May 2, 2024
Robert Khodadadian - Skyline Properties

Private Equity Firm TruArc Partners Renews at 545 Madison Avenue Robert Khodadadian | Commercial Observer

Financial firm TruArc Partners is staying put at 545 Madison Avenue.

The 3-year-old private equity outfit signed a seven-year, 10,000-square-foot lease extension on the 10th floor of the 18-story building, according to landlord Marx Realty. Asking rent in the building ranges from $86 to $135 per square foot. 

Cushman & Wakefield’s Tara Stacom represented the landlord, while JLL’s Evan Margolin and Benjamin Levy handled the deal for TruArc. Spokespeople for C&W and JLL didn’t immediately return requests for comment.

Craig Deitelzweig, the president and CEO of Marx Realty, described the lease as “a testament to the enduring trust in Marx Realty’s team and the distinctive hospitality-inspired features of the building.” Marx recently co-branded the property with luxury brand Baccarat, which took 10,000 square feet of office space on the top floor of the building in the process. 

Marx acquired the 140,000-square-foot office building in 2019 and then undertook a $24 million renovation. The work included adding a 7,000-square-foot tenant amenity space with a lounge, cafe, landscaped terrace and boardroom and revamping the entrance and lobby with a midcentury aesthetic. 

Several other financial firms are in the building, including Snow Phipps, Corniche Growth Advisors, GTS and Helix Partners. Financial tech firm Strike Technologies has been a tenant there for more than a decade, and Qurate Retail Group — formerly known as HSN — also has space in the building. 

Rebecca Baird-Remba can be reached at rbairdremba@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.

Robert Khodadadian, skyline properties, ground leases, ground lease, off market, investment sales, khodadadian, Commercial Real Estate Sales, The Commercial Observer, Retail For Lease, Commercial Observer, Commercial Office Lease

Channel, Leases, Office, 545 madison avenue, Craig Deitzelweig, Cushman & Wakefield, JLL, Marx Realty, TruArc Partners, Midtown Articles about Robert Khodadadian from Commercial Observer New York’s authority on commercial real estate leasing financing deals and culture.

Read MoreCommercial Observer 

Robert Khodadadian - Skyline Properties

Solar Energy Developer Dimension Relocating to 11K SF at 825 Third Avenue Robert Khodadadian | Commercial Observer

Solar developer Dimension Renewable Energy will brighten up 825 Third Avenue.  

Dimension is leaving 1400 Broadway just south of Times Square for 11,054 square feet on the entire 18th floor of 825 Third, which is between East 50th and East 51st streets in Midtown East, according to landlord the The Durst Organization

A Durst spokesperson didn’t provide the lease’s length or asking rents in the building, but average asking rents in Midtown East are $71 per square foot, according to Transwestern’s most recent market report.

The Atlanta-based renewable energy developer specializes in community solar projects, which involve installing solar panels on warehouses or in fields that provide power to the surrounding area. Dimension has developed over 400 solar projects, including two notable tri-state area ones in Cortlandt, N.Y., and Franklin Lakes, N.J., according to its website.

Thomas Bow, Ashlea Aaron and Bailey Caliban handled the transaction in-house for Durst. Greg Maurer-Hollaender and James Ackerson of CBRE represented Dimension in the lease negotiations. A CBRE spokesperson declined to comment on the deal.

“We are proud to add Dimension Renewable Energy to our tenant roster at 825 Third Avenue, especially given our shared commitment to sustainability,” Jonathan “Jody” Durst, the president of The Durst Organization, said in a statement.

Durst recently completed a $150 million renovation of the 530,000-square-foot building, which includes revamping 4,000 square feet of public open space along Third Avenue and East 50th Street. Upgrades also included a new tenant amenity space, an updated lobby and View glass windows that can adjust their tint based on sunlight. 

Other tenants in the building include Genius Sports, Beveridge & Diamond, Gotham Asset Management, Liminal Strategy Partners, National Bank of Egypt, Hodes Weill and Toyota Tsusho America

Rebecca Baird-Remba can be reached at rbairdremba@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.

Robert Khodadadian, skyline properties, ground leases, ground lease, off market, investment sales, khodadadian, Commercial Real Estate Sales, The Commercial Observer, Retail For Lease, Commercial Observer, Commercial Office Lease

Channel, Leases, Office, 825 Third Avenue, Dimension Renewable Energy, Durst Organization, New York City, Manhattan, Midtown East Articles about Robert Khodadadian from Commercial Observer New York’s authority on commercial real estate leasing financing deals and culture.

Read MoreCommercial Observer 

Robert Khodadadian - Skyline Properties

Bob Knakal Departs JLL After Six Years Robert Khodadadian | Commercial Observer

Investment sales broker Bob Knakal has left JLL (JLL), where he has been a top name for six years, The Real Deal first reported.

With deals amounting to about $22 billion over the course of his career, Knakal is one of most well-known brokers in the country and his departure from JLL is sudden and follows the publication of a New York Times profile about his extensive collection of maps.

Knakal and JLL did not immediately respond to requests for comment.

The broker joined JLL in 2018 after being terminated from Cushman & Wakefield (CWK) where he worked after C&W’s 2015 acquisition of his firm, Massey Knakal Realty Services, for $100 million. His firing came a week before his contract was set to expire, Commercial Observer reported at the time.

