NYC Mayor Eric Adams to push plan for public sites across Big Apple for affordable housing projects

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Story by Craig McCarthy, Emily Crane, NYPost.com

Mayor Eric Adams is set to use his State of the City address Wednesday to unveil a new push to use a slew of city-owned properties for affordable housing projects, The Post has learned.

The new plan will make use of public sites across the Big Apple in a bid to advance a total of 24 housing projects by the end of the year, according to an early snippet of Hizzoner’s speech obtained by The Post.

The ambitious project — dubbed “24 in 24” — will create or preserve more than 12,000 affordable homes scattered across the five boroughs, according to the mayor’s office.

“Our ’24 in 24’ plan to create and preserve affordable housing on 24 publicly-owned sites is another example of how we’re doing everything within our control to deliver housing and relief to New Yorkers when they need it most,” Adams said in a statement to The Post.

“Investments like these, once again, deliver on the vision we laid out to protect public safety, rebuild our economy, and make this city more livable for working-class New Yorkers.”

The specific plans for each property weren’t immediately available, though the Adams administration said further details on the projects and sites would be released in the coming months.

Among the locations already tipped to be part of the project is the Grand Concourse Library on 173rd Street in the Bronx and a Staten Island site located on the corner of Canal and Front streets.

NYC Mayor Eric Adams to unveil ambitious plan to use public sites across Big Apple for affordable housing projects© Provided by New York Post

The new plan will make use of public sites across the Big Apple in a bid to advance a total of 24 housing projects by the end of the year. Google Maps

At least three of the sites slated to be announced in Adams’ initial plan later Wednesday have already been floated as affordable housing developments, including 388 Hudson St. in the Greenwich Village.

In September, the city’s Department of Housing Preservation and Development had unveiled four potential renderings of the soaring building, which could rise up to 355 feet at the city-owned lot — angering some residents in the quaint neighborhood.

Two other lots in Queens — including the Hunters Point South Parcel E and a parking lot on Ninth Avenue in Inwood — are also HPD-led projects that are among the initial sites included in the mayor’s new plan.

NYC Mayor Eric Adams to unveil ambitious plan to use public sites across Big Apple for affordable housing projects© Provided by New York Post

The ambitious project — dubbed “24 in 24” — will create or preserve more than 12,000 affordable homes scattered across the five boroughs, according to the mayor’s office. nyc.gov. “While we advocate for action in Albany this session and advance our historic ‘City of Yes’ proposal, our administration is tackling the housing and affordability crisis with urgency,” the mayor said his statement.

His plan will coordinate efforts from the HPD, the New York City Housing Authority, the New York City Economic Development Corporation and the New York Public Library.

News of Adams’ plan comes just days after the city agreed to slash its practice of giving residents first dibs on new affordable apartments in their neighborhoods after settling a landmark federal lawsuit that claimed the Big Apple’s housing lottery promoted segregation.

Under the agreement approved Monday by a Manhattan federal judge, the city will soon only set aside 20% of units — down from the current 50% — for those locals vying to win the housing lottery in their own neighborhoods.

In addition to his new housing plan, Adams is expected to use his third State of the City address to touch on crime, jobs and the migrant crisis.

He is set to deliver the remarks at the Hostos Community College in The Bronx from 12:30 p.m.

The above report appeared on NYPost.com

Chelsea’s first legal recreational weed dispensary set to open

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Story by Finn Hoogensen  • WPIX TV

Verdi Cannabis, the first legal recreational weed dispensary in Chelsea, will officially open on Friday.

Verdi will be located at 158 W 23rd St., between Sixth and Seventh avenues in Manhattan.

Father-and-son duo Mitchell and Ellis Soodak are the owners of Verdi, which will sell state-regulated marijuana products.

“Our dispensary will stand out because of our knowledgeable and educated budtenders sell tested and regulated cannabis, as well as providing a safer option for consumers,” Ellis Soodak said.

Verdi will be open from 9 a.m. to 11 p.m., Monday to Saturday, and from 10 a.m. to 10 p.m. on Sundays.

A grand opening ceremony will be held at 11 a.m. on Friday.

“Verdi represents a new era for cannabis enthusiasts in Chelsea,” Ellis Soodak said. “Our goal is for Verdi to be more than just a dispensary as we aim to be a critically important community alternative to the illicit cannabis establishments that have saturated the Chelsea area.”

