Your next home could be at the birthplace of democracy, property rights

Your next home could be at the birthplace of property rights. A gated community of 59 luxury homes in Surrey, England has hit the market, located on the site where King John signed the Magna Carta in 1215, according to Mansion Global. The development spans 57 acres across the village of Englefield Green and Runnymede, the riverside site where King John agreed to the Magna Carta terms with a group of rebel barons. The Magna […]

source https://therealdeal.com/national/2019/06/30/your-next-home-could-be-at-the-birthplace-of-democracy-property-rights/#new_tab

Miami house with acclaimed minimalist design listed for $2M

The Brillhart House, an award-winning minimalist home and a rare example of architectural restraint in look-at-me Miami, is up for sale for the first time. The Balinese-style house, which resembles a remote resort spa, is listed for $2 million by Gary Feinberg of Compass Florida, according to Forbes. Five-year-old home was featured on the Netflix/BBC series “The World’s Most Extraordinary Homes.” Two architects, Jacob and Melissa Brillhart of Brillhart Architecture, built the acclaimed house, winner […]

source https://therealdeal.com/miami/?p=568441#new_tab

Huge number of listed homes in NYC are near a residential construction sites

This summer season likely means navigating a construction site or two. Four out of every 10 New York City homes listed for sale or rent are within two blocks of a residential construction site, according to June data gathered by listing platform Localize.city. Localize.city found that nearly 40 percent of all listed residences in New York City are fewer than 525 feet – one or two blocks, about a tenth of mile – from a […]

source https://therealdeal.com/2019/06/30/huge-number-of-listed-homes-in-nyc-are-near-a-residential-construction-sites/

WATCH: Here’s the shit real estate agents really say

From negotiating with buyers to tidying up their client’s listings, there are a few sentiments real estate agents share across the board. The Corcoran Group’s Sarah Fearon brought together her two specialities, real estate and comedy, to encapsulate a day in the life of a real estate agent in parody form. Aside from selling properties for her clients in Manhattan, Fearon is an actress, comedian and playwright. Her one-woman show, “2B” — which is debuting […]

source https://therealdeal.com/2019/04/12/watch-heres-the-shit-nyc-real-estate-agents-really-say/#new_tab

Even with $155M in price cuts, this is still the most expensive home listing in LA

The massive Bel Air estate of late media mogul Jerrold Perenchio just got another deep discount. Once a $350 million pocket listing, the 10-acre Chartwell Estate got a price cut of $245 million when it hit the Multiple Listing Service last fall. Now, it’s asking $195 million, according to Variety. Even with the haircut, it remains the most expensive home listed in Los Angeles County on the MLS. Multimillion-dollar discounts aren’t unusual in the world […]

source https://therealdeal.com/la/2019/06/25/jerry-perenchios-bel-air-estate-gets-50m-price-chop-its-second-cut-since-2017/#new_tab

Asking $65M, Jackie O’s Martha Vineyard compound looks to break a record

Jacqueline Kennedy Onassis’s 340-acre Martha Vineyard’s compound is now on the market for $65 million. Should the secluded beachfront property sell for its ask, the deal would shatter the island’s current residential record of $32.5 million, the Wall Street Journal reported. Onassis’s daughter, Caroline Kennedy, told the Journal that her three children are now adults, leading her to sell the compound. LandVest’s Thomas E. LeClair and Gerret C. Conover have the listing. The estate, which […]

source https://therealdeal.com/national/2019/06/30/asking-65m-jackie-os-martha-vineyard-compound-looks-to-break-a-record/#new_tab

As values rise, these are the top 10 US cities to own a home: ranking

If you are looking for a home, you might not have much luck in the Northeast. Nine of the 10 best cities to buy or own a home are either west of the Mississippi River or in Florida, according to a study by GoBankingRates. With a median home value of $483,900 and a state income tax rate of 5.53 percent, Jersey City was the only metro area in the Northeast to make the cut, clocking […]

source https://therealdeal.com/national/2019/06/30/as-values-rise-these-are-the-top-10-us-cities-to-own-a-home-ranking/#new_tab

