The Real Deal New York

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Publisher's Note

February 2009
  • Tick tock for Leviev

    What's next after battle for control of Apthorp?
    Lev Leviev

    In July 2008, Lev Leviev’s Africa Israel Investments entered a deal with Versace to convert the landmark Clock Tower building on Madison Avenue into luxury condominiums, a project that would rival the biggest conversions in U.S. history. However, it now appears as if the only ticking clock is the time bomb ready to destroy Leviev’s far-flung empire. After investing billions of dollars in New York real estate at the top of the market, he’s now in a race to cash out […]… [more]

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  • New units sell Costco-style

    Faced with looming loans, developers offer bulk deals

    Not so long ago, many New York City developers modeled their sales efforts on stores like Barneys, marketing luxury wares to consumers with nary a half-off sticker in sight. Nowadays, however, builders might be taking their cues from businesses like Costco. Last month, the sponsors of 20 Pine, a 413-unit condo conversion in the Financial District, put 80 of the building’s unsold units on the market for $63.7 million, according to the Web site Curbed. The bulk price for […]

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  • For office landlords, harder to tell who’s healthy

    Office landlords forced to be less choosy as demand slips

    Until about 18 months ago, New York City office building owners didn’t have to worry too much about their tenants’ ability to pay rent. For financial service companies, law firms and retailers, the money was flowing in and their demand for space was strong. Now, of course, the picture is different. Pillars of the American economy — from AIG to General Motors — have collapsed, and it’s difficult for landlords to discern which tenants are truly creditworthy. “The question is: ‘What […]

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  • All eyes on rentals now

    Firms switch focus from sales, but the going is tough

    New York City has always been a town of renters. But in the last few years, it was easy to forget that fact, with condo towers selling out in a matter of days and the average price of a Manhattan apartment peaking at a record $1.7 million in the first quarter of 2008, according to Prudential Douglas Elliman. For a time, everyone wanted to own New York real estate, and every broker wanted to sell it. Now that the ensuing […]

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  • Condo plans collapse

    Tallying canceled and stalled projects around the city

    During the boom years, developers drew up plans for luxury condominiums across the city at a frenetic pace. Since then, many of those condos have hit troubled waters as a result of the financial crisis, as well as lawsuits, over-saturation of product and an inability to sell or even begin construction, leaving gaping holes at their sites. To find out what happened, The Real Deal surveyed 57 of these troubled projects in Manhattan, Brooklyn and […]

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  • Parent trap trips Corcoran

    Once called 'Daddy Warbucks,' Realogy now seems a liability

    The New Year ushered in a wave of misfortune for city real estate brokerages, as a raft of companies announced that they would shed offices or close up shop altogether. Predictably, small brokerages were hit hardest: Brooklyn Properties closed an office, Domain Properties downsized to a smaller space, and both Upside Residential and Homestead New York announced they would shutter completely. Meanwhile, medium-sized firms like Warburg Realty and Bellmarc Realty also closed branches. And, as […]

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  • For once booming hotel market, tourism now down

    As number of international visitors drop off, hotels refocus on value

    As the global economic crisis deepens, fewer tourists are visiting New York, prompting hotel and tourism officials to focus on “value” for thrifty travelers this year. At the end of last year, hotel occupancy levels in New York City showed the start of what is expected to be a dramatic softening, following banner growth during the prior six years. In the fourth quarter, occupancy levels plunged 9.9 percent from 2007 levels to around 77 percent, […]

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  • Industrial market: Embracing real estate’s stepchild

    Industrial space steady while more glamorous residential, commercial sectors on edge

    It may lack the glamour and sheen of Manhattan’s other commercial and residential sectors, but industrial real estate in the five boroughs, the unappreciated stepchild of New York’s real estate scene, is being embraced anew. There are signs that the industrial market is holding steady — at least for now — amid growing fears that Manhattan’s office and residential markets may be falling off a cliff. “Industrial space tends to be the meat and potatoes […]

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  • On the market: Commercial

    Commercial properties recently placed on the market

    Bronx development site for sale A 133,700-square-foot development site at 101 Lincoln Avenue in the Mott Haven section of the Bronx is on the market for $40.5 million. The property is located on the northwest side of Lincoln Avenue, west of East 132nd Street, and southeast of the Harlem River and Third Avenue Bridge. The current zoning allows for approximately 804,874 square feet of residential development, 668,500 square feet of commercial development or 869,050 square […]

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  • Retailers asking for rent breaks

    Struggling NYC stores ask for cheaper leases as economy weakens

    Beleaguered owners of chain stores in New York City are asking for permanent or temporary rent reductions through deferred payments, reduced payments or leases based on a percentage of retail sales, several retail brokers said. “Virtually every national chain has a rent reduction program that [will] affect metro New York real estate,” said Patrick Smith, executive vice president of the northeast region of Staubach Retail. “Performance is down so significantly they are trying to bring […]

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