By Sally Goldenberg | 10/10/2017 09:57 AM EDT
IN THE ZONE — "Long held political, ethnic rivalries heating up fight over Brooklyn Pfizer site," by POLITICO New York's Sally Goldenberg: For years, political rivalries, ethnic disputes and litigation have defined the trajectory of development in a section of Brooklyn that borders Hasidic Jewish, Hispanic and African-American communities. On Tuesday, the City Council will hold what is expected to be a spirited and well-attended hearing on the latest proposal for a residential building within the site. The sides lining up so far promise a healthy fight. The project developer, Rabsky Group, is planning a 1,146-unit building at a site formerly home to pharmaceutical giant Pfizer within the Broadway Triangle. It will present the latest details of its proposal as it tries to subdue opponents ahead of a decisive council vote in the coming weeks. While the project's technical details will form the basis of the fight, decades-old political and ethnic rivalries are likely to heat up the battle. Read the story here.
HOUSEKEEPING — "Thousands march on City Hall to demand more action on affordable housing," by POLITICO New York's Arimeta Diop: Thousands turned out in the rain Monday for a march and rally on City Hall to demand Mayor Bill de Blasio address their concerns over affordable housing and gentrification. Community-based and church organizations like East Brooklyn Congregations and Metro IAF were among the lead organizers of the rally, voicing concerns about the mayor's affordable housing plan and long-held fears of displacement from typically low-income neighborhoods. The group was also joined by City Comptroller Scott Stringer and Rep. Hakeem Jeffries (D-N.Y.). But the main thrust of speakers were religious and community leaders from the neighborhoods who they say are the most threatened by rising rents and rapid development. Read the story here.
— In his weekly column, New York Daily News' Harry Siegel featured the group's efforts and detailed its recent meeting with the mayor at Gracie Mansion. "As the leaders went around the table to introduce themselves, each told the mayor how many members they'd be bringing to City Hall for a rally ... more than 5,000 in all. Then they presented de Blasio with their own affordable-housing plan, which includes shifting city subsidies so that 'affordable' covers more New Yorkers with lower incomes; rehabilitating deteriorating NYCHA buildings, and using the Housing Authority's parking lots to build 15,000 new units for seniors, freeing up existing apartments in the process for some of the quarter-million New Yorkers on the years-long waiting list for them. ... The group's plan identifies significant potential revenue sources — the $185 million a year NYCHA pays the city for water and other services, and $40 million a year in excess funds from the Battery Park City Authority — but the price tag here is in the billions, for a city already spending far more than ever. ...
"Saturday evening, minutes after this column, now updated, first posted online, de Blasio sent his shrug of a reply: 'I appreciated the opportunity to sit down with you all,' he wrote, and 'agree we have to make tough choices if we're going to turn a corner in this crisis and invest in affordable housing.' He listed his administration's accomplishments to date, said nothing about the group's plan and the tough choices it would require of him, and concluded: 'I welcome the opportunity to work with your members.'" Read the column here.
GOOD TUESDAY MORNING. Welcome to POLITICO New York Real Estate. This roundup is for you, so please tell us how we can make it even better. Please send tips, ideas, calendar items, releases, promotions, criticisms and corrections to firstname.lastname@example.org.
TIP ME: Something going on readers should know about? Have a tip or a story idea? Email me at email@example.com.
SHARE ME: Like this newsletter? Please tell a friend to sign up. Just give them this link.
INFOGRAPHIC: Mortgage Interest and Real Estate Deductions: The mortgage interest deduction has become a key part of the conversation around tax reform. Our infographic breaks down the projected values by income class of both the mortgage interest and real estate tax deductions for 2017. Download now.
BIG DEAL — "Highgate buying Gansevoort Park Avenue for nearly $200M: sources," by The Real Deal's Mark Maurer: "The Khimji family-controlled Highgate is in contract to buy the Gansevoort Park Avenue NYC in NoMad for almost $200 million, or close to $800,000 per key, sources told The Real Deal." Read the story here.
UP IN THE AIR — "An existential fight: Lawsuit questions how closely air rights are tethered to land," by The Real Deal's Kathryn Brenzel: "Despite their very real impact, air rights are one of the most abstract concepts in development. Now a developer and lender are clashing over how tightly these rights are tied to the properties they spring from, and the fight's outcome could have far-reaching implications." Read the story here.
NO FAIR SHARE — "WeWork pushing members out of Chelsea offices to expand its corporate HQ," by Crain's Daniel Geiger: "The $20 billion co-working giant WeWork is pushing members out of its Chelsea location to make room for expanded corporate offices." Read the story here.
PRIME REAL ESTATE — "Shopping malls battered by online retailers may be offered to Amazon as HQ2 sites," by Chicago Tribune's Matt Day: "Amazon will have plenty of options when it picks the site for its second headquarters, and in an ironic twist for a company that helped introduce the world to online retail, a few of those options may be defunct shopping malls." Read the story here.
Meanwhile New York is finalizing its bid to host Amazon's headquarters, after receiving two dozen applications from across the five boroughs — a list that includes Industry City, Governors Island and the World Trade Center. Read Crain's Sarah Stein Kerr's latest on the countdown, and the city and state cooperation ahead of the Oct. 19 deadline, here.
OFFICE SPACE — "Boutique Office Buildings Attract Big-Name Tenants," by The Wall Street Journal's Keiko Morris: "The niche market of small, upscale office developments has lured some high-end tenants willing to pay up for an amenity-packed floor or two. Now some developers are seeing another potential opportunity for these so-called boutique buildings: as headquarters for big firms looking to lease entire buildings." Read the story here.