Knakal had reportedly been lining up his next gig when C&W cut him loose.

This is a developing story and will be updated as more information becomes available.

Mark Hallum can be reached at mhallum@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.

Robert Khodadadian, skyline properties, ground leases, ground lease, off market, investment sales, khodadadian, Commercial Real Estate Sales, The Commercial Observer, Retail For Lease, Commercial Observer, Commercial Office Lease

Channel, More, Players, Bob Knakal, Cushman & Wakefield, JLL, New York City, Manhattan Articles about Robert Khodadadian from Commercial Observer New York’s authority on commercial real estate leasing financing deals and culture.

Read MoreCommercial Observer 

Robert Khodadadian - Skyline Properties

Celebrity L.A. Developer Plans Hotel Next to Clippers’ New Arena and Rams’ Stadium Robert Khodadadian | Commercial Observer

A developer known for building super mansions in Los Angeles has plans to build a hotel that could become particularly useful for the Super Bowl in 2027 and the Olympics in 2028, among other upcoming landmark sports and entertainment events.

Los Angeles-based Arya Group filed plans with the City of Inglewood, Calif., for a 15-story boutique hotel with 174 rooms next to the L.A. ClippersIntuit Dome and very near Hollywood Park and SoFi Stadium, where the NFL’s L.A. Rams and Chargers play.

Urbanize first reported plans to build a hotel, citing a city notice from Inglewood. The notice lists Ardeshir Tavangarian, founder of Arya Group, as the sponsor of the project called Arya Hotel. ​​Tavangarian is known for building some of the most expensive homes for the rich and famous in L.A.

The 310,000-square-foot project would replace smaller commercial buildings at 3820 West 102nd Street, and be one of the tallest buildings in Inglewood, per Urbanize. The project notice sets construction to begin this April and finish in June 2026.

The 200-foot-tall building would feature 3,255 square feet of office space, 6,537 square feet for a restaurant, 1,310 square feet of lounge space, a 4,000-square-foot private club, and 4,000 square feet of spa and amenity space. The building would also include 33,000 square feet of outdoor terraces, plus a roof deck and a swimming pool.

Architecture firm AO is designing the Arya Hotel

Gregory Cornfield can be reached at gcornfield@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.

Robert Khodadadian, skyline properties, ground leases, ground lease, off market, investment sales, khodadadian, Commercial Real Estate Sales, The Commercial Observer, Retail For Lease, Commercial Observer, Commercial Office Lease

Channel, Construction, Design + Construction, Development, Ardeshir Tavangarian, Hotel, Inglewood, Intuit Dome, SoFi Stadium, Los Angeles, Arya Group, Clippers, L.A. Chargers, L.A. Rams, Los Angeles Rams Articles about Robert Khodadadian from Commercial Observer New York’s authority on commercial real estate leasing financing deals and culture.

Read MoreCommercial Observer 

The Real Deal – Robert Khodadadian

The Real Deal – Robert Khodadadian

A former Irvine Company executive has made a bet on Bain Capital Real Estate and townhomes for Southern California renters.

Chris Marsh, now head of Newport Beach-based Cherry Tree Capital Partners, has linked up with the Boston-based investor to build townhomes targeted to millennial renters, the Orange County Business Journal reported.

The joint venture, called BCT Development, aims to build an unspecified number of homes for young people born between 1981 and 1996, now priced out of home ownership.

The partnership is buying land at undisclosed sites, while looking to build attached homes in Orange, Los Angeles, San Diego, Ventura, San Bernardino and Riverside counties. The venture says it plans to deploy “several hundred million dollars of gross capital over the next several years” in the strategy.

“Homeownership affordability is at a 40-year low,” Marsh told the Business Journal, adding that the Class A properties will have a “home-sweet-home feel with multifamily density.” 

Each townhome will have its own front door and yard, despite being closely packed to make sense of California land prices, he said. Each development, built close to schools and entertainment venues, will have swimming pools and other features.

“We’re drastically undersupplied with housing,” Marsh told the newspaper. “These townhomes will serve as the ‘missing middle’ rental housing product that will help meet the currently underserved demand from middle-income families.”

Marsh, with 30 years of commercial real estate experience, worked at the Newport Beach-based Irvine Company for 18 years as president of its Apartments Division, with a portfolio of 62,000 units. He also presided over the construction of 22,000 apartments, which cost $10 billion, during the fastest period of growth in the company’s history.

In 2021, Marsh left the firm to found Cherry Tree, which focuses on multifamily properties in key U.S. markets, according to its website.

The British-born son of factory workers led Cherry Tree to team up with Revitate, a Newport Beach-based investment firm, to buy older “workforce” apartment complexes in the Midwest. The Class B apartments, built in the 1980s and 1990s, are located in suburbs with low crime, good schools and areas of expected job growth.

To date, the firms have bought 2,000 workforce units through their joint funds, with the first raising $110 million to buy properties in cities such as Kansas City, Mo., Omaha, Neb., and Elkhart, Ind. In November, Cherry Tree and Revitate launched a second fund to raise $150 million.

The joint venture’s other partner, Bain Capital Real Estate in August joined with Bardas Investment Group to gain approval to build a $450 million entertainment studios complex in Hollywood. The 5-acre, 510,600-square-foot project would replace a former Sears store at 5601 Santa Monica Boulevard.