This Silicon Valley home hit the market in Larry Ellison and Sheryl Sandberg’s town

Silicon Valley mainstay David Sacks is selling his 11,000-square-foot home in Atherton, the area’s most exclusive town that’s home to numerous tech titans. Sacks is asking $22.5 million for the six-bedroom home, according to Variety. Last year, homes in Atherton sold for a median of $6.7 million, making it the most expensive area to buy a home in the country. Average annual household income in Atherton is around $450,000, according to Business Insider. Residents include […]

source https://therealdeal.com/national/2019/06/29/this-silicon-valley-home-hit-the-market-in-larry-ellison-and-sheryl-sandbergs-town/#new_tab

Resort fee wars: Booking platforms are taking on the controversial hotel practice in very different ways

Resort fees, mandatory extra fees that often don’t appear in search results and that travelers sometimes only discover at checkout, have been on the rise in recent years as hotels face economic pressures on multiple fronts. And online booking platforms are now responding. Booking.com shook up the industry last month by announcing it would start charging hotels commissions on such fees, reclaiming what it views as its fair share of the revenue it generates for […]

source https://therealdeal.com/national/2019/06/29/resort-fee-wars-booking-platforms-are-taking-on-the-controversial-hotel-practice-in-very-different-ways/#new_tab

Palm Beach estate sells for over $110M, marking an all-time record

An oceanfront Palm Beach estate sold for more than $110 million, according to sources, marking the most expensive single-family home sale in the tony town. The late Broadway producer, Terry Allen Kramer, who died in May, owned the 13-bedroom compound at 1295 South Ocean Boulevard. It hit the market in October for $135 million, and went under contract in recent weeks. Sources confirmed to The Real Deal that the sale closed on Friday. The Palm […]

source https://therealdeal.com/miami/2019/06/29/palm-beach-estate-sells-for-over-110m-marking-an-all-time-record/#new_tab

Lindsey Buckingham goes his own way, unloads Brentwood mansion

Maybe the buyer was a Fleetwood Mac fan? Lindsey Buckingham, former lead guitarist of the legendary group, sold his Brentwood mansion in one month, a high note in an otherwise down Los Angeles luxury market. Buckingham sold the home for $29.5 million, MansionGlobal reported. It hit the market at the same price on May 20. Spanning about 10,000 square feet, the custom-built estate has seven bedrooms, a recording studio, a two-story tower and a billiards […]

source https://therealdeal.com/la/?p=244969#new_tab

Miami firm to raise $200M for fund to buy distressed commercial real estate loans

Safe Harbor Equity is raising $200 million to buy distressed real estate loans (Credit: iStock)

A Miami-based private equity firm is doubling its fundraising goal to $200 million to buy up distressed commercial real estate loans.

Safe Harbor Equity founder, Ralph Serrano, said recent European and Asian fundraising tours revealed investors are eager to contribute to a distressed commercial real estate debt fund. Accordingly, despite having not yet raised the initial target of $100 million, the firm is “scaling it up to $200 million,” he told Forbes.

While commercial development in South Florida is currently healthy, Serrano is still confident now is still a good time to start the fund, especially as foreclosures increase in the area.

One recent foreclosure was initiated by Madison Realty Capital over $40.6 million of allegedly delinquent construction debt for Costa Hollywood Beach Resort, a new 326-unit condo-hotel in Hollywood.

Besides Safe Harbor Equity. London-based Cheyne Capital and New York City-based Churchill Real Estate Holdings are among the private equity firms looking to profit from the distressed loans.

