More major retailers furlough employees, withhold rent

The retail bloodbath continued Tuesday as more major chain retailers said they would furlough employees, suspend rent and institute executive-level pay cuts to get through the coronavirus crisis. The parent company of Urban Outfitters, for instance, said in a Securities and Exchange Commission filing that it was furloughing a “substantial number of store, wholesale and home office employees” for two months while continuing to provide benefits. “This is the first time in our 50-year history

source https://therealdeal.com/2020/03/31/more-major-retailers-furlough-employees-withhold-rent/

David and Victoria Beckham buy condo at One Thousand Museum

David and Victoria Beckham paid about $24 million for a full-floor unit at the Zaha Hadid-designed One Thousand Museum condo tower in downtown Miami. Beckham Brand Limited, David Beckham’s partnership and licensing company, closed on the 10,000-square-foot unit this week. Throughout South Florida, closings are being pushed back or canceled due to the global health crisis, brokers say. The Beckhams had toured the 62-story, 84-unit tower at 1000 Biscayne Boulevard last summer. The retired soccer

source https://therealdeal.com/2020/03/31/david-and-victoria-beckham-buy-condo-at-one-thousand-museum/

Manhattan resi listings continue nosedive: report

The first full week of New York’s stay-home policy saw a massive drop in new residential listings in Manhattan. An analysis by data firm UrbanDigs compared new listings, contract signings and withdrawals of homes from the market in the fourth week of March in Manhattan to the same period in 2019. The results show steep declines in residences going into contract and listing inventory, while the pace of de-listings rose. The report found only 63

source https://therealdeal.com/2020/03/31/manhattan-resi-listings-continue-nosedive-report/

Home lending in the time of corona: “Underwriting is really difficult right now”

How do you underwrite a home mortgage when the economy is in flux and everyone is forced to stay indoors? Alan Rosenbaum, CEO and founder of GuardHill Financial Corp.; Ace Watanasuparp, senior vice president and national director of strategic sales at Citizens Bank; and Mark Favaloro, president of the New York Association of Mortgage Brokers joined editor James Kleimann for a TRD Talks Live discussion Monday, where the panelists addressed the challenges — and bright

source https://therealdeal.com/2020/03/31/home-lending-in-the-time-of-corona-underwriting-is-really-difficult-right-now/

Retail rout continues as Simon furloughs a third of employees

 Simon Property Group, the nation’s largest mall owner, is furloughing 30 percent of its workforce, the latest in a wave of coronavirus-related layoffs and furloughs in the battered retail industry. Among those furloughed are employees at Simon’s Indianapolis headquarters and at malls and outlet centers across the country, according to CNBC, which first reported the news. The company, which on March 18 announced it would be temporarily closing all its mall properties, also permanently laid

source https://therealdeal.com/2020/03/31/retail-rout-continues-as-simon-furloughs-a-third-of-employees/

Judge OKs $42M settlement by LeFrak, Battery Park City tenants

A judge has approved the roughly $42 million settlement between the LeFrak Organization and tenants at a Battery Park City complex. New York State Supreme Court Judge Melissa A. Crane signed off on the settlement Sunday, determining that it was “fair, reasonable and adequate,” according to court documents. The class-action suit, filed in 2014, accused a LeFrak-controlled entity of neglecting heating repairs at Gateway Plaza, a six-building, 1,712-apartment residential complex in Lower Manhattan. LeFrak had

source https://therealdeal.com/2020/03/31/judge-oks-42m-settlement-by-lefrak-battery-park-city-tenants/

Airbnb announces relief package. Some hosts say it’s not enough

Once again, Airbnb is in damage control. After facing backlash from hosts for changing its cancellation policy in response to Covid-19 — offering guests full refunds without penalties — the startup’s CEO has announced a relief package and issued an apology. “I’m sorry that we communicated this decision to guests without consulting you—like partners should,” Brian Chesky said in an open letter to hosts. The company has established a $10 million relief fund for “superhosts”

source https://therealdeal.com/2020/03/31/airbnb-announces-relief-package-some-hosts-say-its-not-enough/

Ginnie Mae to use natural disaster program to help struggling mortgage servicers

Nonbank mortgage lenders, who are bracing for a massive cash crunch as borrowers across the country seek loan forbearance because of the coronavirus crisis, are set to get some relief thanks to a government program reserved for natural disasters. Ginnie Mae, an agency within the Department of Housing and Urban Development that guarantees more than $2 trillion worth of mortgage-backed securities, plans to implement a pass-through assistance program through which it will advance principal and

source https://therealdeal.com/2020/03/31/ginnie-mae-to-use-natural-disaster-program-to-help-struggling-mortgage-servicers/

