The trade war could cool down the e-commerce boom, Tom Barrack’s firm makes an aggressive bet on tech: Daily digest

A daily round up of New York real estate news, deals and more for September 17, 2019

TRD New York /
Sep.September 17, 2019 05:56 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 throughout the day, starting at 9 a.m. Please send any tips or deals to [email protected]


Video produced by Sabrina He

 

Casual clothing brand Marine Layer signed a lease for a new store at 20 Prince Street. The retailer took 3,600 square feet across the ground floor and lower level at the Nolita property, according to Meridian Retail Leasing’s James Famularo, who represented landlord. Cushman & Wakefield’s Jason Greenstone negotiated the deal on behalf of Marine Layer. The asking rent works out to about $214 per square foot for the 1,800 square feet of ground-floor space. Steve Croman, who was released from jail last year after pleading guilty to mortgage fraud, owns the property. [Press release]

The trade war could put a damper on the industrial real estate boom. Net industrial leasing activity for the next two years will be less than the past two years, according to a new report from trade group NAIOP. Trade and manufacturing activity has been impacted by new tariffs, but demand for last-mile logistics facilities has stayed strong thanks to the spread of e-commerce. [WSJ]

 

Colony Capital founder Tom Barrack

Colony Capital is going all in on tech-centric real estate. Trump pal Tom Barrack’s firm is set to sell up to 90 percent of its $20 billion commercial real estate portfolio by the end of 2021, using the proceeds to buy data centers, mobile phone towers and fiber, and to expand its digital real-estate investment management business. “I’m terrified by legacy assets,” Barrack recently told investors. [WSJ]

 

Compass is now offering A.I.-driven property search tools. The batch of newly-launched tools was first revealed by CEO Robert Reffkin on Monday during an appearance on CNBC, and will use users’ search and viewing history to recommend listings. The SoftBank-backed firm now says an IPO is “likely,” rather than just “possible” as was the case a few years ago. [Inman]

 

The MTA has a $51.5 billion plan to fix NYC’s long-underfunded transit system. The five-year capital plan, which still needs city and state approval, includes $37.3 billion for subway projects alone. Planned projects include phase two of the Second Avenue Subway as well as modern signaling systems and improved accessibility, though this will require extended shutdowns on nights and weekends in the short term. [NYDN]

 

Blackstone Group spent at least $129 million on a Queens industrial portfolio. Property records show that the firm picked up 20 parcels near John F. Kennedy Airport in the transaction, which is reportedly part of a larger nationwide deal with seller TA Realty. TA Realty also sold 28 Texas properties to AEW Capital Management in a separate deal. [TRD]

 

The White House blames NYC housing regulations for increasing homelessness. A study from the Trump administration’s Council of Economic Advisers says the city’s homeless population could be 23 percent less if not for “over-regulation of local housing markets,” including things like zoning rules, rent control and energy-efficiency laws. [NYP]

 

The Terminal Stores buildings’ new owners have big plans for the property. The renovation of the former freight warehouse will replace 500,000 square feet of storage space with new offices and add a block-long public courtyard. L&L Holding Company and Normandy Real Estate Partners bought the property for $880 million last summer, and German insurance giant Allianz took a roughly 30 percent stake soon after. [NYP]

 

A DoBro mixed-use project is moving forward after settling a lawsuit with its neighbors. Demolition is now underway at Alloy Development’s 80 Flatbush, which will include 900 apartments — 200 of which will be permanently affordable — and two new public schools. One of the building’s two towers was originally planned to rise to 986 feet, though that was later dialed back to 840 feet. [Curbed]

 

Residents of a Williamsburg loft building are losing the fight against their new landlord. Tenants at the 24-unit 240 Broadway had once hoped that the revokal of the building’s certificate of occupancy would allow them to claim Loft Law protections, but that now appears unlikely. The building’s new owner has reportedly shut off the gas and begun installing a new facial recognition security system. [The City]

 

Knotel has signed a new 27,000-square-foot lease in the Garment District. The co-working company will take up the entire seventh, eighth and 18th floors of ATCO Properties & Management’s 240 West 35th Street in a 10-year deal. The new location is expected to open in late fall. [CO]

 

The Kushner Companies refinanced 10 Manhattan apartment buildings. The $85.5 million loan was provided by Argentic — formerly Silverpeak Argentic — and replaces a loan from Signature Bank in 2015. Kushner acquired the East Village and Alphabet City walk-up properties in 2012 and 2013. [CO]

Compiled by Kevin Sun

 

FROM THE CITY’S RECORDS:

 

FINANCING: Vornado Realty Trust refinanced its mixed-use retail/office building at 606 Broadway with a $75 million loan from Société Générale. Newmark Knight Frank’s Dustin Stolly and Jordan Roeschlaub secured the financing.

Greystone provided a $115 million refinancing loan for an apartment building at 1731 York Avenue in Yorkville. [ACRIS]


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