Churchill started a $200 million fund dedicated to debt on failed condo developments and struggling retail properties. Cheyne, on the other hand, raised $1.1 billion for a fund that will acquire distressed loans from European banks that want to shrink their loan portfolios to comply with new regulatory and accounting standards. [Forbes] – Mike Seemuth

source https://therealdeal.com/miami/2019/06/29/miami-firm-to-raise-200m-for-fund-to-buy-distressed-commercial-real-estate-loans/#new_tab

Prince Harry and Meghan Markle’s home renovation cost UK taxpayers a pretty pence

Meghan Markle, Prince Harry and an aerial view of Frogmore Cottage (Credit: Getty Images, Google Maps)

Let the whinging commence! British taxpayers may have been dismayed to learn that they covered the cost of rebuilding the royal home of Prince Harry and his wife Meghan Markle.

The Duke and Duchess of Sussex paid for furnishings, fixtures and fittings at their residence near Windsor Castle, called Frogmore Cottage. But the $3.06 million project at Frogmore also turned five properties into a single house for the royal couple and their infant son, Archie.

The cost of the project was included in the royal family accounts released Tuesday, showing that British taxpayers covered $85.2 million of monarchy costs in the 2018-2019 fiscal year — a whopping 41 percent more than in the previous year.

The main reason for the increased spending on the monarchy was the rising cost of a 10-year renovation of Buckingham Palace in London, which began after a Treasury report determined that the structure of the palace was vulnerable to catastrophic failure.

According to Michael Stevens, who oversees the royal family accounts as keeper of the Privy Purse, the Frogmore property “had not been the subject of work for some years and had already been earmarked for renovation.”

Graham Smith, a spokesman for Republic, an anti-monarchy group, questioned the multi-million cost of the Frogmore project at a time when public services lack funding.

The Sovereign Grant, which funds Queen Elizabeth II and covers the official expenses of her household, totals $104 million — and equates to $1.58 per UK citizen. The royal family had 3,200 official engagements in 2018-19. [Page Six] – Mike Seemuth

source https://therealdeal.com/national/?p=196546#new_tab

Michael Shvo believes in Beverly Hills

Michael Shvo doesn’t believe in Los Angeles — he believes in Beverly Hills.

Why wouldn’t he? At the end of last spring, he and his partners dished out $130 million for 9200 Wilshire Boulevard. The plan is to develop a 300,000-square-foot complex with 54 luxury residential units and 6,000 square feet of retail space. Shvo said at The Real Deal‘s 12th annual showcase that construction is starting within months.

Besides that, Shvo has a couple projects in New York, like at 685 Fifth Avenue, where he is converting offices into residential condos. What else does he have planned? Where else does he want to build? Watch the above video to find answers and just why he’s so keen on what he’s already up to.

Text by Matthew Corkins 

source https://therealdeal.com/national/2019/06/29/michael-shvo-believes-in-beverly-hills-2/#new_tab

This week in celeb real estate: Ellen DeGeneres lists another home, Jerry Perenchio’s Chartwell get price chop.. and more

From left: Ellen DeGeneres and her home and Jerry Perenchio and the Chartwell Estate

The end of June provided some movement in the market, as celebrities in Malibu and Beverly Hills were able to close deals for homes priced below $20 million. In keeping with the broader luxury market trend, uber-pricey Chartwell Estate continued to linger on the market, prompting another wave of discounts.

Serial home flipper Ellen DeGeneres is back at it again. This week, the talk show host put her oceanfront home in Carpinteria on the market for $24 million. That’s about 30 percent more than what she and her wife, actress Portia de Rossi, paid for the pad less than two years ago. The main residence spans 6,860 square feet with three bedrooms and five bathrooms. There’s also a multi-level guest house, as well as a tennis court. It was previously owned by Los Angeles developer Robert F. Maguire III.

Another $50 million was lobbed off the list price of late billionaire Jerry Perenchio’s estate. Once listed at $350 million, the property is now on the market for $195 million. That makes it the most expensive home on the market for sale in L.A. County. Known as the Chartwell Estate, the 10-acre spread features a 25,000-square-foot main house, 75-foot swimming pool and tennis court. Before he died in 2017, Perenchio was the CEO of Univision.

