September 2023

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JLL manager looks to be crowned Miss USA – Robert Khodadadian

Sep 30, 2023

Some real estate professionals take time off to travel, others spend time with family and friends.

But Savena Mushinge, a transaction manager at JLL, is taking a week to compete in the Miss USA competition, BisNow reported. She qualified for the competition by winning the Miss Maryland USA pageant in April.

By day, Mushinge manages leases for the U.S. Postal Service facilities, working on numerous deals from JLL’s D.C. office. And she spends part of her life competing in scholarship competitions.

The upcoming Miss USA competition involves rehearsals, interviews with judges, social media and TV appearances, meet-and-greets, swimsuit and ballgown segments, and onstage questions. The final will be broadcast on the CW.

“You’ve got various amazing women. And so you really have to know yourself and know what you’re bringing to the table and what makes you stand out,” she told the outlet. “And I think the most challenging part is really knowing who you are because I think the judges are going to be able to pick up on that very quickly.”

She was born in Zambia and came to the U.S. when she was 13; her family’s involvement in real estate, buying and flipping houses, sparked her interest in the field.

Now, Mushinge aims to mentor others, especially women and people of color, to help diversify her profession.

In addition to her busy career and competing the Miss USA pageant, she serves as a health and wellness advocate for JLL, runs her charity, the Daughters Pride Foundation, and acts as a tourism ambassador for Zambia.

“I remember arriving to this country and the first thing that comes to mind is for whatever reason, it did not get dark,” she told the outlet. “The sun was out longer. It was 8:45 [p.m.], and it’s still bright as day outside. And ever since that day, I feel be ing in this country, my life has only gotten brighter, has only gotten better.”

Mushinge isn’t the only real estate professional with an unusual, high-profile pursuit outside of work.

Matija Pecotic, who is the director of capital markets for Wexford Real Estate Investors in Palm Beach, Florida, lived his dream in February when he took part in the Delray Beach Open tennis tournament.

The 33-year-old, who is ranked 784th in the world, ultimately fell in straight sets to No. 55 Marcos Giron, but not before creating some lifelong memories.

He got into the tournament as an alternate and a slot opened up. Earlier this year, he won three qualifying matches, including one over Jack Sock, who had once been ranked in the top 10 in the world and won the Delray Beach Open in 2017.

“Hopefully this has shown that I can play at a high level,” Pecotic told Bloomberg News. “I’ve actually never gotten a wild card to any event in my life — all my results have been meritocratic, so if this leads to opportunities at other big events, I would consider putting Wexford on pause, I wouldn’t quit.”

— Ted Glanzer

The post JLL manager looks to be crowned Miss USA appeared first on The Real Deal.

Some real estate professionals take time off to travel, others spend time with family and friends. But Savena Mushinge, a transaction manager at JLL, is taking a week to compete in the Miss USA competition, BisNow reported. She qualified for the competition by winning the Miss Maryland USA pageant in April. By day, Mushinge manages
The post JLL manager looks to be crowned Miss USA appeared first on The Real Deal. Uncategorized, Celebrity Real Estate, commercial real estate Companies: JLL

Robert Khodadadian has long had a simple philosophy about selling real estate. There are approximately a million buildings in the city, and the broker that gets to sell any one among the multitude that will hit the auctioning block at a given moment is, sometimes, simply the person who happens to pitch their services to the right seller.

robert khodadadian, skyline properties, commercial real estate, off market real estate, daniel shirazi, real estate investment, new york real estate

Skyline Properties

Departed: Mark Wahlberg flips Las Vegas home for $17M – Robert Khodadadian

Sep 30, 2023

Mark Wahlberg didn’t spend too many “Boogie Nights” at his Las Vegas home before deciding to boogie away.

The movie star sold a townhouse in the suburb of Summerlin to a limited liability company for $16.6 million, the Las Vegas Review-Journal reported. The two-story, 7,300-square-foot home is in The Summit Club, a private community.

Wahlberg has talked a ton about moving his family to Las Vegas and turning it into a mecca for film production. His $14.5 million purchase of the townhouse last August exemplified him walking the walk.

While it may seem odd for Wahlberg to suddenly flip the home in Las Vegas he owned for 13 months, the city hasn’t seen the last of the multihyphenate. The Summit Club hasn’t seen the last of him either, as Wahlberg owns 2.5 acres in the same community, buying the land for $15.6 million before the townhouse purchase; he may be looking to build a mansion of his own on that plot.

The anonymous buyer is getting much more than a two-story townhouse. They are also getting access to all of the amenities at the Summit Club, which includes a golf course, 24-hour security, wellness and recreation programs, snack stations, tennis courts and of course, pickleball courts.

This year, Wahlberg and his wife, Rhea Durham, also sold their 30,500-square-foot mansion in Beverly Park, California for $55 million. That sum was $32.5 million below what the couple asked for the property when they put it on the market in April 2022 for $87.5 million; the Hollywood A-lister and his model wife bought the property for $8.2 million in 2009 before building their own mega-compound.

Wahlberg, a Boston native, is best known for his roles in movies such as “Boogie Nights,” “The Departed,” “The Fighter” and “Ted.” He was also a member of Marky Mark and the Funky Bunch in the 1990s, best known for their smash hit, “Good Vibrations.”

— Holden Walter-Warner

Los Angeles

Mark Wahlberg sells 31K sf mansion in Beverly Park for $55M

Los Angeles

Mark Wahlberg, Rhea Durham go for record price in Beverly Park

National

Blackstone sells minority stake in Bellagio

The post Departed: Mark Wahlberg flips Las Vegas home for $17M appeared first on The Real Deal.

Mark Wahlberg didn’t spend too many “Boogie Nights” at his Las Vegas home before deciding to boogie away. The movie star sold a townhouse in the suburb of Summerlin to a limited liability company for $16.6 million, the Las Vegas Review-Journal reported. The two-story, 7,300-square-foot home is in The Summit Club, a private community. Wahlberg
The post Departed: Mark Wahlberg flips Las Vegas home for $17M appeared first on The Real Deal. Uncategorized, Celebrity Real Estate, Las Vegas, Luxury Real Estate

robert khodadadian, skyline properties, commercial real estate, off market real estate, daniel shirazi, real estate investment, new york real estate

Skyline Properties

Barstool’s Dave Portnoy buys Nantucket home for state-record $42M – Robert Khodadadian

Sep 30, 2023

El Presidente has a new palace from which to rule.

Dave Portnoy, the polarizing founder of Barstool Sports and pizza maven, recently bought a luxe Nantucket compound for a record-breaking $42 million, the Wall Street Journal reported.

This off-market sale is the highest not only in Nantucket, but the state of Massachusetts, where the previous record was $38.1 million, which was set just a few months ago. The deal included additional $2 million worth of furnishings and other items, the outlet reported

Shellie Dunlap of Lee Real Estate, represented the sellers, identified only as known as the MAK Daddy Trust and MAK Shack Trust, while Peter Engen of Lee Real Estate, represented Portnoy.

The 1.2-acre property, located in the Monomoy area, sprawls along the Nantucket Harbor waterfront. The owners bought two parcels in 2016 for a combined $13.3 million and custom-built the compound following the demolition of two existing homes.

The property now has a main residence designed by Andrew Kotchen of Workshop/APD, with four bedrooms and a primary suite with an indoor-outdoor shower and spectacular harbor views. The compound also includes a pool area and guest quarters, accessible via an underground tunnel.

Portnoy, who is from Massachusetts, has previously invested in Nantucket real estate, having bought a property for around $2 million. He recently reacquired Barstool for $550 million after selling it to Penn Entertainment. He’s also known for appearing in headlines nearly as much as his media company generates them. In 2021, he faced allegations of sexual misconduct from several women, which he denied.

He’s also been accused of making misogynistic, sexist and racist harassing comments, which he has passed off as jokes, according to the Washington Post.

At the same time, he’s developed several wildly popular brands, including Barstool and the “One Bite Pizza Reviews,” which he spun off into a festival that took place last weekend. He also has a rabid fanbase, known as Stoolies. His reviews can boost restaurant revenue up to 50 percent, the WaPo said, and a fund he created to support restaurants and small businesses during the pandemic raised millions of dollars.

He’s also fond of buying beach homes.

In 2022, he bought a beach house in the Hamptons for $9.75 million.

The home sits on nearly a full acre of land, and the property includes a pool and a view of the ocean.

Compass’ Matt Breitenbach and Greg Gould represented both the buyer and seller in the off-market deal. Both declined requests for comment from The Real Deal on the transaction.

