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Gets 60 months, owes $22M in restitution for mortgage fraud scheme
Aron Puretz Sentenced to Five Years in Prison for Fraud
A federal judge in New Jersey sentenced real estate investor Aron Puretz to 60 months in prison for his role in a wide-ranging commercial mortgage fraud scheme.
Puretz pleaded guilty this summer to one count of wire fraud after prosecutors alleged he engaged in a multi-year conspiracy to fraudulently obtain $54.7 million in loans from Freddie Mac and lenders.
U.S. District Judge Robert Kirsh sentenced Puretz to the maximum of five years in prison and ordered him to pay restitution of $22 million. He was detained immediately at the end of the Dec. 12. hearing.
Puretz’s lawyer, Steven Yurowitz, did not return a request for comment.
In one case, according to the Department of Justice, Puretz and co-conspirators, including disgraced investor Boruch Drillman, acquired an office complex in Troy, Michigan, for $43 million, but presented the lender with a fraudulent sales contract for $70 million. The inflated sales price induced the lender to make a larger loan than it otherwise would have made.
Puretz, who ran Apex Equity Group, was also involved in a similar scheme with a multifamily property in Eureka, Illinois.
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And in a separate deal, Puretz and his co-conspirators acquired a rental property in Little Rock, Arkansas, using the identity of an associate. Prosecutors said Puretz hid his ownership from the Department of Housing and Urban Development and other federal and state agencies.
Puretz’s sentencing will likely set a precedent for other investors who have pleaded guilty in the sprawling mortgage fraud investigation by the Department of Justice and Federal Housing Finance Agency.
His son, Eli Puretz, pleaded guilty to one count of wire fraud for his role in the Michigan deal. Drillman pleaded guilty to one count of wire fraud and is also awaiting sentencing.
An investigation by the Philadelphia Inquirer documented numerous code violations and deplorable living conditions at properties owned by the Puretz family. Brith Sholom, a senior housing complex in the Wynnefield section of Philadelphia, racked up 275 code violations and siphoned $1 million from residents’ utility payments. Squatters are terrorizing the senior residents, the Inquirer reported.
The Puretz companies acquired more than 16,000 units of low-income housing nationwide and took out mortgages against the properties totaling more than half a billion dollars, according to the report.
Concerns about tariffs, immigration crackdown roil sector
President-elect Donald Trump (Getty)
Nov 25, 2024, 11:35 AM
By
Staff
Developers and landlords were jubilant when Donald Trump won his return to the White House. But property stocks didn’t react the same way.
Stocks in the sector fell 2.6 percent the day after the election, Bloomberg reported. Property stocks were the worst performing sector in the S&P 500 that day. Notable falls included a 3.8 percent drop for D.R. Horton shares and a 4 percent decline for CBRE Group.
Even though the stock market as a whole initially surged after Trump’s victory, the malaise in real estate stocks has lingered, as an index of homebuilders’ shares remains down 3 percent since Election Day. The S&P 500 index tracking real estate stocks closed above the Election Day price on Friday for only the second time since November 5.
Real estate investors are concerned about the potential effects of Trump’s promised tariffs on home sales and the office market, and about a crackdown on illegal immigration impacting the construction industry’s already-struggling workforce.
“If he manages to get through the policies that he’s proposing, that will be really bad news,” American Enterprise Institute economist Desmond Lachman said.
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But the industry itself doesn’t necessarily feel the same level of concern as its investors. Homebuilder sentiment is on the rise as the sales outlook soars along with hopes of deregulation.
Developers are also hoping the Trump administration will institute tax cuts that will benefit the industry.
Even though Trump is two months from taking office, his election is already putting pressure on real estate’s most critical financial metrics. Economists, for instance, are raising near-term forecasts on mortgage rates as Trump’s tariff proposals may increase inflation as costs are passed on to consumers.
Proposed tax cuts could also lower fiscal revenue and raise the national debt, according to economists, which would lead to higher long-term interest rates.