Curalef and Travel Agency open separate, new cannabis stores as legal New York State marijuana sales increase

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From Marketwatch.com

Story by Steve Gelsi  

The Travel Agency: A Cannabis Store is in line to be the first cannabis retail brand in New York State with multiple locations, as the legal-cannabis business starts gaining a foothold over illegal shops.

Separately, Curaleaf Holdings Inc. said it received special-use approval to open its first New York adult-use store, which will be located in Newburgh, a city about 70 miles north of New York City.

Curaleaf planned to kick off delivery service from the location this past weekend, with a soft opening by the end of January, pending state approval. New York-based Curaleaf has been providing cannabis to the medical market since 2017.

Curaleaf’s stock rose 7% on Friday. The shares are up by 23.5% in the past year, compared to a 37.4% rise by the Nasdaq

New York State’s legal-cannabis business is speeding up after a slow start due to some headwinds, including the cost of real estate and competition from literally thousands of unlicensed stores hawking unregulated cannabis products.

New York’s licensed-cannabis market generated only $150 million in sales in its first year of operation in 2023, less than the $274 million generated by the smaller state of Connecticut, which also kicked off adult-use sales about a year ago.

Gov. Kathy Hochul plans to propose legislation to crack down further on unlicensed cannabis shops. She’s also including a cannabis potency tax repeal and replacing it with a weight-based tax to “ease tax compliance” for distributors.

Hochul’s proposal comes mirrors a proposal in the state legislature to scrap the potency tax in favor of a 9% wholesale excise tax.

The idea is that cutting some cannabis taxes may lower the cost at the cash register and make legal pot more competitive with unregulated pot being sold in unlicensed stores.

Paul Yau, founder of the Travel Agency, said the effort by the state to cut taxes and close down unlicensed shops marks a positive move for the business.

“We 100% support trying to get rid of illicit stores,” Yau told MarketWatch, noting that Hochul made “having safe, tested, clean products” a priority by including a mention in her state-of-the-state address.

Cannabis companies have been slow to open for a variety of reasons. If a major bank holds a mortgage on a property, it may not allow a cannabis business to be a tenant because pot remains illegal under federal law.

Cannabis company operating expenses remain high because of these and other obstacles, he said.

Meanwhile, The Travel Agency is readying its second store at 118-122 Flatbush Avenue, near the Barclays Center in downtown Brooklyn, close to major public-transportation routes.

“We’re looking to make this the premier dispensary in Brooklyn,” Yau said.

The stores will initially open as a pop-up with 3,500 square feet, with 60 full-time and part-time workers, and then expand to 4,800 feet.

While adult-use cannabis has been approved since 2021, legal shops have been slow to gear up as the state awarded its first licenses to non-profits and people affected by the War on Drugs.

Travel Agency runs its two stores for license holders The Doe Fund in Manhattan and GMDSS LLC in Brooklyn.

The Travel Agency’s flagship store opened a year ago under the name Union Square Travel Agency just south of Union Square in Manhattan as the third overall retail cannabis shop in the state.

Now, the Travel Agency name will be used for both the original Union Square store and its downtown Brooklyn location, under a re-branding effort.

In November, the state also officially sanctioned its existing medical-use licensees to take part in the recreational market.

Those companies include Columbia Care, Curaleaf Holdings Inc., Etain, Nycanna LLC, PharmaCann and Valley Agriceuticals LLC

Companies with an existing presence in the state’s medical program include Curaleaf Holdings, RIV Capital Inc.   Green Thumb Industries Inc.  and privately held PharmaCann.

NY pot regulators boast $150M in legal cannabis sales as illegal marijuana stores rob state of millions in taxes

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From NYPost.com, By Aneeta Bhole, Published Dec. 29, 2023

New York pot regulators bragged Friday about the financial success of the legal cannabis industry in 2023 — but made little mention of the millions in taxes being lost to the illegal marijuana stores spreading across the landscape like weeds.

The Office of Cannabis Management’s year end statement was filled with superlatives describing a blooming industry that brought in some $16.5 million in tax revenue on the sales of some 3.5 million pot products sold.