In 2021, he bought a bayfront Miami home for $14 million, a record for the city’s Morningside neighborhood.

That home is about 6,100 square feet in size, built in 1939 on a 1-acre lot. It also includes a pool, as well as nine bedrooms and eight-and-a-half bathrooms.

— Ted Glanzer

The post Barstool’s Dave Portnoy buys Nantucket home for state-record $42M appeared first on The Real Deal.

El Presidente has a new palace from which to rule. Dave Portnoy, the polarizing founder of Barstool Sports and pizza maven, recently bought a luxe Nantucket compound for a record-breaking $42 million, the Wall Street Journal reported. This off-market sale is the highest not only in Nantucket, but the state of Massachusetts, where the previous
The post Barstool’s Dave Portnoy buys Nantucket home for state-record $42M appeared first on The Real Deal. Uncategorized, Celebrity Real Estate, Luxury Real Estate, Massachusetts, Nantucket

robert khodadadian, skyline properties, commercial real estate, off market real estate, daniel shirazi, real estate investment, new york real estate

Skyline Properties

JOCO’s fireproof cabinets offer solution for e-bike battery fires – Robert Khodadadian

Sep 30, 2023

Deadly fires caused by e-bikes’ lithium ion batteries have set off attempts to regulate the vehicles by multifamily buildings and politicians.

In New York, where delivery workers and other residents have embraced e-bike use since their legalization in 2020, fires have caused 74 injuries and 13 deaths as of July 3, TechCrunch reported, cit ing statistics from the Fire Department of New York. That is twice as many deaths than in all of 2022 and three times the number from 2021.

That sounded like a problem to the co-founders of JOCO, which operates an e-bike rideshare company. JOCO, founded by two men named Jonathan Cohenm, will now offer fireproof cabinets to store lithium ion batteries.

“It’s becoming increasingly more important,” said one of the Jonathan Cohens, who is from London. “They’re the fastest selling electric vehicle period, faster than electric cars. These buildings have to figure out how to accommodate them.”

Damaged or poorly manufactured batteries caused most of the blazes. Delivery workers, who on average make below the minimum wage, often buy cheap or second-hand batteries because those that are certified can cost up to $1,000. In September, a law went into effect in New York City that requires all sales and rentals of e-bikes to meet certain safety standards.

JOCO had incentive to find a solution. The company aims its service at delivery workers and has more than 60 locations across New York, Chicago and Miami.

“Our mission is to remove cars and trucks from streets for last-mile delivery,” the other Cohen, who is based in New York, said. “When you consider tickets, gas, delivery, it’s more favorable to not use them. We’re becoming a great option in a safe and sustain able manner. We saw the whole e-bike-fire issue coming and we produced proprietary fireproof cabinets.”

The firm has also drawn scrutiny for running afoul of local safety regulations. In July, the city fined JOCO and Grubhub nearly $6,500 for having 60 uncertified lithium ion batteries at a SoHo e-bike charging station, according to The City.

The cabinets range from $5,000 to $20,000 depending on their size and quality. To use one, an e-bike rider removes the battery from the bike, connects the battery to a cabinet slot and closes the door.

“Once the doors are shut, should anything happen, everything is contained in the cabinet,” the New York Cohen said.

The fire department gave its seal of approval with a “Letter of No Objection,” making JOCO the first New York-based company to receive it and the second company in the marketplace to receive it, according to the Cohens.

The Cohens say there are two markets for the cabinets: delivery companies like Grubhub, Orbital Kitchens and Gopuff, and residential and office building owners whose tenants ride e-bikes.

“Banning e-bikes is not the only option; storing them safely is an even better option,” the Cohens said in a statement.

The post JOCO’s fireproof cabinets offer solution for e-bike battery fires appeared first on The Real Deal.

Deadly fires caused by e-bikes’ lithium ion batteries have set off attempts to regulate the vehicles by multifamily buildings and politicians. In New York, where delivery workers and other residents have embraced e-bike use since their legalization in 2020, fires have caused 74 injuries and 13 deaths as of July 3, TechCrunch reported, cit ing statistics
The post JOCO’s fireproof cabinets offer solution for e-bike battery fires appeared first on The Real Deal. Uncategorized, Climate Change, ebikes, multifamily amenities, office amenities, Sustainability, Transportation

robert khodadadian, skyline properties, commercial real estate, off market real estate, daniel shirazi, real estate investment, new york real estate

Skyline Properties

Office bets made a comeback this week – Robert Khodadadian

Sep 30, 2023

The prevailing — and altogether fair — narrative is that the office market is in the toilet.

But that doesn’t mean there aren’t a few fish willing to try to swim against that mighty current.

Wells Fargo is taking an expensive plunge — about $550 million — to buy 20 Hudson Yards for a retail-to-office conversion.

Related Companies and Oxford Properties Group are selling the three-story, 400,000-square-foot space while retain ing ownership of the rest of the 11-story property.

Wells Fargo plans to occupy the space, which spans floors five through seven. The deal for the space hasn’t closed yet, but is expected to be one of the year’s largest commercial property deals in Manhattan once it does.

And while it’s not a reversal of office-to-residential, a conversion to office is rare these days as companies adapt hybrid and remote work policies.

Meanwhile, in Brooklyn, Two Tree Management went all in on office with its 460,000-square-foot Domino Park megaproject, which finally opened after 10 years of redeveloping and restoring the Domino Sugar Refinery.

Back in 2012, the original proposal for the project called for condominiums. But Two Trees bought the project in 2013 for $185 million, went back through the approval process and converted it into office space. Such a move was unheard of then and unthinkable, given where the markets are, now.

“No one trades residential for office space,” said the group’s spokesperson, David Lombino. “And that was in 2013. Flash forward to 2023, it seems even crazier.”

Indeed, office space is on the rise in Brooklyn, while office leasing is declin ing. But Two Trees officials believe in their project.

“The presence of workers here 24 hours a day, seven days a week changes the character of the immediate neighborhood and makes it more lively. It allows us to attract different and better retail, not just dry cleaners and drug stores,” Lombino said. “That, in turn, helps the residential.”

In Chicago, Fulton Street Cos. has secured financing for its $300 million development at 919 West Fulton Street, the city’s first major new office development in more than a year.

Little Rock, Arkansas-based Bank OZK and Toronto-based Manulife are financing the project with a $200 million loan, and Manulife provided $120 million, according to sources close to the deal.

Though soaring interest rates and a troubled office market have created a tough environment for commercial lending, Najem suggested that interest rates will come down by the time the project is completed and leased up enough to refinance the property.

The post Office bets made a comeback this week appeared first on The Real Deal.

The prevailing — and altogether fair — narrative is that the office market is in the toilet. But that doesn’t mean there aren’t a few fish willing to try to swim against that mighty current. Wells Fargo is taking an expensive plunge — about $550 million — to buy 20 Hudson Yards for a retail-to-office conversion. Related
The post Office bets made a comeback this week appeared first on The Real Deal. Uncategorized, Chicago, New York City, Week in Review

robert khodadadian, skyline properties, commercial real estate, off market real estate, daniel shirazi, real estate investment, new york real estate

Skyline Properties

The Daily Dirt: Domino Park office searches for anchor tenant – Robert Khodadadian

Sep 30, 2023

Two Trees revealed its ambitious office building at the old Domino Sugar Refinery factory, part of a mixed-used megaproject on the Williamsburg waterfront.

When Two Trees purchased the site in 2012 for $185 million, it was set for a condo development. But the firm made the decision to transition a good chunk of the project to office. However risky that move seemed in 2012, it’s started to look much worse in recent years, especially now that the building has opened its doors without an anchor tenant.

The building does have a few things going for it, though.

A rendering of the Domino Sugar Factory offices (The Refinery at Domino)

As we covered last week, true Class A office — what some would call Trophy class — has fared much better than the rest of the market. The brand-new space fits the Class A mold better than most in the area. Asking rents reflect that, with a price per square foot from the high $70s to the high $90s, according to Commercial Observer.

Also worth noting: it’s beautiful. The 460,000-square-foot glass tower is nestled inside the brick exoskeleton of the 150-year-old Domino Sugar factory, complete with a retro-looking sign and breathtaking views of Manhattan. New York Magazine’s architecture critic Just in Davidson called it, simply, “a great work of architecture.”

How much that beautiful design is worth remains to be seen, especially given its location in Williamsburg. Office leasing in Brooklyn has been falling fast.

For now, the building is poised to act as a barometer of the market for new office developments, especially those sitting outside the traditional powerhouses of Midtown and the Financial District.

