Deal between Senegal, New York City developers reached

November 30th, 2009    Posted in Apartments Brooklyn, Apartments New York, Manhattan Apartments News, New York Apartments, New York Real Estate News, News After filing a fiery suit against Senegalese government officials over a building sale gone awry, a pair of developers has dropped its complaint. New York City developers Hotel 44th St. LLC and East 46th Street Development Co. had filed suit against the government of the Republic of Senegal Nov. 9, alleging that the defendant had agreed to purchase a building at 227-235 East 44th Street between Second and Third avenues but had failed to make payments. The angrily-worded suit, which referred to Senegal as a "deadbeat," was meant to dissuade "anyone thinking of doing business with Senegal," the plaintiffs said. But, just nine days after the suit was filed, the Senegalese government and the developers reportedly renegotiated the price to $24 million, down from the initially-agreed upon figure of $27 million, and closed the deal. The developers subsequently dropped the suit. The site will be used for the Maison du Senegal, the African nation's mission to the United Nations.

Acrimonious deal between Senegal, NYC developers resolved

November 30th, 2009    Posted in Apartments Brooklyn, Apartments New York, Manhattan Apartments News, New York Apartments, New York Real Estate News, News After filing a fiery suit against Senegalese government officials over a building sale gone awry, a pair of developers has dropped its complaint. New York developers Hotel 44th St. LLC and East 46th Street Development Co. had filed suit against the government of the Republic of Senegal Nov. 9, alleging that the defendant had agreed to purchase a building at 227-235 East 44th Street between Second and Third avenues but had failed to make payments. The angrily-worded suit, which referred to Senegal as a "deadbeat," was meant to dissuade "anyone thinking of doing business with Senegal," the plaintiffs said. But, just nine days after the suit was filed, the Senegalese government and the developers reportedly renegotiated the price to $24 million, down from the initially-agreed upon figure of $27 million, and closed the deal. The developers subsequently dropped the suit. The site will be used for the Maison du Senegal, the African nation's mission to the United Nations.

Bloomberg pledges $5B in public works projects won’t be hindered by budget cuts

November 30th, 2009    Posted in Apartments Brooklyn, Apartments New York, Manhattan Apartments News, New York Apartments, New York Real Estate News, News
The city will invest more than $5 billion in public works projects even as the recession necessitates budget cuts elsewhere, Mayor Michael Bloomberg said yesterday in a broadcast on 1010 WINS News Radio. The projects, which he said would be made possible by agreements reached last week with the city's construction unions, are intended to create jobs and prevent labor strikes, saving $300 million in taxpayer funds over the next four years. "When there's a budget crunch, city governments all too often cut back on maintaining and upgrading essential infrastructure. That's what New York City did during the fiscal crisis of the 1970s -- and for years afterwards, we all paid a steep price in fixing bridges, sewers, and other facilities after they'd already broken down," Bloomberg said, citing the planned College Point Police Academy and renovations of public schools, and praising the recent court decision that gave Bruce Ratner's Atlantic Yards development the green light. TRD

7-Eleven slurps up hat store space, considers unconventional sites for expansion

November 30th, 2009    Posted in Apartments Brooklyn, Apartments New York, Manhattan Apartments News, New York Apartments, New York Real Estate News, News As Manhattan commercial rents plummet, one retailer still reaping the benefits is convenience store giant 7-Eleven, which last summer announced its planned expansion in the city. At a time when many chains are contracting, Dallas-based 7-Eleven is taking advantage of low entry costs and aggressively taking on Manhattan, where the company, which is currently operating six stores, plans to tack on an additional 100 locations over the next five years. The latest in its business conversion program will be at 535 Eighth Avenue at 36th Street, Margaret Chabris, a company spokesperson, told The Real Deal. The site is the former location of Arnold Hatters, one of the city's oldest hat stores, which went out of business last spring.

Four architectural firms unite to open a pop-up shop in the West Village, glut of hotel lounges have opened across the city … and more

November 30th, 2009    Posted in Apartments Brooklyn, Apartments New York, Manhattan Apartments News, New York Apartments, New York Real Estate News, News 1. Four architectural firms unite to open a pop-up store in the West Village [Crain’s]
2. Angry tenants at run-down Bronx buildings protest outside Dime Savings bank [NYDN]
3. Demolition worker at Deutsche Bank building cast aside after exposing controversial safety concerns [NYT]
4. Long-time storefronts in the Mitchell-Linden section of Queens may close to make room for rental development [Queens Crap]
5. New school will open in Jackson Heights [Queens Chronicle via Indie Journo]
6. Three NYC neighborhoods with an abundance of holiday gift stores [NY Mag]
7. Community Board 1 rejects plans for 800-unit Williamsburg apartment complex on water [Brooklyn Paper]
11. Landlords no longer offering discounts on rents as leasing activity picks up [Crain’s]
11. Hunter’s Point merchants looking to grow business in local greenmarket [Queens Uncovered]
13. Taking a look inside the soon-to-open Andaz Wall Street hotel [Hotel Chatter]
14. Glut of hotel lounges have opened across the city [Post]
15. Units at 75 Grand Avenue in Clinton Hill now available for sale [Brownstoner]
16. Editorials on Atlantic Yards [WSJ] and [NYDN]
17. The Carlton Group has begun marketing about $381 million worth of loans [GlobeSt]
18. Three downtown post offices will not be closing after politicians and residents protest [Downtown Express]
19. How the developer is marketing units at 311 East 11th Street [NYT]
20. Retired New York Giants player Michael Strahan selling Tribeca loft for $1.8 million [WSJ]

