According to a CNBC report, the Gulf state of Qatar signed an agreement to purchase the Plaza Hotel in New York for about $600 million through the state-owned Katara Holding.
Katara will assume full control of the hotel while Sahara India Pariwar will retain a 75 percent interest.
The purchase was made just a few days after Sahara India Pariwar chairman Subrata Roy and Sahara’s U.S. division were sued by United Capital Real Estate Development, alleging they broke a contract by looking for other purchasers for the Plaza Hotel, according to Arabian Business.
In a case submitted on June 22 to a state court in New York, United also claimed that Roy and Sahara U.S. had deceitfully persuaded United to sign contracts, produce financial documentation, and put money in escrow. In addition to interest and legal fees, United is requesting $1 billion in damages for the claims.
Additionally, according to the group’s complaint, United consented to buy Sahara’s 85% ownership of the Dream Downtown hotel in New York. On behalf of his company, Roy signed two contracts for these sales on February 19 and February 27, 2018.
This lawsuit was filed in response to a May 2018 complaint filed by Ashkenazy Acquisition and Kingdom Holding, alleging that their agreement to match an offer had been broken. They accepted a bid of $600 million for a purchase deal that was supposed to close on June 25th, matching the offer made by a company led by Shahal Khan. The president of Sahara U.S., Sandeep Wadhwa, planned to respond in court, stating that he did not agree with Ashkenazy and Kingdom Holding’s assertions. The group hasn’t yet submitted that response, though.
The Plaza Hotel has had multiple owners in the past, including the president of the United States, Donald Trump. When he declared bankruptcy more than 20 years ago, Trump sold the hotel. During its tenure, the Plaza’s majority was turned into condominiums by the Israel-based Elad Group. The property is now managed by AccorHotels under the Fairmont Hotels & Resorts brand.
According to a report from Rent Cafe, New York City has retained its title as No. 1 in apartment construction thus far in 2023. The report estimates that at least 33,000 new rental units are set to be opened this year.
Of these units expected to be completed before the end of the year, most of them are either in Brooklyn, Manhattan or Queens. Brooklyn has the most at 9,825, followed by Queens (4,430) and Manhattan (3,770). The Bronx and Staten Island were not included in the metro data set for New York City.
Rent Cafe credits the large amount of construction in New York City being an effort to cut down on housing shortage concerns. As the only northeastern location in the top 20 metros for apartment construction in 2023, there is a high demand for housing in New York City.
From 2020-2022, 66,070 new apartments were opened in New York City, according to data collected by Rent Cafe. This large production was meant as a means to bring housing to more residents new and old. This also reflects high demand even during and following the COVID-19 pandemic. The only metro area to see more units built during that span was Dallas, TX, at 76,660.
RentCafe.com is a nationwide apartment search website that enables renters to easily find apartments and houses for rent across the country.
In order to compile this report, Rent Cafe’s research team analyzed new apartment construction data across 296 U.S. metropolitan statistical areas. The study is exclusively based on apartment data related to buildings containing at least 50 units. Metros with less than 300 units or less than two properties/buildings were excluded from the study.
Yardi Matrix, a business development and asset management tool for brokers, sponsors, banks and equity sources underwriting investments in the multifamily, office, industrial and self-storage sectors, provided apartment data for Rent Cafe. Apartment projections at the metro and city level for 2023 were calculated based on a Yardi Matrix proprietary algorithm, which includes confirmed and likely completions for 2023 based on the issuance of a certificate of occupancy. Once the certificate of occupancy is issued, the status of the property can be considered “completed”.
The U.S. Census Bureau provided data on estimated population by metro area.
For Maefield Development’s 20 Times Square, a $900 million CMBS debt has been moved to a specific servicer.
According to Commercial Observer, the loan went into special servicing on November 3 after defaulting as a result of a $26.8M lien filed against the property.
The 42-story building, commonly known as 701 Seventh Avenue, has four deals that make up the loan’s remaining balance. The development of a hotel at the mixed-use property and numerous foreclosures are apparently the causes of the liens.
A 452-key Marriott International hotel called 20 Times Square briefly opened in August 2019; its shutdown a year later was blamed to the pandemic.
