Money comes from Fortress Investment GroupTRD New York /October 03, 2019 04:51 PMBy Eddie Small Research by Mary Diduch

A rendering of Tower Fifth with Harry Macklowe (Credit: Getty Images)

Harry Macklowe just landed a massive refinancing package for his massive Midtown skyscraper plans.

The octogenarian’s company Macklowe Properties landed a roughly $192 million refinancing from Fortress Investment Group for three parcels at 17 East 47th Street, 5 East 51st Street and 12 East 52nd Street, according to property records. The 51st Street and 52nd Street parcels are part of the assemblage Macklowe has been putting together for an office building dubbed “Tower Fifth” that would stand about 1,500 feet tall, span 1 million square feet and likely cost more than $1 billion.

The refinancing includes a new mortgage for about $50 million and replaces a prior $124 million loan, also from Fortress.

Macklowe bought the six-story rental building at 5 East 51st Street from Noam Management in March for $44 million.

Representatives for Macklowe did not respond to a request for comment, and representatives for Fortress declined to comment. It was not immediately clear if 17 East 47th Street was part of his assemblage play as well, as he had initially been targeting 5-9 East 51st Street and 12-20 East 52nd Street.

Macklowe’s personal life has arguably been as eventful as his professional life lately. The developer just went through a bitter divorce that split his fortune in half and got remarried earlier this year.

Last year, Steve Mnuchin predicted opportunity zones could raise $100 billion

October 22, 2019 01:33 PMStaff

About 100 Opportunity Zone funds have raised just 15 percent of what fund managers expected. (Credit: iStock)

Despite all the hype, investor interest in Opportunity Zone funds simply hasn’t materialized as fund managers had hoped.

According to an analysis by Novogradac, a San Francisco-based accounting firm, 103 Opportunity Zone funds have raised just 15 percent of what fund managers expected. There are at least 285 Opportunity Zone funds in the United States, and many have not shared fundraising metrics, according to the firm, which advises investors on tax incentives.

While Treasury Secretary Steven Mnuchin said last year that Opportunity Zones could raise $100 billion of private capital, the funds analyzed in the study raised just $3 billion of the total $22.7 billion fund managers anticipated.

Opportunity Zone investments must be held for 10 years in order to get the most benefit from the program, leading to some uncertainty about the potential upside of deferring capital gains taxes.

“The No. 1 concern [investors] have is the length of time they are investing for and the uncertainty of what can happen over that period of time the money is invested,” Chris Loeffler, chief executive of Caliber Cos., which has raised about $50 million of its $500 million target, told the Wall Street Journal.

Details of the implementation of the program — which was part of a 2017 tax overhaul and apparently created to spur economic growth in disadvantaged communities — are still being decided by federal regulators. That may help explain investors’ hesitancy, experts said.

The Treasury Department first issued guidelines for the program in October 2018 and additional guidance in April 2019.

Though many fund managers are struggling to reach their targets, there are success stories. SoLa Impact, which invests in South Central Los Angeles, closed a $100 million fund in August. The company said much of the money raised for the fund, which will focus on affordable housing, was from investors looking to redeploy their 2018 capital gains before midyear.
[WSJ] — Georgia Kromrei

180 East 88th Street’s Façade Nears Completion on the Upper East SIde – New York YIMBY

Completion on the Upper East SIde

180 East 88th Street. Rendering by DDG

By: Michael Young 8:00 am on September 19, 2019

The brick and architecturally finished concrete façade of 180 East 88th Street is getting very close to completion. The 31-story reinforced concrete skyscraper holds the title of the tallest structure on the Upper East Side above 72nd Street. The residential project is designed by DDG, with HTO Architects serving as the architect of record. Petersen Tegl, a Denmark-based firm, is in charge of the Kolumba masonry brick façade. The narrow property will yield 100,242 square feet of residential space, averaging 2,088 square feet per unit. There will also be 10,255 square feet of residential amenities and 1,093 square feet of communal facilities on the lower part of the superstructure.

New photos from ground level show the state of the façade and how close it is to being finished. The only portions awaiting completion are the ground floor, the arches, and the very top of the structure above the penthouse.

