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Real Estate Roundup 7.20.20

Real Estate Roundup:

  • Global real estate investment fell by 33% in the first half as the coronavirus pandemic battered economies and disrupted deals. Investment is expected to remain well below pre-pandemic levels for the rest of 2020 as investors wait for market clarity. However, certain sectors are expected to outperform as investors focus on secure assets, namely logistics, residential, and life sciences.” (Bloomberg+Savills)

Acquisitions 

  • The Chetrit family has entered into a contract to acquire a development site at 2870 Ocean Avenue Brooklyn from and plans a 200,000-square-foot project. (TRD)
  • Singapore-based OUE Limited announced it will sell the U.S. Bank Tower in Downtown Los Angeles for $430 million, a 31 percent discount from the building’s $650 million valuation as recorded in the firm’s 2019 year-end report. The buyer is USBT Property Owner LP, which is tied to New York City-based Silverstein Properties. The deal is set to close in September. (BusinessTimes)

Financing 

  • Advance Realty Investors and Greek Development have landed $103.5 million in construction financing for two buildings in Logan North Industrial Park, a planned 3.2-million-square-foot industrial park in Gloucester County, N.J. Wells Fargo provided $69 million for the construction of Building H, while Provident Bank lent $34 million for the development of Building E. Assets are already pre-leased to Target and Lineage Logistics. (CO)
  • After temporarily closing due to the coronavirus shutdown, Palisades Center Mall owner Pyramid Companies risked defaulting on its $388.5 million CMBS loan. The loan fell into special servicing in April. The maturity date for the loan is now extended to either October 2021 or whenever Palisades Center pays off the last of the 12 monthly installments, whichever comes first. The mall was fully leased in 2016, but has since been faced with the departure of J.C. Penney, Lord & Taylor, and Bed, Bath & Beyond, dropping the occupancy rate to 82 percent… The loan covers 1.8 million square feet of retail space at the property, and excludes space occupied by Macy’s and Lord & Taylor. (Trepp+TRD)

Hospitality 

  • The W Hotel in downtown Manhattan is the latest to close its doors for good. The 217-key hotel at 8 Albany Street, which boasts suites with walk-in rainforest showers and reflective snakeskin tiles, will shut down Oct. 13. According to a notice filed with the state by Starwood Company & Resorts, 137 hotel workers will be let go. (Bisnow)

Tech + Politics

  • Jared Kushner and Cadre have put a planned divestiture on hold reportedly due to Covid. (CNBC)

Billable hours: lawyers will be busy

  • In an ongoing saga between Michael Shah’s Delshah Capital and Jack Terzi’s JTRE Holdings over the debt on two properties, a judge has ruled in favor of Shah, imposing two judgments totaling $5.6 million on Terzi. Shah commenced the suits against Terzi for the personal guarantees he made in connection with the notes on two JTRE properties, commercial condos at 31 East 28th Street and 27 West 72nd Street. (CO)
  • Heritage Equity started Chapter 11 proceedings at its under-construction 144-room hotel at 232 Seigel Street on Tuesday through 232 Seigel Acquisitions LLC, which has about $7 million in debt, court documents show. The LLC lists the value of its assets as nearly $18 million… In December, Shaul Kopelowitz filed a suit claiming Moskovits and business partner Michael Lichtenstein owed him $3.3 million and asked to be repaid with stakes in six LLCs owned by Heritage, including the one tied to 323 Seigel Street. (CO)

Other news 

  • Declining apartment demand attributable to the coronavirus crisis is causing a record number of New York City landlords to cut prices. Rent prices were discounted across 34.7 percent of properties in the Big Apple during the second quarter, according to new data from real estate website StreetEasy. The median asking price fell by 6.7 percent, which is about $221 per month or $2,652 per year, due to reduced demand. Moving company executives said they expected their busy season to occur between July and September this year, adding there was a lot of pent-up demand to move out. (FoxBusiness)
  • Jerry Wolkoff has passed away. (TRD+CO)

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