—

What we’re thinking about: It’s been a huge week for Related at Hudson Yards. Credit agencies boosted the rating for construction bonds tied to the project. Perhaps more importantly, the company sold a soon-to-be converted retail space to Wells Fargo for $550 million. The deal has raised eyebrows across the industry. It’s certainly a strong vote of confidence for Hudson Yards and the market for high-end office space. What are your impressions of the deal? Send a note to david.westenhaver@therealdeal.com.

—

Closing Time

Residential: The priciest residential closing Friday was $10.5 million for a co-op at 1050 Fifth Avenue on the Upper East Side.

Commercial: The most expensive commercial closing of the day was $15 million for a rental building at 157-59 Wythe Avenue in Williamsburg.

New to the Market

The priciest residence to hit the market Friday was a condo at 551 West 21st Street in West Chelsea asking $40 million. Douglas Elliman has the listing.

—

A thing we’ve learned: This September has been the second-wettest in New York City history. For most of the month, the rain has been little more than a damper on the city’s spirits. Now, it’s causing major delays to transit service. Gov. Kathy Hochul and Mayor Adams both declared a state of emergency.

Elsewhere in New York

— A government shutdown could kick off this Sunday, as federal officials butt heads over a budget. A shutdown could impact millions of New Yorkers, Gothamist reports, from the 1.7 million people receiving food aid to the tens of thousands of government employees living and working in the city.
— A Manhattan judge ruled in favor of a city law requiring food delivery services to pay workers at least $17.96 an hour. The ruling is (obviously) a huge win for delivery workers, who earn $11 an hour on average, according to The City.

The post The Daily Dirt: Domino Park office searches for anchor tenant appeared first on The Real Deal.

Two Trees revealed its ambitious office building at the old Domino Sugar Refinery factory, part of a mixed-used megaproject on the Williamsburg waterfront. When Two Trees purchased the site in 2012 for $185 million, it was set for a condo development. But the firm made the decision to transition a good chunk of the project
The post The Daily Dirt: Domino Park office searches for anchor tenant appeared first on The Real Deal. Uncategorized, Daily Dirt

robert khodadadian, skyline properties, commercial real estate, off market real estate, daniel shirazi, real estate investment, new york real estate

Skyline Properties

JLL manager looks to be crowned Miss USA – Robert Khodadadian

Sep 30, 2023

Some real estate professionals take time off to travel, others spend time with family and friends.

By day, Mushinge manages leases for the U.S. Postal Service facilities, working on numerous deals from JLL’s D.C. office. And she spends part of her life competing in scholarship competitions.

She was born in Zambia and came to the U.S. when she was 13; her family’s involvement in real estate, buying and flipping houses, sparked her interest in the field.

Now, Mushinge aims to mentor others, especially women and people of color, to help diversify her profession.

Mushinge isn’t the only real estate professional with an unusual, high-profile pursuit outside of work.

The 33-year-old, who is ranked 784th in the world, ultimately fell in straight sets to No. 55 Marcos Giron, but not before creating some lifelong memories.

— Ted Glanzer

The post JLL manager looks to be crowned Miss USA appeared first on The Real Deal.

robert khodadadian, skyline properties, commercial real estate, off market real estate, daniel shirazi, real estate investment, new york real estate

Skyline Properties

Departed: Mark Wahlberg flips Las Vegas home for $17M – Robert Khodadadian

Sep 30, 2023

Mark Wahlberg didn’t spend too many “Boogie Nights” at his Las Vegas home before deciding to boogie away.

— Holden Walter-Warner

Los Angeles

Mark Wahlberg sells 31K sf mansion in Beverly Park for $55M

Los Angeles

Mark Wahlberg, Rhea Durham go for record price in Beverly Park

National

Blackstone sells minority stake in Bellagio

The post Departed: Mark Wahlberg flips Las Vegas home for $17M appeared first on The Real Deal.

robert khodadadian, skyline properties, commercial real estate, off market real estate, daniel shirazi, real estate investment, new york real estate

Skyline Properties

Barstool’s Dave Portnoy buys Nantucket home for state-record $42M – Robert Khodadadian

Sep 30, 2023

El Presidente has a new palace from which to rule.

Dave Portnoy, the polarizing founder of Barstool Sports and pizza maven, recently bought a luxe Nantucket compound for a record-breaking $42 million, the Wall Street Journal reported.

Shellie Dunlap of Lee Real Estate, represented the sellers, identified only as known as the MAK Daddy Trust and MAK Shack Trust, while Peter Engen of Lee Real Estate, represented Portnoy.

He’s also been accused of making misogynistic, sexist and racist harassing comments, which he has passed off as jokes, according to the Washington Post.

He’s also fond of buying beach homes.

In 2022, he bought a beach house in the Hamptons for $9.75 million.

The home sits on nearly a full acre of land, and the property includes a pool and a view of the ocean.

Compass’ Matt Breitenbach and Greg Gould represented both the buyer and seller in the off-market deal. Both declined requests for comment from The Real Deal on the transaction.

In 2021, he bought a bayfront Miami home for $14 million, a record for the city’s Morningside neighborhood.

That home is about 6,100 square feet in size, built in 1939 on a 1-acre lot. It also includes a pool, as well as nine bedrooms and eight-and-a-half bathrooms.

— Ted Glanzer

The post Barstool’s Dave Portnoy buys Nantucket home for state-record $42M appeared first on The Real Deal.

robert khodadadian, skyline properties, commercial real estate, off market real estate, daniel shirazi, real estate investment, new york real estate

Skyline Properties

JOCO’s fireproof cabinets offer solution for e-bike battery fires – Robert Khodadadian

Sep 30, 2023

Deadly fires caused by e-bikes’ lithium ion batteries have set off attempts to regulate the vehicles by multifamily buildings and politicians.

JOCO had incentive to find a solution. The company aims its service at delivery workers and has more than 60 locations across New York, Chicago and Miami.

“Once the doors are shut, should anything happen, everything is contained in the cabinet,” the New York Cohen said.

The Cohens say there are two markets for the cabinets: delivery companies like Grubhub, Orbital Kitchens and Gopuff, and residential and office building owners whose tenants ride e-bikes.

“Banning e-bikes is not the only option; storing them safely is an even better option,” the Cohens said in a statement.

The post JOCO’s fireproof cabinets offer solution for e-bike battery fires appeared first on The Real Deal.

robert khodadadian, skyline properties, commercial real estate, off market real estate, daniel shirazi, real estate investment, new york real estate

Skyline Properties

Office bets made a comeback this week – Robert Khodadadian

Sep 30, 2023

The prevailing — and altogether fair — narrative is that the office market is in the toilet.

But that doesn’t mean there aren’t a few fish willing to try to swim against that mighty current.

Wells Fargo is taking an expensive plunge — about $550 million — to buy 20 Hudson Yards for a retail-to-office conversion.

Related Companies and Oxford Properties Group are selling the three-story, 400,000-square-foot space while retain ing ownership of the rest of the 11-story property.

And while it’s not a reversal of office-to-residential, a conversion to office is rare these days as companies adapt hybrid and remote work policies.

“No one trades residential for office space,” said the group’s spokesperson, David Lombino. “And that was in 2013. Flash forward to 2023, it seems even crazier.”

Indeed, office space is on the rise in Brooklyn, while office leasing is declin ing. But Two Trees officials believe in their project.

In Chicago, Fulton Street Cos. has secured financing for its $300 million development at 919 West Fulton Street, the city’s first major new office development in more than a year.

Little Rock, Arkansas-based Bank OZK and Toronto-based Manulife are financing the project with a $200 million loan, and Manulife provided $120 million, according to sources close to the deal.

The post Office bets made a comeback this week appeared first on The Real Deal.

robert khodadadian, skyline properties, commercial real estate, off market real estate, daniel shirazi, real estate investment, new york real estate

Skyline Properties

The Daily Dirt: Domino Park office searches for anchor tenant – Robert Khodadadian

Sep 30, 2023

Two Trees revealed its ambitious office building at the old Domino Sugar Refinery factory, part of a mixed-used megaproject on the Williamsburg waterfront.

The building does have a few things going for it, though.

A rendering of the Domino Sugar Factory offices (The Refinery at Domino)

How much that beautiful design is worth remains to be seen, especially given its location in Williamsburg. Office leasing in Brooklyn has been falling fast.

For now, the building is poised to act as a barometer of the market for new office developments, especially those sitting outside the traditional powerhouses of Midtown and the Financial District.

