Extell’s Gary Barnett, Pamela Samuels, now of Trio Partners, and Carnegie57

Extell Development, one of the city’s biggest real estate firms, is scheduled for a court
hearing next Tuesday, amid allegations that the company’s president, Gary Barnett, fired one
of his top executives, Pamela Samuels, and later refused to pay her millions of dollars because he claimed none of the 17 projects in which she held equity were profitable. Samuels, in a suit filed late February in New York State Supreme Court, alleged that
Extell and Barnett committed fraud, unjust enrichment and breach of contract and she
also demanded they pay her remaining salary of $1.1 million. Lawyers for Extell filed
a motion Monday demanding the case go to arbitration and scheduling a May 10 court
hearing. [more]

From the April issue: In the midst of the real estate downturn, reams of new condo buyers — facing job losses or simply spooked at the sudden drop in the values of their apartments — refused to close on their units. Equally spooked developers responded by sticking to their guns, refusing to return deposits that often reached six or seven figures. For a time, the resulting flurry of lawsuits and complaints to the Attorney General effectively crippled the new development market. While some developers are still taking a firm stance on deposits, others are starting to negotiate with buyers who want out of their contracts. Given the high cost of litigation and the long wait for resolution by the AG, many prefer to cut a deal with unhappy buyers and move on to the next sale. [more]

From the April issue: Is the Manhattan real estate market finally headed for recovery? Most experts agree that with tight lending and a large “shadow inventory” of unsold new condos, a full market recovery is a long way off. In fact, if interest rates begin to rise, prices may fall even more, though any further decreases are expected to be less severe than those that shook the post-Lehman Brothers market.

Still, it’s obvious to brokers, buyers and sellers that there’s been a vast improvement in the market even in the last few weeks.

This month, The Real Deal looked at the key factors that are helping the market to start the difficult process of a rebound. [more]

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]