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Real Estate Roundup 6.5.20

Real Estate Roundup:

Hospitality

  • U.S. hotel fundamentals climbed for the seventh week in a row as the country comes out of the depths of the coronavirus pandemic. National occupancy for the last week of May was 36.6 percent, up from 35.4 percent the week prior, according to the latest figures from hotel data firm STR. Occupancy rates were below 30 percent for all of April. Revenue per available room, a measure of income and a key metric for performance, was up to $30.34. New York City saw occupancy rise to 47.6 percent from 44.9 percent the week prior. (TRD)

Office

  • Brookfield has bought out another tenant at 666 Fifth Avenue in the leadup to its massive renovation of the tower.The tenant that accepted the $8.5 million buyout is listed as Kadima Realty Associates and was based on the 15th floor, according to property records. The deal marks Brookfield’s fifth buyout of the year in the Midtown property for a total of $22.7 million. (TRD)

Retail 

  • Competing factions of J.C. Penney’s lenders that were vying to finance the retailer’s restructuring efforts reached a deal Thursday, averting potential litigation between them. Aurelius Capital Management LP, said at a court hearing that it had come to terms with rival lenders on a financing package that supplies Penney with up to $900 million to stay afloat through bankruptcy… The longer Penney stays mired in chapter 11, the less likely it will emerge as a viable business. (WSJ)

Other news 

  • Investors behind part of a planned 12 million-square-foot development on the Long Island City waterfront are claiming victory in a decade-long fight for control of the site. The group led by Bruce Teitelbaum that owns the “Lake Vernon” site near the Anable Basin won a favorable ruling last week in their foreclosure case with the Durst family. The Durst Organization holds the mortgage on the site, 44-02 Vernon Boulevard, and filed to foreclose in 2009. Teitelbaum’s group said it has been trying to pay back the loan for years, but the two sides have disagreed on how much is owed. (TRD)
  • New York City property owners owe $1.65 billion more in property taxes than they did last year, despite a pandemic that has hobbled real-estate values. A Wall Street Journal analysis of the latest city assessment rolls found that the industry’s new tax bill will rise 5.7%. That is because the tax assessment date was Jan. 5, well before property values deteriorated in response to the March shelter-in-place orders that led numerous businesses to close and many tenants to withhold rent. (WSJ)
  • In the latest lawsuit over WeWork’s scuttled IPO, investors say the company hoodwinked them by promoting a transformation of the concept of workspace in order to sell hundreds of millions of dollars worth of stock. (Bloomberg)
  • Klövern AB of Sweden and GDS Development Management have secured an $100 million mortgage to close on its acquisition of 417 Park Avenue. Nordic Trustee & Agency AB, is acting as agent on behalf of Klövern’s bondholders in connection with $100 million in senior secured bonds. (TRD)

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