180 East 88th Street. Photo by Michael Young

The slim eastern elevation. Photo by Michael Young

The ground floor. Photo by Michael Young

It appears that the surface of the arches has yet to be cleaned, smoothed, and textured to match the pattern of the brick masonry, as seen in previous renderings. The varying parabolic heights and spans of the concrete arches and their scalloped edges create an interesting play of light and shadow.

The Gaudi-inspired arches. Photo by Michael Young

The central arches. Photo by Michael Young

Looking up at the crown of the southern corner. Photo by Michael Young

The upper floors of the eastern elevation. Photo by Michael Young

Below are close-ups of the masonry. The corners of the building feature intricate detail and craftsmanship, with a dense pattern of horizontal feathering that softens the edges of the elevations from the bottom to the top of the structure. The bronze-colored accents on each window frame will complement the crown’s final color.

180 East 88th Street penthouse and the bronze-clad crown, via Teaser Website

Photo by Michael Young

A close-up of the masonry corner craftsmanship. Photo by Michael Young

On another portion of the exterior, a vertical line of brickwork crests outward in a stitch-like pattern.

A close-up of the lower windows. Photo by Michael Young

The development will contain a total of 48 half- and full-floor homes with 14-foot-high ceilings. Amenities span eight floors and include a half basketball court, one of the city’s only private indoor soccer pitches, a children’s playroom, a game room, a residential lounge, wine storage, a private gated entry on East 88th Street, and a 24/7 attended lobby.

Completion of 180 East 88th Street is expected by the end of 2019.

Journal Squared’s Next 72-Story Skyscraper Set to Eclipse 53-Story Sibling, in Jersey City – New York YIMBY

Journal Squared’s Next 72-Story Skyscraper Set to Eclipse 53-Story Sibling, in Jersey City – New York YIMBY Journal Squared, rendering by HWKN

By: Michael Young 8:00 am on August 31, 2019

The second tower of the Journal Squared complex, aka 537 Summit Avenue, is rising rapidly and will soon surpass the adjacent 563-foot-tall, 53-story building, which was the first completed segment of the upcoming trio of residential skyscrapers. The Jersey City property is designed by HWKN/Hollwich Kushner and Handel Architects and developed by Kushner Real Estate Group. The second phase of Journal Squared will rise 754 feet, yield 704 units, 18,000 square feet of retail space, and feature a gross floor space of roughly 1,000,000 square feet.

New photos from above show the prominent stature of both structures, which are positioned on a hill over the Journal Square PATH station.

Looking at both structures from the west toward Manhattan. Photo by Michael Young

The first and second skyscrapers of Journal Squared dominate their surroundings. Photo by Michael Young

Looking southeast at Journal Squared. Photo by Michael Young

Residents will have panoramic views of the Jersey City and New York City skyline, as well as abundant daylight exposure. The lack of any tall structures in the vicinity makes Journal Squared particularly conspicuous. All three towers will have architecturally identical curtain walls and flat roof parapets.

The second superstructure still has just over 20 floors to go before topping out, which could occur around the end of the year. The third and final tower will eventually ascend 60 stories and top out at 633 feet tall. It is unclear when construction on this component will commence.

Completion of the second skyscraper is expected sometime in 2020. The entirety of the Journal Squared complex is scheduled to to finish by 2024.

With a cooling trade war, stocks perform well, including real estate.

A renewed optimism for trade talks between the U.S. and China helped push real estate stocks up so far this week, along with the broader stock market.

Since Monday, the S&P 500 is up 2 percent.

And 19 of the 28 real estate stocks The Real Deal follows — a mix of real estate investment trusts, real estate services firms and technology companies — also made gains for the week.

Among TRD’s stock list, CBRE was Thursday’s winner for the day. The real estate services firm’s stock jumped 3.03 percent since market open to close at $51.63.

For the week so far, two brokerages have seen the biggest percentage gains. Marcus & Millichap rose 4.12 percent, from $34.12 to $35.66; and Newmark Knight Frank ticked up 4.11 percent, from $8.27 to $8.61.