Stavros Niarchos III, heir of a Greek shipping mogul, has paid $15 million to acquire the home directly behind his, Variety reported. The 8,200-square-foot home sits on a 1.3-acre lot, and includes four bedrooms and seven baths. The sellers were Herb and Beverly Gelfand, who originally listed the home for $22 million. Niarchos, who once dated Paris Hilton, bought a Richard Neutra-designed pad on an adjacent lot for $12.8 million in 2011. It’s possible he’ll try to create one massive estate out of the two Beverly Hills properties.

Over in Malibu, Kevin Durant has found a straight shooter willing to buy his pad. The NBA champion’s home sold for $12.2 million, roughly the same price he paid for it last year. The oceanfront home spans 5,100 square feet. There are four bedrooms, six bathrooms, a home theater, media room and elevator. Durant is expected to opt out of his contract with the Golden State Warriors by the end of the month.

source https://therealdeal.com/la/2019/06/28/this-week-in-celeb-real-estate-ellen-degeneres-lists-another-home-jerry-perenchios-chartwell-get-price-chop-and-more/#new_tab

The Cats’ meow? Red Apple Group CEO buys radio station

The Greek-American magnate reportedly doesn’t have any immediate plans to change the station.

John Catsimatidis, the billionaire host of AM-970 radio show “The Cats Roundtable,” has acquired 77 WABC radio for $12.5 million.

The station was purchased by Red Apple Media, a subsidiary of Castimatidis’ Red Apple Group, from Atlanta-based Cumulus Media, the New York Post reported.

“I grew up with WABC,” Catsimatidis told the newspaper. “It’s an iconic channel. We want to bring it back to being a great station.”

He did not indicate any immediate plans for change at the station, which is one of the city’s oldest.

Catsimatidis, a politically-connected mogul who made headlines in mid-June for reportedly rejecting Democratic presidential candidate Joe Biden’s request to contribute to his campaign, added that he hopes to buy more radio stations in the future.

“I started a radio show five years ago, which is now available in 14 states and on the internet,” he said. “It has gained a large and loyal audience.”

Catsimatidis, tapped by New York Gov. Andrew Cuomo to lead a fundraising campaign to rebuild a Greek Orthodox church at Ground Zero (he was born on the Greek island of Nisyros), becomes the latest in a series of local real estate tycoons to snap up media assets.

In December, developer Charles Cohen struck a deal to acquire the Landmark Theatres chain for an undisclosed sum, and current White House senior adviser Jared Kushner famously paid $10 million to buy to buy the New York Observer in 2006.

Catsimatidis, who in 2015 made an unsuccessful play to buy the New York Daily News, has recently said he intends to use his media voice and contacts to help Biden, downplaying the brief discussion he had with the former vice president at a fundraising event earlier this month.

“I think Joe Biden is the most common sense nominee of the 23 people running in the Democratic Party,” he told CNBC. “Monetarily, I did not commit to helping him, but I will help him brotherly, on my radio show and with all my media contacts.” [New York Post] — Sylvia Varnham O’Regan

source https://therealdeal.com/2019/06/28/the-cats-meow-red-apple-group-ceo-buys-radio-station/

Nightingale’s $900M deal for the Coca-Cola building fizzles

711 5th Avenue (Credit: 42 Floors)

It appears as though Nightingale Properties’ deal to buy the Coca-Cola building on Fifth Avenue has gone flat.

Nightingale filed a lawsuit Friday in Manhattan State Supreme Court alleging Coca-Cola is in breach of the sales agreement the two parties struck in May to sell the building at 711 Fifth Avenue.

Details of the allegations are scant, but Nightingale claims Coca-Cola failed to disclose a letter from 2017 between the soft drink giant and Swatch, the parent company of Swiss luxury watchmaker Breguet.

