Construction poised to resume, city considers hazard pay for essential workers

In two weeks, nonessential construction is expected to restart in parts of New York. But before Gov. Andrew Cuomo lifts his state of emergency order, the City Council wants to ensure essential workers — including those working on construction sites — receive hazard pay. A bill, sponsored by Councilmember Laurie Cumbo, would require essential businesses with more than 100 employees to give hourly workers an extra $30 to $75 per shift during the pandemic. Many

source https://therealdeal.com/2020/04/30/construction-poised-to-resume-city-considers-hazard-pay-for-essential-workers/

Extell announces Covid-inspired price cuts at One Manhattan Square

Extell Development, a leader in setting the bar for luxury prices, is offering discounts of up to 20 percent on all remaining units at its One Manhattan Square condominium. In a statement Thursday, the New York developer said the decision to slash prices was made “in response to global conditions related to COVID-19.” It’s the latest in a series of offers designed to spur sales at the 815-unit tower, which was grappling with a soft

source https://therealdeal.com/2020/04/30/extell-announces-covid-inspired-price-cuts-at-one-manhattan-square/

Sapir gets PPP loan for NYC hotel; Rotem Rosen to return his

Alex Sapir’s Sapir Corp is the latest New York City hotel owner set to land a Paycheck Protection Program loan. And in completely unrelated news, his former brother-in-law and business partner Rotem Rosen has decided to give his PPP money back. Sapir applied for the $2.9 million loan in mid-April for the NoMo Soho hotel at 9 Crosby Street and was notified of Small Business Association approval by the lender processing it, the company disclosed

source https://therealdeal.com/2020/04/30/sapir-gets-ppp-loan-for-nyc-hotel-rotem-rosen-to-return-his/

Paramount Group plans virtual showings to fill huge Barclays space

With Barclays’ 500,000-square-foot lease at 1301 Sixth Avenue set to expire at the end of this year, landlord Paramount Group had set a goal of pre-leasing half of the investment bank’s space in 2020. The coronavirus pandemic is complicating those plans, as leasing activity in Manhattan has come to a halt. But the firm is finding ways to keep potential tenants interested. The original year-end leasing goal, “which was a tall order in itself pre-Covid-19,

source https://therealdeal.com/2020/04/30/paramount-group-plans-virtual-showings-to-fill-huge-barclays-space/

Macy’s prepares to unlock the doors

In the latest sign of a post-coronavirus retail world, Macy’s will reopen all its 775 locations by the end of June. The company will begin on Monday with 68 stores in Georgia, South Carolina, Tennessee and Texas, according to the New York Times. CEO Jeff Gennette said in a presentation that the retailer expects to only bring in about 20 percent of its typical business at its stores, and “slowly build” from there, according to

source https://therealdeal.com/2020/04/30/macys-plan-to-reopen-all-its-stores-comes-as-states-begin-unlocking-doors/

Rent freeze is looking more likely

A rent freeze for most rent-stabilized tenants is looking more likely after one of the two landlord representatives on the Rent Guidelines Board said Thursday that she can see the logic of no increase for one-year leases. Two-year leases, however, are another story. Patti Stone, an attorney with Rosenberg & Estis, said she “can understand the position that it should be zero for a year.” But she said banning increases for two-year leases for rent-stabilized

source https://therealdeal.com/2020/04/30/rent-freeze-is-looking-more-likely/

Investors who shorted malls stand to make out big

The coronavirus pandemic may be the final nail in the coffin for some retailers and shopping malls. For certain investors, that’s a good thing. Those who shorted the mall-heavy CMBX 6 index are seeing their bets pay off faster than they thought as tenants come up short on rent and mall owners miss mortgage payments, according to Bloomberg. MP Securitized Credit Partners is among the investment firms that bet the index would lose value. The

source https://therealdeal.com/2020/04/30/investors-who-shorted-malls-stand-to-make-out-big/

Rent strike targets landlords who can “take the hit”

Tenant groups in New York City say the rent strike they have been planning will target specific landlords. Building owners to be targeted include Douglas Eisenberg’s A&E Real Estate Management, Stephen Ross’ Related Companies, Ken Subraj’s Zara Realty, Charles Kushner’s Kushner Companies, Efstathios Valiotis’ Alma Realty, Isaac Kassirer’s Emerald Equity Group, Mordechai Schwimmer’s Full Time Management and Daniel Benedict’s Benedict Realty Group, a real estate investment firm based in Great Neck. None of the firms

source https://therealdeal.com/2020/04/30/rent-strike-targets-landlords-who-can-take-the-hit/