“2023 was a year of growth for New York cannabis and we know 2024 will be even more significant,” said John Kagia, the office’s Director of Policy, which said there was some $150 million in total legal sales this year.

The office, however, couldn’t put a price tag on how much was being sold at the estimated 1,500 illegal vendors operating on nearly every commercial block in the city and elsewhere in the state — which officials have complained have been stealing business from the measly 40 officially licensed shop currently approved in New York state.

The statement did say that they were cracking down on the illegal shops, and that more than 11,600 pounds of illicit products, with an estimated street value of more than $56 million, has been seized.

NY pot regulators boast $150M in legal cannabis sales as illegal marijuana stores rob state of millions in taxes (Provided by New York Post).

New York pot regulators bragged Friday about the financial success of the legal cannabis industry in 2023 — but made little mention of the millions in taxes being lost to illegal marijuana stores. Helayne Seidman

But when asked for details about the total size of the illegal industry, operating in plain sight, the state could provide no data.

Vendors setting up unlicensed shops mostly do business in cash and don’t pay cannabis taxes that licensed marijuana dispensary stores are required to do.

A spokesperson for the cannabis office said they “do not have firm or reliable estimates on total number of unlicensed shops.”

The Office of Cannabis Management’s year end statement was filled with superlatives describing a blooming industry that brought in some $16.5 million in tax revenue on the sales of some 3.5 million pot products sold (Getty Images).

The state said that close to 7,000 licenses were applied for processors, cultivation, distribution, microbusiness and retail dispensary this year and Kagia noted demand was high and is expected to grow.

“And now, with the Office poised to issue hundreds more adult use retail licenses, there’s tremendous excitement as consumers across the state are poised to gain access to this exciting market,” he said.

Just in New York over 500 strains have been made available to the exploding market with names such as Gas Face, Blueberry Muffin, and Sour Diesel.

2023 was a year of growth for New York cannabis and we know 2024 will be even more significant,” said John Kagia, the office’s Director of Policy, which said there was some $150 million in total legal sales this year (Matthew McDermott).

“There are also products available across the price spectrum, from low-cost value brands to ultra-premium product,” Kagia added.

“Furthermore, it’s not just flower products that are selling. Non-flower products, from infused gummies and innovative beverages like cannabis infused apple cider, to strain-specific vaporizers and high potency tinctures, ensure that there is something for everyone in this market.”

From NYPost.com

NYC rents slip again as listings for available apartments pile up

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  • Manhattan median rent in October was $4,195, down 3.6 percent compared to September
  • Apartment listings were up over 30 percent last month, creating competition for owners

From Brickunderground.com, Jennifer White Karp, November 9, 2023

There’s some good news for apartment hunters: A lot more rentals were available last month in New York City compared to a year ago, a surge in inventory that caused rents to drop just slightly. If you’re looking for a new rental, this is likely to be the trend going forward.

It’s largely due to the calendar —the market has passed the peak summer rental season. Manhattan median rent for new leases in October was $4,195, down 3.6 percent compared to September, according to the latest edition of the Elliman Report, which looked at the Manhattan, Brooklyn, and Queens rental markets. There were larger monthly drops in median rent for Brooklyn (5.7 percent) and Queens (9.4 percent).

Rents are likely to remain flat with only small dips for the foreseeable future, says Jonathan Miller, president and CEO of appraisal firm Miller Samuel and author of the report. Don’t expect a sharp decrease—because that’s not how the NYC rental market works.

Even though rents were down on a monthly basis in Manhattan, they were still up 20 percent from the pre-pandemic era. (Manhattan’s median rent in October was also 4.6 percent higher than a year ago.)

Far fewer Manhattan renters signed new leases in October compared to the prior year, an indication that more renters are renewing their leases, which has been a pattern for the past four months. Lease signings dropped 31.3 percent compared to October 2022. Lease signings were also down 8.7 percent compared to the previous month.

Manhattan vacancy’s rate fell below 3 percent just one month after hitting that peak.

Increasing listings

The other part of this tale is rising inventory, which makes more competition for landlords and keeps them from raising rents, at least in the short term. Compared to a year ago, Manhattan apartment listings were up 31.3 percent last month.

Miller says inventory has been rising for the past six months but points out the market doesn’t have a glut like it did during the depths of the pandemic, when the number of available listings was triple what’s available in Manhattan now.