Breguet leases one of the pricey retail spaces at the base of the building, and part of Nightingale’s plan to purchase the property hinges on negotiating a deal to have Breguet buy out the remaining term on its lease, as The Real Deal previously reported.

Representatives for Nightingale could not be immediately reached for comment, and a spokesperson for Coca-Cola declined to comment.

Nightingale says in its complaint that it is ready and willing to close on the deal.

But there’s been much speculation about whether Nightingale can line up the funds to close the purchase. And when a deal goes sideways, buyers will sometimes claim the owner failed to disclose some arcane piece of information about a property in order to twist an arm in negotiations.

Nightingale has teamed up with Ashkenazy Acquisition Corp. and Wafra (a subsidiary of a Kuwaiti sovereign wealth fund) to try to buy the building for north of $900 million.

Cushman & Wakfield’s Doug Harmon and Adam Spies are marketing the property on behalf of Coca-Cola. They could not immediately be reached for comment.

source https://therealdeal.com/national/2019/06/28/nightingales-900m-deal-for-the-coca-cola-building-fizzles/#new_tab

Office rents in U.S. are going up — barely

(Credit: iStock)

Office rents across the U.S. are ticking up.

The average asking rent in May for office buildings over 50,000 square feet in size rose 0.4 percent compared to the previous three-month period, coming in at $36.33, according to data firm Yardi Matrix’s recent national report, covered by Connect Commercial Real Estate.

The growth stems from solid demand thanks to a healthy job market. But the slowness of the growth comes from employers’ selectivity about their office space needs. The average national vacancy rate, 13.7 percent, didn’t budge over the same timeframe, according to Yardi.

However, some cities saw much larger spikes in their average asking rents.

In Brooklyn, there was a 10 percent boost in May, which was followed by Houston and San Francisco (3.8 percent) and Orlando (3.1 percent), according to Yardi. Brooklyn also has the highest percentage of its stock under construction — 15.8 percent.

Manhattan saw an average asking rent increase of 0.7 percent. That counters what happened in the borough a year-and-a-half ago, when another report from Colliers International found that average asking rents slid 0.7 percent.

Manhattan also has 20.8 million square feet of space in the pipeline, the most in the country, according to Yardi. Though that looks like a lot, the market likely can absorb it, the report found. In 2018, Manhattan had a record-breaking year for office leasing.

Miami trailed Manhattan, with asking rents in that city rising 0.6 percent. Los Angeles’ figure fell more in line with the national average increase, a bump of just 0.3 percent.

Chicago was one metro where asking rents dipped by 0.3 percent.

One red flag is the 173 million square feet of office product being built across the country. But that construction is confined mostly to cities that need extra or newer office space, according to Yardi. [Connect] — Mary Diduch 

source https://therealdeal.com/national/2019/06/28/office-rents-in-u-s-are-going-up-barely/#new_tab

Carpenters union rocked by bribery scandal could face international takeover

The parent organization of a carpenters’ union whose leader is ensnared in an alleged bribery scandal is swooping in to temporarily take over the local chapter.

The United Brotherhood of Carpenters, the union’s international chapter based in Washington, D.C., has appointed one of the leaders of its regional subsidiaries to oversee Brooklyn-based Local 926. The leadership shakeup follows the arrest Thursday of Local 926 president Salvatore Tagliaferro, who is accused of conspiring with an official from Local 157, John DeFalco, to accept tens of thousands of dollars in bribes in exchange for granting membership into Local 926.

The UBC tapped William Waterkotte, vice president of the Pittsburgh-based Eastern District regional chapter, to supervise Local 926 until a hearing is held to determine whether or not UBC should fully take over the union, according to a letter issued by UBC president Doug McCarron that was made public on Friday.

Waterkotte didn’t return messages seeking comment. An attorney for Tagliaferro, Richard Rosenberg, said his client is a “dedicated union man” and denies all the allegations in the indictment.