IN THE WORKS — "Radson planning new resi buildings for East New York and Far Rockaway," by The Real Deal's Eddie Small: "New residential buildings are coming to East New York and Far Rockaway, both courtesy of Radson Development." Read the story here.
TIME FOR CHANGE — "The Painstaking Renovation of the Waldorf's Iconic Clock," by Architectural Digest's Hadley Keller: "'New Yorkers have an immense nostalgia and fondness for the Waldorf,' says Allison Rozwat, from Skidmore, Owings & Merrill, of the iconic Waldorf Astoria Hotel, which is currently undergoing an extensive renovation by SOM and Pierre-Yves Rochon. ... One particular challenge of the Waldorf, though? The iconic, nine-foot Goldsmiths clock that has stood in its lobby since 1902." Read the story here.
MASS-IVE REDEVELOPMENT — "MAP: Harlem's Black Churches Cash in on Gentrification," by DNAinfo's Gustavo Solis: "Churches are losing members but gaining profits from gentrification." Read the story here.
— "Church planning to build 150-unit residential property in Far Rockaway," by Real Estate Weekly's Christian Brazil Bautista: "The Far Rockaway Church of the Nazarene and developer Kiumarz Guela have filed plans to build a 150-unit residential property in Far Rockaway, Queens." Read the story here.
LUXE IN FLUX — Manhattan's luxury market was on fire last week, after a period of slow sales. Olshan Realty, which tracks signed contracts of $4 million or more, reported 20 were signed last week — one-quarter of those for $10 million or more. Read the report here.
MARKET WATCH — "Office rents are still below their 2008 peak," by Crain's Joe Anuta: "Manhattan office rents aren't as high as you think. The borough's average asking rent was $72.87 per square foot during the third quarter of this year—slightly above the prerecession peak. When inflation is taken into account, though, tenants are typically paying 11% less than they were in 2008, according to a study from Colliers International released Monday." Read the story here.
— "Manhattan Office Leasing Jumps on Financial-Sector Hiring," by The Wall Street Journal's Keiko Morris: "Manhattan office leasing kicked into high gear in the third quarter as financial services jobs surpassed prerecession levels in August, but new construction kept rental increases low, according to new statistics released by real estate services firm JLL." Read the story here.
— "Large deals lift Manhattan office market to strongest quarter this year," by Real Estate Weekly's Christian Brazil Bautista: "Lease deals over 100,000 s/f propelled Manhattan's office market to its strongest quarter this year." Read the story here.
TENANT TROUBLES — "Rent Gadfly Takes On New York Landlords, One Building at a Time," by The Wall Street Journal's Cezary Podkul: "At age 29, [Aaron] Carr has become New York City's self-appointed enforcer of state rent laws. Last year, he started a nonprofit, Housing Rights Initiative, through which he organizes class-action lawsuits against landlords he suspects of breaking the law." Read the story here.
SHELTER SKELTER — "Homeless Placed in New Hotel Sites Despite City's Pledge to Phase Them Out," by DNAinfo's Ben Fractenberg: "The city is still using commercial hotels to house homeless New Yorkers, despite a pledge last year to phase them out following a fatal stabbing at a homeless hotel." Read the story here.
ON THE MARKET — "Morgan Stanley's search for a 1.9M sf office comes with a catch," by The Real Deal's Rich Bockmann: "Morgan Stanley's search for a new 1.9 million-square-foot Manhattan headquarters comes with a catch that could make a deal hairier for potential landlords. The bank is looking to negotiate a lease with a landlord that would in turn buy the two properties Morgan Stanley owns at 1585 Broadway and the office condominium at 522 Fifth Avenue, sources familiar with its search told The Real Deal." Read the story here.
TAKE A LOOK — "First Rendering of Solow's Billionaires' Row Condo at 7 West 57th Street," by CityRealty's Ondel Hylton: "After a two-decade hiatus, developer Sheldon Solow is flinging up towers in Manhattan once again. Next to his 9 West 57th Street, the crème de la crème of office blocks, the octogenarian billionaire has begun construction on a boutique condo high-rise at 7 West 57th Street." See the rendering here.
LANDING PAD — "Forest, Forest Everywhere. But Not an Acre to Touch," by The New York Times' Lisa W. Foderaro: "In November, voters statewide will face a more expansive question — whether to amend the State Constitution to allow towns to use small pieces of land in the 'forever-wild' preserves in the Adirondacks and Catskills for small, but critical public projects like straightening a dangerous curve in a road or drilling a drinking well." Read the story here.
— "REBNY changes 'predatory' Hackathon terms after Twitter backlash," by The Real Deal's Konrad Putzier
— "Ex-Silver top aide Rapfogel no longer working for Kushner," by Daily News' Kenneth Lovett
— "WeWork's Brooklyn Navy Yard home at Dock 72 has topped out," by Curbed's Tanay Warerkar
— "Extell increases One Manhattan Square loan to $750M," by The Real Deal's Chava Gourarie
— "Jack Resnick locks in $125M refi at Symphony House," by The Real Deal's Will Parker
— "Where Can You Park a Tiny Home?" by The New York Times' Lisa Prevost
— "More seniors ditching the suburbs for city life," by Real Estate Weekly's Christian Brazil Bautista
To view online:
Please click here and follow the steps to unsubscribe.