WeWork shedding execs and selling private jet, A-Rod makes another Manhattan buy: Daily digest

A daily round up of New York real estate news, deals and more for September 26, 2019

TRD New York /
Sep.September 26, 2019 05:40 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 throughout the day, starting at 9 a.m. Please send any tips or deals to [email protected]


Home buyers who bought after the market crash have made billions. You read it right — a new report from Redfin shows that people who bought property in 2012, when housing prices hit rock bottom, have since earned more than $200 billion in home equity. [Mansion Global]


Three more WeWork execs are on the way out. The men were all close allies of ousted CEO Adam Neumann. A source told TRD that some of the execs were still at the office Thursday afternoon, while another source said the company was negotiating exit packages. [TRD]


WeWork is selling its jet. As the WeWork exodus continues to unfold, the co-working giant is selling its $60 million private plane, which was purchased last year for Neumann’s use. [TRD]


Durst Organization is launching a flexible office-space arm. The developer’s new venture, “Durst Ready,” comes after it rejected WeWork’s bid for 12 floors at One World Trade Center. [TRD]

Alex Rodriguez and 340 East 51 Street (Credit: Getty Images, Google Maps)

Alex Rodriguez and 340 East 51 Street (Credit: Getty Images, Google Maps)

A-Rod is buying a second Manhattan apartment building. The former slugger turned real estate player is in contract to buy a 14-story brick apartment building at 340 E. 51 St., known as “The Allen House.” The deal is the latest in a series of real estate moves for the star. [NYP]


Retail vacancy rates have climbed. Mounting competition from online stores and rising rents are to blame for the increase, according to city Comptroller Scott Stringer, whose latest analysis found the vacancy rate had jumped from 4 percent in 2007 to 5.8 percent in 2017. [WSJ]


Two penthouses in Hudson Yards are on the market for $59 million each. The splashy listings debuted at a difficult time in the struggling luxury market — and for Hudson Yards developer, Related’s Stephen Ross, who is under scrutiny for his ties to President Trump. But if they sell at asking price, the penthouses will be among some of the priciest condo sales below 42nd Street. [WSJ]

Adam Neumann (Credit: Getty Images, iStock)

Adam Neumann (Credit: Getty Images, iStock)

WeWork execs slam Neumann and his enablers. In interviews with TRD, eight current and former WeWork executives described a culture of impunity at the co-working giant, where Neumann’s inner circle is said to have enabled his actions and feared running afoul of the charismatic CEO, who stood down this week under pressure from investors. [TRD]


Deerfield Management Co. plans drug research lab for NoMad building. As part of a deal with the city to secure $92 million in tax incentives over 20 years, Deerfield has committed to setting up a workforce-training fund valued at up to $30 million. [WSJ]


Commercial landlords face fines under new bill. The City Council is cracking down on commercial tenant harassment and will impose fines of up to $50,000 under the new bill, which passed this week. [TRD]


First-of-its-kind development in Queens secures $76 million loan. Plans for a townhome rental development in Long Island City were given a boost this week with a $75.6 million loan from Granite Point Mortgage Trust, a mortgage REIT. [CO]


WeWork’s cash flow problems are deepening. The company is losing millions each day, and may only have enough cash to last until next Spring, according to a new report. [Bloomberg]


Commercial waste zone plan is nearing conclusion. A vote on a bill to reform the commercial carting industry could be just weeks away, although it’s still unclear what a compromise between the City Council and Department of Sanitation on this matter would look like. (An announcement is expected by the end of this week or early next week.) [Crain’s]


Millionaires’ fortunes are shrinking. Across the world, the net worth of people worth at least $30 million shrunk in 2018 for the first time in three years. It’s unclear what the decline means for the real estate industry, which is grappling with an oversupply of luxury inventory, but insiders say cutbacks on lavish spending could hurt the market. [TRD]


Controversial study claims homeless shelters hurt Manhattan home values. The study found that homes close to adult homeless shelters sold for 7.1 percent less than properties further away, but the authors’ methodology has been disputed by policy experts. [Gothamist]


Brooklyn tenants testify against their landlord. At a hearing in Brooklyn Housing Court Tuesday, tenants at a rent-stabilized building at 374 Wallabout Street claimed their landlord had failed to make vital repairs after a neighbouring fire damaged homes and forced three tenants to move out. [City Limits]


Compiled by Sylvia Varnham O’Regan

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