— Dana Bartholomew

Read more

Bardas and Bain Capital gain OK for $450M studio complex in Hollywood

LAX Freight Delivery leases 123K sf warehouse in Commerce

Irvine Company to build 4.5K apartments in Irvine

The post Irvine Company veteran and Bain Capital team to build SoCal townhomes   appeared first on The Real Deal.

  

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.

Uncategorized The Real DealRead MoreA former Irvine Company executive has made a bet on Bain Capital Real Estate and townhomes for Southern California renters. Chris Marsh, now head of Newport Beach-based Cherry Tree Capital Partners, has linked up with the Boston-based investor to build townhomes targeted to millennial renters, the Orange County Business Journal reported. The joint venture, called
The post Irvine Company veteran and Bain Capital team to build SoCal townhomes   appeared first on The Real Deal

The Real Deal – Robert Khodadadian

The Real Deal – Robert Khodadadian

Airbnb had tempered its expectations for the fourth quarter, then topped them in results reported Tuesday — but investors were not impressed.

The short-term rental company disclosed after the bell that it recorded $2.22 billion in revenue for the three-month period, CNBC reported. That was up 17 percent year-over-year and topped the $2.17 billion forecasted by analysts.

At the same time, Airbnb lost $349 million — a reversal from the fourth quarter a year ago, when it reported a $319 million profit. Income tax obligations in Italy played a significant role in that result, according to Reuters.

Airbnb’s adjusted earnings for the fourth quarter were $738 million, topping analyst expectations by nearly $100 million.

Its share price, which closed Tuesday at $150.82, fell to $143.41 Wednesday morning before stabilizing. It is still up 19 percent in the past year but only 3.45 percent in the past five years, in part because of the pandemic. Airbnb is preparing to buy back up to $6 billion of Class A common stock.

“Clearly, they have no use of the cash right now other than buying back their stock. And that’s good for [investor] sentiment,” Bloomberg Intelligence analyst Mandeep Singh told Yahoo Finance. “But I think at the end of the day, investors want to know what is the addressable market and where else can they move into beyond the vacation rentals that they dominate.”

In a shareholder letter, Airbnb, led by CEO Brian Chesky, referred to the moment as an “inflection point.” It plans to invest more in under-penetrated markets, particularly abroad, and expand its business offerings. It promised to share details about that later this year.

The company raised expectations for the first quarter, forecasting revenue at the high-end of where analysts had it pegged after 6 million guests started the year at a booked Airbnb

Read more

Airbnb warns “volatility” will bog down fourth quarter

Daily Dirt: Airbnb ban boosts hotels, but is TBD as a housing hero

Airbnb plans to push NYC “experiences” to shore up stays 

In the fourth quarter, 98.8 million stays and experiences were booked through the platform, up 12 percent year-over-year. Volatility from geopolitical issues tempered demand at the start of the quarter before it accelerated for the rest of the period.

Despite the pushback Airbnb is facing in some markets, including New York City, there were 7.7 million active listings at the end of the year, an 18 percent increase year-over-year. The company experienced double-digit growth in active listings for every region, according to its shareholder letter, paced by the Asia-Pacific region and Latin America.

Holden Walter-Warner

The post Airbnb posts mixed results as it arrives at “inflection point” appeared first on The Real Deal.

  

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.

Uncategorized, Earnings, short-term rentals The Real DealRead MoreAirbnb had tempered its expectations for the fourth quarter, then topped them in results reported Tuesday — but investors were not impressed. The short-term rental company disclosed after the bell that it recorded $2.22 billion in revenue for the three-month period, CNBC reported. That was up 17 percent year-over-year and topped the $2.17 billion forecasted
The post Airbnb posts mixed results as it arrives at “inflection point” appeared first on The Real Deal

The Real Deal – Robert Khodadadian

The Real Deal – Robert Khodadadian

Wu Properties remains bullish on Houston retail properties, zeroing in on centers designed for the sort of “daily needs” stores that avoided the pitfalls of the pandemic, when e-commerce got a big boost over many brick-and-mortar rivals.

Steve Wu’s firm recently acquired a pair of retail properties in west Houston: the 139,000-square-foot former Sam’s Club building at 13331 Westheimer Road and the 189,300-square-foot Presidio Square shopping center, the Houston Business Journal reported

Wu has added three Houston-area shopping centers into its portfolio since September, spending around $55 million in total. As many investors steer clear of retail assets in light of online shopping trends and high interest rates, Wu is putting the pedal to the metal.

“While others have taken a wait-and-see approach to see when interest rates will fall, Wu Properties forges ahead with acquisitions, doubling down on the belief that the best time to buy is when nobody else is buying,” a company spokesperson told the outlet. “As the Houston region population and jobs continue to grow, demand for retail space in the Houston area will increase correspondingly.”

The Westheimer Road property, which has been vacant for several years, was acquired from Sam’s Real Estate Business Trust. Weitzman brokers James Namken and Kyle Knight represented the sellers, while John Nguyen of NewQuest Properties represented Wu. 