First move will be passing rental-broker bill Nov. 13
Donald Trump (Illustration The Real Deal with Getty)
Nov 8, 2024, 7:00 AM
By
Kathryn Brenzel
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Eight years ago, Donald Trump’s election enraged and energized New York’s progressives, who took control of the state Senate and slashed rent growth in rent-stabilized housing.
Now, history could repeat itself, in a slightly different form.
A week after Trump’s election to a second term, the City Council is expected to vote on a bill that aims to save tenants thousands of dollars on broker fees when they lease apartments.
Shortly before Election Day, Council members were given copies of the measure to review, indicating approval is imminent. The bill was likely to be approved next week regardless of who won the White House, but progressives can point to its passage as proof to their constituents that they are responding to Trump’s victory.
“The FARE Act is a powerful example of how Progressives are taking on the real economic struggles everyday people face, like being price gouged on rent and broker fees,” Council member Sandy Nurse, co-chair of the Council’s Progressive Caucus, said in a statement.
“While moderate and right-wing politicians play their game of divide and distract, blaming immigrants, trans people, and progressives for the struggles of the working class, this bill does the real work.”
“It’s time the moderate wing of the Democratic Party stop playing it safe and lean into populist platforms like the FARE Act that brings people together by meeting their real, urgent needs,” she continued.
In New York City, Trump lost to Vice President Kamala Harris by 37 percentage points, according to unofficial election results. He had lost to Biden by 54 points four years ago and by 63 points to Hillary Clinton in 2016. Trump gained ground in Chinese and Orthodox Jewish communities in Brooklyn, Hispanic communities in the Bronx and Queens, and Chinese and South Asian neighborhoods in Queens, the New York Times reported.
“He didn’t do that badly in New York,” said political consultant George Artz. “The margins were not great.”
Democrats saw their edge slip, albeit slightly, in other races too. The party kept its majorities in the state legislature, but lost its supermajority — a veto-proof majority — in the Senate, according to City & State.
Democratic incumbents largely held onto seats in competitive races, and Democrats flipped three House seats, but in Brooklyn, Republican Steven Chan defeated Democratic state Sen. Iwen Chu.
Having the potential in both the Senate and Assembly to override a governor’s veto gave Democrats more leverage to push progressive policies, even without ever overriding a veto by Gov. Kathy Hochul.
The 2019 rent reform, which restricted the ways that landlords can increase rents on stabilized apartments, was progressives’ most significant real estate victory in ages. After years of trying to pass good cause eviction, they succeeded this year, but changes to the legislation prompted the city chapter of the Democratic Socialists of America to say the industry “effectively defeated it by watering it down.”
The city comptroller and 2025 mayoral candidate on running without real estate industry support and the legal scandal engulfing the Adams administrationThe Closing: Brad Lander
Brad Lander (Photos by Axel Dupeux)
By
Kathryn Brenzel
Oct 2, 2024, 7:00 AM
City Comptroller Brad Lander bought a two-bedroom co-op in Park Slope Brooklyn in the 1990s for $125,000, the kind of home ownership opportunity that has disappeared from the city, especially the tree-lined streets of brownstone Brooklyn.
Home ownership is a key part of Lander’s housing platform as he vies to unseat Mayor Eric Adams in 2025. He’s also putting forth social housing models, including limited equity cooperatives, and he has a strategy he thinks will help the city build more housing — helping New Yorkers “see themselves” in growth.
Still, some in the real estate industry are not fans, though their opinion of Lander may matter less for his prospects than the legal scandal engulfing the city.
Hours after news broke on Sept. 25 that Adams had been indicted on five federal corruption charges, Lander called for the mayor to step down and offered his help to the public.
“At this urgent moment, the city’s leaders must focus on how we can best enable steady governance so that New York City can move forward and thrive,” he wrote on X. “As the comptroller of the city, I will do everything I can to help ensure this happens.”
