Direct impact of Dubai crisis on New York City is limited, experts say

As the international credit crisis spread into the kingdom of the United Arab Emirates, real estate experts said that while any direct impact on New York would be limited, it may signal the inability of sovereign wealth funds to bail out distressed assets here. The financial world briefly shuddered last week after Dubai World, the main investment arm of the powerful Gulf region city-state, asked lenders for a six-month suspension of nearly $60 billion in debt payments. Analysts say the suspension may force Dubai to sell many of its trophy assets around the world, including several high-profile buildings in New York, like the Jumeriah Essex House, the former Knickerbocker Hotel and the flagship W New York-Union Square hotel, whose mezzanine debt is scheduled for a Dec. 8 foreclosure auction. “Dubai got drunk with debt just like we did here in New York,” said Dan Fasulo, managing director of research at Manhattan-based investment research firm Real Capital Analytics. “A lot of people think Dubai [was financing its deals with] oil. In actuality, it was very much of a debt-fueled building boom.” [more]

In the midst of the recession, a streetscape dotted with empty storefronts has become a common sight, but in New York, some retail landlords are filling their vacant storefronts with artists’ galleries. These “pop-up galleries” are a win-win, and they are cropping up all over Brooklyn, MSNBC reported. Artists like Rinaldo, who is using a former Hallmark store space at 395 Flatbush Avenue to display his colorful portraits, get a unique opportunity to showcase their work in high-traffic retail areas. At the same time, landlords might earn some income, and a storefront that would otherwise be an eyesore becomes a cool new spot for community members.
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