The former Sam’s Club building is part of the 262,5000-square-foot Market Square at Eldridge shopping center that Wu purchased in 2022. Tenants include Target, TJ Maxx, Michael’s and Five Below. Wu aims to convert the former Sam’s Club into a multi-tenant building and renovate the exterior so it blends in with the rest of the retail complex.

Presidio Square, purchased from North American Development Group, is anchored by an H-E-B grocery store. It also houses a Family Thrift Center, AT&T, Subway, State Farm and Chase Bank. The property was 96 percent leased at the time of sale, the outlet said.

Moreover, the company acquired the 106,177-square-foot Shops at Cypresswood, at 19507 North Freeway, in September and has since upped the property’s occupancy rate from 88 to 99 percent.

—Quinn Donoghue 

Read more

Houston

Wu Properties buys two shopping centers amid hot leasing market

Houston

Walton Street Capital unloads retail ‘power center’ in Houston

Texas

Pine Ridge buys West Houston retail strip

The post Wu Properties continues Houston-area retail binge  appeared first on The Real Deal.

  

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.

Uncategorized, Acquisition, Sale, Shopping Center The Real DealRead MoreWu Properties remains bullish on Houston retail properties, zeroing in on centers designed for the sort of “daily needs” stores that avoided the pitfalls of the pandemic, when e-commerce got a big boost over many brick-and-mortar rivals. Steve Wu’s firm recently acquired a pair of retail properties in west Houston: the 139,000-square-foot former Sam’s Club
The post Wu Properties continues Houston-area retail binge  appeared first on The Real Deal

The Real Deal – Robert Khodadadian

The Real Deal – Robert Khodadadian

A Lakewood-based developer will make its Jersey City debut after purchasing a 1.3-acre site in the West Side neighborhood.

A private development group led by Mark Schwartz and his family bought the site at 212-230 Culver Avenue for $12.5 million, according to IPRG, which brokered the transaction. The seller was an estate that owned and operated Acrilex, a plastic fabricator based in Irvington.

The developer plans to build 365 apartments. The 300,000-square-foot project will include 1,600 square feet of retail. The units will mostly be studios and one-bedroom apartments, though there will also be some two-bedrooms with private terraces.

Other features of the development will include a 184-spot parking garage, outdoor terraces and a 400-square-foot space for dogs. Construction is slated to begin later this year.

Two years ago, New York-based DHA Capital submitted plans for a multifamily development on the site, according to Jersey Digs. After DHA failed to find equity investors, however, the Schwartzs stepped in.

The family’s private development group paid in cash, according to IPRG’s Yanni Marmarou.

Issues with the site predate DHA’s botched acquisition of the property. In the summer of 2021, two fires burned through the two-story industrial building at the site, according to WABC. No injuries were reported.

Jersey City has become a hive of development, and its West Side neighborhood has attracted builders despite not having easy access to Manhattan.

Halpern Developments recently built The Birch, a 337-unit development at 49 Fisk Street. Other projects there include 3 Acres, a 629-unit development at 400 Claremont Avenue; The Agnes, a 213-unit, two-phase development at 132 Yale Avenue; and the NJCU Westside Area developments, which include The Rivet 1 and 2 and the Cityline.

On the western side of Route 440, Bayfront Development is preparing to construct 8,000 residential units, 340,000 square feet of retail, an elementary school and a Jersey City firehouse.

Marmarou’s team has sold four West Side residential development sites and is marketing a 200-unit development site at 299-301 West Side Avenue.

Brooklyn-based Bushburg planned a 3,079-unit luxury development in the neighborhood, but it stalled for lack of a formal agreement with NJ Transit regarding right-of-way to expand the light rail system. Bushburg filed a lawsuit against Jersey City’s planning board last year.

Read more

Tri-State

Bushburg sues Jersey City for rejecting megaproject

The Closing: Steven Fulop

Ultra-modern Jersey City rental project lands $70M loan from Northwind

The post Developer plans 365-unit project in Jersey City  appeared first on The Real Deal.

  

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.

Uncategorized, Jersey City, New Jersey The Real DealRead MoreA Lakewood-based developer will make its Jersey City debut after purchasing a 1.3-acre site in the West Side neighborhood. A private development group led by Mark Schwartz and his family bought the site at 212-230 Culver Avenue for $12.5 million, according to IPRG, which brokered the transaction. The seller was an estate that owned and
The post Developer plans 365-unit project in Jersey City  appeared first on The Real Deal

Robert Khodadadian - Skyline Properties

The Real Deal – Robert Khodadadian

Mayor Brandon Johnson’s administration is pushing to intervene in a lawsuit filed by real estate industry groups that aims to invalidate a referendum that could raise the city’s property transfer tax. A city attorney at a Wednesday hearing argued the complaint against the local Board of Elections was brought against the wrong entity.

Industry groups, led by the Building Owners and Managers Association of Chicago, filed the lawsuit against the Chicago Board of Elections on Jan. 5. They allege that the wording of the ballot question violates the Illinois Municipal Code and Illinois Constitution because it asks voters to approve a transfer tax decrease as well as two transfer tax increases in one question. 

The city of Chicago filed a motion to intervene in the case on Friday which, if granted, would add it to the case as a named defendant. In a Wednesday morning hearing before Cook County Circuit Court Judge Kathleen Burke, the city’s attorney argued that the Board of Elections is not equipped to answer the arguments because it doesn’t have the same understanding of the municipal code.