Lander became comptroller in 2021 after 12 years in the City Council. Some past positions are what put him at odds with the real estate industry. In the Council, he proposed legislation that would have barred for-profit companies from acquiring city-owned land intended for affordable housing. As comptroller, he urged lawmakers to reform the state’s property tax system rather than revive the property tax break 421a. When he was running for comptroller, he vowed to reject donations from the industry.
Though he has pushed legislation that promotes nonprofit housing development, Lander says the housing shortage should also be addressed through private development and more social housing options.
This conversation has been condensed and edited for clarity.
Born: July 8, 1969 Hometown: University City, Missouri Lives: Park Slope, Brooklyn Family: Married, two children
What was your experience growing up outside St. Louis?
It made me want to live in a big city. I love going back to visit, and I love the St. Louis Cardinals, but I was definitely hungry for a place with more vitality, energy and diversity.
What were you like as a kid?
Nerdy. I don’t think that’ll shock anyone.
Your father was a bankruptcy attorney and your mom was an elementary school counselor. Would you say that your parents helped shape your interests?
For sure. My dad was a [nonprofit] lawyer before he was a private-sector bankruptcy attorney. I was 4 or something, doing these drawings of the buildings downtown, writing “no more poor,” although I misspelled “more.” It was definitely kind of a Midwestern liberal Jewish family with, like, “Work hard and find ways to contribute.”
“[My upbringing] was definitely kind of a Midwestern liberal Jewish family with, like, ‘Work hard and find ways to contribute.’”
What was your first job?
A referee in little league sports. I had played soccer, baseball and basketball in the Olivette Athletic Association, the next town over. A great job when you were a teenager was you could be the referee or then the umpire for the games, and then I was the head referee. That was a lot of fun.
You have a master’s degree in anthropology. Why did you choose that subject, and does it inform your work?
I have two master’s, one in anthropology and one in city planning, and I really think they go well together. What city planning teaches is to take that bird’s-eye view: How can we build a city and the infrastructure that works at a system level for this place? Anthropology is the street-level view: What are people thinking about their neighborhoods and the patterns of their daily lives? I got the anthropology degree in London, studying gentrification in London Docklands, this community that had been the old docks, kind of working-class community that then had all these South Asians, Bangladeshis and Pakistanis come. And then was being gentrified in the first wave of finance gentrification.
I did field work talking to people in this little neighborhood called Wapping, right next to Canary Wharf, the first office-led redevelopment that was taking place in East London. Talking to people about what that transformation and growth meant to them: What did they feel excited about? What did they feel displaced by? In some ways, that combination of what policies or systemic investments are needed and on the other hand, how do the people feel about it? What does it mean? What transformations are taking place, and what kind of policies could make people feel invested?
Did that experience of going out and talking to people influence your decision to take on more public-facing roles?
I mean, I like the spreadsheets and the numbers and the deal work, too. I didn’t want to get stuck doing just one or the other. There’s something fun about the experience of trying to make a deal pencil out, or being in the weeds on the Gowanus rezoning and figuring out what could actually get it done. On the flip side, there’s something fun about talking to people and trying to figure out what they want.
You’ve pointed to the Gowanus rezoning as a key success of your time as a Council member. How can you replicate that success through other rezonings?
I want to do for New York City what I did for Gowanus: set the table for genuinely inclusive growth in a way that can generate a more thriving and affordable future.
But there was some opposition.
There definitely was. But because we had this civic infrastructure for a conversation, people stuck with it. The public housing residents knew they weren’t gonna get everything they wanted, but they had to get enough to feel like it was real. From the beginning, [we] said we’re going to need a long-term oversight task force. There’ll be a rezoning that lets developers do a lot more development as-of-right, and then there’ll be all these promises of city investments and programs, but those won’t take care of themselves. So we stood up the Gowanus oversight task force that is really a model for making sure that if you get that kind of good deal in place, it’ll actually be implemented.
The Gowanus rezoning took eight years to complete, so replicating the timeline is not ideal. How do you speed up the process?
