Fashion designers cancel shows at the Shed because of Stephen Ross’ Trump ties, foreign buyers see big real estate losses: Daily digest

A daily round up of New York real estate news, deals and more for September 3, 2019

TRD New York /
Sep.September 03, 2019 03:47 PM
The Daily Digest - Tuesday

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 in real time, starting at 9 a.m. Please send any tips or deals to [email protected]

This page was last updated at 3:47 p.m.

 

Former Century 21 CEO Nick Bailey is returning to RE/MAX in a new role. Bailey, who stepped down from Century 21 in January, said he wanted to return to his home state of Colorado, where RE/MAX is headquartered. He will serve as chief customer officer, a newly created role, and report directly to CEO Adam Contos. [Inman]

 

Home price growth is speeding up again, thanks to older millennials. That’s according to data firm CoreLogic, which is predicting an even larger gain for next July. Falling mortgage rates and rising household incomes have also played a role in reversing the slowdown. [CNBC]

 
10 Madison Square West (Credit: StreetEasy, iStock, Pixabay)

10 Madison Square West (Credit: StreetEasy, iStock, Pixabay)

Witkoff Group et al. are getting sued over tropical fish excrement. The Kahn family, which rented an apartment at Witkoff’s 10 Madison Square West, is seeking $3 million in damages over numerous maintenance failures and defects, including an uncapped gas pipe for PetSmart that released noxious pet waste fumes into the apartment. [TRD]

 
M&T CEO René Jones and Brookfield managing partner Ben Brown with 5 Manhattan West (Credit: M&T, Brookfield, and Wikipedia)

M&T CEO René Jones and Brookfield managing partner Ben Brown with 5 Manhattan West (Credit: M&T, Brookfield, and Wikipedia)

Brookfield landed a $184 million refi for the future home of Whole Foods and Peloton. M&T Bank provided the financing for the Manhattan West retail condo. A 60,000-square foot Whole Foods is set to open there next year, as is a 26,000-square-foot Peloton. [TRD]

 

Yacht brokers are a bit like real estate brokers. But mostly not. Though the due diligence involved in a yacht deal is “pretty much the same” as buying a home, the industry is not as regulated — only California and Florida require brokers to hold licenses. A TRD analysis — with a map! — found that Washington state and the Northeast are also hotbeds of yacht activity. [TRD]

 

For fashion’s elite, Hudson Yards’ The Shed is “kind of over.” Michael Kors, Vera Wang and the Academy of Art University have all pulled out of events at the venue since developer Stephen Ross’ Trump ties became widely known. In addition to his company being the developer behind Hudson Yards, Ross is also on the board of the Shed. [NYP]

 

The city has proposed a $1 million settlement in its largest illegal Airbnb rental lawsuit. Abington Properties, the owner of three Manhattan buildings that became involved in Metropolitan Property Group’s alleged illegal rental scheme, has been offered a settlement for its part in the $21 million lawsuit, and in exchange for providing information against MPG. [CO]

 

Nationwide retail store closures could top 12,000 by year-end. Large retail chains including Payless, ShoeSource and Gap have already announced 7,888 closures this year, putting those on pace to blow away the record 8,139 closures seen in 2017. Some off-price retailers, such as T.J. Maxx, however, are expanding. [NREI]

 

Brooklyn’s luxury market saw 13 contracts signed last week for a total of roughly $41.4 million. The market was nearly double the prior week, when seven contracts were signed for about $17.8 million. The average contract price was about $3.2 million, and the properties spent an average of 120 days on the market. [Compass]

 

Opportunity Zones could boost investor returns by 70 percent. In an analysis of projects from the Far West Side of Manhattan to New Orleans and Houston, the New York Times found that investors taking advantage of the Opportunity Zone program have been focusing on the 7 percent of zones that already have above-average household incomes. And many of the projects that will benefit from the tax break were underway before the Legislation was enacted. [NYT]

 
Rochester, New York (Credit: Wikipedia)

Rochester, New York (Credit: Wikipedia)

New York State’s third-largest city is considering rent regulation. Tenant advocates in Rochester, where 64 percent of residents are renters and more than 60 percent of renters are rent-burdened, are pushing for the city to opt into New York City-style rent regulation as permitted by the state’s new rent laws. [WSJ]

 

Foreign investors have been the worst hit by NYC’s turning real estate market. From Shanghai Municipal Investment’s $65 million loss on 520 Fifth Avenue to DekaImmobilien’s expected $100 million loss at the Marriott East Side Hotel, big foreign buyers who invested late in the cycle are taking steep losses left and right. [Crain’s]

 

After the transfer-tax rush, NYC luxury home sales hit a six-year low in July. An analysis by the Wall Street Journal found just 162 sales of homes and apartments for $2 million or more — the threshold for the new transfer tax — down from 685 the month before. This represented the slowest July since 2009. [WSJ]

 

Keller Williams CEO Gary Keller

Keller Williams is recommending agents charge nothing for clients selling on Offerpad. Instead, agents will receive a 1 percent fee from the instant buyer, and potentially another 1 percent commission for listing the property. The arrangement — which Keller Williams emphasizes is just a recommendation — comes as part of the brokerage’s new partnership with Offerpad. [Inman]

 

An East Village landlord and two workers are on trial for a fatal 2015 gas explosion. The owner of 121 Second Avenue, Maria Hrynenko, had rigged an illegal gas line to avoid losing rent during a renovation, triggering a massive explosion. Two people died in the accident. Charges include manslaughter, criminally negligent homicide, reckless endangerment and several counts of assault. [NYDN]

 

There were 16 luxury contracts totaling roughly $118 million signed in Manhattan last week. The number of contracts was up from 14 the week before, while the dollar volume was down from $127 million. The properties spent an average of 749 days on the market and had an average discount of 8 percent from the original to the final asking price. [Olshan]

 

FROM THE CITY’S RECORDS:

Financing:

SL Green refinanced 55 West 46th Street in Midtown with a $198 million loan from Wells Fargo. [ACRIS]

Atlantic Development Group secured an $80 million refinancing mortgage for 33 West End Avenue in Lincoln Square. [ACRIS]

Compiled by Mary Diduch


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