According to The Real Deal, the loan was initially provided to Maefield by the French bank Natixis in 2018 with a May 2023 maturity date. According to Commercial Observer, the property’s 99-year ground lease, revenue from the hotel, the four floors of retail space, and electronic billboards in Times Square all acted as collateral.
The National Football League had a 43K SF experiential store in the area that shuttered in 2018, not long after it had opened, and it was intended to be the property’s retail anchor. According to Commercial Observer, the NFL’s rent at the time of the underwriting would have been $8.25M annually.
Maefield’s lease on its own building was pledged as collateral when Natixis financed the deal for Maefield and Fortress Investment Group to buy out its investors and acquire full ownership of the property in 2018. However, Natixis and a group of foreign investors foreclosed on the property when Maefield and Fortress missed payments on their leasehold debt. The lender selected SL Green to oversee the 350K SF building at auction this year with plans to reopen the hotel wing of the structure.
According to information from the Korea Herald, a group of lenders, including institutional Korean investors and Korean banks KB Kookmin, Hana, and NH Nonghyup, are owing roughly $150M in mezzanine debt on the property.
Numerous marijuana dispensaries might not learn whether they can start operations in New York for at least another two weeks.
In the courtroom, four veterans contended that state legislation had not been followed when evaluating their applications for cannabis licenses. One of the categories given higher consideration by state authorities when deciding whether to provide a cannabis license is veterans. The state Office of Cannabis Management, or OCM, prioritizes people with prior marijuana convictions in New York over veterans, though. All of these soldiers have perfect records.
The state organization in charge of issuing licenses is OCM. The state lawmakers simply authorized guidelines for conditional licenses, the assistant attorney general said in court on behalf of OCM, and left it up to OCM to decide how licenses are actually awarded. The judge said the two sides must cooperate to ensure that no one is harmed by the license application procedure but refrained from rendering a decision.
Spectrum News reported that Hal McCabe, the Cannabis Association of New York’s interim executive director, released a statement in which he expressed disappointment with the court’s decision today and stated that “this injunction continues to threaten tens of thousands of jobs, thousands of businesses, and the entire industry as a whole.”
He stated, referring to corporate cannabis companies, “It really is them and their interests against the entire New York State licensed marijuana cannabis market.” That’s how easy it is. Right now, we are experiencing a true David and Goliath moment right now.”.
An empty office building in Lower Manhattan will be filled with more than 1,300 apartments, making it the largest residential conversion project in the nation, according to its owners. The Daily News and JPMorgan Chase previously occupied the building at 25 Water St., but they left before the pandemic. The 22-story building’s offices have been demolished, courtyards have been created, and 10 further floors have been added under long-standing regulations that facilitate residential conversions in the Financial District.
The owners haven’t submitted the residential layout for final approval to the city’s Department of Buildings, but as long as the new design complies with zoning and building regulations, receiving city clearance is merely a formality in Lower Manhattan office conversions. Both Mayor Eric Adams and Governor Kathy Hochul assert that these conversions can boost the availability of homes in areas like Midtown and Flushing, Queens, but first the state must modify zoning regulations.
The state budget that is presently being debated by politicians in the state takes those modifications as well as a new office conversion tax incentive into account. According to architect Eugene Flotteron, whose business is creating the floor plans for 25 Water St., repurposing an office building is typically quicker than building a new one from the ground up. The units should be open in around two years, according to the developers. However, it is more difficult to convert water coolers and cubicles into beds and kitchens. It’s also not cheap. According to GFP Real Estate CEO Brian Steinwurtzel, the building’s owners GFP Real Estate and Metro Loft intend to scoop out two courtyards from its middle and encircle them with apartments. That will enable the structure to meet the needs for light and air.
This editorial appeared recently in Crain’s New York Business.
Illegal smoke shops are out of control in the city. It makes sense to call on landlords to help stymie their proliferation by requiring them to not knowingly lease their storefronts to such vendors.
The illegal market has quickly outpaced the legal market. According to senior reporter Aaron Elstein, there are about 8,000 unlicensed stores citywide, compared to just 21 licensed retail dispensaries across the state. Only five of those are located in the city, according to the state’s Office of Cannabis Management.
It’s understandable how the problem grew so quickly; landlords were eager to lease shuttered storefronts to paying tenants during the pandemic, and there wasn’t exactly a surplus of takers to choose from. Plus, no one anticipated that the rollout of cannabis licenses would be so glacially slow.
