estate, James Stuckey, resigned suddenly in October, The Real Deal reported, under a cloud of suspicion. Like his departure from Forest City Ratner four years earlier, there was little detail describing what led to Stuckey’s exit. However, later that month reports emerged that his exit was connected to accusations of sexual harassment.
7. Finance brokerage BGC to acquire Newmark
From left: BGC Partners CEO Howard Lutnick and Newmark CEO Barry GosinThe biggest acquisition news of 2011 came in April when BGC announced its purchase of commercial services firm Newmark, including its 425 brokers and interest in 25- plus offices around the country. The Real Deal later learned that BGC paid $63 million to acquire the firm. In November, reports emerged that as a result of the transaction, brokers at Newmark Knight Frank, as the company is known in the United States, would be forced to contribute up to 10 percent of their commissions toward stock in BGC partners. The new structure meant that brokers were being told what to do with their money, but also ensured that the interests of the firm and the brokers were completely unified.
8. Manhattan rents rise, with room to go higher
Midway through the year — just before the strength of the rental market became,
arguably, the most frequently cited feature of the U.S. real estate market — The Real
Deal reviewed second-quarter rental market reports, which found rents increased
year-over-year by about 10 percent, and wondered whether rents could possibly rise
even higher. While Citi Habitats President Gary Malin doubted that landlords could
continue to raise prices, Miller Samuel President Jonathan Miller said there was a lot of
room for increase. With the benefit of hindsight we now know that rents remained
essentially unchanged as the year wore on.
9. Dispute flares in $112M sale of interest in 14 Manhattan Ring family properties
Frank RingJoe Tabak agreed to pay more than $112 million for
an interest in 14 Midtown South buildings owned by Michael Ring, but Ring backed out of the deal, according to a lawsuit filed by Tabak in May. The properties were largely vacant — a rarity for the strong occupancy rates of the neighborhood — and were in need of repair, providing significant opportunity for profits. The Real Deal parsed through the legal documents that described the dispute and talked to lawyers from each side. Later, in September, The Real Deal reported that a state appeals court backed Tabak in his bid for the portfolio.
From left: Eastdil Secured’s Doug Harmon and Hotel ChelseaIn August, rumors that Joseph Chetrit was the buyer of the iconic Hotel Chelsea were
confirmed by The Real Deal, which reported the deal closed for more than $80 million. The news came just one day after hotel guests were kicked out of the building, and was a precursor to four months worth of drama at 222 West 23rd Street. A messy renovation process prompted tenants to hire a lawyer and call in an environmental assessment team to ensure conditions were safe during construction, while the Chetrits reportedly moved to evict longtime tenants of the property.
With additional reporting by Adam Pincus
