The Real Deal New York

July 2016 Issue

Is NYC’s retail bubble
about to pop?

With average rents peaking and a growing number of stores in hot water, concerns over Manhattan’s retail market are becoming palpable

When 685 Fifth Avenue hit the market two years ago, investors practically lined up around the block. The building’s roughly 25,000-square-foot retail space — which sits on the corner of 54th Street — came with 152 feet of frontage in the heart of Manhattan’s most profitable shopping district. Best of all, the property’s only retail tenant, Gucci, was about to leave, allowing any buyer to sign a new tenant in […]… [more]

Are retail’s biggest lenders
too exposed?

A look at some recent high-profile deals and how they’re panning out

After a run-up in pricing that even some of the industry’s most bullish observers find head spinning, Manhattan’s luxury retail market is starting to show cracks, and that could put […]… [more]

Fifth (Avenue) Amendments

New retail projects are reshaping the corridor after a long stretch of little development, but are they well timed?

Fifth Avenue is not usually a New York City laggard, but it’s been a decade since a major development has gone up on the tony stretch. Back in 2006, the […]… [more]

Rentopoly: Who owns
New York?

A ranking of the 20 biggest NYC residential landlords — and how they’re reshaping the city’s rental market

With all of the trades, windfalls, setbacks and wildcards, New York City’s rental market  can often resemble a big round of Monopoly. But in the real world, the wins and […]… [more]

The Top Agent Bunch

Manhattan residential broker ranking finds fresh faces and shifting strategies as slowdown sets in

Manhattan’s elite residential brokers aren’t just going after the most expensive listings to stay on top. They’re also recalibrating their business models to include a wider range of clients in […]… [more]

Breaking up is hard to do

From Consolo and Aquino to Silverstein and Mendik, a look at some of the industry’s big splits over the decades

He was the Desi to her Lucy, but the longtime partnership between retail maven Faith Hope Consolo  and her longtime consigliere Joseph Aquino came to a messy head last month […]… [more]

The Closing: Robert Verrone

The lending legend on the fallacy of ‘Large Loan Verrone,’ Barbie dolls and $20B in debt

Birth date: August 6, 1968 Family: Divorced; four children Lives in: Short Hills, New Jersey Robert Verrone is the founder of commercial mortgage brokerage Iron Hound Management Company , which has […]… [more]

Stacked against the odds

The capital stack for condo construction is becoming more layered than ever

When it comes to condominium construction, the many tiers of equity and debt needed to get the job done have become all the more complicated. As the amount of money […]… [more]

The deal junkie

Magnum’s Ben Shaoul has gone from ‘Sledgehammer’ landlord to one of the busiest luxury condo developers
in Manhattan

In late March, developer Ben Shaoul arrived at his Upper East Side luxury condo project and began inspecting a model unit. That very week, the Paris Forino-designed… [more]

Navigating the construction lending drought

Trophy office buildings and luxury condos are becoming harder
to finance, but some are tapping
into the right formulas

In November 2014, after more than a decade of political disarray and public disappointment, the first World… [more]

Can developers win in the lending game?

A look at the growing number of real estate players financing projects — and who’s thinking long term

Over the past year, New York’s real estate industry has seen a real peer-to-peer lending boom. A flurry of development firms have launched mezzanine and other… [more]

Bringing romance back to retail

Nordstrom’s planned flagship at
Central Park Tower recalls the
golden age of consumerism

These are not happy times for department stores. The rise of online merchants and discount chains, along with the shift in consumers’ buying habits,… [more]

Brexit backlash: A boon for NY?

The political upheaval could shift the balance of power in the real estate rivalry between London and NYC

Kensington or the Upper East Side? Canary Wharf or Wall Street? Islington or Brooklyn Heights? The modern-day real estate rivalry between London and New York… [more]

Let the hunt begin!

FIRE beats TAMI in the pursuit
of new office space

Even as the tech sector continues to blaze a trail through Manhattan, it’s the financial services, insurance and real estate (FIRE) industries that are set to lease the most space […]… [more]

Editor’s note:
Globalization on trial

The world is getting smaller, and not in a good way. For a while now, the U.S. has been divided between well-educated, diverse cities that have benefited from the global […]… [more]

Gauging the ‘Airbnb effect’
on seasonal rentals

New rules target short-term stays in private homes. But are they working?