I still want to charge three of those years to the de Blasio administration, because we did our community planning work literally in the first week of the new administration. In 2014, I was in City Hall pitching Deputy Mayor [Alicia] Glen. I’m like, “Let’s do Gowanus first.” They were like, “Gowanus is complicated. We’re gonna do some other neighborhoods first.” They didn’t pick it back up until 2016.
We need a range of strategies. I broadly support City of Yes. That’s one good strategy, but it’s only going to get us, I think, a fifth of the moonshot goal [of 500,000 new homes]. You also are going to need these place-based or neighborhood rezonings. Can it go faster? Absolutely could go faster. The question is, what will help [people] feel enthusiastic about [it]? It’s not going to work to do it with a kind of take-your-medicine approach. It is true that an economic analysis of supply and demand chart says we need more housing for long-term affordability. Very few New Yorkers are going to find that a compelling argument. You’ve got to be able to say to people, “This thing is going to make your community, your lives, your kids’ lives, better.” There are tools like that.
Such as?
Affordable home ownership opportunities for working middle-class families. [If they can say,] “That’s where my kid is going to be able to buy a unit in our neighborhood,” there’ll be a lot more enthusiasm.
Do you think that real estate as an industry is still viewed as toxic in political circles?
I think some of that has shifted again. Barack Obama and Kamala Harris — they didn’t say “yay developers” in their [Democratic National Convention] speeches, but they did speak about the need to build more housing. I think you see that in the city as well, including from many progressive elected officials. The goal is a more affordable, more livable, thriving city. The goal can’t be the profit margin of real estate developers, but there is a recognition that those things are going to have to go together. We need a lot more housing built, and developers build housing, so it’s important to have them as one stakeholder, one partner, in the process. The polarized version, where YIMBYs are on one side and NIMBYs on the other, is not nearly as helpful.
How would you describe your relationship with the industry?
I [have my own] North Star, but I’m thoughtful and eager to find good partnerships. We’ve had really good relationships. We’re working with Related on the Signature Bank transaction. That’s profit, nonprofit and government in partnership, in a way that generates good returns. You’ll find people that say [about me], “We don’t always agree, but this is somebody who approaches things with a goal of getting to a good partnership.”
Many mayors, including Adams, have vowed to tackle the property tax system. As mayor, would you actually do that?
I will propose a comprehensive property tax reform in my first year, but we do need Albany. The mayor needs to lead to make this happen, but it’s going to have to include the legislature and the governor to get fair, effective, comprehensive property tax reform. The mayor, 18 months ago, told [Council members] Joe Borelli and Kevin Riley and me he would do it that spring, and has failed. Bill de Blasio waited until the third-to-last day of the administration to put his plan out.
You are a Cardinals fan. What are your other unpopular opinions?
I guess comprehensive planning is unpopular in the real estate community, but I still believe it’s a good idea.
What’s your greatest vice?
Sugar, I guess. I eat too much Ben & Jerry’s. I drink too much Coca-Cola.
What’s one lesson you hope your children learn from you?
Look out for each other. I love that line at the end of “Freakonomics”: “Take care of yourself, and if you can, somebody else too.”
What do you consider your greatest success?
The Gowanus rezoning and the District 15 middle school integration plan, both of which are achieving their goals and took at least a little bit of courage. On both, political advisers said, “Why would you do that? People are not going to be happy with it.”
What’s your biggest regret?
I have things I know I got wrong. I was wrong in opposing the way the 7 [train] extension was done and Hudson Yards took place. Probably my biggest regrets are those speeding tickets, and not just because I sped but because I had built a relationship with this community of advocates who had lost family members. [Lander has amassed more than 100 traffic violations, including several speeding tickets in school zones.] I legislated and fought for new rules in a way that honored that partnership, and I didn’t act personally in a way that honored that partnership. That really stunk.
How important is it to you to admit when you’ve gotten something wrong?
Really important. We all come in with our priors, and sometimes we’re right and sometimes we’re wrong. Everybody operates with a set of values and a set of mental models, and being open to where those get it wrong, I think, is important in public policymaking, but it’s also just so important for us, if we’re going to have this diverse and different place, you just have to be open to the fact that your way is not always right.