It’s pretty clear that the city should be allowed to intervene in this case,” the attorney, Susan Jordan, said in her oral argument. The Board of Elections can’t answer industry groups’ allegations about whether the referendum does or doesn’t follow local municipal code; the Board of Elections follows the election code, she said.

If passed by a simple majority of voters, the referendum would increase the real estate transfer tax imposed on sales over $1 million to fund services for people experiencing homelessness, including quadrupling the 0.75 percent rate the city currently charges for deals over $1.5 million.

The rate would drop to 0.6 percent for property trades less than $1 million, affecting the majority of home purchases. Advocates of the plan estimate that upward of 95% of sales would see a transfer tax decrease. They also estimate that the tax would generate an additional $100 million in dedicated funds for these services each year. 

The city is asking the judge to grant itintervention by right” because the city’s interests won’t be adequately protected without being brought into the case and the city would be bound by the outcome of the case. Johnson repeatedly promised to support the transfer tax hike during his election campaign.

Michael Kasper, the attorney representing the industry groups, argued that the city’s motion to intervene was not timely, given that it was filed nearly five weeks after the lawsuit was first filed at the start of the year.

These cases move extremely quickly,” he said. The plaintiffs have already filed a motion for judgment on the pleadings, asking Judge Burke to weigh in on the validity of their complaints, meaning Wednesday feasibly could have been the last hearing in the case, Kasper argued. 

In response, Jordan, the city’s attorney, argued that it took industry groups nine weeks to file a lawsuit challenging the ballot language after the resolution to put it on the ballot was passed in the fall.

As for whether the city is bound by the results of the case, Kasper argued that “the city neither prints nor counts ballots.”

If the referendum is struck from the ballot, the city would have no adequate way of remedying that in time for the election and would not be able to proceed with implementing the new proposed transfer tax, Jordan argued. This, she claimed, means the case affects the city and cannot be fairly and effectively argued without the city’s involvement. 

Together with its motion to intervene in the case, the city and the attorneys with the Board of Elections have also filed motions to dismiss the case. The Board of Elections filed their motion to dismiss the case first on the grounds that it was outside of its jurisdictional authority. 

“You’re suing someone who has no expertise in this area and has no dog in this,” said Adam Lasker, one of the attorneys representing the Chicago Board of Elections. Given that the referendum was passed by a resolution of the City Council, and not by a citizen-backed petition, it is “expressly excluded” from the Board of Elections’ authority, Lasker said.

At the end of the hearing, Judge Burke said she would take the arguments made under review and respond with a ruling in the coming days. Ed Mullen, the attorney representing the organizers behind the referendum known as Bring Chicago Home, said his best guess is that the referendum’s opposing campaigns will have an answer by Friday.

“We think that the plaintiff’s suit is without merit,” Jordan said after the hearing, before declining to comment further. Despite this pending lawsuit, the Illinois Realtors association and Bring Chicago Home advocates have together dedicated millions of dollars to reaching voters in the month before the March 19 election.

The post Judge weighing Johnson administration’s intervention in transfer tax lawsuit appeared first on The Real Deal.

  

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.

Uncategorized, Bring Chicago Home, Property Taxes, Transfer Tax The Real DealRead MoreMayor Brandon Johnson’s administration is pushing to intervene in a lawsuit filed by real estate industry groups that aims to invalidate a referendum that could raise the city’s property transfer tax. A city attorney at a Wednesday hearing argued the complaint against the local Board of Elections was brought against the wrong entity. Industry groups,
The post Judge weighing Johnson administration’s intervention in transfer tax lawsuit appeared first on The Real Deal

Robert Khodadadian - Skyline Properties

Wannabe New Yorker Hotel Owner Indicted for Fraud Robert Khodadadian | Commercial Observer

The man who allegedly tried to commandeer a well-known New York City hotel in September was indicted Wednesday on charges of fraud, Manhattan District Attorney Alvin Bragg announced.

Mickey Barreto, 48, of Mickey Barreto Missions, was charged in connection with multiple filings he made with the New York City Department of Finance to transfer ownership of the New Yorker Hotel at 481 Eighth Avenue into the name of his religious organization, according to the DA’s office.

“As alleged, Mickey Barreto repeatedly and fraudulently claimed ownership of one of the city’s most iconic landmarks, the New Yorker Hotel,” Bragg said in a statement. “We will not tolerate manipulation of our city’s property records by those who seek to scam the system for personal gain.”

Barreto could not be reached for comment.

He was charged with 14 counts of offering a false instrument for filing in the first degree and 10 counts of criminal contempt in the second degree. The allegations go back to Barreto’s one-night stay in the hotel in 2019, which he tried to turn into a rental lease.

Barreto may have been trying to take advantage of a rule regarding rent-stabilized hotels, in which guests can request a lease. But the hotel’s owner, the Holy Spirit Association for the Unification of World Christianity, responded by removing him from the premises. Initially, New York City Civil Court Judge Jack Stoller ordered that the hotel let him back in.

Barreto then tried to take over operations of the hotel from Wyndham Hotels & Resorts.

Barreto filed a $189 million deed transfer in 2019, classifying the hotel as a “religious structure” owned by his missionary group. He also allegedly tried to help himself to $14 million from the Holy Spirit Association, have bank accounts tied to the hotel transferred into his name, and began pressuring restaurant tenants for rent, the New York Post reported at the time.

