The Real Deal New York

National Cheat Sheet: Treasury issues new LLC disclosure law … & more

By Maya Rajamani | May 18, 2018 02:25PM

Clockwise from top left: GreenOak Real Estate founder Sonny Kalsi announced the firm’s new $1.55 billion fund, New York City is still the most expensive place to build, Elon Musk hopes to combat the housing crisis, and tipsters say FinCEN has a new LLC rule.

Treasury issues new LLC disclosure law
The Financial Crimes Enforcement Network (FinCEN) has issued a new set of regulations that require title companies to disclose the identity of all-cash buyers who purchase luxury property under an LLC, sources told The Real Deal. FinCEN issued the new geographic targeting order [GTO] with instructions that forbade title companies from disclosing the details of that new rule. “The terms of the GTO Order are CONFIDENTIAL and therefore we are not at liberty to share the details of the GTO Order with you,” according to a memo circulated by Fidelity National Title. “Please note that we are only requesting information that is required and we may be liable for civil and criminal penalties if terms of the GTO Order are not complied with.” The memo said the new GTO takes effect May 21. [TRD]

GreenOak Real Estate’s third US fund raises $1.55 billion — its largest yet
New York City-based investment firm GreenOak Real Estate’s third U.S. fund has turned out to be its largest to date. The firm founded by former Morgan Stanley execs raised $1.55 billion, exceeding the $756 million its second fund raised. GreenOak plans to put the money toward markets like New York, Seattle, Washington and Miami. “Our goal is to buy unloved or under-managed real estate, then fix, stabilize and sell it, so we need to invest in markets where there’s liquidity,” its founder Sonny Kalsi said. [TRD]

Elon Musk hopes to produce low-cost bricks in an effort to solve the housing crisis
SpaceX CEO Elon Musk’s latest project is an earthbound one. Musk hopes to mitigate the housing crisis by creating low-cost bricks using leftover muck from his tunneling company, but some experts are unsure the plan will work, citing the pricey nature of brick construction and the fact that land and labor are usually more expensive than building materials. [TRD]

New York City and San Francisco top list of most expensive places to build
New York City is still the most expensive place in the world to build, according to a new Turner & Townsend market survey. Building costs an average of $362 per square foot — up 3.5 percent year-over-year. Second on the survey’s list was San Francisco, followed by Hong Kong in third place. Turner & Townsend’s managing director in the U.S. cited shortages in skilled labor as a driving factor for rising costs. [TRD]

MAJOR MARKET HIGHLIGHTS

Related Midwest unveils plans for two towers in Chicago
Related Midwest has unveiled plans to build a pair of white towers at the mouth of the Chicago River. The “mismatched” towers, at 1,100 feet and 850 feet respectively, will rise at the now-abandoned Chicago Spire site, and the taller tower will be the fifth-tallest building on the skyline. Foundation work could kick off in the summer of 2019, according to Related Midwest President Curt Bailey. [TRD]

Amazon HQ2 odds are in Northern Virginia’s favor, according to an online gambling site
Northern Virginia is the location that’s most likely to be selected as the home of Amazon HQ2, according to online gambling site Bovada’s latest odds. Austin, Boston, Toronto and Atlanta have the next best chances, according to Bisnow, which asserted that the release of the odds has led to an increase in the stock price of Virginia REIT JBG Smith, which owns a proposed site for the Amazon offices in Crystal City and Potomac Yard. [Bisnow]

Greenwich Village apartment with $28 rent will soon fetch around $5,000 per month
A former actress was paying $28.43 per month for her rent-controlled apartment up until this past March, when she died at age 85 after being struck by a car, the New York Post first reported. Patricia O’Grady had lived in the Greenwich Village unit since 1955. After the landlord renovates the apartment, it will most likely rent for around $5,000 a month. [TRD]

Playboy moving out of Beverly Hills amid business changes for the company
Playboy is ditching its Beverly Hills digs for a 40,000-square-foot office sublease in Westwood. The move comes as private equity firm Rizvi Traverse tries to shake up the brand’s business model — and some say that means the eventual discontinuation of Playboy’s print magazine. Playboy Mansion owner Daren Metropoulos has promised not to demolish the property. [TRD]

Condo buyers sue Ritz Carlton Residences, Miami Beach developer over delays
A trio of condo buyers have hit the developer of the Ritz-Carlton Residences, Miami Beach, with lawsuits over delayed construction. The plaintiffs claim 4701 North Meridian LLC promised the project would be wrapping up by June 2017. Their units, however, still haven’t been built, according to the lawsuit. They hope to get their deposits back and have the developer fork over attorney’s fees. [TRD]