Landlords can now be fined up to $10,000 for knowingly renting store space to illegal cannabis sellers under a new law that went into effect Aug. 14. Under the two-strike system, if a raid finds illegal activity, the sheriff’s office will first notify a landlord that they are renting to an illegal business. If the store is found to still be operating in subsequent inspections, the landlord will receive a $5,000 fine. For each subsequent failed inspection, the landlord will get fined an additional $10,000.
This was a wise move by the city, as the problem has reached a point where the private sector must step in to make sure the underground industry does not get even more out of hand. Plus, officials have taken initial steps, like raids to seize the illegal goods themselves, before they decided to involve landlords.
It’s encouraging that the Real Estate Board of New York is also in favor of the legislation, with Steve Soutendijk, co-chair of REBNY’s New York retail committee and commercial broker with Cushman & Wakefield calling it a “commonsense law” which will “keep bad actors out of commercial spaces and help ensure that real estate brokers and property owners are working with properly licensed retail establishments,” at a recent press conference.
Landlords are generally not allowed to lease their spaces to illegal businesses, and smoke shops selling much more than bongs are no exception.
Not only are many smoke shops engaging in illicit activities, they are undercutting the legal cannabis business which was designed to infuse more money into the state’s economy while decriminalizing marijuana and aiding equity goals.
Ideally, the state will become quicker at getting licenses into the hands of cannabis retailers so that they can conduct business legally. Until then, the city must use all tools available to keep the smoke shop issue at bay.
New housing will be allowed in parts of Midtown Manhattan for the first time in decades under a plan announced by Mayor Eric Adams on Thursday. The mayor wants to update zoning rules to allow for the construction of new apartments in a 42-block area stretching from 23rd Street to 40th Street and from Fifth Avenue to Eighth Avenue, which is currently designated for manufacturing use. The start of the rezoning effort joins another proposal from the Adams administration to facilitate and expedite office-to-housing conversions across every borough, as the city continues to face a housing shortage.
Map of proposed Midtown South rezoning areas courtesy of NYC Planning
Under the so-called Midtown South Neighborhood Plan, the city would update zoning rules to transform four areas in the neighborhood into a dynamic, live-work community with affordable housing and good jobs.
The plan also includes the exploration of opportunities to convert non-residential buildings into housing, boost economic growth, support local businesses, and create jobs. The public outreach process will begin in the fall.
“In central Manhattan where new housing is currently not allowed because of outdated zoning, our office conversion and reimagining Midtown South increase our housing supply and they help our economy to flourish by revitalizing our business districts, which are our city’s economic engine,” Adams said during Thursday’s press briefing.
“To expedite office-to-residential conversions citywide, the mayor said zoning changes would allow office buildings constructed before 1990 to convert to housing; currently, the cut-off is 1961 or 1977, depending on the area. Doing this would free up 136 million square feet of office space across the city to become apartments, although the city notes the decision remains with the property owner.
The changes would also allow for a variety of housing types, including supportive housing, shared housing, and dormitories.
Early this year, Adams estimated converting underused offices could create 20,000 homes for 40,000 New Yorkers over the next decade.
“It makes no sense to allow office buildings to sit empty while New Yorkers struggle to find housing. By enabling office conversions, New York will reinvigorate its business districts and deliver new homes near jobs and transit,” Maria Torres-Springer, Deputy Mayor for Housing, Economic Development, and Workforce, said.
Adams on Thursday also launched the new Office Conversions Accelerator, a program led by experts from across city government, to work with building owners to speed up the conversion process. The panel of experts hailing from the city’s Department of Buildings, Department of Housing Preservation and Development, the Board of Standards and Appeals, and the Landmarks Preservation Commission, will utilize the city’s resources to help building owners complete complex conversion projects.
“With a proposal to rewrite zoning regulations so unused office space can become homes for New Yorkers, it’s unbelievable how much empty office space we have sitting idly by with ready and willing participants to develop the housing, and we are in the way,” Adams said during a press briefing Thursday.
“Well, it’s time to get out of the way so we can turn these office cubicles into nice living quarters so that we can address the housing crisis we have.”