Hotel occupancy rises as essential workers, homeless fill rooms

The hotel market is improving across the country but that comes with a caveat. The uptick is likely a result of coronavirus-related response measures cities have undertaken throughout the U.S. Nationally, hotel occupancy inched up to 26 percent for the week ending April 25, from about 23 percent the week before, according to data from hospitality research firm STR. New York City occupancy rate climbed to 41 percent, according to STR. While that is still

source https://therealdeal.com/2020/04/30/hotel-occupancy-rises-as-essential-workers-homeless-fill-rooms/

TRD Insights: Every resi deal in NYC last week

Residential transactions were up last week for the first time since the beginning of April. The five boroughs had $495 million in residential sales for the week ending April 24, up 12.3 percent from the week prior. The 351 transactions represented a nearly 18 percent increase from the 298 recorded the week before. NYC’s Residential Sales Last Week SOURCE: TRD analysis of Department of Finance records For the second week in a row, the most

source https://therealdeal.com/2020/04/30/trd-insights-every-resi-deal-in-nyc-last-week/

Retailer Hudson’s Bay pink-slips 500 NYC employees

Hudson’s Bay Company, the owner of Saks Fifth Avenue, will lay off 507 New York-based employees due to the coronavirus. The layoffs are temporary, and most employees will be laid off between April 21 and May 4, according to a notice filed with the New York State Department of Labor. Hudson’s Bay, a Canadian-based firm that was founded in 1670 and bills itself as the oldest company in North America, is the parent company for

source https://therealdeal.com/2020/04/30/retailer-hudsons-bay-pink-slips-500-nyc-employees/

Smart-kitchen startup Kitopi lays off 124 NYC employees

Kitopi, a startup that provides kitchen and delivery services to restaurants, has laid off 124 employees in New York — just months after raising $60 million to expand its U.S. operations. In a notice published with the state this week, the company blamed “unforeseeable business circumstances” caused by the coronavirus for its decision to cut staff. A spokesperson told Commercial Observer the company had taken “measures to ensure the overall sustainability of our business,” adding

source https://therealdeal.com/2020/04/30/smart-kitchen-startup-kitopi-lays-off-124-nyc-employees/

High-end home listings down but not out — and searches are up

 Wealthy sellers are continuing to list their properties, and brokers are making the most of a captive audience. To sweeten high-end virtual tours, at least one Los Angeles brokerage is sending attendees boutique gift packets to accompany their experience, bringing them as close to the atmosphere as they can get, according to the Wall Street Journal. Since the coronavirus outbreak, many sellers have pulled their listings, blaming economic uncertainty and restrictions on in-person home showings.

source https://therealdeal.com/2020/04/30/high-end-home-listings-down-but-not-out-and-searches-are-up/

SoftBank anticipates $6.6B loss on WeWork investment

SoftBank’s bet on WeWork is causing more pain for the conglomerate. The group said this week that it is expecting a $6.6 billion loss for the year ending March on a portion of its investment in WeWork held outside SoftBank’s Vision Fund. The announcement comes two weeks after SoftBank told investors that its annual operating losses would reach a record 1.35 trillion yen ($12.6 billion), and at a time when WeWork is struggling to navigate

source https://therealdeal.com/2020/04/30/softbank-anticipates-6-6b-loss-on-wework-investment/

SL Green continues to unload assets to create cash buffer

SL Green Realty is seeking bids for its largest loan yet as the company looks to raise a large cash buffer against the economic downturn. The real estate investment trust is offering the $110 million loan it provided Nightingale Properties and Wafra Capital Partners earlier this year to finance their purchase of the 1 million-square-foot office tower at 111 Wall Street in the FInancial District, sources told The Real Deal. The 6 percent fixed-rate loan

source https://therealdeal.com/2020/04/30/sl-green-continues-to-unload-assets-to-create-cash-buffer/

Senator: Suspend property taxes until next year

State Sen. David Carlucci is pushing for a bill to suspend property tax deadlines until the end of the year. He said in a press release that the intention of his bill is to kill the quarterly payment deadlines for county, town, village and school property taxes statewide through Dec. 31. But, as written, the bill only allows payments that were due April 15 to be deferred interest-free, according to attorney Benjamin Williams at Rosenberg

source https://therealdeal.com/2020/04/30/senator-suspend-property-taxes-until-dec-31/

Real estate is waking up to pandemic insurance. But is it too late?