On the other end of the spectrum, national brokerage Realogy’s stock plummeted almost 23 percent to $4.73 on Thursday and was down 26% from Monday’s opening bell. Realogy disclosed on Wednesday that it is shutting down its military rewards program, a move that will impact its 2020 earnings.

Other industry indices saw a similar scenario play out, though with weaker gains than the S&P.

The Real Estate Select Sector SPDR Fund — an index that is heavily weighted in the real estate sector — inched up 0.43 percent for the week, ending the day trading at $39.20. And the week-to-date returns on industry group Nareit’s All-REIT index were up 0.66 percent as of Wednesday.

Though real estate stocks also have been hurt by broader market fluctuations, there are signs they are outperforming.

For example, over the past month, the SPDR Fund has grown 5.5 percent, compared to the S&P, which has fallen 3.3 percent.

The stock market overall has taken hits over the past several weeks on fears of a looming recession and the U.S.’s trade war with China. For example, concerns over an inverted yield curve —
a potential red flag for a U.S. economic downturn — sent the Dow spiraling 800 points earlier this month. And last week, a new round of tariffs imposed by China set off another market selloff.

Central Park Tower Surpasses Chicago’s Willis Tower On Way To Tallest Roof Height In Western Hemisphere – New York YIMBY

By: Michael Young 8:00 am on July 29, 2019

Central Park Tower Surpasses Chicago’s Willis Tower On Way To Tallest Roof Height In Western Hemisphere – New York YIMBY

Central Park Tower, aka 217 West 57th Street, has surpassed the 1,450-foot-tall Willis Tower (née Sears Tower) to claim the title of highest roof in the Western Hemisphere. The Adrian Smith + Gordon Gill-designed supertall is being developed by Extell and will soon top-out at 1,550 feet tall over Billionaires’ Row.

New photographs document the ongoing work at the dizzying summit of the reinforced concrete superstructure.

Looking at the southern elevation with the cantilever at the bottom of the photograph. Photo by Michael Young

The difference in the color of the glass is striking. All panes will eventually be stripped of the blue protective film. Photo by Michael Young

Looking from Columbus Circle. Photo by Michael Young

The glass curtain wall on the upper portion of the building is being installed without the blue protective film that coats the remainder of the structure.

Looking east. Photo by Michael Young

The top of Central Park Tower. Photo by Michael Young

Looking east from the New Jersey Turnpike. Photo by Michael Young

Extell is expecting a project sellout of $4 billion. Meanwhile, the Nordstrom flagship store, which will occupy the tower’s podium, will open on October 24, 2019.

The protective film on the wavy glass panels of the retail base is starting to show the transparency of the curtain wall. Photo by Michael Young

Completion of Central Park Tower is expected sometime next year.

August 02, 2019 09:30AM

Supreme Court Judge rules against LES development

Citing a book that laments the “proliferation of skyscrapers” during the turn of the 20th century, Supreme Court Judge Arthur Engoron spoiled the plans of Two Bridges tower developers CIM Group, L+M Development Partners, Starrett Development and JDS Development Group — for now.

Judge Engoron enjoined the Department of Buildings from issuing permits until the project is properly approved, according to a press release, after temporarily halting the development in June. In a statement, a spokesperson for the joint venture said the developers plan to fight the ruling, The City reported.

The developers planned to erect four 60 to 100-story towers with 2,775 apartments, with 25 percent of the units set aside as affordable. The plans had been previously approved, but the Department of City Planning voted to change the development sites’ permit without going through a public review. Now, the towers may be headed to Uniform Land Use Review Procedure (ULURP), a community review process that could stretch on for months.

Two more lawsuits have challenged the Two Bridges development, by community groups including Good Old Lower East Side and CAAAV Organizing Asian Communities. A representative from CAAV said that the ruling gives them time to work on their larger goal of limiting building heights across the board on the Lower East Side.