“Inventory is clearly up now but still significantly below the surplus we saw in 2021,” Miller says.

The Corcoran Group also released Manhattan and Brooklyn rental market reports for October. Gary Malin, chief operating officer at The Corcoran Group, notes that a decline in leasing is typical for this time of year, but the slowdown has reached Manhattan luxury rentals. These renters are not usually as price sensitive, he says.

Owners of luxury apartments lowered rents for new leases as a result, “the first pricing decline for doorman [rentals] in over two years,” Malin says.

National Association of Realtors and Class-Action Lawsuit over Commissions

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From Neil B. Garfinkel, REBNY Broker Counsel•

Two multi-billion dollars federal lawsuits are currently being litigated (Moehrl, et al. v. NAR, et al. and Burnett (Sitzer), et al. V. NAR, et al.) that could greatly affect the way NAR members do business. The trial in the Burnett case started this week, and involves the four NAR-affiliated MLSs in Missouri, while the Moehrl case, pending in Chicago, is slated to go to trial next year and involves 20 NAR-affiliated MLSs in numerous states. In addition to NAR, four major brokerage firms were named in these suits: Realogy Holdings Corp. n/k/a Anywhere (the parent company of Better Homes and Gardens Real Estate, Century 21, Corcoran, ERA, Coldwell Banker Realty and Sotheby’s International Realty), Home Services of America, Inc., RE/MAX Holdings Inc. and Keller Williams Realty, Inc. 

Specifically, the class plaintiffs claim that certain NAR MLS rules, including the blanket offer of compensation rule, require sellers to make a uniform offer of compensation to buy-side brokers in order to be able to list their properties on multiple listing services (“MLS”) and help to keep commissions high, and reduce the ability to negotiate for lower commissions. The brokerages appear to have been included in these class-actions because they require their agents to be members of the NAR in order to access the MLS’s where their listings were being placed, and also served in high ranking positions at NAR.  The plaintiffs seek damages, and practice changes which will allow for greater negotiation of the commission rate to be paid in a transaction. 

Two of the Brokerage firms, RE/MAX and Anywhere, recently settled with the plaintiffs for $55 and $83.5 million dollars, respectively.  There are other conditions to these settlements involving practice changes that have been proposed and will be implemented following Court approval of the settlements.  The settlements cover both the Burnett and Moehrl lawsuits, and therefore neither RE/MAX nor Anywhere is participating in the Burnett trial.  The lawsuits against NAR and the two other remaining brokerages are ongoing.  We will provide updates as more information becomes available.  

Separate and apart from these lawsuits, members should be aware that REBNY is also working on making changes to the Universal Co-Brokerage Agreement (“UCBA”). This is not as a reaction to the lawsuits but rather these amendments are independently being reviewed in the constant effort to promote transparency and consumer confidence in the residential real estate transaction.

From REBNY

Midtown, Lower Manhattan foot traffic down 33% — one of worst post-COVID rates in US: survey

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By Carl Campanile, NY Post

Published Nov. 5, 2023, 12:33 p.m. ET

Foot traffic in New York City’s business districts is still down 33% from what it was before the COVID-19 pandemic — one of the lowest recovery rates in the country, a new survey reveals.

The University of Toronto’s analysis measured the number of visitors, including shoppers and tourists, plus residents and workers in the so-called “downtown” or business/tourist districts in major cities in the United States and Canada.

Lower Manhattan, including the Wall Street financial district, and Midtown, featuring Times Square, were considered the Big Apple’s “downtown” district for the study.

Researchers measured foot traffic through mobile phone presence, comparing March to mid-June in 2023 to the same period in 2019. 

New York’s 66% recovery rate ranked 54th out of 66 cities surveyed.

Supermarket magnate and radio host John Catsimatidis told The Post on Sunday that workers need to return to the office.

“I’m very concerned about New York City,” he said. “Right now, Manhattan has one nail in the coffin. 

Chart
New York City came in 54th place for downtown recovery out of 66 cities.

“If you impose congestion pricing to enter the business district, you’ll put two nails in the coffin,” he said, referring to the transit plan to charge drivers in certain city zones to try to discourage vehicles. 

“You see nobody walking after dark.”

