From the February issue: As New York City construction firms get slammed by the downturn, they are turning to more modest projects, in some cases taking on multimillion-dollar renovations rather than the multibillion-dollar skyscrapers. While it’s clear that the collapse of the New York development market has taken a toll on builders and brokers, there may be nobody in the industry hit as hard as construction firms. As banks have largely cut off financing for new projects and cranes have been mothballed, thousands of contractors have lost their jobs. “It’s having a devastating impact on the construction market,” said Lou Coletti, president of the Building Trades Employers’ Association, which represents 1,700 construction management and contractor firms. “There are very few, if any, new projects moving forward.” To combat that lack of work, major New York construction firms are bidding for much smaller projects and diversifying into public-sector work, while other firms have been forced into bankruptcy protection.[more] [more]

Real estate sources say a deal to
sell Worldwide Plaza — one of the seven office towers Harry Macklowe
was forced to return to his lenders — has fallen apart. This is the
second time a deal to sell the building has fallen through, and both
instances involved George Comfort & Sons as the buyer. In the
latest transaction to break down, George Comfort and real estate
investment firm RCG Longview struck a deal to purchase the 47-story
tower for an undisclosed sum earlier this month. Deutsche Bank, which
controls the building, would have retained a stake and provided
financing for the deal. Sources say Deutsche Bank killed the
transaction. According to the Wall Street Journal, the building is on the market again. [Crain's] and [WSJ]