In December 2022, Adams and Gov. Kathy Hochul revealed their plans to transform Manhattan’s central business districts into dynamic neighborhoods in order to prepare the city for a post-pandemic world. While all of the city’s business hubs in the outer boroughs have experienced a speedy economic recovery since the end of the pandemic, Manhattan’s business centers, in Midtown and Lower Manhattan, have lagged behind mainly due to the lack of workers, many of whom have started working from home.
As part of the city and state’s plan, zoning restrictions will be amended to create new, flexible residential areas that will be more “live-work-play” rather than following the same policies that have shown to be no longer suitable for a post-pandemic world.”
RXR, one of the New York metropolitan area’s largest owners of Class A office and multifamily residential communities, is pleased to announce a 25-year lease extension with global law firm Davis Polk & Wardwell LLP (Davis Polk). As part of the renewal, Davis Polk will be expanding its footprint at 450 Lexington Avenue by an additional floor, adding 30,000 square feet. The firm’s new footprint at the building will be over 700,000 square feet, constituting the largest lease in New York City in 2023 to date.
The 40-story Class A office tower, located conveniently near Grand Central Terminal between 44th and 45th Streets, is in a prime transit-oriented submarket that continues to be an attractive office destination for current and future employers. 450 Lexington was completed in 1991 and remains one of the newest and most impeccably maintained properties in midtown.
“Davis Polk’s long-term commitment to 450 Lexington Avenue is another example that New York City’s office market is here to stay,” said RXR Chairman and CEO Scott Rechler. “As the needs of employers and the nature of work evolves, we are working constantly to ensure our spaces are keeping up with those changing demands. We are thrilled that Davis Polk has once again committed to making 450 Lexington Avenue its home in New York City.”
In connection with the lease, RXR and its partners are investing over $300 million for extensive capital improvements throughout the building common areas and across Davis Polk’s 23 floors. The planned renovations will encompass the full modernization of lobbies and workspaces, including the addition of numerous amenities inside of Davis Polk’s premises focused on improving employees’day-to-day experiences and addressing their evolving needs.
Overall, the entire building will see extensive upgrades in the lobbies and elevators that include modern and timeless aesthetics that are harmonious with the building’s historic structure. Renovations are being designed by global architecture, design, and planning firm Gensler. New space configurations, lighting, finishes, and added architectural features such as striking stone, glass, and wood materials will complement feature ceiling elements and modern glazed entryways.
“We are thrilled that 450 Lex will continue to be our long-term home going forward and we are grateful for RXR’s collaboration in reaching a mutually acceptable outcome in the context of a challenging and difficult market environment,” said Neil Barr, Davis Polk’s Chair and Managing Partner. “We are embarking on a truly exciting, complete renovation that will transform the look and feel of our office and offer the Davis Polk community a uniquely modern, welcoming and collaborative space.”
The building’s “Sky Lobby” will also receive a full remodel. It will include private outdoor terraces and Loggia spaces for Davis Polk featuring new indoor/outdoor space, operable doors, seating, and planting. Additionally, Davis Polk will create new gathering spaces, meeting spaces, and culinary options throughout the firm’s premises.
“RXR is delighted to continue our longstanding relationship with Davis Polk,” said William Elder, EVP, Managing Director of RXR’s New York City Division. “450 Lexington Avenue is a dynamic asset with floorplates that allow for adaptability and creativity. Through our planned enhancements and infrastructure updates for the entire building to enjoy, including the reimagined offices and enhancements for Davis Polk’s headquarters, this office tower will continue to serve as a modern workplace destination.”
NEW YORK (AP) — A New York judge on Tuesday dismissed lawsuits filed by Airbnb and three hosts over New York City’s rules for short-term rentals, saying the restrictions are “entirely rational.”
In a 14-page ruling, Supreme Court Judge Arlene P. Bluth said having to comply with a registration system does not present an “overly onerous obligation” to the company and hosts. Such a system, she said, will help identify many illegal short-term rentals before they’re listed on the Airbnb platform.
“To be sure, these rules will likely not be perfect,” she added. “But it addresses a problem raised by OSE (New York City Mayor’s Office of Special Enforcement) and avoids a key obstacle — enforcing the ban on illegal short-term rentals.”
