By Sally Goldenberg | 12/05/2017 09:57 AM EDT
TODAY IN REAL ESTATE — For the past three weeks, the de Blasio administration has been on the defensive, forced to explain the New York City Housing Authority's falsification of paperwork stating lead investigations were completed when they were not. Today the City Council will grill NYCHA's Shola Olatoye, and Committee on Public Housing Chairman Ritchie Torres indicated she's in for a tough grilling. "The overarching question is who knew what when," he told the New York Post . "No one wants to go to a City Council hearing where members are berating you, but that's the price you pay when you've lied under oath to the federal government." He was referring to a Nov. 14 Department of Investigation report that found NYCHA officials did not conduct adequate lead inspections from 2012 to 2016, but Olatoye certified the work was done. Mayor Bill de Blasio has defended Olatoye's overall leadership of the embattled authority, while acknowledging tenants should have been informed of the issue sooner. Meanwhile, The New York Times reported on Monday that an attorney who represented residents suing over lead poisoning in Flint, Mich., will file a class-action lawsuit over this issue. Read more on that below. The hearing, where Department of Investigation Commissioner Mark Peters is also expected to testify, will begin at 10 a.m. in City Hall's Council Chambers.
NEW YARDSTICK — "Hudson Yards Is Attracting More Financial Firms," by The Wall Street Journal's Keiko Morris: "Three investment firms soon will be heading to Hudson Yards, the latest indication that the mammoth far-West Side development rising above a rail yard is luring financial companies away from more-established office corridors. Quantitative-trading firm Engineers Gate Manager LP, along with energy-market focused Arosa Capital Management LP and health-care and life-sciences investment firm HealthCor Management LP, have signed leases totaling about 56,000 square feet of space at 55 Hudson Yards, according to Related Cos., which is developing the building with Oxford Properties Group and Mitsui Fudosan America. The companies will be joining Point72 Asset Management LP, a firm managing the assets of prominent investor Steven Cohen, as well as Third Point LLC, founded by activist investor Daniel Loeb. The 1.3 million-square-foot tower is 90% leased, Related said." Read the story here.
IN THE ZONE — The City Council delayed a committee vote, originally planned for this morning, on a proposal to govern self-storage facilities in the city's 21 industrial business zones. Council staffers are still taking the temperature of a handful of skeptical members and, as we reported Monday , are considering carving them out of a citywide requirement that storage-facility owners receive special permits before building in the industrial zones. It's an effort to stem the tide of the businesses, which create few jobs in areas intended to harness the city's manufacturing industry. A committee vote is now expected Thursday morning.
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NYCHA SCANDAL — "Lead Paint Failures Magnified by City Hall's Failure to Communicate," by The New York Times' J. David Goodman and William Neuman: "Thousands of residents of New York City's sprawling public housing system received notices under their apartment doors last year alerting them that city inspectors would need to get inside to check for potentially hazardous lead paint conditions. ... With the scope of the health risks still unclear, a class-action case against New York City, in connection with the failure to conduct lead inspections in public housing, is now being prepared by a lead lawyer for families suing over lead poisoning in Flint, Mich., Corey M. Stern." Read the story here.
HOUSEKEEPING — "City to build 375 affordable apartments at Brooklyn's Broadway Triangle after settling discrimination case," by New York Daily News' Erin Durkin: "A years-long battle over charges of racial discrimination at Brooklyn's Broadway Triangle was settled Monday, after the city agreed to overhaul its plan to develop the area. ... Under the settlement filed Monday, a new plan will provide for 375 affordable apartments on city-owned land, more than double the original plan. ...
"Rabbi David Niederman, the president of [United Jewish Organizations of Williamsburg], slammed the deal in a statement Monday evening. 'The proposed deal is not a settlement. It is a sell-out to politically-connected biased groups with a history of using lawsuits to further its anti-Semitic goal of preventing Jewish families in Williamsburg from finding housing,' he said." Read the story here.
ON THE MARKET — "CBSK Ironstate to spend $93M to acquire Far West Side site" by The Real Deal's Eddie Small: "CBSK Ironstate plans to purchase 646 11th Avenue on Manhattan's Far West side for $93 million, with plans to redevelop the property into a residential condominium." Read the story here.
— "Blackstone has contract to buy 49 percent of One Liberty Plaza," by New York Post's Steve Cuozzo: "For the second time in a month, a publicly traded real estate company is selling a big minority stake in a premier Broadway office building — although the addresses are miles apart. Blackstone Real Estate Core+ fund has a contract to buy 49 percent of One Liberty Plaza from Brookfield Property Partners, downtown industry sources told The Post. It will be the first time Brookfield has brought in a minority partner at the iconic skyscraper." Read the story here.
WAGE WARS — "State cracks down on construction companies accused of not paying workers" by The Real Deal's Kathryn Brenzel: "Since the beginning of this year, state and city authorities have cracked down on several construction contractors who they say withheld more than $2.5 million from hundreds of workers across the city. Manhattan District Attorney Cyrus Vance on Monday announced criminal charges against seven companies in the city and one each in Nassau and Westchester counties, for allegedly shortchanging more than 400 workers. Some $700,000 in wages has already been returned to workers, the DA said." Read the story here.
OFFICE SPACE — "Omnicom Renews 200K-SF Footprint at GFP's 200 Varick Street," by Commercial Observer's Rey Mashayekhi: "Advertising giant Omnicom Group has agreed to maintain its sizable footprint at GFP Real Estate's 200 Varick Street after agreeing a 200,000-square-foot lease renewal at the Hudson Square office building, Commercial Observer has learned." Read the story here.
LUXE IN FLUX — "Luxury market records 29 contracts following Thanksgiving slump: Olshan," by The Real Deal's Rich Bockmann: "An Upper West Side brownstone that went into contract with an asking price of $16 million was the priciest deal during an active week for luxury sales following the Thanksgiving holiday, according to Olshan Realty's weekly luxury market report." Read the story here.
INDUSTRY MOVES — "Elliman names Scott Durkin president," by The Real Deal's E.B. Solomont: "Scott Durkin, the longtime Corcoran Group manager who's been leading Douglas Elliman's national expansion for the past two years, was just named president of the residential brokerage." Read the story here.
TAKE A LOOK — "New Renderings For Supertall 45 Broad Street As More Machinery Appears On Site" by New York YIMBY's Nikolai Fedak: "YIMBY last reported on 45 Broad Street when workers arrived and barrier installation began back in September. Now, we have a few fresh renderings for the tower, which also depict what the inside of the open-air mechanical floors will look like." Check out the renderings here.
LAW AND ORDER — "Controversial housing court judge to finally get the axe" by New York Post's Julia Marsh: "The clock has finally run out for an Upper East Side judge who ridiculed a lawyer with cerebral palsy and allowed cases involving tenants without heat or hot water to drag on, sources told The Post. The Manhattan Housing Court's advisory council, which reviews its judges after each four-year term, recently ruled that jurist Susan Avery should get the boot — as it catalogued years of complaints against her, sources said." Read the story here.
— "SL Green to build FiDi rental under Affordable New York program," by The Real Deal's Konrad Putzier
— "De Blasio extends policy to limit number street fair permits," by New York Post's Carl Campanile
— "Mastercard Signs On for All of 150 Fifth Avenue" by Commercial Observer's Rebecca Baird-Remba
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