Banks to revise Adam Neumann’s $500M credit line, another foreign investor is leaving NYC: Daily digest

A daily round up of New York real estate news, deals and more for September 19, 2019

TRD New York /
Sep.September 19, 2019 04:05 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 in real time, starting at 9 a.m. Please send any tips or deals to [email protected]

This page was last updated at 4:05 p.m.

 

WeWork CEO Adam Neumann

Banks seek to revise Adam Neumann’s $500 million credit line. Following a cool reception from investors over his company’s valuation, lenders are looking to revise the terms of the WeWork CEO’s credit line — of which he’s drawn $380 million from. The exact changes to the credit line were not immediately apparent. [Bloomberg]

 

A Japanese investment firm is fully exiting the U.S. market. Unizo Holdings Co. is selling two downtown office buildings — 40 West 25th Street and 685 Third Avenue — as well as additional holdings in Washington D.C. [Crain’s]

 

Airbnb’s war with NYC deepens as it heads toward an IPO. The startup’s aggressive tactics have backfired in New York as the city continues to wage a muscular crackdown on illegal operations. [Bloomberg]

 

LeFrak Organization sold a Jersey City office building for $375 million. Harbor Group International signed a contract to buy the 867,000-square-foot building at 545 Washington Boulevard, sources confirmed to TRD. A Cushman & Wakefield team of Doug Harmon, Adam Spies, Kevin Donner, Gary Gabriel and David Bernhaut negotiated the sale for LeFrak. Real Estate Alert first reported the deal.

 

Profits on home flips are declining. Buyers flipped 59,876 single-family homes and condos in the second quarter, down from 5 percent a year ago. Profits decreased as well, with the average return on investment hitting 39.9 percent last quarter, down from 44.4 percent. [CNBC]

 
Long Island City (Credit: Joe Mabel via Flickr)

Long Island City (Credit: Joe Mabel via Flickr)

Development plans swirl for swath of waterfront in Long Island City, including the old Amazon site. Discussions are underway between developers and city officials with a preliminary proposal for the land including office space, apartment buildings and schools. Some locals are concerned, especially after sites that were slated for Amazon were going to be exempt from the standard approval process. [Politico]

 

IBM is suing Zillow. A new lawsuit filed in California this week accuses Zillow of multiple charges of patent infringement over its computer programs. A Zillow rep said the claims were “without merit.” [Inman]

 

Deals for WeWork buildings in London are in strife as IPO woes deepen. A Saudi Arabian buyer has pulled out of a $112 million deal for a WeWork building, with sources citing concern over the startup’s public offering in the U.S. Meanwhile talks to sell WeWork Waterloo, branded as the largest co-working space in the world, have stalled. [Bloomberg]

 

Users of StreetEasy’s “Expert” program should expect higher fees. The controversial pay-to-play program previously charged participating agents upfront fees ranged from $25 to $350. Agents will now be charged a “success fee” if they close a deal using a lead from the program but StreetEasy will not publicly disclose the fee. Agents have accused StreetEasy of transparency issues. [TRD]
Far north of Billionaires’ Row, Central Park is getting a $110 million injection. The Central Park Conservancy is planning to revitalize the neglected stretch of land, in the often overlooked northern corner, sparking debate about “park equity.” [NYT]

 

Compass is expanding in the West Coast. As its legal battle with Realogy continues to play out, Compass has announced a new technology center in Seattle, which the SoftBank-backed firm hopes will help to attract new talent. [Inman]

 

Mayor de Blasio’s NYCHA rescue plan has “stalled.” Anti-development politicians have reportedly stimied a portion of the mayor’s $24 billion public housing rescue plan over concerns about private development on public land. [NYP]

 

Fairway Market is for sale. Sponsors for the grocery store are seeking bidders just three years after the company came out of bankruptcy with new owners. [Bloomberg]

 

Demand for commercial architecture services has slumped. After soft scores in July, the demand went into negative territory in August, according to the American Institute of Architects’ monthly Architecture Billings Index. [CNBC]

 

Federal Reserve Chairman Jerome Powell (Credit: Getty Images)

The Fed has cut rates again. The announcement signals to commercial real estate investors that the bank is proceeding with caution. [TRD]

 
18 East 73rd Street, Luca Orlandi and Felipe Dutra (Credit: Getty Images and Google Maps)

18 East 73rd Street, Luca Orlandi and Felipe Dutra (Credit: Getty Images and Google Maps)

Fashion designer Luca Orlandi has sold his massive UES townhouse. More than two years after he listed his luxury home for $40 million, Italian designer Luca Orlandi has reached a $27 million deal with Mallow Enterprises, an entity linked to Felipe Padreira Dutra Leite of Anheuser-Busch Inbev. [TRD]

 

An affordable housing complex in LES has had facial recognition for years. Debate around facial recognition technology has grown louder in recent years but one affordable housing complex, the Knickerbocker Village in Lower East Side, has had the technology since 2013. “We’re like guinea pigs,” a resident said. [Gothamist]

 

An op-ed calls for an end to single-family zoning in NYC. Attorney Alec Schierenbeck argues that Mayor de Blasio must make good on his promise to tackle racial and social inequality — by ending exclusionary zoning practices. [NYDN]

 

Compiled by Sylvia Varnham O’Regan


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