Four architectural firms unite to open a pop-up shop in the West Village … and more

November 30th, 2009    Posted in Apartments Brooklyn, Apartments New York, Manhattan Apartments News, New York Apartments, New York Real Estate News, News 1. Four architectural firms unite to open a pop-up store in the West Village [Crain’s]
2. Angry tenants at run-down Bronx buildings protest outside Dime Savings bank [NYDN]
3. Demolition worker at Deutsche Bank building cast aside after exposing controversial safety concerns [NYT]
4. Long-time storefronts in the Mitchell-Linden section of Queens may close to make room for rental development [Queens Crap]
5. New school will open in Jackson Heights [Queens Chronicle via Indie Journo]
6. Three NYC neighborhoods with an abundance of holiday gift stores [NY Mag]
7. Community Board 1 rejects plans for 800-unit Williamsburg apartment complex on water [Brooklyn Paper]
11. Landlords no longer offering discounts on rents as leasing activity picks up [Crain’s]
11. Hunter’s Point merchants looking to grow business in local greenmarket [Queens Uncovered]
13. Taking a look inside the soon-to-open Andaz Wall Street hotel [Hotel Chatter]
14. Glut of hotel lounges have opened across the city [Post]
15. Units at 75 Grand Avenue in Clinton Hill now available for sale [Brownstoner]
16. Editorials on Atlantic Yards [WSJ] and [NYDN]

Boymelgreen’s bank at risk of seizure, could mark first NY bank failure since crisis began

November 30th, 2009    Posted in Apartments Brooklyn, Apartments New York, Manhattan Apartments News, New York Apartments, New York Real Estate News, News The LibertyPointe Bank, whose chairman is troubled developer Shaya Boymelgreen, is in danger of being seized by regulators after failing to raise the $25 million ordered by the Federal Deposit Insurance Corporation. After issuing the New York-based bank a cease and desist order in July, reports showed that the bank's total risk-based capital ratio was only 3.7 percent as of Sept. 30, well below the minimum threshold of 8 percent for an “adequately capitalized” bank. On Oct. 20, the FDIC decided to give the bank 30 days to raise additional capital. However, the bank failed to raise the cash by the deadline and chief executive Meron Corn said it is “unclear what will happen next.” The failure of LibertyPointe Bank would be added to the list of difficulties recently encountered by Boymelgreen, who is also dealing with stalled downtown office building conversions and various lawsuits from lenders and creditors. Also, if LibertyPointe Bank goes under, it would be the first failure of a New York bank since the financial crisis started two years ago. [Crain's]

Times Square office buildings struggling

November 30th, 2009    Posted in Apartments Brooklyn, Apartments New York, Manhattan Apartments News, New York Apartments, New York Real Estate News, News Times Square office buildings, which saw tremendous growth before the real estate bust, are now struggling to maintain their clientele as companies flock to take advantage of steep rent discounts in more traditional -- and less congested -- Midtown locations further east. Besides its crowd control problem, Times Square buildings suffer from the wrong layout for this new real estate era, said David Goldstein, a tenant broker and executive vice president and director at Studley. “The area's biggest envelopes are raw space, where major build-outs are required. That's a tough sell these days, with so much prebuilt space on the market at [relatively] low prices,” Goldstein said. Meanwhile, the 1.1 million square feet at speculative office tower 11 Times Square, which is slated for completion early next year, is still tenant-less. It may join the ranks of the former New York Times building at 229 West 43rd Street, whose 767,000 square feet is also currently vacant. [Crain's]

Concerns abound over FHA overextension

November 30th, 2009    Posted in Apartments Brooklyn, Apartments New York, Manhattan Apartments News, New York Apartments, New York Real Estate News, News
As the Federal Housing Administration plays an increasingly central role in home loans -- approximately half of new home loans are insured by the group -- some industry experts are growing concerned that FHA is ill-equipped to handle the burden. Currently 5.5 million homes are insured under FHA, with 8.5 percent of those 90 days delinquent or in foreclosure. CBS via the Mess that Greenspan Made reported that the FHA has just 172 staff members to review applications and potential lenders. This, coupled with the massive number of loans FHA insures, has many industry experts concerned over its longevity.