A lawsuit in New York County Supreme Court followed in which Barreto was forbidden from filing any further false documents regarding the building. However, he allegedly defied that order in April and September 2023 when a deed transfer for the hotel surfaced with Mickey Barreto Missions as the seller and none other than Mickey Barreto Missions as the buyer, according to the DA.

Mark Hallum can be reached at mhallum@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.

Robert Khodadadian, skyline properties, ground leases, ground lease, off market, investment sales, khodadadian, Commercial Real Estate Sales, The Commercial Observer, Retail For Lease, Commercial Observer, Commercial Office Lease

Channel, Hotels, Sales, 481 Eighth Avenue, alvin bragg, Holy Spirit Association for the Unification of World Christianity, Mickey Barreto, Mickey Barreto Missions, New York Hotel, Wyndham Hotels & Resorts, New York City, Manhattan Articles about Robert Khodadadian from Commercial Observer New York’s authority on commercial real estate leasing financing deals and culture.

Read MoreCommercial Observer 

Robert Khodadadian - Skyline Properties

CoStar Group Leaving DC HQ After 14 Years Robert Khodadadian | Commercial Observer

CoStar Group is moving its headquarters from Washington, D.C., to Rosslyn, Va.

The real estate analytics and data company—whose stable includes Homes.com, Apartments.com and LoopNet—acquired the 552,000-square-foot Central Place Tower, and will move from its current D.C. home at 1331 L Street, where it spent the last 14 years. 

CoStar will occupy 150,000 square feet in the building at 1201 Wilson Boulevard when it moves later this year. Approximately 500 office employees will be relocated to the new headquarters, and CoStar plans to add 150 jobs as well, according to the company.  

CoStar, which has its main headquarters in Richmond, Va., said it considered as many as 25 sites in the District and Virginia before deciding on the new location, which it purchased from JBG Smith for an undisclosed price. 

The financially strategic acquisition of this building will provide the perfect home for the more than 500 employees at our current headquarters,” Andy Florance, CoStar’s founder and CEO, said in a statement. “We’re incredibly thankful for our 14 years calling Washington, D.C., home, and we will continue to be a part of this community even as we move across the river to Arlington County.” 

Virginia Gov. Glenn Youngkin announced that CoStar will invest $20 million to move to Arlington County.

“Virginia’s a great choice for a new corporate headquarters location, and we are excited that CoStar Group, a leading provider of online real estate marketplaces, information, and analytics in the property markets, sees the economic advantage in moving to the commonwealth,” he said in a statement. “We are proud that CoStar has chosen Virginia as its home.”

The governor approved a $1.25 million grant from the commonwealth’s opportunity fund and an additional $3.5 million from the Virginia economic development grant program to support the relocation. 

Additionally, CoStar Group is paying $13.95 million to Arlington County to earn exclusive use of the 31-story Central Place Tower’s 12,000-square-foot observation deck.

The building, the tallest in D.C., was completed in 2017. Other tenants in the building include Convene, Gartner and Accenture.

The company had four ads run through the Super Bowl last Sunday for Homes.com and Apartments.com, starring Jeff Goldblum, Dan Levy and Heidi Gardner.

CBRE represented the seller in the transaction. It was unclear who represented the tenant. 

Keith Loria can be reached at Kloria@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.

Robert Khodadadian, skyline properties, ground leases, ground lease, off market, investment sales, khodadadian, Commercial Real Estate Sales, The Commercial Observer, Retail For Lease, Commercial Observer, Commercial Office Lease

Channel, office, Sales, 1201 Wilson Boulevard, 1331 L Street, Andy Florance, Central Place Tower, CoStar Group, Glenn Youngkin, JBG Smith, Virginia, Washington DC, Northern Virginia Articles about Robert Khodadadian from Commercial Observer New York’s authority on commercial real estate leasing financing deals and culture.

Read MoreCommercial Observer 

Robert Khodadadian - Skyline Properties

Paul Darrah Joins Citadel to Lead Real Estate Operations After 7 Years at Google Robert Khodadadian | Commercial Observer

Google (GOOGL)’s Paul Darrah is taking his talents to investment firm Citadel after an almost seven-year stint as head of New York City real estate at the tech giant, Commercial Observer has learned.

Darrah will take over as chief workplace officer of Citadel, starting at the end of the month, and will manage the firm’s global real estate footprint, which includes 19 offices worldwide, a Citadel spokesperson confirmed.

“He’s got an excellent eye,” CBRE (CBRE)’s Darcy Stacom, an investment sales broker who worked with Darrah on a number of deals, told CO. “When you’re looking at what you can do physically with an asset … I always found him to be very strategic.”

Darrah will take on a role previously held by Scott Hazard, who is Citadel leaving Citadel after two years and also spent almost five years in real estate roles at Google from 2013 to 2018, according to his LinkedIn profile.

In 2010, before Darrah’s time at Google, the company had spent $1.77 billion acquiring 111 Eighth Avenue in the Meatpacking District. But in 2018, Darrah piled on by helping Google buy Chelsea Market across the street for $2.4 billion. 

