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Real Estate Roundup 2.4.20

Renderings of 200 Amsterdam Avenue (Credit: Elkus Manfredi Architects/Seventh Art)

Real Estate Roundup:

Coronavirus

  • The list of reasons that the Federal Reserve shouldn’t have cut interest rates on Tuesday is long…. Lower rates will do nothing to address the root cause of potential economic distress, namely supply disruptions and halted economic activity because of the novel coronavirus. It comes as the Fed is already low on firepower to offset an economic slump, because of perpetually low interest rates. However, when Fed officials looked around at the evidence that the economy was heading for a meaningful slowdown because of the spread of the virus, at a time when inflation was not a worry, they reacted with the imperfect tool that they have. (NYTimes)
  • Airport retail outlets have been a rare success story in the slumping bricks-and-mortar world. Now, duty-free and other airport shops are under siege from the coronavirus. (WSJ)

Financing 

  • Fucai Wang, Christina Chang, and Jonathan Chang have secured a $26 million construction loan from S3 Capital Partners for its planned 67-unit condo project at 30-07 Vernon Boulevard. (CO)

Other news

  • A master plan to develop Sunnyside Yard in Queens envisions a $14.4 billion deck over the train yards to make room for 12,000 affordable apartments, in what would be New York City’s largest such development in decades. Half of Sunnyside Yard’s housing would provide rental apartments for low-income families earning below 50% of the area median income with the other half committed to affordable homeownership programs, according to the plan by the New York City Economic Development Corp. (WSJ)
  • SoftBank Moves Into Chinese Real Estate: Tech investor put $1 billion each into Beijing apartment-rental firm and online real-estate portal shortly before coronavirus outbreak. (WSJ)
  • In 2017, the Secured Overnight Financing Rate (SOFR) was picked as the preferred successor to the U.S. Dollar London Interbank Offered Rate (LIBOR), the widely used benchmark reference rate index that’s been around since the 1970s and is scheduled to expire at the end of 2021. At the end of 2019, the Commercial Real Estate Finance Council (CREFC) estimated that around $1.3 trillion of commercial real estate debt is indexed to LIBOR. (CO)
  • The Department of Buildings said that going forward newly formed zoning lots cannot consist of partial tax lots, settling an issue that has dominated a contentious case over a condo development at 200 Amsterdam Avenue. The clarification is effective immediately and is not retroactive, according to the Mayor’s office. (WSJ)
  • The demand for affordable housing is reaching a fever pitch, but as many developers know, determining how to fund an affordable housing project is no small feat. Construction finance software Rabbet shares affordable housing resources, including key challenges faced, top funding sources, and tips to manage the capital stack. (Rabbet)

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