Stocks lower after Fed rate cut, luxury retailers flock to Meatpacking: Daily digest

A daily round up of real estate news, deals and more for July 31, 2019
July 31, 2019 04:00PM

Every day, The Real Deal rounds up New York’s biggest real estate news. We update this page at 9 a.m., 12 p.m., and 4 p.m. ET. Please send any tips or deals to [email protected]

This page was last updated at 4 p.m.

The Federal Reserve cut interest rates for the first time since 2008. But chairman Jerome Powell’s comments suggested that this wasn’t the start of a rate-cutting cycle, sending the main stock indexes lower. However, real-estate stocks didn’t do as badly; Brookfield Asset Management was down 0.3 percent and Vornado Realty Trust was actually up, by 0.9 percent. For developers, lower rates means that deals should be more profitable due to a drop in borrowing costs. Commercial developers will have an easier time sourcing financing, but the benefits will be most clearly felt by single-family homeowners. [TRD]

 

Vornado has paid off the debt at 220 Central Park South. Steve Roth’s firm announced the milestone after passing $1B in sales, which covered the $950 million loan it received from Bank of China to construct the $1.4 billion tower. [TRD

 

Long live the legacy of Faith Hope Consolo. Brokers at Douglas Elliman who previously worked for the late leasing maven her have opted to keep her name as the team moniker. [TRD

 

Elie Hirschfeld sold his apartment on the Upper East Side at a discount. His firm, Hirschfeld Properties sold the Lenox Hill triplex penthouse, at 11 East 68th Street, for $34 million, after paying $38M for the unit three years ago. [TRD]

 

The owners of the Chelsea Hotel wanted to renovate it. But tenants were opposed. So the owners raised almost $60,000 for Mayor Bill de Blasio’s presidential campaign and a linked political action committee. [TRD]

 

Jean-Georges Vongerichten

Jean-Georges Vongerichten

Residents at 220 Central Park South can now dine with Ken Griffin and Sting. Michelin chef Jean-Georges Vongerichten is planning to open a residents-only restaurant at Vornado Realty Trust’s luxury condo tower. The 54-seat eatery will open on the second floor of the building at 59th Street. [NYP]

 

Avison Young is moving. The commercial real estate brokerage has signed a lease with Scott Rechler’s RXR Realty to move its headquarters to a 45,000 square feet at 530 Fifth Avenue. [NYP]

 

A tower crane at a New York City Housing Authority building in the East Village collapsed. There were no injuries as a result of the Tuesday accident, but the Jacob Riis House complex was evacuated and nearby roads were temporarily closed. [WSJ]

 

A worker was killed on a Far Rockaway construction site. A wall fell on Jose Martins, 67, who was reportedly working on the third floor of an under-construction home at Beach 67 Street. He was pronounced dead at the hospital. [Queens Eagle]

 

A rendering of Gansevoort Row

A rendering of Gansevoort Row

Retailers are filling spaces left, right and center. At Gansevoort Row, the 150,000-square-foot Meatpacking District block being redeveloped by Aurora Capital and William E. Gottlieb Real Estate, three retailers — including fashion brand Brunello Cucinelli, jacket seller Belstaff and clothing store Frame — have agreed to move into spaces there. Over at SL Green Realty’s 2 Herald Square, make-up store Ulta Beauty has signed a 12,000-square-foot lease. [NYP 1, 2]

 

A fine-art logistics company is taking a sprawling space in Long Island City. Maquette will take a 46,860-square-foot lease at North River Company’s 48-49 35th Street. [NYP]

 

Invesco made a tidy profit on the sale of 130 Prince Street. Madison Capital and a team of investors paid $206 million for the 88,000-square-foot Soho building. Invesco acquired the building in 2012 for $140 million. [TRD]

 

Mayor Bill de Blasio is almost halfway to his 2026 housing goal. New York City said Tuesday that it has financed 25,000 affordable housing units in 2019 — bringing the administration’s total affordable unit count to 135,000 of its goal of 300,000. [TRD]

 

Vornado is reviewing its retail holdings after a less-than-stellar second quarter. The landlord said in an earnings call that the exit of clothing store Topshop from the United States, which was a tenant in multiple Vornado buildings, had contributed to a decline in earnings. [TRD]

 

L+M Development Partners and Invesco have partnered to purchase 2,800 rental units. The buyers acquired the units for $1.2 billion, from a portion of the Putnam portfolio owned by Brookfield Asset Management and Urban American. [TRD]

 

Glenwood Management is being sued over alleged sexual harassment. Karla Guzman Pinales claimed in a lawsuit she was denied a full-time position and then fired from the company because she rejected her boss’ sexual advances. [TRD]

 

Compiled by David Jeans

 

FROM THE CITY’S RECORDS:

Residential sales:

The great-great-grandson of Teddy Roosevelt bought a home at 28 Bergen Street in Boerum Hill for $4.95 million. [ACRIS]

https://a836-acris.nyc.gov/DS/DocumentSearch/DocumentDetail?doc_id=2019071000198003

An anonymous buyer acquired a sponsored unit at 220 Central Park South in Midtown for $26.75 million. [ACRIS]

 

Compiled by Mary Diduch