American Strategic Investment Company to Sell 9 Times Square for a Big Loss

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By Manhattan Real Estate Tracker, June 27, 2024

Manhattan Real Estate Tracker has learned that the financially troubled American Strategic Investment Company (ASIC) has entered into a contract to sell the building at 9 Times Square for $63.5 million. The company will be taking a huge loss on the sale price since according to company records, the property was purchased for $162,291,000 prior to 2015 – a loss of more than $98 million. Formerly New York City Reit trading under the NYC symbol, the company changed the name to American Strategic Investment Company in an effort to purchase property outside of the city. This REIT has been a disaster for investors who have lost a huge amount of their initial investment. The stock went public 2021 and has dropped approximately 90% in value. After paying off the loan, the sale is expected to net only $13.5 million which the company claims will be used to buy other properties outside of Manhattan. The sale price of 9 Times Square reflects how the Midtown office market has plunged since the pandemic resulted in many employees working remotely.

Manhattan Real Estate Tracker spoke with a couple of law firms this week who have shuttered their Manhattan offices giving back large chunks of space to the landlord. Some companies have most of their employees working remotely with only a receptionist and a few conference rooms to meet with clients. Other law firms outside the city in New Jersey and Long Island have also closed offices and are working remotely. The same business model change has also occurred in the insurance industry with many adjusters now working from home.

Michael Anderson, the Chief Executive Officer of ASIC stated, “We expect this sale to generate approximately $13.5 million in net proceeds at closing, which we intend to use to pursue the expanded asset acquisition and diversification strategy into higher yielding assets that was announced last year. Additionally, if completed, we expect that this strategic disposition will strengthen our balance sheet.”

More information on the sale of 9 Times Square can be found on the ASIC website.

Real Estate Agents Rally to Stop Intro 360 at New York City Hall

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Real Estate Agents Rally to Stop Intro 360 at New York City Hall

By Manhattan Real Estate Tracker, June 12, 2024

Rally to stop Intro 360 real estate New York

Real estate agents and brokers came out this morning to City Hall in Downtown Manhattan today to rally against Intro 360 which would require only those who hire a real estate agent to the broker fee. While all commissions are negotiable, typically the broker fee for leasing an apartment is 15 percent of the first year’s rent. New York City is unlike any city in the country, Manhattan Real Estate Tracker strongly opposes Intro 360.

According to the co-sponsor of the measure, City Council member Chi Ossé, renters deposit $10,000 on average for a new home. One major expense he wants to eliminate is the mandatory broker fee. However, landlords will simply raise the rent and in the long run, the renter would have paid more in rent than if they paid a broker fee and received a lower starting rent.

Tenants claim that they had to pay the broker fee even though “they didn’t hire a broker.” When an agent markets an apartment for rent and a potential tenant inquires about it, it was the agent’s experience and knowledge of real estate and marketing that not only secured the exclusive listing but also generated the call. This work has value and in certain cases, the agent should be compensated by the renter.

Links to local online articles regarding today’s rally and Intro 360 from local New York television stations can be found below.

ABC 7 New York NYC Council considers shifting broker fees to landlords – ABC7 New York (abc7ny.com)

CBS 2 New York Public hearing on NYC real estate broker fee reform gets heated. What people on both sides of the issue are saying. – CBS New York (cbsnews.com)

Article from the Real Estate Board of New York (REBNY) regarding Intro 360:

1,500 Agents Rally at City Hall to Oppose Broker Fee Bill | Rebny

Rally at City Hall to Oppose Bill Int. 360 that Would Stop Agents of a Landlord from Collecting a Broker’s Fee from a Renter

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Manhattan Real Estate Tracker will be attending the rally at City Hall on Wednesday, June 12, 2024 to oppose Int. 360. This bill would stop real estate brokers and agents of a landlord from collecting a broker’s fee from a renter. All agents and brokers can attend to support the opposition of this bill.

The City Council states, “This bill would require an individual who is a representative or an agent of a property owner or a prospective tenant in a residential rental real estate transaction to collect fees charged in the transaction from the party employing the individual. The provisions of this bill would not impact the collection of fees by a landlord or property owner.”