—

Closing Time

Residential: The priciest residential closing Friday was $10.5 million for a co-op at 1050 Fifth Avenue on the Upper East Side.

Commercial: The most expensive commercial closing of the day was $15 million for a rental building at 157-59 Wythe Avenue in Williamsburg.

New to the Market

The priciest residence to hit the market Friday was a condo at 551 West 21st Street in West Chelsea asking $40 million. Douglas Elliman has the listing.

—

Elsewhere in New York

The post The Daily Dirt: Domino Park office searches for anchor tenant appeared first on The Real Deal.

robert khodadadian, skyline properties, commercial real estate, off market real estate, daniel shirazi, real estate investment, new york real estate

Skyline Properties

JLL manager looks to be crowned Miss USA – Robert Khodadadian

Sep 30, 2023

Some real estate professionals take time off to travel, others spend time with family and friends.

By day, Mushinge manages leases for the U.S. Postal Service facilities, working on numerous deals from JLL’s D.C. office. And she spends part of her life competing in scholarship competitions.

She was born in Zambia and came to the U.S. when she was 13; her family’s involvement in real estate, buying and flipping houses, sparked her interest in the field.

Now, Mushinge aims to mentor others, especially women and people of color, to help diversify her profession.

Mushinge isn’t the only real estate professional with an unusual, high-profile pursuit outside of work.

The 33-year-old, who is ranked 784th in the world, ultimately fell in straight sets to No. 55 Marcos Giron, but not before creating some lifelong memories.

— Ted Glanzer

The post JLL manager looks to be crowned Miss USA appeared first on The Real Deal.

robert khodadadian, skyline properties, commercial real estate, off market real estate, daniel shirazi, real estate investment, new york real estate

Skyline Properties

Departed: Mark Wahlberg flips Las Vegas home for $17M – Robert Khodadadian

Sep 30, 2023

Mark Wahlberg didn’t spend too many “Boogie Nights” at his Las Vegas home before deciding to boogie away.

— Holden Walter-Warner

Los Angeles

Mark Wahlberg sells 31K sf mansion in Beverly Park for $55M

Los Angeles

Mark Wahlberg, Rhea Durham go for record price in Beverly Park

National

Blackstone sells minority stake in Bellagio

The post Departed: Mark Wahlberg flips Las Vegas home for $17M appeared first on The Real Deal.

robert khodadadian, skyline properties, commercial real estate, off market real estate, daniel shirazi, real estate investment, new york real estate

Skyline Properties

Barstool’s Dave Portnoy buys Nantucket home for state-record $42M – Robert Khodadadian

Sep 30, 2023

El Presidente has a new palace from which to rule.

Dave Portnoy, the polarizing founder of Barstool Sports and pizza maven, recently bought a luxe Nantucket compound for a record-breaking $42 million, the Wall Street Journal reported.

Shellie Dunlap of Lee Real Estate, represented the sellers, identified only as known as the MAK Daddy Trust and MAK Shack Trust, while Peter Engen of Lee Real Estate, represented Portnoy.

He’s also been accused of making misogynistic, sexist and racist harassing comments, which he has passed off as jokes, according to the Washington Post.

He’s also fond of buying beach homes.

In 2022, he bought a beach house in the Hamptons for $9.75 million.

The home sits on nearly a full acre of land, and the property includes a pool and a view of the ocean.

Compass’ Matt Breitenbach and Greg Gould represented both the buyer and seller in the off-market deal. Both declined requests for comment from The Real Deal on the transaction.

In 2021, he bought a bayfront Miami home for $14 million, a record for the city’s Morningside neighborhood.

That home is about 6,100 square feet in size, built in 1939 on a 1-acre lot. It also includes a pool, as well as nine bedrooms and eight-and-a-half bathrooms.

— Ted Glanzer

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Skyline Properties

JOCO’s fireproof cabinets offer solution for e-bike battery fires – Robert Khodadadian

Sep 30, 2023

Deadly fires caused by e-bikes’ lithium ion batteries have set off attempts to regulate the vehicles by multifamily buildings and politicians.

JOCO had incentive to find a solution. The company aims its service at delivery workers and has more than 60 locations across New York, Chicago and Miami.

“Once the doors are shut, should anything happen, everything is contained in the cabinet,” the New York Cohen said.

The Cohens say there are two markets for the cabinets: delivery companies like Grubhub, Orbital Kitchens and Gopuff, and residential and office building owners whose tenants ride e-bikes.

“Banning e-bikes is not the only option; storing them safely is an even better option,” the Cohens said in a statement.

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robert khodadadian, skyline properties, commercial real estate, off market real estate, daniel shirazi, real estate investment, new york real estate

commercial Real Estate commercial real estate market in new york city How to succeed in real estate manhattan commercial real estate Manhattan Real Estate mixed use investment building NYC Real Estate Market Trends NYC Real Estate Values off market real estate Off-Market Properties Property brokers Real Estate Brokerage Real Estate Finance robert khodadadian Skyline Properties

Urban Network Capital Buys Edgewater Site for Condo-hotel Tower – Robert Khodadadian

Sep 29, 2023

Urban Network Capital Group (UNCG) and Vertical Developments paid $13.5 million for a development parcel in Miami’s Edgewater neighborhood, the joint venture announced.

The site is just short of half an acre at 3618 NE Fifth Avenue, nestled between 36th Street and Interstate 195, the highway that leads to Miami Beach.

The seller, Hotelex Group, assembled the site between 2015 and 2018, paying $6.6 million in total for several parcels, according to property records. The Miami-based investment firm, which owns Marriott hotels near Miami International Airport and in Brickell, had planned to build a 133-room hotel with 10,000 square feet of retail space.

The land is now home to four single-family homes. The buyers plan to develop a condo-hotel tower, but declined to provide additional details through a spokesperson. Alfonso Jaramillo of Fortune International Realty represented the joint venture, which did not secure financing.

“Edgewater has rapidly emerged as one of the most desirable neighborhoods in Miami,” Robert Thorne, CEO and founder of UNCG, said in a statement. “There is strong demand for condo-hotels in Florida and this location, with proximity to the beach and Miami’s urban centers.”

Miami-based UNCG has primarily developed single-family homes, townhomes and condo-hotels in Florida, such as the Grand Palazzo in Coconut Grove. Vertical Developments is a joint venture between Location3 Investments and Peru-based V&V Group.

The planned project marks the latest high-rise, upscale developments for Edgewater. Oko Group and Cain International are completing the Missoni-branded 57-story condo building and will likely launch a second tower nearby. David Martin’s Terra is developing a Major Food Group-branded condo tower.

A representative for Hotelex did not immediately respond to requests for comment.

Julia Echikson can be reached at jechikson@commercialobserver.com.

Read More Channel, Land, Sales, Edgewater, Florida, South Florida, Miami, Hotelex Group, Urban Network Capital Group, Vertical Developments Urban Network Capital Group (UNCG) and Vertical Developments paid $13.5 million for a development parcel in Miami’s Edgewater neighborhood, the joint venture announced. The site is just short of half an acre at 3618 NE Fifth Avenue, nestled between 36th Street and Interstate 195, the highway that leads to Miami Beach. The seller, Hotelex Group,

Robert Khodadadian has long had a simple philosophy about selling real estate.The way he sees it, there are approximately a million buildings in the city, and the broker that gets to sell any one among the multitude that will hit the auctioning block at a given moment is, sometimes, simply the person who happens to pitch their services to the right seller at the right time.Commercial Observer

Another SoCal Office Sells at a Big Loss – Robert Khodadadian

Sep 29, 2023

Southern California is now home to another example of sharply deflated office values.

Pendulum Property Partners, an affiliate of Los Angeles-based asset management firm Ares Management (ARES), sold One Pacific Plaza, a 70 percent leased, 394,000-square-foot office campus in Huntington Beach for $42 million. That’s 66 percent less than the $124.5 million that it traded for almost five years ago. Pendulum did not return requests for comment.

The Orange County Business Journal first reported the deal, cit ing unidentified sources. According to Trepp, the property is still encumbered by $90 million of debt from SunTrust Bank, which remains from a $97 million acquisition loan in 2018. Newmark told the OCBJ that the deal is the first notable lender-facilitated office sale in Orange County in the wake of the pandemic.

A family office tied to Joe C. Wen, founder of a Taiwan-based conglomerate named Formosa, acquired the property, which features one 12-story tower and two six-story buildings at 7711, 7755 and 7777 Center Avenue next to the Bella Terra shopping center. The building is also the headquarters for BJ’s Restaurants.