The Marino Group Secures $275 Million Loan for Midtown Manhattan Project in Partnership with South Korean Investors
New York, NY – The Marino Group, led by Dom Marino a senior executive at Fortis Investment, has successfully negotiated and secured a $275 million loan from South Korean financial entities for an ambitious new development in the heart of Midtown Manhattan. The loan marks a significant achievement for the group, who have been with Fortis for a decade, further cementing their reputation as leading figures in New York City’s real estate investment space.
The project, which remains unnamed, is set to be a cornerstone development in Midtown, a neighborhood renowned for its iconic skyline, vibrant business environment, and proximity to key transit hubs like Grand Central Station and Penn Station. Fortis Investment’s long-term strategy for this venture emphasizes capitalizing on the highly desirable location and the anticipated favorable shift in economic conditions.
Viability of the Investment
Midtown Manhattan continues to be one of the most sought-after real estate markets globally, boasting a combination of prime office spaces, luxury retail, and high-end residential developments. The newly secured financing from South Korean concerns speaks to the international confidence in both Marino’s leadership and Fortis Investment’s track record.
According to Marino, “Securing this loan is a testament to Fortis Investment’s reputation for sound financial planning and strategic growth. The Midtown project will further enhance our portfolio and contribute to the ongoing transformation of New York City.”
The project is expected to benefit from several key factors that make this investment particularly attractive:
Location: Midtown Manhattan is experiencing sustained demand from global businesses, high-net-worth individuals, and commercial tenants. The project’s proximity to major corporations and retail corridors ensures a steady flow of interest and leasing opportunities.
Desirability: Manhattan continues to draw interest from international investors and tenants due to its central role in global finance, commerce, and culture. The Midtown area, in particular, is undergoing a resurgence as companies return to office spaces post-pandemic, further enhancing property values.
Expected Lowering of Interest Rates: Economic analysts predict that interest rates could decline over the coming years, making it easier for developers to secure more favorable financing terms. A drop in interest rates could improve overall project profitability, allowing Fortis to leverage its capital at a lower cost while maximizing returns.
Projected Returns
Based on preliminary estimates, the Midtown project could see an annual return on investment (ROI) of 12-15% over the next five years, driven by strong leasing demand and capital appreciation. Marino and his team believe that as interest rates stabilize or decrease, the value of Midtown properties will only rise, offering Fortis Investment and its South Korean partners a lucrative exit strategy.
“New York is a resilient market, and we’re poised to take advantage of the coming shifts in both real estate demand and financing conditions. This project exemplifies our commitment to increasing our footprint in the metro area while delivering strong returns for our investors,” Marino added.
Expanding Fortis Investment’s Footprint
Having been with Fortis Investment for 10 years, Dom Marino has played an integral role in its rise as a major player in the New York City real estate market. His ability to navigate complex negotiations, secure international financing, and lead high-profile projects has established him as a vital asset to the company.
Marino’s latest success with the South Korean partnership is expected to drive further expansion opportunities for Fortis Investment, as the firm continues to build its portfolio across Manhattan and beyond. With a focus on sustainable growth and strategic development, Fortis Investment is well-positioned to thrive in an ever-competitive market.
The Midtown project is just the beginning of what promises to be a period of aggressive growth for the firm, with Marino at the helm of its next ventures.
Conclusion
The acquisition of the $75 million loan from South Korean investors represents a major milestone for both Dom Marino and Fortis Investment. With its strong location, strategic timing, and promising returns, the Midtown Manhattan project is set to elevate Fortis’s standing in the competitive New York City real estate market. As interest rates fall and demand for premium real estate continues to rise, Fortis Investment is primed for success.
98 new dev contracts, 9 boutique dev launches in the borough last month
Kensington Manor at 428 East 9th Street (Kensington Manor, Getty)
Sep 5, 2024, 2:00 PM
By Jake Indursky
The summer has been a confounding one for new development, with the luxury market slumping and Manhattan and Brooklyn showing no clear trends.