For those guests who prefer houses to hotels, the Hamptons has always offered numerous rental options, from quaint shingled cottages to sprawling bowling-alley-lined McMansions. But some … [more]

Slamming the door on short-term rentals

Here’s how local authorities are trying to curb the Airbnb effect

Town of East Hampton Rental registry law, passed in 2015 Owners are required to pay a $100 fee, fill out a two-page application that spells out the length of the […]… [more]

Hamptons home prices still wow

Huge waterfront estates are selling at top dollar despite a decline in luxury deals

A number of massive residential deals have closed recently in the Hamptons, showing that the East End’s luxury market is still capable of creating new local… [more]

All quiet on the
North Fork front

After a frenetic 2015, the luxury real estate market slowed in the North Fork, the less posh East End neighbor to the glitzy South Fork region where the Hamptons lie. In the first quarter of 2016, the average sales price for luxury properties — those in the top 10 percent of sales — fell 22.7 … [more]

At home with starchitect Richard Meier

After setting the standard for East End elegance in the 1960s, the architect still resides in the Hamptons — in the only home he has ever owned

The Hamptons will always have a special place in the heart of world-renowned architect Richard Meier. His East… [more]

Inside the deals shaping the East End’s nightlife scene

High rents, a short season and increasing municipal oversight make it tough to hang — and keep — a shingle on the North and South forks

The churn of eateries in the Hamptons can seem as inevitable as the tides washing up on the local beaches. Last… [more]

Brokerages are on the prowl to snare Hamptons top talent

Getting and keeping key players
is challenging on the competitive
East End

Compass, a newcomer on the Hamptons real estate scene, scored a coup last October when it hired veteran Ed Petrie away from Sotheby’s International… [more]

Big development plans for the East End, despite impediments

Developers trying to build in exclusive North and South Fork enclaves face challenges, including bureaucratic red tape, land scarcity and local opposition

While much of Long Island is known for its suburban sprawl closer to New York City, the relatively rural eastern end of the… [more]

Beechwood doubles down

The father-and-son duo of Michael and Steven Dubb have built the largest residential housing development firm on Long Island

Michael Dubb, the founder and CEO of the Beechwood Organization — the largest developer of residential housing on Long Island — aspired to become… [more]

Wall Street jitters jostle sales

Homebuyers hunt for bargains as the mid-range property market softens

With its flashy beachfront mansions and trendy designer boutiques, the South Fork is widely viewed as a playground for the rich and famous. Yet below the radar of the eye-popping […]… [more]

A green light for Riverside’s major revitalization plan

The East End’s economically blighted hamlet is poised for a makeover, spurring new interest in its suffering real estate market

Situated near some of the most valuable real estate in the world, Riverside provides a stark contrast to the Hamptons…. [more]

Hamptons land prices
still soaring

Limited availability has kept
asking prices high, despite a
slowdown in demand

After a flurry of deals in 2015 for some of the rare remaining vacant parcels in the Hamptons, experts say that land prices are still going up, especially for… [more]

The Hamptons summer rental market is running hot and cold

Even as asking prices hit record highs, some luxury listings are quietly cutting their prices or extending the length of time offered for the same cost

If hope springs eternal, then the record $2.5 million full-season rental listed in Southampton could be exhibit … [more]

What’s it like to live in the nation’s swankiest zip code?

The tiny village where rock stars
and moguls mingle is marked
by odd contrasts

The tiny Village of Sagaponack, a 4.7-square-mile super-wealthy enclave in the Town of Southampton, has a population of fewer than 500 souls. … [more]

Celebs say ‘See ya’ to Hamptons homes

A-listers are putting their properties
up for sale or leasing them out
for the summer

A host of celebrities have put their homes up for sale in the Hamptons — with satirists, singers, TV anchors and tennis stars all getting into the act. Perhaps they… [more]

Supplement

Features

As waterfront access increases,
marinas anticipate a boating surge
A roundup of news and data on the residential market
A roundup of news and data on the commercial market
A roundup of real estate-related happenings
from last month
The Six Sigma developer on his Victoria’s Secret breakthrough, clubbing with clients
and late-night Halal food
Real estate pros share picks for books on leadership skills, boxing and raising a global citizen
The funniest and most insightful comments on real estate

Comings and Goings

Dan Marks has been made a partner at TerraCRG, the Brooklyn-focused commercial real estate brokerage. He was formerly a senior vice president at the firm. His career also includes a […]… [more]

We Heard

Looking for relief from the stress of city life? There’s an organic app for that — and it’s called a pet. As more and more New York residents deploy the legal […]… [more]