The deal joins other sales that indicate a generational drop in the value of traditional office real estate in Southern California, including but not limited to Orange County. For example, Terreno Realty acquired an office in Santa Ana for the same price it traded for six years ago, and plans to spend another $41 million converting it into an industrial property. Kearney Real Estate also plans to build a 164,000-square-foot industrial center in place of the Elevate@Harbor office campus nearby, and Blackstone notably sold another Santa Ana high-rise office at a 36 percent loss in April.

Wen is also acquiring other discount offices, according to OCBJ. The Newport Beach, Calif.-based businessman paid $25 million for the South Coast Metro office in February.

Gregory Cornfield can be reached at gcornfield@commercialobserver.com.

Read More Channel, Leases, Office, 7777 Center Avenue, Joe C. Wen, One Pacific Plaza, California, Southern California, Ares Management, BJ’s Restaurants, Pendulum Property Partners, Trepp Southern California is now home to another example of sharply deflated office values. Pendulum Property Partners, an affiliate of Los Angeles-based asset management firm Ares Management, sold One Pacific Plaza, a 70 percent leased, 394,000-square-foot office campus in Huntington Beach for $42 million. That’s 66 percent less than the $124.5 million that it traded for

Swig President Connor Kidd to assume CEO role – Robert Khodadadian

Sep 29, 2023

Swig Company President Connor Kidd will replace outgoing CEO Jim Carbone, the San Francisco-based development company announced Thursday.

Carbone signed on for a five-year stint at the San Francisco-based office and multifamily landlord when he came aboard in 2018, he said in a statement, adding that “a major part of my role at the company was to help position Connor to become the CEO and president of the future.”

Kidd joined Swig in 2011 as an associate on the Investment team and in January 2019 was promoted to director of asset management, overseeing the company’s leasing and property management operations nationwide. He became Swig’s president in January 2022, a position he will continue to hold, according to the press release.

He previously worked at Accenture, Prologis, North Star Realty Finance and Hunter Properties before join ing Swig.

In a statement, Kidd thanked Carbone for his “mentorship” and said he looked forward to growing the company’s portfolio.

Swig recently partnered with fellow San Francisco-based firm SKS Partners to buy 350 California Street for $61 million, one of several recent deals in the city where a downtown tower sold for less than half its original asking price.

SKS had originally planned to buy the building with a South Korean equity partner. When the international investor dropped out, Carbone approached Paul Stein, a managing partner at SKS, during an event at UC Berkeley’s Fisher Center, about join ing forces to buy the property, according to The San Francisco Standard. Kidd told the Standard that with two local forces now owning the building, the plan is to hold it for at least 10 years and rent the mostly empty 22-story tower for very attractive rents to start, with more investment in the property as rents rise in the years ahead.

Other recent deals by Swig in the Bay Area include the redevelopment of 633 Folsom Street, which it built in the 1960s, and the historic Mills Building, where Gensler recently relocated due in part to the eco-friendly upgrades Swig put into the turn-of-the-century building it has owned since the 1950s. Swig is upgrading buildings it owns across its nearly 8-million-square-foot office portfolio to reach environmental social and governance targets, Kidd previously told TRD.

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SKS and Swig buy office tower at 350 California Street for $61M

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Read More Uncategorized, Commercial, Development, Job Announcement Swig Company President Connor Kidd will replace outgoing CEO Jim Carbone, the San Francisco-based development company announced Thursday. Carbone signed on for a five-year stint at the San Francisco-based office and multifamily landlord when he came aboard in 2018, he said in a statement, adding that “a major part of my role at the company
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Capgemini to relocate SF offices to Mission Rock from SoMa – Robert Khodadadian

Sep 29, 2023

Tech firm Capgemini America will pull up stakes in San Francisco’s South of Market and move to Mission Rock, a waterfront development across from Oracle Park in Mission Bay.

The U.S. subsidiary of Paris-based Capgemini has leased 30,000 square feet of offices at 1011 Third Street, the San Francisco Chronicle reported. Financial terms of the 10-year-lease were not disclosed.

Capgemini will move into the third floor starting in April in the highrise known as The Canyon, which in addition to offices also contains 283 apartments, including 102 affordable units. The pending move was first reported by the San Francisco Business Times.

The 23-story building is the first of four buildings planned at Mission Rock, the 28-acre development by New York-based Tishman Speyer and the San Francisco Giants across McCovey Cove from the Giants’ ballpark.

The Canyon includes 58,000 square feet of offices, of which nearly half will be taken up by the tech services and consulting firm.

Capgemini will vacate its offices at three buildings in SoMa by unit ing its workforce under one roof at Mission Rock, according to Tishman.

The company occupies a 20,000-square-foot building at 425 Brannan Street and also leases an unspecified number of offices at 640 Bryant Street and 1130 Howard Street.

The consolidation of its workforce in Mission Bay will leave more empty offices in South of Market. Despite a recent surge in office leases by artificial intelligence firms, the office vacancy in San Francisco has hit a record 33.9 percent as a result of the shift to remote work.

When complete, Mission Rock will contain 1,200 homes, 8 acres of parks and open space and up to 1.7 million square feet of offices, shops and restaurants. Capgemini is the second big company to move there.

In 2019, Visa announced that it would move its headquarters from the Financial District to a 300,000-square-foot building under construction at Mission Rock.

— Dana Bartholomew

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SF Giants, Tishman Speyer show look of first Mission Rock highrise

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Visa puts 190K sf headquarters in San Francisco on sublease market

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Read More Uncategorized, Mission Rock Tech firm Capgemini America will pull up stakes in San Francisco’s South of Market and move to Mission Rock, a waterfront development across from Oracle Park in Mission Bay. The U.S. subsidiary of Paris-based Capgemini has leased 30,000 square feet of offices at 1011 Third Street, the San Francisco Chronicle reported. Financial terms of the
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Stockdale snags luxury hotel in downtown Houston – Robert Khodadadian

Sep 29, 2023

Stockdale Capital Partners has snagged a Houston hotel in a premier location, betting on continued post-pandemic recovery for the city’s lodging industry.

The Los Angeles-based firm acquired the 354-room InterContinental Houston – Medical Center, a prominent luxury hotel at 6750 Main Street in the heart of downtown, on undisclosed terms, the Houston Business Journal reported.

Stcokdale was drawn to the hotel due to the anticipated growth of the nearby Texas Medical Center — a leader in life sciences research, with the M.D. Anderson Cancer Center as an anchor. Plus, the hotel’s location is poised to attract both business and leisure travelers, with NRG Stadium, Rice University and the Museum District all in close proximity.

“The InterContinental Houston is the only luxury hotel in the TMC area, and we intend to build even further upon its strong track record of success,” Stockdale’s Bill Doak told the outlet. “Stockdale Capital Partners continues to be well-positioned as the travel and hospitality sector makes a strong recovery.”

Built in 2019, the 21-story InterContinental Houston is operated by IHG Hotels & Resorts, and it was developed by Houston-based Medistar and TRC Capital Partners. The hotel received a $102 million loan from Cottonwood Group and Hana Alternative Asset Management in 2019.

Amenities include a Safina Restaurant, the Naturalist Café and Lounge, 18,000 square feet of meeting space, a 24-hour fitness center and an outdoor pool. The lobby is shared with the Latitude Med Center apartment complex, developed by Greystar.

Despite Houston’s reputation as one of the worst hotel markets in the nation, plagued with low occupancy rates and high delinquency, some investors are showcasing confidence that it will return to pre-pandemic levels across the various segments of the hospitality trade.

Neway Hospitality is building a 17-story Holiday Inn Express/Staybridge Suites near Minute Maid Park in downtown. And CDC Houston bought a majority stake in two hotels earlier this year: the Residence Inn by Marriott Houston Springwoods Village at 22814 Holzwarth Road and the Courtyard by Marriott Houston Springwoods Village 22742 Holzwarth Road.

—Quinn Donoghue

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CDC Houston buys hotels, office buildings in City Place

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Read More Uncategorized, Acquisition, Hotel, Sale Stockdale Capital Partners has snagged a Houston hotel in a premier location, betting on continued post-pandemic recovery for the city’s lodging industry. The Los Angeles-based firm acquired the 354-room InterContinental Houston – Medical Center, a prominent luxury hotel at 6750 Main Street in the heart of downtown, on undisclosed terms, the Houston Business Journal reported.
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These are Trump’s NY properties endangered by judge’s ruling – Robert Khodadadian

Sep 29, 2023

As the fate of the Trump Organization hangs in the balance, so too does the ownership of some of New York’s most prominent properties.

