DeNiro-backed Nobu Hotel developer sues contractor, WeWork selling Gulfstream jet Neumann made his own: Daily dirt

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

Chicago /
Sep.September 26, 2019 04:12 PM

Every day, The Real Deal rounds up Chicago’s biggest real estate news, from breaking news and scoops to announcements and deals. We update this page throughout the day, starting at 10 a.m. Please send any tips or deals to [email protected]

This page was last updated at 4:12 p.m. CT

 

Developer of the Robert DeNiro-backed Nobu Hotel is suing. The suit is against the project’s contractor, Centaur Construction, for allegedly embezzling up to $8 million and failing to finish the work. Developer RCD Resorts also claims that Centaur was paid in full, even though it didn’t complete the work. The hotel was set to open in July and has been delayed until at least January. [Crain’s]

 

A graduated real estate transfer tax increase is on the board in Chicago. It was among the ideas that progressive aldermen presented to Mayor Lori Lightfoot as a way to increase revenue and chip away at the city’s $898 million debt. Notably, big property tax increases were not on the list, though Lightfoot has still refused to rule the measure out. [Sun-Times]

 

More cranes will come to Fulton Market. Two properties are being proposed for the booming district. TechNexus and Ocean Tomo want to build an 18-story mixed-use complex at 1101 W. Carroll Avenue, and Trammell Crow is planning a 16-story office development at 400 N. Aberdeen Street. [Curbed]

 

The private plane used by Adam Neumann is on sale (Credit: Getty Images, iStock, Wikipedia)

WeWorks is selling the $60 million jet that now former CEO Adam Neumann enjoyed. Some employees were angry they were denied raises while luxury items like the plane were bought with company funds. Neumann stepped down as CEO this week. [TRD]

 

They are leaving We. At least two executives were told Wednesday night their tenure with the company is up. While a source said some of the execs were still at WeWork as of Thursday afternoon, another source said the company was in the process of negotiating their exit packages. They are vice chairman Michael Gross, VP of operations and special projects Zvika Shachar, and director of development Roni Bahar. [TRD]

 

Blair Kamin, Chicago Tribune architecture critic, has his top 10 buildings to visit during Open House Chicago. They include the world’s tallest church building, 601W Companies’ former Central Post Office building, the James M. Nederlander Theatre and the original Sears Tower. The event, organized by the nonprofit Chicago Architecture Center, offers free access to more than 350 buildings in the area. [Chicago Tribune]

 

The gap between Chicago’s housing values and the nation’s over the last 13 years is 25 percentage points. Since the peak in 2006, Chicago home values are down 12 percent. During that same period, the nation’s home values have risen 12.8 percent. Only Miami, Phoenix and Las Vegas had worse performances. An underfunded pension system, rising public benefits, loss of population and crime are all reasons cited for the decline. [Crain’s]

 

Sen. Martin Sandoval will lose his chairmanship of the Senate Transportation Committee. Sandoval’s home and offices were raided by the FBI last week. He joins a growing list: Powerful Alderman Edward Burke was indicted on racketeering charges, and former Alderman Dannis Solis has been named as a cooperator who recorded Burke. [Chicago Sun-Times]

 

Local urban designer Emmanuel Pratt was among 26 artists, activists and philosophers to be named a 2019 MacArthur Foundation Fellow. He is the executive director of Sweet Water Foundation, where he integrates agriculture, education and design on the South and West sides. [Curbed]

 

Mayor Lori Lightfoot presented $3.6 million in funding to minority-owned small business owners on Chicago’s South and West sides. Last year’s initiative resulted in 130 loans totaling more than $1.7 million. The fund now exceeds $9 million. [Curbed]

 

(Credit: iStock)

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]


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