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Real Estate Roundup 1.15.20

Brookfield Place (Credit: Brookfield)

Real Estate Roundup

Acquisitions 

Jack Terzi is wrapping up his long-running court battle to buy the historic building at 23 Wall Street from China Sonangol for more than $150 million. Rather than buy the property outright, he’s availing himself of a court settlement allowing him to lease it for 99 years and simply pay rent. (NYPost)

Leasing

Milk Makeup has signed a 17,600-square-foot lease to move its headquarters to 568 Broadway in Soho. (Crain’s)

The Market Lane food hall at Westfield’s World Trade Center complex quietly closed over New Year’s. Its shutdown after just six months was the latest illustration of retail landlord Westfield’s futility in bringing decent edibles to the Oculus and its numerous sprawling tentacles. Next-door competitor Brookfield Place saw its food and beverage revenue at the site jump by 5 percent in 2019. (NYPost)

Politics

NYCHA chairman Greg Russ hinted the embattled agency may expand its plans to partially privatize the city’s crumbling public housing stock as it desperately seeks new funds to pay for its repair bill. The new push comes as Russ estimates the Housing Authority’s repair bill is now at least $40 billion over the next five years, up from the $32 billion estimated in 2017. (NYPost)

The U.S. Supreme Court, which hears roughly 150 out of the 7,000 cases it is asked to review a year, has declined to hear Clipper Equity’s challenge to New York’s rent regulation rules. (TRD)

In this political environment, rezonings are the next target… Negotiations over the proposed Bushwick rezoning have fallen apart after the City Council and the de Blasio administration failed to reach consensus on how much new housing to allow. In a letter to local officials on Friday, Deputy Mayor for Housing Vicki Been wrote that the neighborhood proposal, which calls for less residential density than what the city is aiming to generate, “runs counter to the city’s goals of the rezoning” and “does not provide the necessary density to spur housing and job growth near transit.” (Politico)

Queens representative Alexandria Ocasio-Cortez demanded to know why all 46 alternatives to Governor Andrew M. Cuomo’s $2 billion AirTrain were ruled out so quickly. (NYTimes)

Other news 

A JV that includes Blackstone will buy the real estate of the MGM Grand and Mandalay Bay resorts and casinos on the Las Vegas Strip, in a deal valuing the properties at $4.6 billion… The sales are part of MGM’s “asset light” strategy, intended to pull cash out of its real estate and focus on new business areas including sports betting, entertainment and a casino development in Japan. (WSJ)

The board of managers at 51 Jay Street is suing Adam America Real Estate and Slate Property Group, the project’s sponsors and developers, alleging breach of contract, fiduciary duty and fraud. The board is demanding up to $6.5 million in damages. It’s worth noting that the developers have already filed a lawsuit seeking $8 million in damages from their contractors — Danya Cebus Construction and Hudson Meridian Construction Group — for alleged project delays, overbilling and defective work. (TRD)

The Sapir Organization claims a legal assistant stole trade secrets. (TRD)

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