New York Attorney General Letitia James sought to have the company’s business certificates when she filed her civil lawsuit against former President Donald Trump and his real estate business last year. A judge’s ruling this week found Trump fraudulently inflated values of his properties, enabling the potential loss of such properties to happen, according to the New York Times.

Penalties against the Trump business and clan are expected to be decided in a trial slated to begin as early as Monday. Trump’s team is still playing its cards, requesting more information on the ruling’s impact and weighing a stay on the decision about a receivership for the properties.

These are the vulnerable properties that could be in danger of slipping from the Trump empire.

Trump Tower

Both the property and the former president’s penthouse apartment at 721–725 Fifth Avenue are at risk. James alleged Trump deceptively came to the highest possible value for the building, at one point using a nearby sales comparison to boost the value of Trump Tower by $170 million over a single year.

As for Trump’s personal triplex, financial statements from the Trump Organization showed the pad’s value increased by 400 percent from 2011 to 2015, reaching $327 million in the latter; James alleged Trump overstated gross square by nearly triple.

40 Wall Street

The Trump Organization is under scrutiny for a 2015 valuation of 40 Wall Street, which came in nearly $200 million above that made by a lender-ordered appraiser. Among the issues James cited in her suit was the use of a valuable Dean & Deluca lease not yet signed and an understatement of expenses like management fees. Fitch recently downgraded a security attached to the property.

4-6 East 57th Street

Trump and his organization’s entities valued the interest of the leased property at $445 million in 2019. Trump allegedly inflated the value by at least $37 million by using elevated forward-looking income figures and diminished backward-looking expense figures. The retail picture at the property has seesawed back and forth in recent years.

Trump Park Avenue

Trump is accused of inflating the value of the building at 502 Park Avenue by valuing a dozen rent-stabilized apartments as market-rate. James’ suit said the appraised value of those apartments was $750,000, versus the $50 million valuation given by Trump. The then-GOP presidential candidate sold a sponsor condo unit there in 2016 for $14 million.

1290 Sixth Avenue

Trump only has a minority stake in the 43-story Midtown building, but he and his entities are accused of calculated his 30 percent stake — minus debt — as an asset that can be freely sold, which isn’t the case due to the rules governing the partnership that owns the property. He is also accused of inflating the building’s worth by using a false capitalization rate. Vornado Realty Trust is the co-owner of the 2.1 million-square-foot office tower.

Seven Springs

The bucolic Westchester estate was one of the Trump properties targeted in a criminal probe of the Trump Organization. A subsidiary of the company purchased the property in 1995. When Eric Trump put his sights on building two dozen luxury lots there in 2014, an appraiser the company hired valued the lots at $30 million. Yet the company reported a value of $23 million per lot, just accounting for the plots in one town of the sprawling estate.

Trump National Golf Club Hudson Valley

The Trump Organization is inflated membership prices at the Hopewell Junction golf club to inflate the property’s value, too. While the listed in itiation fee a decade ago was $10,000, Trump regularly valued unsold memberships between $15,000 and $30,000, according to the lawsuit.

Trump National Golf Club Westchester

Membership fees were again cited as an issue at a Trump golf course, this one in Briarcliff Manor. Trump’s valuation of the course in 2011 assumed 67 incoming members would pay $200,000 each in entry fees; most ultimately paid nothing, according to the lawsuit.

— Holden Walter-Warner

New York

Judge rules Trump Organization violated NY state fraud law

New York

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New York

Who could manage the Trump Org?

The post These are Trump’s NY properties endangered by judge’s ruling appeared first on The Real Deal.

Read More Uncategorized, Fraud, Letitia James, Real Estate Lawsuits, receivership As the fate of the Trump Organization hangs in the balance, so too does the ownership of some of New York’s most prominent properties. New York Attorney General Letitia James sought to have the company’s business certificates when she filed her civil lawsuit against former President Donald Trump and his real estate business last year.
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Customers Bank Makes $64M Construction Loan for Bronx Mixed-Use Development – Robert Khodadadian

Sep 29, 2023

Stellar Management and Karten Organization, a pair of New York City-based real estate investment management firms, have secured a $64 million construction loan to build a 197-unit residential building in the Mott Haven section of the Bronx, financed through the now-expired 421a tax abatement, Commercial Observer has learned.

To meet the 70/30 blend of market-rate housing and affordable housing as required by the 421a program, the building will include at least 59 affordable housing units. These will be paired with at least 140 luxury residential units.

Customers Bank provided the construction financing, while the Walker & Dunlop team of Aaron Appel, Jonathan Schwartz, Adam Schwartz, Keith Kurland, Christopher de Raet, and Ari Hirt arranged the transaction on behalf of the sponsors.

Located at 580 Gerard Avenue, the building will sit near the 149th Street Grand Concourse subway station, which provides access to the subway’s 2, 4 and 5 lines and multiple bus lines. Nearby landmarks include the Harlem River, Yankee Stadium and Bronx Terminal Market.

The foundation for the construction is already underway, said a source close to the transaction. The multifamily building will contain only one- and two-bedroom units and feature a fitness center, rooftop terrace, tenant’s lounge with a media room, coworking space, and a pet spa.

The building is part of the 421a option-C carveout, which expired last year and had provided developers with a tax abatement of 10 years or longer in exchange for reserving a certain percentage of units in their buildings for the affordable housing market. Between 2013 and 2023, more than 3,000 properties, and 117,000 units, had utilized the program, according to the Furman Center at New York University.

The program was not renewed after a contentious series of negotiations among legislators in June 2022.

Stellar Management was founded in 1985 and has more than 13,000 apartments and 3 million square feet of office and retail space under its investment and management umbrella, according to the firm’s LinkedIn page.

The Karten Organization is a family-owned firm that has developed or repositioned more than 500,000 square feet of property since the 1960s, according to the firm’s website. Projects include 900 Avenue of the Americas, a 300-unit luxury, mixed-use residential building; and The Rail at Red Bank, a 200-unit, mixed-use luxury residential building in Red Bank, N.J.

Brian Pascus can be reached at bpascus@commercialobserver.com

Read More Channel, Construction, Finance, Aaron Appel, Adam Schwartz, Ari Hirt, Christopher de Raet, Jonathan Schwartz, Keith Kurland, Mott Haven, New York City, Bronx, Customers Bank, Karten Organization, Stellar Management, Walker & Dunlop Stellar Management and Karten Organization, a pair of New York City-based real estate investment management firms, have secured a $64 million construction loan to build a 197-unit residential building in the Mott Haven section of the Bronx, financed through the now-expired 421a tax abatement, Commercial Observer has learned. To meet the 70/30 blend of market-rate

Kelley Drye & Warren Downsizes to New Office at The Wharf – Robert Khodadadian

Sep 29, 2023

National law firm Kelley Drye & Warren will be relocating its Washington, D.C., office from Georgetown to The Wharf.

The firm inked a 65,000-square-foot lease at 670 Maine Avenue SW, an 11-story building at the mile-long, $3.6 billion development along D.C.’s waterfront, developed by a joint venture between Hoffman & Associates and Madison Marquette.

The move represents a significant downsize from the Kelley Drye & Warren’s current 107,000-square-foot home at 3050 K Street NW. The firm will occupy the entire fifth and sixth floors, plus half of the seventh floor at 670 Maine when it relocates in 2025.

Both 670 Maine and its twin, 680 Maine, were delivered late last year and span approximately 547,000 square feet combined. Law firm Williams & Connolly, one of The Wharf’s first committed tenants, moved into 290,000 square feet at 680 Maine Street earlier this year.

The Kelley Drey & Warren lease brings the building to 90 percent occupancy, according to Shawn Seaman, president of Hoffman & Associates.

Founded in 1836, Kelley Drye & Warren has more than 350 lawyers with offices in New York City and the tri-state area, as well as in Los Angeles, San Diego, Chicago, and Houston.

After evaluating its office needs and exploring both newly built and redesigned spaces, the law firm settled on 670 Maine, Alan Luberda, office managing partner of Kelley Drye’s D.C. office, said in a prepared statement. “The hardest part now will be the wait while we design and build out this terrific space with our architects HYL and project manager Mark Pirone at C2C.”

CBRE (CBRE)’s Amy Bowser represented the landlord in the lease, while Cushman & Wakefield’s Malcolm Marshall represented the tenant.

Keith Loria can be reached at Kloria@commercialobserver.com.

