POLITICO New York Real Estate: Affordable housing math — Manhattan West's tenants — WeWork & IBM

By Sally Goldenberg and Khorri Atkinson | 04/20/2017 09:57 AM EDT

BY THE NUMBERS — "The Real Math of An Affordable Housing Lottery: Huge Disconnect Between Need and Allotment," by City Limits' Norman Oder: "In a city where so many struggle for shelter, applicants swamp affordable housing lotteries. In a January press message, the developers of Pacific Park Brooklyn suggested 'the demand for affordable housing in the borough is tremendous,' citing more than 84,000 applications for 181 units at 461 Dean and "roughly 95,000 applications" for 297 apartments at 535 Carlton. These are among the first four residential buildings in the 15-tower project, which will contain 2,250 below-market units among 6,430 apartments in Prospect Heights. But such catch-all statistics—regularly used in depicting the hunt for below-market units—camouflage how low-income applicants face crushing odds compared to middle-income ones. Exactly 92,743 households (not quite 95,000) entered the lottery for the '100 percent affordable' 535 Carlton tower, city data show. But only 2,203, according to City Limits' analysis, were eligible for 148 middle-income apartments, such as one-bedrooms renting for $2,680 monthly and two-bedrooms at $3,223, affordable to those earning six figures. ...

"This granular analysis challenges simplistic reports about big numbers in housing lotteries. The desperation for low rent insures that any building containing low-income units will generate a robust response, especially since the online NYC Housing Connect system—now with 1 million registered users—makes it easy to apply. 'The results fit with what low-income advocates have been saying: the real need is for the lowest-rent units,' observed housing policy analyst Tom Waters of the Community Service Society upon being told of the findings. Thus, he said, the term "affordable for whom" has growing resonance. The New York City Housing Development Corporation, which financed the affordable units, did not see reason for concern in the lottery response, given the number of factors that can affect applications to any particular lottery." Read the story here.

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BIG DEAL — "Amazon, JP Morgan Close to Signing Monster-Sized Deals at Manhattan West," by Commercial Observer's Lauren Elkies Schram: "J.P. Morgan Chase and Amazon are both weighing deals for at least 300,000 square feet of office space at 5 Manhattan West, Commercial Observer has learned." Read the story here.

SHARING ECONOMY — "IBM to take entire WeWork building in landmark deal," by The Real Deal's Konrad Putzier: "IBM has agreed to sign a membership deal for all desks in WeWork's 88 University Place, in the first reported case of a single corporation taking an entire WeWork space in New York." Read the story here.

LOCKED OUT — "New Yorkers are being denied access to public spaces in private buildings, Stringer audit finds," by POLITICO New York's Laura Nahmias: New Yorkers are being denied amenities at many of the city's privately-owned public spaces, hundreds of which haven't been inspected by the city in years, Comptroller Scott Stringer found in an audit released Wednesday. Read the story here.

INDUSTRY MOVES — "World Trade Center Developer to Oversee M.T.A. Expansion Projects," by New York Times' Emma G. Fitzsimmons: "A real estate executive who played a prominent role in rebuilding the World Trade Center complex in Lower Manhattan will join the Metropolitan Transportation Authority to oversee its large infrastructure projects, officials said on Wednesday." Read the story here.

BEHIND THE DEAL — "In 2015, Bill Ackman quietly bought a NYC penthouse owned by the man who warned him about Valeant," by The Real Deal's Katherine Clarke: "When Drew Katz, the owner of a company that sells billboard and transit shelter ads, sold his $17 million penthouse at 420 West Broadway in May 2015, the buyer of the property shielded their identity under an LLC. Now, The Real Deal can reveal that the buyer was embattled hedge fund mogul Bill Ackman, the founder of Pershing Square Capital Management." Read the story here.

SHELTER SKELTER — "Judge Extends Ban on Crown Heights Shelter Opening But Urges Compromise," DNAinfo's Rachel Holliday Smith: "A Brooklyn judge on Wednesday extended an order blocking the opening of a Crown Heights homeless shelter to give time to those fighting the facility to negotiate a possible compromise with the city over the project." Read the story here.

LEGISLATIVE FIGHT — "REBNY staunchly opposes tenant harassment bills," by The Real Deal's Kathryn Brenzel: "As state and city officials ramp up efforts against unscrupulous landlords, the Real Estate Board of New York is firing back against a bill that seeks to make it easier for tenants to file harassment claims against their landlords." Read the story here.

— "City agencies support three of Council's tenant harassment bills," by POLITICO New York's Brendan Cheney: "The New York City Department of Buildings and Department of Housing Preservation and Development supported three of the 14 bills related to tenant harassment at today's City Council Housing and Buildings Committee hearing." Read more here.

