The Real Deal New York

National Cheat Sheet: Zillow plans to file for a $650M public offering … & more

By Maya Rajamani | June 29, 2018 07:30AM

Clockwise from top left: Kushner Companies ends collaboration with Trump Organization (credit: Getty Images, Extell, and Kushner), Zillow plans to file for public offering (credit: Pixabay), record number of women elected to REIT boards (credit: Pixabay), and RXR Realty fund aims to raise $50 million (pictured: RXR CEO Scott Rechler credit: Getty Images).

Listings giant Zillow plans to file for a $650M public offering
Real estate listings company Zillow plans to file for a public offering, according to Wednesday’s regulatory filing. Zillow hopes to raise a total of $650 million — half in stock and half in convertible bonds. The proceeds could rise to $750 million if underwriters exercise an option to purchase additional shares. The funds would be used for general expenses, as well as “acquisitions of, or investments in, other businesses, products or technologies,” according to a statement released by the company. [TRD]

Decision requiring online markets to collect sales tax may not affect traditional retailers
Last week’s Supreme Court decision requiring online retailers to collect state sales tax may not help brick-and-mortar retail stores as much as retail trade groups believe it will. Some smaller shops could actually find themselves having to shell out money for expensive software. “Some of the bigger retailers already have a presence in the state and already pay online tax,” a Miami-based commercial real estate lawyer told The Real Deal. In addition, the new tax won’t eliminate the convenience that comes with online shopping. [TRD]

RXR Realty fund aims to raise $50 million for real estate tech startups
A new RXR Realty fund aims to raise $50 million for real estate tech startups by the end of 2018. More and more real estate companies have started to put money into tech startups: RXR’s fund comes not long after in-home assistant and property management company Hello Alfred raised $40 million in its own funding round. “We’ve seen how technology has become more and more ubiquitous in our business and want both the opportunity to invest and to be at the forefront of leveraging these technologies that can help us run out business more effectively,” RXR Realty CEO Scott Rechler told Bloomberg. [TRD] 

Kushner Companies ends collaboration with Trump Organization amid ethics concerns
Two Kushner Companies-owned hotels in New Jersey have ended their management agreements with the Trump Organization, the New York Times first reported. The Trump Organization was going to manage a hotel that the Kushners are constructing at the Jersey Shore, as well as a hotel in Livingston, New Jersey, but the two sides backed off the agreement amid concerns from ethics watchdogs. [TRD]

Good news for tenants as apartment rental prices across the nation slow down
After climbing for years, apartment rental prices across the country are finally slowing down, according to new data culled by RealPage Inc. In the second quarter of this year, multifamily rents saw the smallest increase they’ve seen year-over-year since 2010. Prices may be waning due to an increased supply across markets, as well as concessions and financial incentives offered by landlords, experts told the Wall Street Journal. Chicago, Portland, Austin and Seattle in particular haven’t seen much growth at all when it comes to average annual rents. [TRD]

Record number of women elected to REIT boards, but diversity is still wanting
A record number of women have been elected to the boards of U.S. real estate investment trusts this year, the Wall Street Journal first reported. In 2017, 41 percent of new REIT board directors were women. This year so far, 49 of 94 directors, or 52 percent, were. But those recent appointments haven’t changed the fact that only 17.5 percent of all REIT board directors are women, nor the fact that 32 of 192 REITS don’t include any women on their boards. The industry “is not the most enlightened group when it comes to diversity around the table,” Ferguson Partners chief executive Bill Ferguson told the paper. [TRD]

MAJOR MARKET HIGHLIGHTS

New York heavyweight Paul Massey is launching a new brokerage and Bob Knakal is no longer at Cushman
In 2014, Paul Massey and then-business partner Bob Knakal sold Massey Knakal Realty Services to Cushman & Wakefield. Three-and-a-half years later, Cushman & Wakefield has terminated Knakal, and Massey — who left his Cushman & Wakefield job in April — plans to start his own brokerage, which is expected to launch this weekend. Massey’s new brokerage, B6 Real Estate Advisors, will be modeled on the pair’s old firm. Knakal, meanwhile, hasn’t said what he plans to do now that he’s no longer with Cushman. [TRD]

David Beckham and partner moving forward with plans for Miami soccer complex
David Beckham and partner Jorge Mas will soon be unveiling their plans for a major mixed-use soccer complex in Miami. Mas is slated to present the proposal at a Miami City Commission meeting in July, the Miami Herald reported. One rumored location for the stadium is a city-owned golf course near the Miami International Airport. If Beckham and Mas are eyeing the site and want to get approval this year, they’ll need to secure votes from Miami residents in November. [TRD]

The LA home where Linda Ronstadt, SaZu Pitts once lived hits the market for $16.25M
A Brentwood mansion that was once home to pop singer and author Linda Ronstadt — and, before that, the late silent film star ZaSu Pitts — has listed for $16.25 million, according to the Los Angeles Times. The seven-bedroom, seven-bathroom home was designed by architect-to-the-stars Paul Williams and includes a secret staircase, a swimming pool and a gym. Ronstadt sold the home in 2005 — after buying it for $3.5 million in the 1980s — and its most recent owners snapped it up in 2006. [TRD]

Chicago mayor proposes creation of housing department to carry out new initiatives
Chicago Mayor Rahm Emanuel plans to create a Chicago Department of Housing to carry out a new five-year housing plan and oversee the city’s affordable housing initiatives. Tuesday’s proposal comes a week after Emanuel created an investment fund to combat gentrification in areas of Chicago where housing is needed. “Each affordable housing project requires a unique stack of incentives, including land, financing, credits and affordability requirements to get across the finish line,” a press release from Emanuel’s office said “The housing department will be a partner to the development and advocacy community to bring new solutions to the city’s new challenges.” [TRD]

Report finds that Houston offers apartment renters too many amenities
Apartments in Houston may be offering renters too many amenities — or the wrong ones, a new report has found. Some renters end up paying for amenities like a pool — or the ability to have a cat or dog in the apartment — that they weren’t interested in in the first place, according to a report released by online rental marketplace Apartment List. In-unit laundry is the only amenity that still has a higher demand than supply in Houston, according to the report. [Bisnow]