Read More Channel, Leases, Office, 670 Maine Avenue SW, Alan Luberda, Amy Bowser, Kelley Drye & Warren LLP, Malcolm Marshall, Shawn Seaman, Washington DC, CBRE, Hoffman & Associates, Madison Marquette National law firm Kelley Drye & Warren will be relocating its Washington, D.C., office from Georgetown to The Wharf. The firm inked a 65,000-square-foot lease at 670 Maine Avenue SW, an 11-story building at the mile-long, $3.6 billion development along D.C.’s waterfront, developed by a joint venture between Hoffman & Associates and Madison Marquette. The

Amazon Has a Lot of Problems Suddenly. It’ll Be OK. – Robert Khodadadian

Sep 29, 2023

When e-commerce surged during the early months of the pandemic, Amazon (AMZN) went on a shopping spree of its own. Case in point: It purchased a 76-acre site on the outskirts of Miami to build the company’s largest distribution center in South Florida.

Fast forward three years. With demand for online shopping faltering, the tech giant wants to keep the warehouse closed for another year, despite having spent $129 million to build it. Throughout its empire, Amazon is battling a post-COVID hangover. The giant e-tailer has slowed its voracious appetite for warehouses. It faces a landmark antitrust lawsuit.

But, like most hangovers, Amazon may soon recover. The government’s case, filed this week, is far from a sure bet and will take years to resolve, experts say. Meanwhile, Amazon remains the country’s largest online retailer and is poised to continue growing. It is pivoting its real estate strategy, moving away from leasing, and instead increasing its share of company-owned properties, such as the one in Miami-Dade County.

When most physical stores shut down during the first months of the pandemic, consumers flocked to Amazon. Their purchases helped nearly double the company’s annual global revenue from $245 billion in 2019 to $434 billion by 2022. To keep up, the tech giant doubled the footprint of its fulfillment centers globally in two short years.

Still, the gargantuan expansion was short-lived. Once vaccinated, consumers returned to in-person shopping. Saddled with too much space, Amazon either closed, canceled or delayed opening more than 90 warehouses nationwide last year, according to logistics consultant MWPVL International. The company is making similar cuts this year.

While Amazon’s overexpansion is sure to be costly and a headache to tackle, it wasn’t alone. Other pandemic darlings, such as Peloton, have retrenched. “Amazon is, of course, a behemoth, so it expanded more — but it was in line with market dynamics,” said Ermengarde Jabir, Moody’s Analytics’ senior economist, who specializes in industrial real estate. The pullback “is all part of the sector making its way to a new equilibrium.”

Amazon’s recent cuts don’t seem too deep. While it has completely renounced some properties by breaking leases, the Seattle-based conglomerate has chosen to make many available as subleases, and then often only as short-term rentals. The sublease portfolio amounts to 10 million square feet — in other words, only about 5 percent of the square footage added during the pandemic, Bloomberg reported.

The tech titan, which has long relied on leasing, has been growing the number of company-owned warehouses, too. From 2020 to 2022, it tripled the amount of industrial space it owns nationwide, spending at least $2.3 billion to buy more than 5,000 acres, according to company filings and real estate research firm CoStar. The move suggests the company is recalibrating parts of its real estate strategy to retain greater control of its warehouses. In Miami-Dade, for example, Amazon representatives told county officials that the company does not want to sell the 1.3 million-square-foot warehouse. Rather, it plans to open it next year.

By retain ing swaths of its industrial portfolio, Amazon is setting itself up well for the future, according to Jabir. E-commerce is expected to account for 20 percent of all shopping by the end of the decade, up from 15 percent this year. “Although it doesn’t seem like it, Amazon is very much planning for the future,” the analyst said.

On the legal front, the implications of the blockbuster antitrust lawsuit against Amazon are far from clear.

The Federal Trade Commission and 17 states have sued the company, alleging it abused its position in the marketplace by inflating the prices of consumer goods and overcharging sellers on its own platform. At the heart of the 172-page complaint, regulators accuse Amazon of pressuring sellers to use its fulfillment and delivery services inside its warehouses to become eligible for its popular Prime subscription.

If Amazon is forced to change that practice and allow sellers to use a competitor’s warehouse, the company could substantially reduce its industrial footprint. But the case will take years to resolve. In the meantime, Amazon can operate as usual since the government has not indicated it will seek an injunction against its business practices.

The company has denied regulators’ accusations and plans to fight the charges.

“We’re proud of the ways we’ve helped to spur low prices, innovation, and competition across retail, and we intend to keep doing that for years to come. We fundamentally disagree with the FTC’s allegations,” wrote David Zapolsky, Amazon’s senior vice president of global public policy and its general counsel. “We will contest this lawsuit, and we will also continue inventing to put our customers — both consumers and the businesses that sell in our store — first.”

The government’s arguments are also not a sure bet. Antitrust laws generally focus on harm done to the consumer, less so to other businesses, said Michael Carrier, a law professor at Rutgers University. Even if the government comes out victorious, it’s unclear whether any legally mandated changes would hamper Amazon’s dominance. The European Commission has forced Amazon to alter its business practices, and yet Amazon remains a major e-commerce player across the continent.

“An adverse ruling would be a really bad day for Amazon, but I don’t think it would be a death knell,” said Scott Wagner, a partner at Bilzin Sumberg’s antitrust practice. “Customers like using Amazon.”

In a sign of the company’s resilience, it nearly doubled analysts’ estimates this past quarter, with revenue rising by 11 percent to $134.2 billion. The gains were, in part, powered by Amazon’s core business: e-commerce.

Read More Channel, Features, More, Antitrust lawsuit, National, Amazon When e-commerce surged during the early months of the pandemic, Amazon went on a shopping spree of its own. Case in point: It purchased a 76-acre site on the outskirts of Miami to build the company’s largest distribution center in South Florida. Fast forward three years. With demand for online shopping faltering, the tech giant

Driftwood Lands $47M to Refinance Canopy Hotel in West Palm – Robert Khodadadian

Sep 29, 2023

Driftwood Capital nabbed $47 million from Bank of America (BAC) to refinance the Canopy by Hilton in Downtown West Palm Beach.

The 12-story hotel holds 150 rooms, a rooftop pool deck and 3,000 square feet of meeting space at 380 Trin ity Place, a block north of Lakeview Avenue.

Driftwood completed the 126,540-square-foot building in 2020. To finance the construction, which got underway in 2017, the Miami-based developer secured a $27.7 million loan from First American Bank and raised $19 million through the EB-5 visa investment program, all in addition to company equity, according to South Florida Business Journal.

The newly secured financing is a three-year, full-term, interest-only loan with two one-year extension options, according to Berkadia, whose Michael Weinberg and Scott Wadler orchestrated the debt.

Besides the West Palm Beach hotel, Driftwood is developing a $388 million Westin hotel in Cocoa Beach and the $200 million Riverside Wharf and Dream Hotel complex in Downtown Miami.

The Canopy property is the latest South Florida hotel to secure refinancing. Over the summer, two Brookfield-owned estates landed a combined $350 million. On the investment sales side, the Canadian investor sold the 1,000-room Diplomat Beach Resort in Hollywood, Fla., for $835 million, which remains the largest hotel sale in the country since the pandemic.

Julia Echikson can be reached at jechikson@commercialobserver.com.

Read More Channel, Finance, Refinance, Canopy by Hilton, Florida, South Florida, West Palm Beach, Bank of America, Driftwood Capital Driftwood Capital nabbed $47 million from Bank of America to refinance the Canopy by Hilton in Downtown West Palm Beach. The 12-story hotel holds 150 rooms, a rooftop pool deck and 3,000 square feet of meeting space at 380 Trin ity Place, a block north of Lakeview Avenue. Driftwood completed the 126,540-square-foot building in 2020. To

Bubble Skincare Opens First Office at 60 Charlton – Robert Khodadadian

Sep 29, 2023

Viral beauty brand Bubble Skincare is opening its first office at 60 Charlton Street in Hudson Square, Commercial Observer has learned.

The company signed a lease for 3,402 square feet on the fifth floor of the 12-story office building, according to JLL (JLL), which represented both sides in the deal.

A JLL spokesperson declined to share the length of the lease or the asking rent, but average market rent in Hudson Square was $72 per square foot in the second quarter of 2023, according to a report by Lee & Associates NYC.

JLL’s Mitchell Konsker, Benjamin Bass, Kristen Morgan and Carlee Palmer brokered the deal for the owners. Bubble was represented by Harrison Potter and Lance Yasinsky, also with JLL.

