NYCHA strikes air rights deal with developer, WeWork shuttering its pricey private school: Daily digest

A daily round up of New York real estate news, deals and more for September October 11, 2019

TRD New York /
Oct.October 11, 2019 04:06 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 4:06 a.m.

 


Video produced by Sabrina He

 

NYCHA is selling air rights in Brooklyn to a developer. Jorge Madruga’s Maddd Equities is nearing a deal for 100,000 square feet of air rights at the Ingersoll Houses in Fort Greene. If the deal goes through, the developer will be able to build 400 units, 25 percent of which would be at 60 percent or below the area median income, on a nearby property. In exchange, the developer would pay $25 million. [Brooklyn Eagle]

 

WeWork is shuttering its private school, WeGrow, after this school year. The “conscious entrepreneurial school” charges tuition of $22,000 to $40,000 a year and has been open in Manhattan since 2018. [HuffPo]

 
WeWork

(Credit: Getty Images)

A bailout package for WeWork could come as soon as next week. The co-working giant canceled IPO plans last month, which it was relying on to secure a $6 billion loan by the end of the year and additional financing. Now, it’s selling off investments and considering hundreds of layoffs at the least. JPMorgan Chase is leading discussions for the rescue package. [Bloomberg]

 

Meanwhile, WeWork has cost Wall Street a pretty penny. Goldman Sachs is taking a $264 million writedown. In September, Jeffries said it was taking a smaller $146 million hit — and analysts say other banks may be making similar moves. [BI]

 
Adam and Rebekah Neumann (Credit: Getty Images)

Adam and Rebekah Neumann (Credit: Getty Images)

Adam Neumann was on a real estate buying spree before WeWork’s disastrous IPO. He and his wife Rebekah Neumann purchased a $10.5 million landmarked West Village townhouse, a 60-acre Westchester estate for $15 million, s $3 million home in the Hamptons, a $21.4 million property in California and more. A $500 million line of credit from JPMorgan Chase that allowed Adam Neumann to borrow against WeWork’s shares before he stepped down. [WSJ]

 

Brookfield is bring an entertainment center to Manhattan West. Instead of another skyscraper, the Canadian asset manager is taking a horizontal approach and hoping to lure tourists, office workers and residents from its nearby Eugene — which is reportedly 96 percent leased. It’s planning a 10,000 square-foot entertainment and dining venue launched by design and hospitality firm Elemental. [NYP]

 
Harry Macklowe, Linda Macklowe and 432 Park Avenue (Credit: Getty Images)

Harry Macklowe, Linda Macklowe and 432 Park Avenue (Credit: Getty Images)

Linda Macklowe lost this round of her messy divorce from Harry Macklowe. A judge ruled that the developer’s “promote” was correctly valued at $2.5 million, after appraisers hired by the couple came up with wildly different numbers. The court also ruled that the couple’s marital debt was $66.8 milion, despite evidence that it was less than half that amount. [TRD]

 

Co-op owners are caught in the crossfire of a rule meant for rent-regulated landlords. Last year, Council member Ben Kallos required rent-regulated landlords to register their units in an online system. The bill appears to have inadvertently swept up co-op owners, who are urging Kallos to amend the bill. [NYDN]

 

The Democratic Socialists of America are backing more pro-tenant candidates. The organization is supporting four candidates who are native Brooklynites and in low-turnout elections. If those candidates get 20,000 votes, the State Assembly will be the next to be overrun by the left. [City & State]

 

After shuttering 60 stores, Bed Bath & Beyond seeks to right the ship. The company has hired Mark Tritton, the former CEO of Target, one of Bed Bath & Beyond’s biggest competitors. Three investors, including Legion Partners Asset Management, have also weighed in with a plan to sell off certain brands for as much as $1.4 billion — and update Bed Bath and Beyond’s “archaic” supply chain. [Bloomberg]

 

A Brooklyn State Senate candidate wants to stop foreclosures and revamp the city’s third party transfer tax system. Jason Salmon unsuccessfully sought the endorsement of the Democratic Socialists of America, who instead endorsed Jabari Brisport, a public school teacher, in District 25. [Brooklyn Eagle]

 

Compass is opening a new office in Long Island City amid a raft of new development. A sales report from Douglas Elliman showed the Long Island City market is picking up and Compass, backed by SoftBank, plans to open an Astoria location in December. [TRD]


Related Articles

arrow_forward_ios
Brooklyn landlord nixes plans to use facial recognition software, REBNY’s James Whelan talks strategy

Brooklyn landlord nixes plans to use facial recognition software, REBNY’s James Whelan talks strategy

Daily Digest Thursday

WeWork bailout reduction eyed, agents revolt against StreetEasy price hike

The Daily Digest - Tuesday

Zillow president to step down, Compass buys AI startup

Tracey Appelbaum (Photos by Emily Assiran)

At the desk of: Tracey Appelbaum

WeWork layoffs loom, de Blasio is skeptical of commercial rent control

WeWork layoffs loom, de Blasio is skeptical of commercial rent control

Convictions in fatal gas explosion; green roof mandate kicks in

Convictions in fatal gas explosion; green roof mandate kicks in

Daily Digest Thursday

WeWork losses soar, SoftBank asked Jared Kushner to divest from Cadre

Macklowe selling out of Midtown tower, Brooklyn lawmaker wants to rewrite federal housing rules

Macklowe selling out of Midtown tower, Brooklyn lawmaker wants to rewrite federal housing rules

arrow_forward_ios