The mayor wants to limit hotel development, artists are boycotting Hudson Yards’ Shed: Daily digest

A daily roundup of New York real estate news, deals and more for August 26, 2019

TRD New York /
August 26, 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.

 
Global Holding's chairman Eyal Ofer (Credit: Wikipedia)

Global Holding’s chairman Eyal Ofer (Credit: Wikipedia)

Global Holdings has landed a $400 million refinancing package from HSBC. Eyal Ofer’s company received the money for its building at 120 Park Avenue in Midtown. The deal extends $374.6 million in debt from HSBC’s 2014 loan on the property, which Global Holdings bought from Altria 12 years ago for $525.8 million. [CO]

 

An artistic duo removed their art from the Shed in Hudson Yards to protest Stephen Ross. Zachary Drucker + A.L. Steiner pulled their work from the “Open Call, Group 2” exhibition at the Shed to protest the recent fundraiser that Ross held for President Donald Trump. Steiner told the Observer it had already been difficult for her to take part in the exhibit because of the massive tax breaks Hudson Yards received, and Ross’ Trump fundraiser was the last straw. [Observer]

 

Bill de Blasio is pushing for a plan that would limit hotel development. The mayor has asked the Department of City Planning to develop a proposal that would outline the implementation of a special permit for hotel development throughout the city. The move could subject new hotel projects to the city’s land use review process, making the hotel development process one of the strictest in the city. [Crain’s]

 

Johnston & Murphy is opening a store in Staten Island’s Empire Outlets. The shoe store has signed a 10-year lease for 2,564 square feet on the third floor of the mall. The factory store plans to open by early next year and will join tenants including Nike, H&M and Banana Republic. [CO]

 
IWG CEO Mark Dixon

IWG CEO Mark Dixon

IWG wants to launch a new company that will challenge WeWork. The shared-office-space provider’s chief executive Mark Dixon is planning to spin off part of the company into a separate business that would be publicly traded in the U.S., and compete with WeWork. The plan is still in its early stages, but Dixon believes such a company could be worth about $3.7 billion, and the firm will only hire bankers if they do not have a role in the We Company’s Initial Public Offering.  [Sky News]

 
Related Chairman Stephen Ross (Credit: Getty Images)

Related Chairman Stephen Ross (Credit: Getty Images)

Stephen Ross thinks a housing slowdown is coming. Ross made his comments during an interview with Yahoo Finance, saying that the real estate industry is “certainly not starting something fresh. You know, we’re at a point now where I think there will be a slowdown because it has to happen.” [Yahoo Finance]

 

Trump’s name might be downplayed at the Trump International Hotel and Tower. The Trump Organization is considering giving top billing at the property to its Manhattan address of One Central Park West, while the Trumps would keep managing the property and keep the family name on signs for the property. The proposal is meant to head off demands from some owners to get rid of the Trump branding in its entirety. [NYT]

 

Another factor in gentrification? Trendy grocery stores, a new report says. There is a fairly strong correlation between home prices and the location of grocery stores like Trader Joe’s and Whole Foods, Yahoo News reported, citing a study from Zillow and ATTOM Data Solutions. People selling a home near a Trader Joe’s saw a 51 percent average return on investment, while those selling a home near a Whole Foods saw an increase of 41 percent. Houses near the two chains start to appreciate faster once the stores move in and do so twice as quickly as an average home in the United States. [Yahoo News]

 

The Port Authority had to leave its WTC headquarters after a power outage. The outage happened after a bus duct failed at 4 World Trade Center on Tuesday around 3:15 a.m., according to Crain’s. The issue left the building without air conditioning on an extremely hot summer day, so the Port Authority told its employees to work from home. The air conditioning system was working again on Friday, and staffers are expected to return to their offices on Monday. [Crain’s]

 

The Department of Investigation is looking into the fatal Manhattan elevator accident. The agency announced on Friday that it would open a probe into the death of 30-year-old Samuel Waisbren, who was fatally crushed by an elevator at 344 Third Avenue. The Real Deal found that an elevator test that took place three weeks before Waisbren’s death had deemed the car safe to operate. [NYP]

 

The city is expanding its investigation into a massive shelter operator. The investigation into Acacia Housing Network is expanding following the Department of Investigation’s realization that there may have been more undisclosed ties to an additional for-profit company. [WSJ]

 

There were 14 luxury contracts totaling roughly $127 million signed in Manhattan last week. The number of contracts and dollar volume were both down from the week before, when the market saw 19 contracts signed for about $162 million. The properties spent an average of 565 days on the market and had an average discount of 11 percent from the original to the final asking price. [Olshan]

 

Brooklyn’s luxury market saw seven contracts signed last week for a total of roughly $17.8 million. The market was down from the prior week, when 13 contracts were signed for about $34.8 million. The average contract price was about $2.5 million, and the properties spent an average of 243 days on the market. [Compass]

 

FROM THE CITY’S RECORDS:

 

Commercial sales:
Two entities tied to Abraham Sanieoff bought an apartment building at 162 West 13th Street from Harran Holding Corp. for about $22.5 million [ACRIS]


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