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June 2020

June 2020 » Market Analysis » NY New Developments

June 2020 New York New Developments

New York New Developments

Mayor Bill de Blasio signed into law a package of Covid-19 relief bills, including one that temporarily bars landlords from going after restaurants and store owners’ personal assets. Attempting to enforce such provisions constitutes harassment under the measure.

New York state’s coronavirus foreclosure ban does not apply to mezzanine loans. The last observation deck at the Chrysler Building closed in 1945 and will now be getting a new one. RFR Realty received unanimous approval from the Landmarks Preservation Commission for the new deck on the terraces that frame the 61st floor of the 77-floor tower. They will feature eight-foot-tall protective glass walls which would be virtually invisible from the ground.

Blackstone has said that it has already bought up $11 billion in the public equities market and liquid debt, across the firm and said it has $152 billion in dry powder that it can invest.

Hotel occupancy increased for the fifth week in a row. U.S. hotels saw nearly 11 million room nights during the week ending May 16, bringing occupancy up 2% from 32.4% the week prior. Still, occupancy was down roughly 54% from the same time last year.

Some lucky landlords have secured bailout funds through the federal government’s Paycheck Protection Program. Dozens of real estate companies have received tens of millions of dollars in PPP funds, by applying through related business arms, including property management or construction.

Construction and real estate groups are hammering out an agreement on how to reopen certain private construction sites once the state lifts its stay-at-home order in New York City.

A long-running Broadway rehearsal space at 250 West 54th Street is closing. The rehearsal space occupied the 20,000-square-foot duplex penthouse at 250 West 54th Street.

TPG RE Finance sold 49 separate commercial real estate debt securities investments, worth nearly $1 billion worth. TPG will not have sufficient liquidity to repay maturing debt balances of $432.2 million and meet its obligations as they become due to sustain operations through at least one year.

Ashkenazy Acquisition filed an involuntary Chapter 11 petition to force the 190-room Surrey Hotel at 20 East 76th Street into bankruptcy. The Ground lessor seeks to take advantage of a worldwide crisis as a means to take back the valuable ground lease. The bankruptcy court is the only available forum for relief at this time as the New York State courts are closed to commercial disputes.

Northwind Group is launching a big debt fund targeting special situation loans in the New York City area. The $220 million fund will make loans for acquisitions and construction, as well as bridge and condo-inventory loans. The fund will also provide rescue capital to sponsors and finance distressed assets, non-performing loans and other special situations.

Colony Capital has defaulted on $3.2 billion in loans backed by hotel and health care properties. The portfolio of 157 hospitality and health care-related properties accounted for three quarters of Colony’s real estate balance sheet.

Approximately 504,000 New Yorkers have undocumented immigration status and about one million New York households are home to at least one person with undocumented status.

Landlords will bring tenants to court, who will then have to demonstrate to landlords in court that they were impacted, and the court will either find [tenants] credible or not.

A business insurer’s position that it isn’t required to cover coronavirus-related losses is set to face a legal litmus test.

A lawsuit against CNA Financial’s in a Chicago federal court was filed by Vegas Image who owns a distributor of gambling-themed candy and toys. The company argues that its policy doesn’t explicitly rule out losses “from the spread of viruses.

RFR Realty is in talks to restructure the ground lease for the Chrysler Building. Rosen and Sigma Holding GmbH bought the landmark tower’s ground lease for $151 million from Tishman Speyer and an Abu Dhabi government fund last year. They paid Cooper Union, which owns the property, $32.5 million annually in ground rent, along with more than $23 million for what the property taxes would have been (as a nonprofit, Cooper Union does not pay taxes). Those charges are expected to jump to $67 million by 2029.

All Year Management’s $346 million multifamily portfolio sale of 73 multifamily buildings in Brooklyn and one in Queens appears to be in trouble. The buyer David Werner put a $15 million down payment. Marx Realty has been planning a $24 million overhaul of 545 Madison Avenue, planning to include features such as antimicrobial materials, thermal cameras, bacteria-fighting HVAC systems and contactless coffee machines.

Anbang Insurance Group’s sale of its U.S. hotel portfolio has fallen apart. The buyer, South Korea’s Mirae Asset Global Investments announced the termination of its $5.8 billion purchase contract for Anbang’s 15 hotels, accusing the Chinese insurer of breaching contract.

The top 10 largest projects totaled 2.6 million, compared to 1.9 million square feet for last month and 1.7 million square feet in February and 1.3 million square feet in January.

  1. Rockrose Development’s first large-scale project, at 180 Ashland Place, Brooklyn, will span about 418,000 square feet. It will be 47 stories with 609 apartments and ground floor retail.
  2. Extell Development filed plans for a low-rise office building spanning about 354,000 square feet on its East Harlem development site at 180 East 125th Street, Manhattan. The project has ground floor retail and about 41,000 square feet of community space.
  3. The Leser Group filed plans for a roughly 325,000-square-foot commercial building at 2440 Fulton Street, Brooklyn, for six stories. Abraham Leser acquired the development site in 2015 for $33 million.
  4. Park Tower Group is planning a roughly 344,000-square-foot residential building at 35 Commercial Street, Brooklyn. It will be 22 stories with 374 residential units.
  5. The New York City School Construction Authority is planning to build a new 308,000-square-foot school at 53-16 Northern Boulevard, Queens, with six stories.
  6. Royal Charter Properties is planning a 193,000-square-foot mixed-use property at 611 West 169th Street, Manhattan. It will be split between about 111,000 square feet of residential space, 74,000 square feet of community space and 9,000 square feet of commercial space. It will be 13 stories with 132 residential units and 62 parking spots.
  7. The city’s Department of Health filed plans for its new public health lab by the Harlem Hospital Center at 40 West 137th Street, Manhattan. It will span about 188,000 square feet and will be 10 stories tall. The city’s current lab is located at 455 First Avenue in Kips Bay.
  8. BFC Partners is planning a roughly 185,000-square-foot mixed-use project at 72 East 120th Street, Manhattan, split between about 181,000 square feet of residential space and 4,000 square feet of commercial space. The project will be 20 stories and it will include 110 parking spots and 218 residential units.
  9. Developer Peter Fine filed plans for a roughly 184,000-square-foot mixed-use project at 1016 Fox Street, the Bronx. The project will have 100,000 square feet of community space, 61,000 square feet of residential space and 23,000 square feet of commercial space. It will be 15 stories with 278 residential units.
  10. BFC Partners is planning a project at 77 East 118th Street, Manhattan, spanning about 172,000 square feet, split between 169,000 square feet of residential space and 3,000 square feet of commercial space. The project will be 20 stories and will include 202 residential units and 93 parking spots.
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