The Real Deal reported that Darrah was a key part of Google’s decision to acquire Chelsea Market. This raised Google’s footprint in the neighborhood to around 4.1 million square feet.

Stacom, who recently launched her own firm, worked with Darrah on the Chelsea Market as well as acquisition of 550 Washington Street for $1.97 billion by Google’s parent company, Alphabet.

“He just has this personality that pulls a room together and things are getting tense, he can back it back down. He’s quite funny,” Stacom said. “He has a very broad set of knowledge, but also the ability to go deep on any particular point.”

But Google’s real estate ambitions, with Darrah front and center, did not end there. The search giant turned its attention to Hudson Square where it leased 1.3 million square feet at St. John’s Terminal in 2019 to start another campus. Google wasn’t content just leasing the space at 550 Washington Street, and in 2021 dropped $2.1 billion for the property.

Prior to his time at Google, Darrah was head of real estate for Connecticut-based Bridgewater Associates, a senior vice president at Lehman Brothers from 2006 to 2008, global director of real estate for Bloomberg LP from 1997 to 2006, and a senior associate at Brennan Beer Gorman Architects from 1985 to 1994, according to his LinkedIn page.

Darrah, a Virginia Tech graduate, was featured on Commercial Observer’s 2022 Power 100 list.

While at Bloomberg, Darrah helped the company build its 750,000-square-foot headquarters at 731 Lexington Avenue, and his team convinced Vornado Realty Trust to alter its plan for the property away from just residential and hotel, TRD reported.

The Citadel spokesperson did not provide more details about Darrah’s role, but Ken Griffin’s hedge fund has plenty of real estate in the works.

Since announcing in 2022 that it would move its headquarters from Chicago to Miami, Citadel has been investing heavily in South Florida with the $363 million acquisition of 1201 Brickell Bay Drive, a vacant waterfront property.

The sale was considered one of Miami’s biggest real estate deals ever. The parcel could become the location of an office tower to serve as Citadel’s headquarters, but it’s unclear where construction lies after Citadel split with its developer, Sterling Bay, in April 2023.

In August 2022, Citadel signed a five-year lease for 90,000 square feet of temporary office space at 830 Brickell.

Later on in 2022, Citadel signed major deals in New York City such as a 585,000-square-foot master lease with Vornado Realty Trust for 350 Park Avenue and another master lease for Rudin’s adjacent 390,000-square-foot 40 East 52nd Street, CO reported at the time.

Eventually it could lease 850,000 square feet at 39 East 51st Street, an office tower being developed by Vornado and Rudin.

A spokesperson for Google did not respond to a request for comment.

Mark Hallum can be reached at mhallum@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.

Robert Khodadadian, skyline properties, ground leases, ground lease, off market, investment sales, khodadadian, Commercial Real Estate Sales, The Commercial Observer, Retail For Lease, Commercial Observer, Commercial Office Lease

Channel, Industry, More, Players, 111 eighth avenue, 550 Washington Street, Alphabet, CBRE, Chelsea Market, Citadel, Darcy Stacom, Google, Paul Darrah, Scott Hazard, New York City, Manhattan Articles about Robert Khodadadian from Commercial Observer New York’s authority on commercial real estate leasing financing deals and culture.

Read MoreCommercial Observer 

Robert Khodadadian - Skyline Properties

Terminal Warehouse Office Conversion Inches Toward the Finish Line in Chelsea Robert Khodadadian | Commercial Observer

In 2018, L&L Holding Company and Normandy Real Estate Partners paid $880 million for the sprawling Terminal Warehouse in West Chelsea, with plans to transform it into upscale office space. Now the project, which required a dramatic new addition and retrofit of the existing building, is nearly complete. 

Rick Cook of CookFox Architects oversaw the design of the addition and renovation, which added six stories atop the seven-story, 1890s warehouse. The 1.2 million-square-foot property occupies an entire block along the West Side Highway, between West 27th and West 28th streets and 11th and 12th avenues. The building was once a key part of the freight rail system that ran at grade along 10th and 11th avenues and later on the West Side Elevated Line, now the High Line pedestrian park. Freight trains would pull into the massive, semicircular tunnel that runs through the building from east to west, and unload onto float docks and ships along the Hudson River

Despite the addition, the footprint of the building remains the same, because CookFox has carved a hole in the middle of the building for an internal, landscaped courtyard. 

“I like to think of it as one of New York’s great groundscapers,” said Cook, who noted that the building is 711 feet long. He added that “this entire building was designed around the module of a freight car,” because each of the terminal’s 25 “stores” was a separate, fireproof warehouse for different goods that could easily be transferred onto a freight train

The colors of the addition, too, are modeled on the colors of New York Central Railroad’s freight cars, with fire engine red aluminum beams and facade panels as well as canary yellow accent pieces around the windows. CookFox also tried to incorporate heavy timber joists and wood decking in the construction, in a nod to the warehouse’s original heavy timber and brick construction. Wood paneling is visible along the ceilings of the covered terraces, for example. 

The terraces, also framed by rails painted the same red, overlook a courtyard full of trees, brick flooring and seating as well as the Hudson River. There’s a whopping 110,000 square feet of outdoor space within the building, which includes terraces on multiple floors, and a large wraparound terrace shared among tenants on the eighth floor. 