A city official cited thousands of illegal short-term rentals when defending the new rules in court, noting 43,000 on just Airbnb in 2018. The city received nearly 12,000 complaints regarding illegal short-term rentals from 2017 to 2021.
New York’s 2022 ordinance requires owners to register with the mayor’s office, disclose who else lives in the property, and promise to comply with zoning, construction and maintenance ordinances.
San Francisco-based Airbnb has called the restrictions “extreme and oppressive” and a de facto ban against short-term rentals that left the company no choice but to sue.
“Taken together, these features of the registration scheme appear intended to drive the short-term rental trade out of New York City once and for all,” Airbnb said in June. The company said the mayor’s Office of Special Enforcement “failed to consider reasonable alternatives.”
Asked to respond to the court’s decision, Theo Yedinsky, global policy director for Airbnb, on Tuesday evening said the city’s rules are “a blow to its tourism economy and the thousands of New Yorkers and small businesses in the outer boroughs who rely on home sharing and tourism dollars to help make ends meet.”
Downtown Manhattan is about to get a big dose of upstate New York.
Almost exactly two years after the Rochester-based grocery giant Wegmans announced it would debut its first-ever Manhattan location in the former Kmart on Astor Place during the second half of 2023, now comes word of its specific opening date. And, just like the company said in 2021, it’s right on target.
The two-level, 87,500-square-foot store — located in the 1907-built 770 Broadway — will open for business on Oct. 18 at 9 a.m., according to a company release.
It’s the first Wegmans location in Manhattan, but not the first within city limits.
“We know our customers can’t wait to come see what we have in store and our employees have been training, in some cases, for over a year to get ready for this day,” says store manager Matt Dailor in the release. “Wegmans is a celebration of food and people, and we can’t wait to open the doors on October 18 to our community here in the East Village.”
On Oct. 27, 2019, almost exactly four years before the opening of this Astor Place spread, Wegmans made its Big Apple debut across the East River in the Brooklyn Navy Yard, which remains open.
Ever since the company announced its forthcoming Astor Place location, the space has been decorated with company designs. Now, windows bear logos — as do docking stations for Citi Bike right in front.The new store runs two levels at 770 Broadway in the former Kmart space.The new store is still in the works, and will have one floor for prepared foods and the lower level for grocery staples.Visitors will recognize the interior design of Wegmans, though this one will have unique elements in its decorative windows resembling the building’s own architectural details.Under rainy skies, the Brooklyn Wegmans opened in October 2019.The Brooklyn opening drew crowds of fans to the store.“Wegmaniacs” loaded up on their favorite products, which will also happen when the Manhattan location opens this fall.
The bulk of Wegmans locations are in New York State — spanning from Buffalo to a forthcoming store in Long Island’s Suffolk County — with plenty of others in Pennsylvania, New Jersey, Massachusetts, Maryland, Delaware, the District of Columbia, Virginia and North Carolina. Future stores, according to the Wegmans website, will include one in Norwalk, Connecticut — which will be the first to open in that state.
The grand opening of the Astor Place behemoth comes full circle after summer 2021 saw speculation that Wegmans would move into the former Kmart, which shut abruptly in July 2021. Published reports, as well as Reddit chatter, said the space would be replaced by a “first-class regional grocer,” leading many curious minds to offer their guesses of Wegmans, Whole Foods or Trader Joe’s.
What customers can expect: fresh sushi, sandwiches, pizza and even Mediterranean bites from the “Mezze” section. What’s more, in the first half of 2024, visitors will also have an on-site dining room with a sushi bar, as well as a Champagne and oyster bar.
Similar to Trader Joe’s, Wegmans has long attracted a cult following — particularly among natives of Western and Central New York who grew up chowing down on its fresh, and reasonably priced, food.88
The loyalty was so strong for some upstate natives that, despite living in New York City, they’d drive 330 miles home to Rochester to load up on several months worth of groceries to cart back to Manhattan. Others deliberately rented apartments or bought homes near the closest Wegmans stores — and not just for breezy shopping, but also for nostalgia.
Longtime customer favorites include the brand’s ginger-flavored sparkling water, the cave-ripened Cremeux de Bourgogne cheese, chocolate-dipped chocolate chip cookies that sandwich flavored buttercream frosting and, this being an upstate brand, its Buffalo wings.
