WeWork abandons Seattle co-living plan, Barneys bidding begins: Daily digest

A daily roundup of real estate news, deals and more for October 16, 2019

TRD New York /
Oct.October 16, 2019 04:30 PM

Every day, The Real Deal rounds up New York’s biggest real estate news. 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 4:30 p.m.

 


Video produced by Sabrina He

 
Chris Christie (Credit: Wikipedia)

Chris Christie (Credit: Wikipedia)

Former New Jersey Gov. Chris Christie’s Opportunity Zone fund hasn’t been a big draw. The Hampshire Christie Qualified Opportunity Fund hoped to attract $250 million for real estate projects when it launched in January, though the amount was reduced to $150 million in May. The fund has only garnered $29 million as of Oct. 7. [Politico]

 

Big hotel owners cheer de Blasio’s special-permit plan. Highgate Hotels President Mahmood Khimji, BD Hotels’ owner Richard Born and Fitzpatrick Hotel Group CEO John Fitzpatrick called for the City Council to approve a plan being advanced by Mayor Bill de Blasio that would require council approval to build a new hotel. The plan is seen as likely to stem the creation of nonunion hotels, which have proliferated across the city since the mid 2000s. [Crain’s]

 
Seattle, Washington

Seattle, Washington

WeWork abandons planned Seattle co-living location. The firm announced with landlord Martin Selig Real Estate, the owner of a 36-story tower at Third Avenue and Lenora Street, that it would be backing out of a planned lease deal to refocus on its core business. The news comes on the heels of a New York Times report that said WeLive was under investigation by the city at 110 Wall Street in Manhattan. [Bloomberg]

 
The group also seeks new taxes on luxury condos and pieds-à-terre, “ultra-millionaires” and real estate transfers. (Credit: iStock)

The group also seeks new taxes on luxury condos and pieds-à-terre, “ultra-millionaires” and real estate transfers. (Credit: iStock)

Tax the rich and house the poor. That’s the new goal for a coalition of tenant advocate groups who scored a huge victory with the state’s new rent laws passed over the summer. The group, Housing Justice for All, now seeks “good cause” eviction, $3 billion in state funding for public housing and the elimination of rent increases for major capital improvements. [TRD]

 

Bidding for Barneys New York is in full swing. Two bids are in for the bankrupt luxury department store, including a $264 million offer from Authentic Brands Group, the owner of Nine West and Nautica, a figure that has satisfied Barneys lenders. Another bidding group, led by a consortium that owns clothing brand Kith, has also declared interest. An auction is due to start next week. [NYT]

 

Earning six figures isn’t necessarily enough to help you buy a home. This year, about 19 percent of U.S. households earning six-figure incomes are renters, an increase from 12 percent in 2006. Those figures amount to 3.4 million new renters who may have owned homes over a decade ago. Home-price appreciation is typically how middle-class households accumulate capital, so more Americans renting could lead to a greater wealth gap. [WSJ]

 

The Grace Building has a new tenant. The Israel Discount Bank is taking 125,000 square feet at the Bryant Park tower at 43 West 42nd Street, leaving its current location at 511 Fifth Avenue. Asking rents have hovered above $100 per square foot at the Brookfield-owned tower. [NYP]

 

SoftBank has hired investment bankers to oversee WeWork’s restructuring. Houlihan Lokey, which specializes in bankruptcy, will work on slashing liabilities at the office-space giant. The move comes as WeWork is assessing a deal that would give SoftBank control of the company. [Bloomberg]

 

The buyer of Tommy Hilfiger’s Plaza penthouse is revealed. Car dealership mogul Terry Taylor purchased the unit for $31.5 million. The apartment was first put on the market in 2008 for $80 million. [NYP]


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