Fosun in talks for $1.1B loan, WeWork rival Industrious raises $80M: Daily digest

A daily round up of New York real estate news, deals and more for August 22, 2019

TRD New York /
Aug.August 22, 2019 04:00 PM

Every day, The Real Deal rounds up New York’s biggest real estate news, from breaking news and scoops to announcements and deals. We update this page at 9 a.m., 12:30 p.m., and 4 p.m. ET. Please send any tips or deals to [email protected]

This page was last updated at 4:00 p.m.

 

The Obamas may soon be neighbors with the Kennedy family — in Martha’s Vineyard. Barack and Michelle Obama have reportedly made an offer on a 6,900-square-foot, seven-bedroom pad they’ve been renting for the summer. While the price of the offer wasn’t immediately clear, the 29-acre beachfront estate is asking $14.85 million. [TMZ]

 

MGM Resorts International is looking to attract millennials with its latest buy. In an effort to attract a younger crowd, MGM Resorts International has acquired a 50 percent stake in the Sydell Group, which operates a collection of hotels in New York, Los Angeles, London and other cities. [WSJ]

 

Man crushed to death in elevator in building previously fined for elevator safety issues. A New York man has died after he was crushed in an elevator in a Manhattan apartment building that had previously been penalized by authorities for dangerous conditions. [NYT]

 

Stephen Ross steps down from NFL committee after fundraiser backlash. Following criticism over his decision to host a fundraiser for President Trump, Related Companies chief Stephen Ross has stepped down from his position on the NFL’s social justice committee. Earlier this month, TRD mapped all of Ross’ other business ties. [CNN]

 

WeWork rival Industrious had raised $80 million. The flexible-office-space firm’s Series D funding round brings its total funding to more than $220 million, and puts pressure on rival WeWork ahead of its initial public offering. Industrious adopted a new business model last year, which has seen it move away from traditional leases and into partnerships with landlords and building owners. CEO Jamie Hodari said relying on management contracts was “more sustainable, thoughtful and less risky,” and said he intended to phase out existing leases. The position is at odds with rival WeWork, which has $47 billion in lease commitments over the next 15 years. [Bloomberg]

 
Donald Trump (Credit: Getty Images)

Donald Trump (Credit: Getty Images)

In a quick 180, President Trump changed course on tax cuts. Trump says he will not pursue payroll and capital gains tax cuts to boost the U.S. economy, despite stating days ago that the White House was considering such measures. [WSJ]

 
Andrew Yang (Credit: Getty Images)

Andrew Yang (Credit: Getty Images)

Now, a presidential hopeful has taken aim at WeWork’s valuation. Democratic candidate Andrew Yang — whose signature policy, the “freedom dividend” would award Americans over 18 a basic income of $1,000 each month — has called out WeWork’s $47 billion valuation on Twitter, calling the figure “utterly ridiculous.” Earlier this week, developer Douglas Durst in a letter to Crain’s questioned whether the co-working giant’s model could withstand a downturn. [Business Insider]

 

Fosun International is nearing a deal for a $1.1 billion loan. The Shanghai-based real estate investment firm is reportedly in talks with lenders — including Deutsche Bank — to take the massive mortgage against an office tower at 28 Liberty Street. [Crain’s]

 

A former Trump construction worker says he was “treated like a slave.” An undocumented Ecuadorian immigrant who formerly worked for Trump’s construction company has filed a federal claim against the company, alleging it witheld thousands of dollars in overtime pay and benefits — and made him feel “like a slave.” [NYDN]

 
Di Fara Pizza at 1424 Avenue J in Brooklyn (Credit: Wikipedia)

Di Fara Pizza at 1424 Avenue J in Brooklyn (Credit: Wikipedia)

Presidential hopeful and NYC Mayor Bill de Blasio vowed to help seized Brooklyn pizzeria. The mayor tweeted a message of support to Brooklyn pizzeria, Di Fara, which was seized by the state this week for failing to pay $167,506.75 in taxes. “Di Fara is THE best pizza place in New York City,” he tweeted Wednesday. “I’m ready to do anything I can to get them reopened—as are thousands of New York City pizza-lovers.” Business owners have accused him of playing favorites. [WSJ]

 

A hotel developer was given the green light for a project after hosting de Blasio fundraiser. A proposal to construct a hotel at 347 Lexington Ave was reportedly approved by the city just a week after developer Michael Cheng, of Epos Development, hosted a fundraiser for one of Mayor Bill de Blasio’s political action committees. [The City]

 

Toll Brothers covets wealthy millennials amid down third-quarter results. The luxury homebuilder, which sustained a 25 percent drop in net income from the previous year, according to its latest earnings, is developing lower-priced properties in an effort to reach higher-earning millennials. [TRD]

 

FROM THE CITY’S RECORDS:

 

Commercial sales:

Triarch Real Estate Group acquired a building at 2785 Broadway on the Upper West Side for $22.6 million. [ACRIS]

 

Financing:
JPMorgan Chase provided a $125 million refinancing loan for 151 East 31st Street, a luxury resi building in Kips Bay. [ACRIS]

 

New permit filings:
Abraham Posner filed plans for a 21,757 square foot mixed-use building at 191 Veronica Place in Flatbush. [DOB]

 

Compiled by Mary Diduch


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