That behavior continued into August in which Brooklyn saw contracts spike year-over-year, the luxury market sputtered and Manhattan held its ground, according to Marketproof’s monthly report.
The city saw a total of 246 contracts signed last month, up slightly from 236 deals last year. The median price per square foot was down 11 percent to $1,550, and days on market fell 4 percent to 119.
Marketproof CEO Kael Goodman said that following the mixed signals in August, the next few months should provide a “clear answer” on how buyers are reacting to falling mortgage rates. At the end of August the average 30-year fixed mortgage was 6.35 percent, the lowest it’s been since May 2023.
And while demand was up slightly, inventory ticked down to 10,532 available units as no new Manhattan projects came online this quarter. Meanwhile, in Brooklyn, nine boutique projects launched, adding 69 units, and in Queens four projects added 87 units.
Jason Thomas, senior vice president of research and analytics at Brown Harris Stevens Development Marketing said development launches in the outer borough have a “quicker launch cycle” than Manhattan projects.
Manhattan saw 123 new development contracts signed in August compared to 116 last year. The median asking price was $2 million and the median price per square foot was $2,084.
520 Fifth has continued to be Manhattan’s standout project, signing nine contracts on one- and two-bedroom units. Rabina’s 99-unit supertall has now sold 61 percent of its units after netting an additional 21 contracts in July and 27 in June.
Thomas said the building has capitalized on the prestige of a Fifth Avenue address and its reasonable price per square foot. Of the non-penthouse units currently listed on StreetEasy, most don’t crack $3,000 per square foot. Corcoran Sunshine Marketing launched sales for the building in April.
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The luxury market had its third straight month of declining deals, with 24 contracts signed at $4 million or more, two less than last August.
For a third straight month, 50 West 66th Street led the luxury market, signing four more contracts over $4 million in the 121-unit building. Extell Marketing Group, with the support of The Corcoran Group and Douglass Elliman, is leading sales for the project.
After a meandering start to the summer, the Brooklyn new development market ended with a bang as 98 deals were signed in the borough, a 28 percent increase compared to last year. Deal volume signed in the borough was the highest since May 2023. The median asking price was $1.3 million and the median price per square foot was $1,299.
“I think that Brooklyn is starting to really sort of outpace Manhattan,” Serhant head of research Coury Napier said of the borough’s quickening pace of signings.
Kensington Manor, a new 76-unit project at 428 East 9th Street, led Brooklyn with 10 contracts on studio and one-bedroom units. Goodman said that entry-level units like the ones at Kensington Manor, which are priced between $370,000 and $590,000, have been selling well. Corcoran’s Danielov Team launched sales for developer ZHL Group two months ago.
While the 24 contracts signed in Queens was one more than last month, it was nearly half as many as the 43 signed in August last year. The median price was $923,000 and the median PPSF was $1,196.
The Vela, a 29-unit project in Astoria, led the borough with four contracts on one- and two-bed units.
319-321 West 38th Street. Designed by Gene Kaufman Architect
BY: MICHAEL YOUNG AND MATT PRUZNICK 8:00 AM ON AUGUST 3, 2024
Construction has topped out on 319-321 West 38th Street, a 26-story Best Western Hotel in Midtown, Manhattan. Designed by Gene Kaufman Architect and developed by 319 West 38th Steel LP, the 250-foot-tall structure will span 44,200 square feet with an undisclosed number of hotel rooms and a collection of amenities. The property stands on two adjoining interior plots between Eighth and Ninth Avenues.
The entire reinforced concrete superstructure was built since our last update in early February, when crews were still working below street level behind the façades of the two low-rise residential buildings that were incorporated into the podium of the tower. Recent photos show metal frame studs in the process of lining the edges of the floor plates ahead of the start of façade installation, which could begin later this summer.
The below Google Street View image details the look of the low-rise occupants of the property before work began.