Democratic city Councilman Keith Powers, who represents Midtown East and West and Times Square, said the city​ needs to create more housing in the ​area to make up for the loss of office space and workers.

“We’ve made steady progress in getting people back to Midtown, but we need to be forward​-thinking about the future and recognize changes to the work​ place​,” he said. “One of our strategies is rezoning Midtown South to incentivize more housing and create a 24/7 neighborhoo​d.​”

Las Vegas ranked first, having 103% of the foot traffic — or 3% more — from pre-pandemic. The gambling mecca was the only city to have more foot traffic than before the COVID-19 outbreak.

A researcher for the study suggested the societal shift to remote office work has caused a dramatic drop in foot traffic in Gotham’s business districts.

“We’ve been tracking since early 2022, and New York was an early comeback story – but then stalled,” said Karen Chapple, director of the University of Toronto’s School of Cities, to The Post. 

Empty city street
A researcher says that New York was an early comeback story after the lockdown until it stalled.

 “Part of this is due to commercial office tenants gradually giving up their leases,” she said.

The researcher did note that unlike earlier studies, her project excluded Hudson Yards because it is not traditionally considered part of Midtown.

Other major cities that recovered most or considerably more foot traffic from the pre-pandemic period compared to the Big Apple include Miami (92%), Nashville (88%), Atlanta (85%), Los Angeles (83%)  and San Diego (80%).

As with New York, there are other cities that have struggled to recover the pre-pandemic density in their central business district.

Chicago’s foot traffic was just 61% of what it was before the pandemic.

The recovery rate for Seattle and Minneapolis was under 60%.

Times Square
Other non-downtown tourist areas in New York have seen a stronger increase in traffice.

High-tech San Francisco’s recovery rate was nearly identical to New York City’s — or 67%.

But the Partnership for the City Of New York, a major business advocacy group, questioned the accuracy of the University of Toronto’s data, citing more recent reports showing a stronger recovery in Manhattan’s key commerce and tourism districts.

Pedestrian foot traffic in Times Square averaged 285,000 in the last week of October 2023, or 80% of the pre-pandemic count of 356,000 during the equivalent week in 2019, it said.

In Downtown Brooklyn, monthly foot traffic reached 75% of pre-pandemic levels in June 2023.

“A lot of our pre-COVID foot traffic involved tourists, and international tourism is still down. We also have by far the densest concentration of office workers, so the hybrid work week has had a bigger impact here, with average weekday presence in the office [having] dropped from 80 % pre-pandemic to just under 60% today,” said Partnership CEO Kathryn Wylde.

Wylde also noted such studies don’t take into account the increase in foot traffic where many office employees now work and shop.

“On the other hand, the city has business districts across the five boroughs which have likely experienced an uptick in foot traffic as a result of work from home,” she said. “So I don’t think [the Big Apple’s] comparison with smaller cities with a single ‘downtown’ is a fair one.”

Broadway sales and attendance were at 85% and 81% of pre-pandemic levels, respectively, during the last week of October, the Partnership added.

Wylde pointed to other promising data points indicating a stronger recovery, noting that New York City’s regional airports had their busiest month in history, with more than 13.3 million passengers served in August and adding that the 192nd new business opened in Times Square in October, surpassing the 179 businesses that closed during the pandemic.

From NY Post.

WeWork Reneotiating Long-Term Leases

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From CNBC:

WeWork was once valued at $47 billion. Now, the office-sharing company is in the throes of the bankruptcy process after its Monday filing. It has about $16 billion in long-term leases, which the company has been renegotiating. (Other than being the latest buzzy company to fall from grace, WeWork has been a key client for commercial real estate landlords already struggling with an inconsistent return-to-office patterns due to Covid.) The move plunged WeWork into a troubling new chapter of its staggeringly sharp and quick downfall, which was already fodder for a miniseries starring Jared Leto as founder Adam Neumann. For his part, Neumann, who stepped down as CEO in 2019 and received hefty payouts, called the bankruptcy filing “disappointing.”

Elliman Residential Report for October 2023

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For Manhattan, the Elliman Report concludes that “While new signed contracts increased year over year for the first time in a year and a half, new listings increased for the first time in sixteen months. All property types saw significant annual gains in newly signed contracts above the $1 million threshold.”

Full report and other real estate information can be found at Elliman.com.