In McCarron’s letter, he notes that the UBC needed to take action immediately “for the purpose of correcting corruption or financial malpractice” — one of four reasons that labor organizations impose a trusteeship. A trusteeship would likely mean that the UBC would replace the local’s leadership or potentially merge the local with another.

Back in 1995, the UBC placed the New York City District Council of Carpenters into trusteeship due to corruption issues that persisted after the union reached a deal with the federal government to install court-appointed supervision. The trusteeship lasted through 1999, but the District Council still has a court-appointed monitor. His term expires July 17 but will likely be renewed.

Since 1990, several of the District Council’s locals have merged or disbanded, dropping from a total of 22 chapters to nine. Locals 926 and 157 are two of nine local unions that currently make up the District Council. Local 157 was expanded in 2010 when the District Council decided to disband Local 608, amid racketeering convictions and the firing of five presidents, the New York Daily News reported at the time. McCarron’s letter doesn’t indicate any leadership changes at Local 157 following DeFalco’s arrest.

The District Council also recently experienced its own change in leadership. In February 2018, president Steve McInnis stepped down due to accusations of misconduct, which unrelated lawsuits against the union have alleged are tied to sexual harassment. Earlier this month, his replacement, Graham McHugh, stepped down, citing “mistakes” he made prior to becoming a leader at the District Council.

As the city’s construction unions have grappled with the rise of nonunion competitors, the District Council has been viewed as one of the first unions to work closely with developers to reach compromises on costs. For example, the union inked a deal with Related Companies for work at Hudson Yards long before the Building and Construction Trades Council was able to find common ground with the developer.

source https://therealdeal.com/2019/06/28/carpenters-union-rocked-by-bribery-scandal-could-face-international-takeover/

This Hamptons broker just sold his own mansion for eight figures

Lisa and Michael Schultz; 1438 Ocean Boulevard in Palm Beach (Credit: Getty Images/Realtor.com)

Earlier this week, East Hampton-based Corcoran Group agent Michael Schultz and his wife, Lisa, made headlines with the $11.5 million sale of their Palm Beach estate, a 6,328-square-foot home the couple bought in 2005 for less than half its sales price.

A former Urban Outfitters executive who transitioned to a real estate career as a quasi-hobby after reading the property section of the East Hampton Star, Schultz has become a seasoned luxury broker. His most expensive current listing is a $35 million mansion in Bridgehampton that belongs to the family of former President John F. Kennedy, and Schultz himself has bought and sold properties in luxury markets across the country.

Schultz declined to discuss the recent sale of his former nine-bedroom, eight-bathroom home in pricey Palm Beach, where he has owned multiple homes, but he did note it was an off-market deal that he did not have the listing on. He would not reveal the broker.

The Real Deal caught up with Schultz, who has buying experience in other luxury markets, like Telluride, Colorado, to chat about slumping high-end home sales on Long Island’s affluent East End.

What’s the state of the Hamptons market right now?
Consumers are aware that the market is soft, but it’s softer in certain areas, moreso than others. People read in the newspapers that the Hamptons aren’t doing well, but it’s talked about in a blanketed way and it’s not necessarily specified where. In particular, the premium market is what’s doing poorly. But it’s actually good for us — when the market is at a low, it brings buyers back out here.

How do the Hamptons compare to other U.S. luxury markets?
Our taxes are lower. In the Hamptons, you could be living in a $9 million, $10 million house, but have taxes that are maybe $20,000 to $25,000. That’s nothing compared to the suburbs of New York City. I know someone who just sold his mother’s house in Scarsdale and is paying $100,000 for a house that sold for $2.4 million. In Florida, residents don’t pay any state tax. 

Do you think East End residential will rebound?
I do believe in the Hamptons market. I believe people love being here. We have the ocean, good food and fun activities — and there’s a real natural beauty here. There are a lot of reasons to be out here. 