The main rendering depicts the new tower rising even with the roof levels of its abutting neighbors. The bulk of the structure will be clad in red brick, matching the look of the original façades at street level, with a four-story section of gray metallic paneling in between. The fenestration is made up of wide industrial-style windows with black mullions. Though absent in the rendering, there is a cantilevering concrete platform just below the parapet that will likely serve as a balcony for an upper amenity space.
319-321 West 38th Street’s anticipated completion date is slated for summer 2025, as noted on site.
Construction has broken ground on 25 Cottage Street, a 28-story residential building in Journal Square, Jersey City. Designed by Handel Architects and developed by Nasser Freres, the approximately $300 million project is set to deliver 622 rental residences, nearly 45,000 square feet of Class A office space, and ground-floor retail upon its completion in the first quarter of 2026. The property is located between Summit Avenue and John F. Kennedy Boulevard.
Rendering of lounge at 25 Cottage Street, via Cahn PR
Homes will come in studio to three-bedroom floor plans, and amenities will include spa facilities, an art gallery and studio, karaoke room, pet spa, bowling alley, screening room, game lounge, speakeasy, and VR sports room. Beyond that, residents will also have access to a variety of coworking spaces, a fitness center, yoga room, and a podcast room.
25 Cottage Street. Designed by Handel Architects
The property’s rooftop, which was designed by Melillo Bauer Carman Landscape Architecture, will feature a lounge with kitchen and dining areas, private outdoor BBQ areas, an outdoor kitchen, and a pool.
25 Cottage Street is part of the ongoing revitalization efforts in Journal Square. Nearby transit includes PATH service to Manhattan, Jersey City, Hoboken, and Newark, as well as NJ Transit and bus services.
Rendering of lobby at 25 Cottage Street, via Cahn PR
“When you take a look around us, you would be hard pressed to find another three-block area in the entire country that has this amount of activity,” said Mayor Fulop of Jersey City, highlighting the numerous high-rise developments and a 3-acre public park that are under construction, along with the ongoing restoration of the historic Loew’s Theater to its original 1929 glory. “In a short two or three years from now, this will once again be the epicenter of Jersey City, what it likely was 50 years ago. We’re thankful for all of you for believing in Jersey City. We’re excited to be back here for the ribbon cutting in about two years.”
Real estate developer is first U.S. president to be convicted felon
Donald Trump (Illustration by Kevin Rebong for The Real Deal with Getty)
MAY 30, 2024, 6:11 PM
A Manhattan jury on Thursday convicted former President Donald Trump on all 34 counts of falsifying business records tied to hush money payments paid to porn star Stormy Daniels.
The verdict makes Trump the first U.S. president, but certainly not the first real estate developer, to be declared a felon.
The charges stem from money given to Trump’s former fixer, Michael Cohen, to reimburse him for a $130,000 payment made to Daniels in exchange for keeping quiet about an affair she says they had in 2006.
The charges carry up to four years in prison, though Trump is expected to appeal the verdict, the New York Times reported.
After the verdict was handed down, Trump called it a “disgrace” and told reporters: “This is long from over.”
He also faces three other indictments in three other states.
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Cohen in 2018 pleaded guilty to eight charges related to the hush money payment, including tax evasion and campaign finance violations, and received a three-year prison sentence. He spent most of his sentence in home confinement.
Trump’s campaign recently received a boost from CEO Blackstone chair Stephen Schwarzman, who announced his support for Trump in his 2024 presidential bid. Schwarzman previously said he would not back Trump, but cited the rise of antisemitism in the U.S. as a reason for reversing his decision.
It remains to be seen if Thursday’s verdict will deter others in the industry from publicly joining Schwarzman.
(Illustration by Kevin Rebong for The Real Deal with Getty)
APR 25, 2024, 7:30 AM
By
Kathryn Brenzel
Now that New York has a new property tax break, developers have options.
Depending on the state of their site and their eagerness to build, developers can apply for the new program, move forward with the old version of 421a or sell the land, presumably at a better price than was possible a week ago.