WTC MOVES — "One World Trade Center gets a new 5-year tenant," by New York Post's Lois Weiss: "Sailthru has signed a five-year lease on the 48th floor for a huge, 27,320-square-foot prebuilt at One World Trade Center." Read the story here.

MELTING ICE — "Apple's iconic glass cube at NYC flagship store is coming down," by New York Post's Lois Weiss: "The iconic glass cube at Apple's Fifth Avenue flagship store is coming down — at least temporarily." Read the story here.

COMING ATTRACTIONS — "Picture Perfect: NYC Is Seeing a Resurgence in Movie Theaters That Are Sleeker, Smaller," by Commercial Observer's Lauren Elkies Schram: "At a time when 'experiential' means more than just improving the quality of the popcorn or adding reclining seats, movie theaters are pulling out all the stops to transform the traditional movie-going experience—and make a profit." Read the story here.

MARKET WATCH — "GIC-Paramount's $1.04B 60 Wall Street buy buoys NYC office sales in Q1," by Real Estate Weekly's Christian Brazil Bautista: "GIC and Paramount Group's $1.04 billion purchase of 60 Wall Street accounted for half of the value of all office properties sold in the city during the first quarter of 2017." Read the story here.

— "Report: Downtown posts 2.3 million s/f in leases in Q1, the highest in two years," by Real Estate Weekly: "Lower Manhattan recorded more than 2.3 million square feet in leasing transactions in the first quarter of 2017, according to JLL." Read the story here.

— "Demand for Brooklyn condos is hot, but developers could struggle to add supply," by The Real Deal's Chava Gourarie: "The Brooklyn condominium market looks pretty healthy right now, but existing market conditions suggest developers aren't going to have an easy time meeting the growing demand." Read the story here.

TRASH TALK — "East Harlem residents trash city plan to move sanitation garage," by POLITICO New York's Khorri Atkinson: A Manhattan community board late Tuesday made a nonbinding vote against a proposal by the de Blasio administration to relocate a sanitation garage used to store dump trucks from 99th Street to 127th Street and Third Ave. after a combative round of public comments. Read the story here.

TUNNEL VISION — After pressing Trump in private, Christie goes public with Gateway funding push, by POLITICO New Jersey's Ryan Hutchins: A month ago, after the White House said it wanted to eliminate a key infrastructure funding program that was expected to pay for much of the new Gateway tunnel to New York, Gov. Chris Christie shrugged off the development and said he wasn't particularly concerned about the future of the $20 billion project. ... On Wednesday, the Republican governor moved closer to the edge, joining Democratic U.S. Sen. Cory Booker of New Jersey at a press conference in which they called on the secretary of transportation to come see the existing, century-old infrastructure that's causing more and more headaches for the region's commuters. Read the story here.

LAW AND ORDER — "Judge orders Harry Macklowe to stop meddling in Meyer Equities' Midtown deal," by The Real Deal's Rich Bockmann: "Harry Macklowe's got to get his finger out of Meyer Equities' pie, a New York State Supreme Court judge decided. Justice Shirley Werner Kornreich ruled that Macklowe has no power under a right-of-first-refusal agreement to purchase the home of the Children's Aid Society in Midtown, which Meyer Equities has offered to buy for $28 million, according to a decision filed Tuesday." Read the story here.

GRASS IS GREENER — Mayor de Blasio on Wednesday said the city has closed a $160-million deal to acquire an 11-acre parcel of land it needs to complete the long-awaited Bushwick Inlet Park in Brooklyn.

SHORT READS:

— "SL Green sells New York REIT stake, adds new tenants," by The Real Deal's Konrad Putzier

— "How to solve the latest armory controversy—and prevent others," by City Council candidate Ede Fox via Crain's

— "Sherwood scores $232M to refi 1600 Broadway, 2 Times Sq.," by The Real Deal's Miriam Hall

— "Meet Scott Metzner, the Developer Who's Transforming Industrial West Harlem," by Commercial Observer's Rebecca Baird-Remba

— "Expect more pop-up stores in the Big Apple," by New York Post's Lois Weiss

— "New York City environmental justice groups outline plan for climate action in Trump era," by POLITICO New York's David Giambusso

— "Queens Anti-Gentrification Rally Will Protest De Blasio's 'Assault' on Area," by DNAinfo's Jeanmarie Evelly

To view online:
http://www.politico.com/states/new-york/tipsheets/politico-new-york-real-estate/2017/04/affordable-housing-math-007199

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