Hotel owners nationwide have likely deployed teams of lawyers to scour their insurance policies, hoping to find a clause that covers a portion of the monumental damages inflicted as a result of Covid-19. Most of them have been sorely disappointed. But a very small number may be holding a trump card. In New York City, Rotem Rosen’s Hotel Indigo Lower East Side appears to be one of the lucky ones, or one of the more

source https://therealdeal.com/2020/04/30/real-estate-is-waking-up-to-pandemic-insurance-but-is-it-too-late/

Pandemic pay cuts: Analysis shows real estate CEOs aren’t giving up much

Marriott International’s business was already down 75 percent by March 19, when the hotel chain’s CEO Arne Sorenson posted a somber update. With his industry pummeled by the coronavirus pandemic, Sorenson spoke of the need to cut staff and said he would forgo a paycheck for the rest of the year. He’s not alone. As companies across the real estate industry lay off and furlough workers, many leaders have said they’ll share the pain by

source https://therealdeal.com/2020/04/30/ceos-take-pay-cuts-but-are-they-really-sharing-your-pain/

Lawsuit against TPG trust could be an omen for CRE finance

 A mortgage lender sponsored by investment giant TPG stopped funding a loan to a New York-based developer due to liquidity strains caused by the coronavirus pandemic, according to a new lawsuit that could be a sign of where commercial real estate finance is headed. Somera Road, a New York-based developer, alleges TPG RE Finance failed to advance $4 million in funds on a $60.2 million loan to buy and redevelop a distressed office building in

source https://therealdeal.com/2020/04/30/lawsuit-against-tpg-trust-could-be-an-omen-in-cre-finance/

City stops some projects after audit finds cheating

After greenlighting thousands of construction projects as essential, the city’s Department of Buildings has revoked approvals for some. In an email to owners viewed by The Real Deal, the agency indicated that it audited work that purportedly supported essential businesses or involved a single person. At some sites auditors found more than what was permitted by state rules enacted to curb coronavirus cases. “A number exceeded what was allowed for in the guidance,” the agency

source https://therealdeal.com/2020/04/29/city-stops-some-projects-after-audit-finds-cheating/

A game-changer for restaurants and retailers? Maybe, if it’s legal

A City Council bill could shield restaurants, retailers and other business owners from certain legal action if they violate their leases — but it might not be constitutional. The measure, introduced by Manhattan Democrat Carlina Rivera, seeks to bar enforcement of personal liability provisions in commercial leases or rental agreements through at least September 2020 in cases where a tenant affected by Covid-19 defaults. Under the bill, attempting to enforce such provisions would be considered

source https://therealdeal.com/2020/04/29/a-game-changer-for-restaurants-and-retailers-maybe-if-its-legal/

Introducing TRD Connect: The new normal for networking

Power lunches at Cipriani may now be a distant memory, but social distancing won’t kill networking. It’s just a new beginning. That’s why we’re introducing TRD Connect, The Real Deal’s series of virtual networking events. Soon, real estate professionals will be able to make connections in small groups and one-on-ones through TRD Connect. The industry’s top brass will be joining these virtual networking sessions, and participants will be able to indicate in advance who they’d like

source https://therealdeal.com/2020/04/29/introducing-trd-connect-the-new-normal-for-networking/

Past the pandemic: Rockefeller family pitches global luxury development projects

It may seem like a bad time to pitch a series of luxury lifestyle development projects around the world. But SixRock Group — a Rockefeller family-led real estate services firm — believes the global coronavirus crisis has created opportunity for low-cost land and construction deals. It has partnered with Miami-based Brands Lab International to make a push into high-end, branded real estate, The Real Deal has learned. SixRock Group, whose principals include Steven Rockefeller Jr.

source https://therealdeal.com/2020/04/29/past-the-pandemic-rockefeller-family-pitches-global-luxury-development-projects/

Fed “not in any hurry” to raise interest rates: Powell

The Federal Reserve won’t push up interest rates any time soon, the central bank’s chairman said Wednesday as the U.S. economy shrank the most in over a decade. The Fed’s Federal Open Markets Committee said it was keeping the range of its benchmark interest rate between 0 percent and 0.25 percent after slashing rates twice in recent weeks as part of sweeping measures to contain the economic fallout of Covid-19. “The committee expects to maintain

source https://therealdeal.com/2020/04/29/fed-not-in-any-hurry-to-raise-interest-rates-powell/

One of NYC’s top multifamily lenders says 25% of portfolio is in deferral

New York Community Bank announced that a quarter of its $31.3 billion multifamily loan portfolio is currently in deferral, but rent collections were better than expected. The bank reported net income of $92.1 million for common shareholders in the first quarter, up 3 percent year over year and down 1 percent from the fourth quarter of 2019. Its president, Joseph Ficalora, assured its investors on a Wednesday earnings call that its multifamily borrowers have not

source https://therealdeal.com/2020/04/29/one-of-nycs-top-multifamily-lenders-says-25-of-portfolio-is-in-deferral/