What kind of advice do you have for young brokers trying to break into the business?
It’s much harder work than people think. I think it’s become sort of a glamorous job, even though when you’re doing it it doesn’t seem so glamorous. It’s hard to break into, but people have done it by being a young disruptor. It’s a lot of hard work, but it’s also a lot of skills — it’s about how you present yourself and how you market your properties. 

All interviews have been condensed and edited for style and clarity.

source https://therealdeal.com/tristate/2019/06/28/this-hamptons-broker-just-sold-his-own-mansion-for-eight-figures/#new_tab

The Flatiron Building is getting an $80M upgrade

GFP Real Estate principal Jane Gural-Senders and the Flatiron Building at  175 5th Avenue (Credit: Pixabay)

The Flatiron Building is getting a facelift as it seeks a new anchor tenant.

Owners GFP Real Estate and the Sorgente Group are planning to spend between $60 million and $80 million to upgrade the 117-year old landmark, the New York Times reported.

Work crews will arrive soon to install central air conditioning and heating systems, a new sprinkler system, a second staircase, an upgraded elevator system and a renovated lobby. They’ll also tear out dropped ceilings and sheet rock partitions as the building seeks to lure a single tenant to replace Macmillan Publishers, which moved into the Equitable Building earlier in June.

CBRE’s Mary Ann Tighe is marketing the property.

The work will likely take about a year to complete.

Tighe hopes to be able to start showing some of the floors to potential tenants by Labor Day, and the owners of the building say they have already gotten some offers from co-working firms and that a major tech company has toured the building as well.

Knotel was reportedly close to a deal to lease the building early in 2019, but this never came to fruition.

The neighborhood has become popular for tech companies in recent years, and rents in the area go for an average of more than $80 per square foot. However, the owners are more interested in finding the right tenant for the building than they are in finding the tenant who can pay them the most money.

“People want it, but who’s going to be the best?” GFP Real Estate executive director Jane Gural-Senders told the Times. “You want something that’s going to bring greatness.” [NYT] – Eddie Small

source https://therealdeal.com/2019/06/28/the-flatiron-building-is-getting-an-80m-upgrade/

Jersey City mayor’s ally is subject of grand jury inquiry into tax evasion

Jersey City Mayor Steve Fulop (Credit: Getty Images)

The arrival of Steve Fulop was a welcome sign to New Jersey developers and construction companies.

The Jersey City mayor has overseen the reinvention of the city’s once dilapidated business district, which has given way to skyscrapers.

But as the city has risen, an associate of the mayor responsible for expediting building and construction permits is now at the center of a federal tax evasion investigation, Bloomberg reports.

Tom Bertoli could now face criminal charges as part of a grand jury inquiry after prosecutors learned he had not filed tax returns on payments exceeding millions of dollars over the past decade. Bertoli is known as a conduit between many developers and Fulop, and has helped expedite building permits.

As part of the probe, multiple potential conflicts of interest for Fulop have arisen, including campaign donations, personal home loans for a planned beach house in Narragansett, Rhode Island, and tax assessments.

“The mayor’s only consideration is what is best for Jersey City’s residents and taxpayers based on market and economic conditions,” a spokesperson for Fulop’s office said in a statement to Bloomberg.

One developer that has worked with Bertoli is the Charles Kushner-led Kushner Companies, which used him for its Trump Bay Street project. The New York-based company also gave tens of thousands of dollars to Fulop’s exploratory campaign for governor as it sought permits for another development, the outlet reported.

But Fulop’s office last year denied tax abatements sought by Kushner’s firm, leading to a falling out between the two.

Other developers who have hired Bertoli and donated to Fulop’s campaigns include Mack-Cali Realty, Ironstate Development and Dixon Advisory Services. [Bloomberg] — David Jeans 

source https://therealdeal.com/2019/06/28/jersey-city-mayors-ally-is-subject-of-grand-jury-inquiry-into-tax-evasion/