— Georgia Kromrei

RAMSA’s 220 Central Park South Getting Finishing Touches on Billionaires’ Row – New York YIMBY

220 Central Park South, designed by Robert A. M. Stern.

By: Michael Young 8:00 am on July 1, 2019

The finishing exterior touches are going on 220 Central Park South, Robert A. M. Stern Architects’ tallest project in New York City. The 67-story residential tower contains 593,000 square feet of newly built space and stands 950 feet tall above Central Park South. The classically inspired, pre-war evocative skyscraper is clearly visible from Columbus Circle and the southern end of Central Park. SLCE Architects is the executive architect, the interiors are being designed by Thierry W. Despont, and Vornado Realty Trust is the developer of the $1.4 billion dollar development. The firm is expecting a projected $3.4 billion sellout.

Looking up the full height of the southern elevation. Photo by Michael Young

The crown of 220 Central Park South is nearly finished. Photo by Michael Young

The mechanical hoist that used to be attached to the eastern elevation is now completely disassembled. Work on the motor courtyard is progressing, and some large trees have already been delivered and planted in the center of the outdoor space.

Looking at the motor courtyard. Photo by Michael Young

The ornamental and decorative grilles for the mechanical ventilation on the lower floors have also gone in place.

The ornamental grilles for the ventilation on the lower floor can be seen from street level. Photo by Michael Young

This tower joins Robert A. M. Stern Architects’ other projects in Midtown, including 15 Central Park West and 520 Park Avenue. The property made headlines in January, when its 23,000-square foot penthouse was purchased by Ken Griffin for $238 million, becoming the most expensive home sale in United States history.

An exact completion date 220 Central Park South has not been formally announced. But the project could be done by the end of this year or early 2021 at the very latest.

FAA Permits Submitted for 841-Foot-Tall Tower at 30 Journal Square, in Jersey City – New York YIMBY

30 Journal Square, image by Morris Adjmi Architects

By: Michael Young 7:30 am on June 28, 2019

Permits have been submitted to the Federal Aviation Administration (FAA) for work on 30 Journal Square, a proposed 841-foot-tall mixed-use skyscraper in Jersey City. Located at the southern corner of Slip Avenue and Bergen Avenue, the project is being designed by Morris Adjmi Architects and developed by Kushner Companies, which acquired the site for $3.575 million in 2013. The permits filed are for work between December 2019 and December 2022, so activity at the site could begin by the end of the year.

Kushner’s website indicates that 30 Journal Square will have 741 residential units, 15,000 square feet of retail space, and nearly 100,000 square feet of office space. A curated sculpture garden will sit on the ground floor. The outside curtain wall features a bold pattern that goes up the entire height, and incorporates what appears to be expansive outdoor balconies on the residential portion. Situated on a hilltop, the tower will give future residents and tenants clear views of the downtown Jersey City skyline, Lower Manhattan, and Midtown, as well as plenty of daylight.

The PATH trains at Journal Square are a five-minute walk from the property. Along with the nearby trio of residential skyscrapers at Journal Square, the construction at 30 Journal Square will help contribute to this isolated section of the Jersey City skyline. The development also sits 91 feet above ground level, which will visually elevate the height of the proposed skyscraper. In addition, these two large projects will revitalize and invigorate this part of the city with more living spaces and new energy.

If the FAA permits are any indicator, work is expected to wrap by December of 2022.

Private equity company will lease entire 51st floor of the office property

By Eddie Small | June 03, 2019 11:45AM

David Lobel’s Sentinel Capital Partners has inked a 15-year lease for the entire 51st floor at SL Green Realty’s One Vanderbilt, the real estate investment trust announced on Monday.

The private equity firm will occupy just over 28,000 square feet overall, and the deal means that the office tower is now 59 percent leased. Construction on the project has reached the 73rd floor, and it should top out in the summer of 2019. The entire 1.7 million-square-foot building is expected to be open by August 2020.ADVERTISING

Other major leases at the building include fellow private equity firms the Carlyle Group and KPS Capital Partners, law firms McDermott, Will & Emery and Greenberg Traurig, anchor tenant TD Bank, and SL Green itself. Chef Daniel Boulud has also partnered with SL Green to develop a restaurant in the building.

Lance Korman and Brian Waterman of Newmark Knight Frank represented Sentinel Capital Partners in the deal, while Robert Alexander, Ryan Alexander, Emily Jones and Alex D’Amario of CBRE represented SL Green.

In January 2018, The Real Deal analyzed the complicated financing of the $3 billion-plus office tower.