US Open complex, more NYC hotels to be converted into hospitals

As it continues to search for real estate that can be converted to medical facilities to ease the burden on hospitals caused by coronavirus, the city is set to lease thousands of hotel rooms — and in some cases, entire hotels. City, state and federal authorities are working to rent hotel rooms to serve as non-intensive care facilities for Covid-19 patients and others, Mayor Bill de Blasio said Monday. The mayor discussed the conversion process

source https://therealdeal.com/2020/03/31/us-open-complex-more-nyc-hotels-to-be-converted-into-hospitals/

John Legend, Chrissy Teigen snap up another Nolita penthouse

John Legend and Chrissy Teigen have scooped up a second penthouse in their Nolita building. The celeb pair dropped $7.7 million for another penthouse at the Brewster Carriage House, property records filed Tuesday with the city show. The couple had previously shelled out just over $9 million for another penthouse in the building, where at one point they owned a one-bedroom apartment. The attorney who served as Teigen and Legend’s agent did not immediately respond

source https://therealdeal.com/2020/03/31/john-legend-chrissy-teigen-snap-up-another-nolita-penthouse/

Closing in the time of Covid-19: “We’re pulling out all the stops”

Closing in the time of coronavirus is onerous but not impossible. Developers are agreeing to a variety of contingencies, attorneys are personally ferrying dossiers between parties, and staid institutions including banks and co-operatives are being surprisingly flexible. “I’ve become a $650 [per hour] messenger, but, you know, whatever it takes to get it done we’re trying to do,” said Jeffrey Schwartz, managing partner and head of the real estate practice at Schwartz Sladkus Reich Greenberg

source https://therealdeal.com/2020/03/31/closing-in-the-time-of-covid-19-were-pulling-out-all-the-stops/

Homeland Security says real estate is “essential business”

As the real estate industry remains split on whether the services it provides are “essential” during a pandemic, one federal agency has weighed in with an emphatic “yes.” Workers in both residential and commercial real estate, including settlement services and government workers who facilitate mortgage and real estate deals, were included in a “Essential Critical Infrastructure Workforce” advisory list released Saturday by the Department of Homeland Security’s Cybersecurity and Infrastructure Security Agency, Inman reported. “This

source https://therealdeal.com/2020/03/31/homeland-security-says-real-estate-is-essential-business/

WATCH: Developer Sharif El-Gamal on his Covid-19 diagnosis and what’s next for New York real estate

Sharif El-Gamal is one of the lucky ones. The founder and CEO of Soho Properties, developer of 560 Seventh Avenue in Times Square and 45 Park Place in Tribeca, has tested positive for Covid-19, he said in an interview with The Real Deal Monday. But he’s making a full recovery, and is aware that many in his hometown are facing a very different reality. “I’m almost 100 percent better. I’m one of the blessed people

source https://therealdeal.com/2020/03/31/watch-developer-sharif-el-gamal-on-his-covid-19-diagnosis-and-whats-next-for-new-york-real-estate/

“It’s scary:” Landlords praying tenants pay April rent

For the first time during the coronavirus crisis, Gov. Andrew Cuomo acknowledged Monday that he does not intend to forgive the rent for cash-strapped tenants. The 90-day ban on evictions will suffice, the governor said. “You can’t be evicted for non-payment of rent, but it’s not that you won’t owe rent. You signed a contract,” Cuomo said. “Even the people to whom you have to pay rent have to pay rent. They have bills to

source https://therealdeal.com/2020/03/31/its-scary-landlords-praying-tenants-pay-april-rent/

Pricey listings including UES townhouse, Central Park Tower condos go live

The week after Gov. Andrew Cuomo ordered real estate brokers to stay home, some were still busy launching listings amid the pandemic. In fact, last week’s new-to-market properties are pricier than the previous week’s. The total value of the most expensive new listings to come online last week was just over $108 million, compared to the prior week’s total of $62 million. Three of the five priciest listings are at Extell Development’s Central Park Tower.

source https://therealdeal.com/2020/03/31/pricey-listings-including-ues-townhouse-central-park-tower-condos-go-live/

Long Island’s biggest landlord gets even bigger

In a nearly half-billion-dollar deal, Fairfield Properties, owned and led by the Broxmeyer family, acquired a seven-property portfolio with 1,496 units last year, further cementing the firm’s stature as the island’s largest residential landlord. The 40-year-old Melville-based firm closed on the $472.5 million sale of Home Properties, owned by Lone Star Funds, making it by far the largest multifamily transaction on the island last year. “It goes to our business model and strategy,” Gary Broxmeyer,

source https://therealdeal.com/2020/03/31/long-islands-biggest-landlord-gets-even-bigger/

