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Real Estate Roundup 7.6.20

Real Estate Roundup:

Deals

  • CW Realty has acquired 68 Gold Street in Vinegar Hill from Paul Tocci for $20.25 million. The and Cheskie Weisz plans to construct a five-story, 59-unit luxury rental complex at the 251 Front Street location. The Brooklyn property spans 20,000 square feet, (TRD)

Hotel

  • Sapir Corp.’s revealed in its latest quarterly earnings report that its hotel at 264-key NoMo Soho hotel at 9 Crosby Street had an occupancy rate of just 1.9 percent in April, at the height of the pandemic. It had an average daily rate of $166.76 and its revenue per available room was just $3.12. This contributed to a roughly $1.5 million operating loss for the first quarter. (TRD)

Retail

At the Alderwood Mall in Lynnwood, a suburb north of Seattle, an adaptive reuse project already in progress suggests that America’s vast stock of fading shopping infrastructure could indeed get a second life as places to live. Such transformation could even bring malls closer to the “village square” concept they were initially envisioned to become. 

  • Dig Deeper: Developers Brookfield Properties and AvalonBay Communities are turning a wide swath of the 41-year-old shopping center into Avalon Alderwood Place, a 300-unit apartment complex with underground parking. The project won’t completely erase the shopping side of the development: Commercial tenants will still take up 90,000 square feet of retail. (Bloomberg)

The majority of restaurant owners around the city did not pay their entire rent in June, with 30 percent skipping out on it altogether, as the coronavirus pandemic continues to make it harder for eateries to survive. The nonprofit New York City Hospitality Alliance surveyed 509 restaurateurs around the city. Of those, 90 percent said they paid half or less last month. (CO)

Financing

Related laid out a $200 million debt settlement plan for Tel Aviv bondholders, which envisions an early redemption of $74.5 million of the principal, while the payment of the remaining balance — $121.5 million — will be postponed by a year to September 2021. The Israeli bond market responded positively to the news, with the Related Companies subsidiary bonds rising back above 95 cents on the dollar for the first time in three months. 

  • Dig Deeper: A separate disclosure indicates that First Republic Bank is providing a $75 million refinancing for the Time Warner Center unit, which spans the 18th and 19th floors and is occupied by Related itself. The same lender previously provided a $30 million mortgage on the property in 2014. (TRD)

Other news 

RFR Holding thinks it’s time for the Seagram Building to loosen up a bit. Developer Aby Rosen said chief executives love the historic property but have found it sometimes tougher to engage their younger workers, who gravitate toward buildings with fresher amenities, sports facilities, and contemporary design over classic midcentury modern. That is a big reason why RFR creating the Seagram Playground, a 35,000-square-foot enclosed area underneath the building’s plaza that currently serves as a parking garage. It will include a climbing wall, basketball courts, yoga and spinning studios, indoor track, weight room and a boxing ring. 

  • Worth Noting: Rosen said that only about 55% to 60% of retail tenants across the RFR portfolio of about two dozen buildings paid June rent, though around 90% of the office tenants paid. (WSJ)

The reopening of admissions at senior housing communities owned by companies like Ventas and Healthpeak Properties is slowing but failing to end the downward slide in occupancy rates, the latest sign that the hard-hit industry faces a long slog to recovery. About 53% of operators with assisted living units reported that occupancy was continuing to decline in the week that ended June 8 from the same period in the prior month. That is an improvement from the week that ended May 10, when 70% of the operators reported occupancy declines. (WSJ)

Developers Kaufman Astoria Studios, Silverstein Properties and Bedrock Real Estate Partnersunveiled their $2 billion plan this week to construct several buildings, some rising as high as 26-stories tall, along a “lifeless” portion of 35th Avenue from Northern Boulevard to 37th Street in Astoria. (CO)

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