The Real Deal New York

National Cheat Sheet: Compass to license its tech, WeWork goes vegetarian … & more

By Maya Rajamani | July 20, 2018 08:45AM

Clockwise from top left: MGM Resorts sues victims of Las Vegas mass shooting shooting, non-core market real estate firms can now license Compass’ technology, Miami voters will determine the fate of David Beckham’s stadium proposal, and Gap hits Westfield with lawsuit.

Non-core market real estate firms can now license Compass’ technology
Compass has started to offer its technology to other real estate firms, starting with Leading Edge Real Estate Group, which has two offices in Massachusetts. Firms that secure a deal with Compass will be able to use the brokerage’s search and marketing tools, among other services. But right now, Compass is only licensing its tech to firms in non-core markets. “This new venture … provides an additional revenue source beyond our core business, which is on track to double in size this year,” Compass chairman and co-founder Ori Allon told Inman. The move comes as Compass continues to expand its business across the country — most recently buying San Francisco-based firm Paragon. [TRD]

WeWork is going vegetarian in an effort to reduce its ‘environmental impact’
Coworking behemoth WeWork is taking red meat, poultry and pork dishes and products off of its internal menu and out of its food kiosks as it moves to eliminate meat from the company’s ecological footprint, Bloomberg reported. Employees will also no longer be able to expense any meat-based meals. “New research indicates that avoiding meat is one of the biggest things an individual can do to reduce their personal environmental impact, even more than switching to a hybrid car,” WeWork co-founder Miguel McKelvey wrote in an email to staff members. WeWork is also reducing its plastic use and trying to prevent leftovers from getting thrown out after events. [TRD]

Your open-plan office could be making you more anti-social
Employees who work in open-plan offices may be less likely to socialize with their coworkers, a new Harvard University study shows. The study took a look at two Fortune 500 companies and found that emailing and chatting online replaced actual in-person interactions in wall-less offices, the New York Post reported. One of the researchers who conducted the study maintained that workers could feel self-conscious taking a break from work to talk to other people. “I’ve spent enough time on the (subway) at rush hour to see that being packed together doesn’t necessarily lead to interaction,” he told the outlet. [TRD]

Gap hits Westfield with suit claiming it was overcharged by the landlord
Westfield has been overcharging Gap at more than two dozen shopping centers across the country, the retailer claims in a lawsuit filed against the landlord. The suit claims that Westfield’s fraudulent accounting left Gap with a higher expense bill than it should have had to foot and “prevented plaintiffs from discovering the fact and extent of Westfield’s overcharges and other misconduct,” the Wall Street Journal reported. Westfield hasn’t responded to Gap’s claims yet, according to the outlet. [TRD]

MGM Resorts is suing the victims of last year’s mass shooting in Vegas
The owner of the Mandalay Bay Resort and Casino in Las Vegas has filed a lawsuit against the victims of the mass shooting in which 58 people were killed and more than 500 wounded last year. MGM Resorts International, which owns the hotel the shooter fired from and the music festival venue he targeted, hopes to limit its liability, Bloomberg reported. More than 2,500 people have either already sued or have said they may sue MGM over the mass shooting. The hotel maintains it’s protected by the federal Support Anti-Terrorism by Fostering Effective Technologies Act because it staffed the festival with security personnel. A lawyer for the victims, however, said the shooter exhibited “so many signs of unusual behavior” that the hotel should have noticed. [TRD]

MAJOR MARKET HIGHLIGHTS

Tenant Protection Unit investigating Kushner Companies amid harassment allegations
Rent-stabilized tenants at a Kushner Companies-owned condo conversion in Williamsburg, Brooklyn hit the landlord with a tenant harassment lawsuit, and the landlord is now being investigated by New York’s Tenant Protection Unit, the New York Daily News reported. Nineteen tenants claim they’ve dealt with “a constant cloud of toxic smoke and dust, illegal noise… [and] unsafe conditions” as Kushner Companies converts some of the property’s apartments into condos. A spokesperson for Kushner Companies, however, denied the claims in the suit and maintained the company never pressured tenants to vacate their apartments. [TRD]

TH Real Estate shells out $72M for distribution center outside Chicago
The Whirlpool distribution center not far outside of Chicago has a new owner. TH Real Estate — a unit of global investment manager Nuveen — shelled out $72 million for the center, marking the priciest non-refrigerated industrial property deal in the area since the end of 2015, Crain’s reported. The 1 million-square-foot Whirpool distribution center sale is one of several recent industrial property sales in the area. A venture led by JP Morgan Chase sold the center to TH Real Estate, according to the outlet. [TRD]

New ‘Green Street’ building in LA will cater to pot-related businesses
A seven-story office building in Downtown Los Angeles will soon be a haven for cannabis-related companies. Bow West Capital, a Santa Monica-based developer, said it plans to repurpose the building and rebrand it as “Green Street.” The new building will house co-working space, private office space, an art gallery, retail space, a rooftop deck and a restaurant, all of which will be used by pot-centric businesses. The developer bought the building for $14 million last year. [TRD]

Miami voters will determine the fate of David Beckham’s stadium proposal
Soccer star David Beckham’s plan to redevelop a Miami golf course and park into a mixed-use project centered by a Major League Soccer stadium will be put to a vote. In their own vote on Wednesday, Miami commissioners decided to put the project on a November ballot. The proposal spearheaded by Beckham and a group of investors has been met with some opposition, including a lawsuit filed by a Miami-based attorney that claims the city’s commissioners and mayor violated Miami’s charter when they negotiated a no-bid deal for the land. [TRD]

Atlantic City is on the cusp of a resurgence, sources say
Atlantic City has struggled in recent years, but the legalization of sports betting, a bevy of new casinos and hip new restaurants could give the town a much-needed boost, experts and developers say. E-sports and multiplayer video game events could also contribute to its resurgence. “New business is on a parallel track with gaming,” Meet AC president and CEO James Wood told TRD. “We want to maintain a vibrant economy, just as Las Vegas has a strong non-gaming component.” The city’s mayor has also pledged to “continue to tackle the blight.” [TRD]