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October 2019

October 2019 » Market Analysis » NY New Developments

October 2019 New York New Developments


Major Developments:

WeWork is pulled its public offering.

Neumann’s was removed as CEO from Wework. The reported value plummeted at least two-thirds from its once $47 billion. 20 people aligned with the former CEO Adam Neumann are leaving the company.WeWork’s parent company bought 14 venture-backed startups since 2014. The We Company is now trying to shed some of those acquisitions, many of which were purchased with stocks leaving some investors feeling stuck.

Banks seek to revise Adam Neumann’s $500 million credit line. Following a cool reception from investors over his company’s valuation, lenders are looking to revise the terms of the WeWork CEO’s credit line of which he’s drawn $380 million from.

The Durst organization will offer spaces of 2,500 to 25,000 square feet in the mid- to high $80s psf, The spaces will be move-in ready, pre-furnished and wired at 675 Third Avenue, 1 WTC, 114 West 47th Street, 1155 Sixth Avenue and 733 Third Avenue. Lease terms range from six months to 15 years.

Facebook is in talks to lease all 740,000 square feet of office space at Vornado Realty Trust’s redevelopment of the landmark Midtown post office building. Other tech giants like Amazon and Google are also looking to increase their presence in the city.

The New York City Council approved a bill that broadens the definition of commercial tenant harassment and hikes the fines against landlords to as much as $50,000. The fines currently run from $1,000 to $10,000.

Normandy and Invesco got a $200 million refinancing for 888 Broadway. The five-year floating-rate loan for the office building came from TPG Real Estate Finance Trust. The office property comprises a pair of interconnected buildings at 888 Broadway and 38 East 19th Street.

The renovation of Apple’s New York flagship store is complete in the General Motors Building. It is now nearly double its previous size and has a stainless steel spiral staircase. The outdoor plaza has been landscaped.

Kitchen United plans to use that Series B funding round to expand ghost kitchens in New York. The company plans to open kitchens in some of RXR-owned properties. Remote or virtual kitchens provide shared spaces that are rented to pickup and delivery exclusive “restaurants,” with no physical dining space.

The Collective filed plans for a 150-unit co-living project at the vacant site of the historic Slave Theater. The project, at 1215 Fulton Street in Bedford-Stuyvesant, will span about 239,000 square feet and be 10 stories tall. It could open in early 2022. The Collective purchased the site in March for $32.5 million and plans to construct a co-living building at the property.

Uber is reportedly taking seven floors at 3 World Trade Center. Uber, went public in May in a disappointing $82 billion stock offering. Uber will combine several offices it has in the area. The space at 3 WTC spans 308,000 square feet, and the deal would give the option to expand onto the eighth floor, bringing its total square footage to about 350,000.

Thor Equities is facing eviction at 545 Madison if the owner, Marx Realty, is successful in its bid to evict the firm.

Old Navy is getting bigger and is planning to open 800 new stores over an unspecified period as it prepares to split with Gap, its parent company. Old Navy has been outperforming its sister companies, Gap and Banana Republic.

Disney is building a new office building at 310 Hudson Street and will span 851,000 square feet with “East” and “West” towers. The overall structure will stand 19 stories and 281 feet tall. Disney in 2018 paid $650 million for the development site, which will contain its new headquarters including production space for “The View” and ABC news.

Silverback Development is planning a 13-story condo project at 359 Second Avenue in Gramercy Park. The project will span about 90,000 square feet and include residential, commercial and community space. It will include 53 units and have a $150 million sellout.

Silverstein Properties and Brookfield Properties are in talks to co-develop 5 WTC. The two firms will go against other real estate firms including Durst Organization, Tishman Speyer and Vornado Realty Trust in bids for the last remaining World Trade Center lot, which can accommodate 1.3 million square feet of development.

Brookfield landed $184 million refinance for the future home of Whole Foods and Peloton. M&T Bank provided the financing for the Manhattan West retail condo. A 60,000-square foot Whole Foods is set to open there next year, as is a 26,000-square-foot Peloton.
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