Potter said in a statement that Bubble “was captivated by ownership’s thoughtful redevelopment of the property.”

AEW Capital Management bought 60 Charlton in 2021 for $86.2 million from APF Properties after APF completed redeveloping the property, ultimately doubling its height from six to 12 stories. The project is now a joint venture between the two firms and Drake Street Partners. The building now spans 98,400 square feet with updated mechanical infrastructure and a steel and concrete frame. Original architectural details were preserved during the rehab work, according to AEW.

Music publisher Arcade Songs also recently leased space in the building, taking 19,000 square feet on the second and fourth floors in June, while tech investment firm Picus Capital took the building’s 6,520-square-foot penthouse.

“The continued leasing momentum at 60 Charlton reflects ownership’s success in meeting the demands of contemporary companies seeking a distinct home,” Bass said in a statement.

Bubble’s fragrance-free affordable skin products are popular with Gen Z online shoppers. The company was founded in 2020 as a direct-to-consumer brand. Its wares are now available on Amazon and Beauty Bay, as well as in 7,000 retail locations across the United States and Canada, including Walmart, CVS and Ulta Beauty stores, according to Bubble’s website.

Bubble founder and CEO Shai Eisenman said it’s an excit ing time for the company.

“60 Charlton provides us with dynamic new space where we can grow our brand and team,” Eisenman said in a statement.

Abigail Nehring can be reached at anehring@commercialobserver.com.

Read More Channel, Leases, Office, 60 Charlton Street, Benjamin Bass, Carlee Palmer, Harrison Potter, Kristen Morgan, Lance Yasinsky, Mitchell Konsker, Shai Eisenman, New York City, Manhattan, Midtown South, Hudson Square, AEW Capital Management, APF Properties, Arcade Songs, Bubble Skincare, Drake Street Partners, JLL, Lee & Associates NYC, Picus Capital Viral beauty brand Bubble Skincare is opening its first office at 60 Charlton Street in Hudson Square, Commercial Observer has learned. The company signed a lease for 3,402 square feet on the fifth floor of the 12-story office building, according to JLL, which represented both sides in the deal. A JLL spokesperson declined to share

Urban Standard Capital Makes $34M Construction Loan for Two-Building Brooklyn Condo – Robert Khodadadian

Sep 29, 2023

Kingsdel Real Estate, a Brooklyn development firm, has secured $34 million in construction financing for a two-building multifamily project in Brooklyn’s Prospect Lefferts Gardens neighborhood, Commercial Observer has learned.

Urban Standard Capital provided the financing in what is now the sixth project between Seth Weissman, Urban Standard Capital’s managing partner and founder, and Kingsdel’s co-founder Nigel Boyden.

“We certainly had a lot of faith in Nigel based on our previous experience with him,” Weissman told CO. “Nigel’s built a beautiful product and people are drawn to his level of service.”

Boyden said he’s been active in the Prospect Lefferts Garden area for “a few years now” and that the current site matches his two-building vision.

“It’s certainly a bigger project than I’ve done before,” he told CO. “I started working with a new equity partner and we were able to raise much more equity [than prior deals]. When this site came up, it just seemed like a good fit for us and a good step to take.”

Located at 625 New York Avenue and 447 Fenimore Street, the project consists of two buildings across the street from one another totaling 90,000 square feet. The pair of properties will contain 25 parking spaces, 28 rooftop and outdoor cabanas, a shared community space, and numerous other amenities, according to Weissman.

Weissman said that the project represents the continued strength of Brooklyn’s for-sale condo market, specifically units priced between $1 million and $1.5 million.

“We see here how studios and ones and two-bedrooms are much more accessible, compared to things we’re seeing in Manhattan, where the price point for luxury condos, like a two-bedroom, might be $3 million,” he said. “And we’re seeing continued demand in Brooklyn and pockets like Prospect Lefferts, where there are affordable options and the whole dollar price is more accessible to more people. The people coming in are going from be ing renters to be ing buyers.”

Demolition to make way for the project is nearly complete, and foundation work is expected to begin shortly, according to Weissman.

Founded in 2022, Kingsdel Real Estate has nine total developments either completed or in its pipeline. All of the firm’s developments are in Brooklyn, where Kingsdel has 130,000 square feet either finished or in progress, totaling more than 120 units.

Brian Pascus can be reached at bpascus@commericalobserver.com

Read More Channel, Construction, Finance, Nigel Boyden, Seth Weissman, New York City, Brooklyn, Prospect Heights, Kingsdel Real Estate, Urban Standard Capital Kingsdel Real Estate, a Brooklyn development firm, has secured $34 million in construction financing for a two-building multifamily project in Brooklyn’s Prospect Lefferts Gardens neighborhood, Commercial Observer has learned. Urban Standard Capital provided the financing in what is now the sixth project between Seth Weissman, Urban Standard Capital’s managing partner and founder, and Kingsdel’s co-founder

Tech Firm, Branding Agency Stay Put at 40 Exchange Place – Robert Khodadadian

Sep 29, 2023

A tech firm, brand ing agency and acupuncturist have inked a trio of renewals at 40 Exchange Place in the Financial District, according to landlord GFP Real Estate.

In the largest deal, Mobilo, a tech firm that makes a “smart” business card, signed a short-term lease for 6,000 square feet on the 13th floor. Mobilo previously signed a one-year lease in October 2022 — relocating from 55 Broad Strkeet, which is be ing converted to apartments — and it has now extended the lease for that same space.

Mobilo’s digital business card can be transferred using a contactless NFC chip or QR code, and it can be customized with personal land ing pages, according to its website. The technology allows the card to be transferred with the tap of a smartphone.

In the second lease renewal, Loyalkaspar, a creative brand ing agency, inked a two-year lease extension for 5,725 square feet on the 15th floor of the 20-story building. It has operated out of 40 Exchange Place since September 2019.

Finally, Z&Li Wellness Acupuncture signed a five-year lease renewal for its 660-square-foot space on the 17th floor. It has been in the building since August 2018.

Asking rent for all three deals was $45 per square foot. GFP’s Allen Gurevich and Matthew Colavita represented both the landlord and tenant in all three transactions.

Entertainment and lifestyle publication owner A360 Media also recently inked a deal in the building, taking 15,000 square feet on the eighth floor that had previously been occupied by Knotel. The coworking operator surrendered space in the building back in 2020, as Commercial Observer previously reported.

GFP renovated the Financial District tower at the corner of Exchange Place and William Street in 2017, adding a modern lobby with a light wood-paneled reception desk, wooden wall detailing and restored golden elevator doors.

Architect John Townsend Williams designed the 300,000-square-foot tower, which was completed in 1893 and replaced the mid-19th century headquarters of the New York Stock Exchange.

Rebecca Baird-Remba can be reached at rbairdremba@commercialobserver.com.

Read More Channel, Leases, Office, 40 Exchange Place, 55 Broad Street, GFP Real Estate, Loyalkaspar, Mobilo, New York City, Manhattan, Lower Manhattan, Financial District A tech firm, brand ing agency and acupuncturist have inked a trio of renewals at 40 Exchange Place in the Financial District, according to landlord GFP Real Estate. In the largest deal, Mobilo, a tech firm that makes a “smart” business card, signed a short-term lease for 6,000 square feet on the 13th floor. Mobilo previously

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Robert Khodadadian – Commercial Observer

Sep 29, 2023

Urban Network Capital Group (UNCG) and Vertical Developments paid $13.5 million for a development parcel in Miami’s Edgewater neighborhood, the joint venture announced. The site is just short of half an acre at 3618 NE Fifth Avenue, nestled between 36th Street and Interstate 195, the highway that leads to Miami Beach. The seller, Hotelex Group, Commercial Observer Read More Channel, Land, Sales, Edgewater, Florida, South Florida, Miami, Hotelex Group, Urban Network Capital Group, Vertical Developments

Urban Network Capital Group (UNCG) and Vertical Developments paid $13.5 million for a development parcel in Miami’s Edgewater neighborhood, the joint venture announced.

The site is just short of half an acre at 3618 NE Fifth Avenue, nestled between 36th Street and Interstate 195, the highway that leads to Miami Beach.

A representative for Hotelex did not immediately respond to requests for comment.

Julia Echikson can be reached at jechikson@commercialobserver.com.

Robert Khodadadian has long had a simple philosophy about selling real estate. The way he sees it, there are approximately a million buildings in the city, and the broker that gets to sell any one among the multitude that will hit the auctioning block at a given moment is, sometimes, simply the person who happens to pitch their services to the right seller at the right time.