Stimulus gives brokers lifeline, but may not be enough for deluge of unemployed

Real estate brokers are generally in the eat-what-you-kill business, working as independent contractors whose main source of income is a commission check rather than a salary. In New York City alone, there are more than 50,000 licensed real estate brokers, a majority of whom get paid only when they close a deal. In past crises, those workers were usually left out of government bailouts designed to assist companies keeping employees on the payroll. Now, the

source https://therealdeal.com/2020/03/31/stimulus-gives-brokers-lifeline-but-may-not-be-enough-for-deluge-of-unemployed/

City may approve other types of construction as essential

The city may determine that other types of construction should count as essential. In guidance issued by the Department of Buildings on Monday, the agency stated that in addition to utilities, health care facilities, homeless shelters and affordable housing, “other essential construction as approved by the Department” would be exempt from the state’s “New York on Pause” order. Until at least April 15, employees of all non-essential businesses are prohibited from reporting to work. Initially,

source https://therealdeal.com/2020/03/30/city-may-approve-other-types-of-construction-as-essential/

Four Seasons, 204 layoffs, as businesses hemorrhage jobs

The Four Seasons Hotel in Downtown Manhattan is the latest casualty of the coronavirus pandemic. Located at Silverstein Properties’ 30 Park Place, the luxe hotel is closed until further notice, according to its website. It plans to lay off 204 workers, a notice filed with the state’s Department of Labor says. On its website, the Four Seasons said it will not take reservations until at least April 21 “out of an abundance of caution related

source https://therealdeal.com/2020/03/30/four-seasons-204-layoffs-as-businesses-hemorrhage-jobs/

Jeff Bezos pulls out of $90M deal for Beverly Crest’s “Enchanted Hill” property

In this time of crisis and economic turmoil, even the world’s richest man seems to be cutting back on expensive purchases. Amazon CEO Jeff Bezos has pulled out of a deal to buy the late Paul Allen’s 120-acre “Enchanted Hill” property in Beverly Crest, according to the Los Angeles Times. Bezos and the managers of Allen’s estate were reportedly close to a $90 million deal for the semi-developed property last month. News of the supposedly

source https://therealdeal.com/2020/03/30/jeff-bezos-pulls-out-of-90m-deal-for-beverly-crests-enchanted-hill-property/

Meridian Capital hit with round of layoffs

Meridian Capital, the city’s most active debt brokerage, has decided to reduce “a small number” of support and back-office roles as the COVID-19 pandemic grinds the economy to a halt. “The unprecedented economic realities of this public health emergency have touched literally every sector of the economy,” read a statement Meridian provided to The Real Deal. “ Businesses on every level have a fiduciary responsibility to chart a course today that will ensure it can

source https://therealdeal.com/2020/03/30/meridian-capital-hit-with-round-of-layoffs/

Top I-sales brokers on what to do when there are no deals

Commercial real estate brokers need to transact the way a shark needs to swim. So what do some of the city’s top brokers think of a market that’s come to a virtual halt? “It feels like the last few weeks of August,” said Meridian Investment Sales’ David Schechtman, referring to the slow time of the year when most dealmakers are relaxing at their summer homes. “And it feels like it’s going to be this way

source https://therealdeal.com/2020/03/30/top-i-sales-brokers-on-what-to-do-when-there-are-no-deals/

“Kicking the can down the road”: Real estate industry says $2T relief plan doesn’t do enough

For much of the real estate industry, the $2 trillion stimulus package President Trump signed into law to bolster the economy doesn’t do enough. The plan offers limited relief to real estate, industry pros said, though the cash payments to individuals and a boost in unemployment insurance could help ease some economic pain for renters, and therefore for landlords and lenders. “It’s a beginning. We need more,” said Thomas Bannon, CEO of the California Apartment

source https://therealdeal.com/2020/03/30/kicking-the-can-down-the-road-real-estate-industry-says-2t-relief-plan-doesnt-do-enough/

EB-5 is back in the doghouse

EB-5 was left out of Congress’s $2 trillion federal stimulus package bill, crushing developers’ hopes of getting cheap financing as real estate deals come to a halt. The federal program that allows foreign investors the ability to obtain a U.S. green card in exchange for an investment in a U.S. business was not mentioned in the stimulus package that passed Congress on Friday. Politico previously reported that Congress was considering making changes to the EB-5

source https://therealdeal.com/2020/03/30/eb-5-is-back-in-the-doghouse/

Extell’s Israeli bonds put on downgrade watch

Another New York real estate developer is attracting concerned looks from the Israeli bond market, as the coronavirus epidemic has brought construction and sales in the city to a near halt. A week after Related Companies’ bonds were downgraded, Gary Barnett’s Extell Development saw its bonds given a negative projection by rating agency Midroog, according to a disclosure published Sunday on the Tel Aviv Stock Exchange. “The rating has been placed under credit review as

source https://therealdeal.com/2020/03/30/extells-israeli-bonds-put-on-downgrade-watch/