Treasury Department announces permanent mod plan

November 30th, 2009    Posted in Apartments Brooklyn, Apartments New York, Manhattan Apartments News, New York Apartments, New York Real Estate News, News The Treasury Department and Department of Housing and Urban Development has announced a plan to help borrowers convert to permanent loan modifications. As expected, the announcement emphasized the importance of ushering borrowers currently in trial modifications into permanent modifications. Phyllis Caldwell, chief of the Treasury Department’s Homeownership Preservation Office, said in a press release that with the success of the trial modification program, agency officials will aim to augment the permanent modification plans. “We now must refocus our efforts on the conversion phase to ensure that borrowers and servicers know what their responsibilities are in converting trial modifications to permanent ones,” Caldwell said. The plan would involve applying more pressure on banks to convert trial modifications into permanent ones. It’s a task that has proved tricky -- while over 650,000 borrowers have qualified for trial modifications under the Treasury’s program Making Home Affordable only 375,000 of those are expected to transition to permanent modifications by the end of 2009. The Treasury plans to disclose how many permanent modifications each bank implements, according to Michael Barr, assistant secretary for financial institutions, a move intended to call out those banks that aren’t performing adequately. “We’re going to be quite focused and direct on particular institutions that are not doing a good job,” Barr said. “Some firms ought to be embarrassed, and they will be.” TRD

West Village rezoning proposal threatens Blaichman’s Perry Street hotel project

November 30th, 2009    Posted in Apartments Brooklyn, Apartments New York, Manhattan Apartments News, New York Apartments, New York Real Estate News, News The City Planning Commission is planning a proposal for an area within the Greenwich Village Historic District that would limit the height of any new construction and do away with a development bonus currently offered for commercial projects there, the city said last week. Last year, developer Charles Blaichman submitted plans for a new seven-and-a-half-story hotel at the corner of Perry and Washington streets, and the Landmarks Preservation Commission gave him the go-ahead. If City Planning's rezoning is passed before Blaichman breaks ground -- via a review and hearing by Community Board 2 and final approval by the City Council -- his hotel will have to be scrapped. As it stands, the six-block section, between Greenwich and Washington streets and West 10th and 12th streets, is a C6-1 zone, which means there is no height limit for new projects. The Commission's plan to change the area to a C1-6A district will be welcomed by the Greenwich Village Society of Historic Preservation and by Community Board 2. Both groups have lobbied for stricter zoning regulations like the one proposed. [The Villager]

China’s largest contractor tapped for $100M Manhattan subway project

November 30th, 2009    Posted in Apartments Brooklyn, Apartments New York, Manhattan Apartments News, New York Apartments, New York Real Estate News, News A subsidiary of China’s largest contracting company has just inked a deal to complete a $100 million Manhattan subway ventilation project, according to China Daily. The project is the third U.S. infrastructure assignment that the company has been assigned this year. China State Construction Engineering has been aggressively pursuing the U.S. infrastructure market, according to Li Zhirui, an analyst with First Capital Securities, and is finding lucrative development opportunities. “The new project… signals China State Construction’s ambition to tap the American construction market,” Zhirui said.

Dubai’s high-profile NYC properties could be sold off amid debt crisis

November 30th, 2009    Posted in Apartments Brooklyn, Apartments New York, Manhattan Apartments News, New York Apartments, New York Real Estate News, News The news of Dubai's debt crisis, which has put already-teetering global commercial real estate markets on edge, stands to shake up New York City real estate as the state unloads its noncore assets in attempts to raise cash and pay off creditors. Dubai World, the government-controlled holding company, which last week announced that it would seek to delay payments on $59 billion worth of debt, owns iconic city properties like the Jumeirah Essex House, the New York W, the Mandarin Oriental hotels and the Knickerbocker Hotel. Deloitte, the accounting firm hired by Dubai World to restructure its liabilities, plans to ready a list of valuable, non-strategic assets that can be sold off quickly, the Post reported. Sources said high-profile hotels like the New York W and the Oriental would be likely to top such a list. [Post]

Dubai’s high-profile NYC properties could be sold off amid debt crisis

November 30th, 2009    Posted in Apartments Brooklyn, Apartments New York, Manhattan Apartments News, New York Apartments, New York Real Estate News, News The news of Dubai's debt crisis, which has put already-teetering global commercial real estate markets on edge, stands to shake up New York City real estate as the state unloads its noncore assets in attempts to raise cash and pay off creditors. Dubai World, the government-controlled holding company, which last week announced that it would seek to delay payments on $59 billion worth of debt, owns iconic city properties like the Jumeirah Essex House, the New York W, the Mandarin Oriental hotels and the Knickerbocker Hotel. Deloitte, the accounting firm hired by Dubai World to restructure its liabilities, plans to ready a list of valuable, non-strategic assets that can be sold off quickly, the Post reported. Sources said high-profile hotels like the New York W and the Oriental would be likely to top such a list. [Post]