Here are some hypothetical scenarios:
You are a developer with a site in Gowanus.
After rushing to get foundation footings in place before June 15, 2022, you struggled to get financing, and the chances of meeting the 2026 construction deadline to receive 421a appeared slim.
Then in February, the governor announced a 421a workaround: The state would take ownership of the site and lease it back to you at a price that would mimic the benefits of the tax break. You, lucky duck, got your project chosen for the program, as did 17 others.
But now that the state has extended the 421a construction deadline to 2031, the prospect of going through an entirely different process to receive pretend 421a seems less appetizing. You opt to move forward with 421a instead. Or you decide to sell your site, citing the extended construction deadline in your marketing.
The legislation says only projects “commenced” — meaning initial foundation work was done — after June 15, 2022, are eligible for 485x, so it’s not clear that projects grandfathered under the old 421a can opt for 485x (not that developers would want to).
You own a development site in a part of Long Island City.
You’ve been waiting for a new 421a, in hopes that it will make it easier to unload your site. You didn’t get foundation footings in place before June 15, 2022, so whoever builds multifamily on the site will have to go with 485x.
If the project has more than 100 apartments, construction workers must get wages and benefits worth at least $40 per hour. Higher wage requirements kick in for a project with more than 150 units: at least $72.45 per hour or 65 percent of the prevailing wage. That may make the site a tougher sell.
Let’s say that site is in the Bronx. Or north of 96th Street in Manhattan. Or in a part of Astoria just outside higher-wage “zone B.”
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Congratulations. Your wage requirements are in the $40-an-hour group. Unless you stay under 100 units, in which case the 485x wage floor does not apply.
If you know of other paths folks are taking, please let us know!
What we’re thinking about: I would like to stop thinking about the budget, but here we are. How did the governor decide on the locations of zone A and B, where additional construction wage standards apply under 485x? Send a note to [email protected].
A thing we’ve learned: The roofline of the visitor center at Poe Park in the Bronx, which was built in 2011 and designed by Toshiko Mori, is meant to be reminiscent of raven wings, according to Untapped New York.
Elsewhere in New York…
— Mayor Eric Adams’ $112 billion executive budget restores some $2.3 billion in cuts to schools and city services but leaves cuts that led to Sunday closures of most of the city’s libraries. The mayor blamed library administrators for not coming up with better cost-cutting measures, Gothamist reports. “They did an analysis of what services they’re going to deliver to New Yorkers, and they had the options of finding where they wanted to find those savings,” he said. “All of us had to dig deeper. And some of our libraries have substantial endowments.”
— Over the weekend, City Council Speaker Adrienne Adams phoned the mayor to express her unhappiness with his pick for corporation counsel, Randy Mastro, Politico New York reports. Members of the Council’s Black, Latino and Asian Caucus also released a statement on Tuesday voicing concerns about Mastro, who was an aide to Mayor Rudy Giuliani. The mayor has defended the nomination.
Daily Dirt data
Residential: The priciest residential sale on Wednesday was $12.4 million for a 5,200-square-foot townhouse at 71 West 11th Street in Greenwich Village. Paul Kolbusz, Melissa Sargeantson and Sara Gelbard of the Corcoran Group had the listing.
Commercial: The largest commercial sale of the day was $186 million for a 520,000-square-foot office building at 1740 Broadway in Times Square. Blackstone sold the property to Yellowstone.
New to the Market: The highest price for a residential property hitting the market was $28 million for a 3,500-square-foot condominium at 730 Fifth Avenue in Midtown. Eyal Dagan and Chris Poore of Sotheby’s International Realty have the listing.
Breaking Ground: The largest new building application was filed for a 90,000-square-foot, 11-story building at 1848 Vyse Avenue in Crotona Park East. John Woelfling of Dattner Architects filed the permit.
319-321 West 38th Street. Designed by Gene Kaufman Architect
25 Cottage Street. Designed by Handel Architects