The ground and second floors will have amenities such as meeting spaces and a fitness area, and one of the lobbies will feature the “greatest front-door experience for bikes in America,” said Cook. That entrance will allow bike commuters to roll in off the West Side greenway and into a bike room and locker room with showers. The building is so large that it has two primary lobbies — which are set within the original freight tunnel — as well as smaller lobbies that may end up being reserved for specific tenants. Construction began in 2021 and is set to finish this year. 

  

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.

Robert Khodadadian, skyline properties, ground leases, ground lease, off market, investment sales, khodadadian, Commercial Real Estate Sales, The Commercial Observer, Retail For Lease, Commercial Observer, Commercial Office Lease

Architecture, Channel, Construction, Design + Construction, 261 11th Avenue, COOKFOX Architects, L&L Holding Company, Normandy Real Estate Partners, slideshow, Terminal Warehouse, New York City, Manhattan, Midtown South, Chelsea Articles about Robert Khodadadian from Commercial Observer New York’s authority on commercial real estate leasing financing deals and culture.

Read MoreCommercial Observer 

The Real Deal – Robert Khodadadian

The Real Deal – Robert Khodadadian

The battle over the future of two historic buildings just west of downtown San Antonio has intensified.

Local developer David Adelman and restaurateur Barclay Anthony are seeking approval to demolish the Rich Book building at 900 West Houston Street and an adjacent structure, the San Antonio Express-News reported.

The buildings, across from VIA Metropolitan Transit’s Centro Plaza hub and a block from the University of Texas at San Antonio’s downtown campus, have been at the center of contentious debate for a couple of years.

Adelman and Anthony struggled to attract buyers or tenants due to concerns about renovation costs and homelessness in the area, according to a letter submitted to the city by their attorney, James McKnight. 

They want to demolish and replace the buildings with housing and retail, as redeveloping them would cause “unreasonable economic hardship,” they argue. 

West Side organizations, including the Esperanza Peace and Justice Center, voiced strong opposition to the demolition, concerned about the loss of historic architecture in Cattleman Square. 

“Why buy into a historic neighborhood if you’re not willing to honor and respect that history?” said Graciela Sánchez, who leads the nonprofit

Cattleman Square, once a thriving commercial center with ties to the city’s cowboys and railways history, has faced decline in recent decades. Despite its historic designation in 1985, the area has struggled with economic challenges and neglect.

The Rich Book building, constructed in 1923, holds significant historical value, having housed various businesses over the years, including a department store, cafe and printing press. Its adjacent counterpart, known as theOffice Building,” dates back to the early 20th century.

Adelman and Anthony’s proposal to demolish the structures highlights the historically rich city’s ongoing debate over preservation versus redevelopment. While the owners argue for the economic feasibility of new construction, community leaders advocate for their retention and restoration.

Leticia Sánchez, co-chair of the Historic Westside Residents Association, urged the owners to explore alternatives such as historic tax credits to help with funding. City officials have requested further evidence of economic hardship before considering the demolition request, the outlet reported. 

The dispute echoes previous conflicts over historic buildings in the area, including the recent case of the Whitt Printing Company building and the former Fannie Porter brothel site. As stakeholders grapple with competing interests, the fate of San Antonio’s architectural heritage hangs in the balance.

The Historic and Design Review Commission is expected to address the demolition application in the coming weeks.

—Quinn Donoghue 

Read more

San Antonio

$93M historic factory redevelopment in San Antonio ignites lawsuit 

San Antonio

Evolution plans $30M renovation of historic Gunter Hotel 

San Antonio

Wisconsin firm tapped for Tower Life office-to-resi conversion

The post “Economic hardship” argued for demolition of historic San Antonio buildings  appeared first on The Real Deal.

  

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.

Uncategorized, Preservation, Redevelopment, Renovation The Real DealRead MoreThe battle over the future of two historic buildings just west of downtown San Antonio has intensified. Local developer David Adelman and restaurateur Barclay Anthony are seeking approval to demolish the Rich Book building at 900 West Houston Street and an adjacent structure, the San Antonio Express-News reported. The buildings, across from VIA Metropolitan Transit’s
The post “Economic hardship” argued for demolition of historic San Antonio buildings  appeared first on The Real Deal

Robert Khodadadian - Skyline Properties

The Real Deal – Robert Khodadadian

Kid Rock and Conair heiress Babe Rizzuto are among homeowners who lost land to the sea this past weekend in Jupiter Inlet Colony

Pumping surf washed the sand out from underneath four oceanfront homes, tearing out fencing, trees and pipes from the earth. Video footage captured by local photographers reveals the empty shell of the pool at 12 Ocean Drive, standing atop its exposed concrete pillars. Town officials confirmed they are acting fast to stabilize the properties and replenish the beach with sand. They are also considering a revetment program, which would bolster the shoreline with rocks and boulders, to mitigate future erosion. 

Broker Andrew Russo of the Russo Group at Illustrated Properties grew up in Jupiter Inlet Colony and was a resident there for many years. He’s seen the beach get washed out before, but never anything like this, he said.

“I could not believe how much of the beach was gone,” he said. 

Russo currently has the listing for 14 Ocean Drive, one of the affected homes, for $22.5 million. Rizzuto, daughter of late billionaire founder of Conair, Lee Rizzuto, bought the house for $6.3 million in 2015, records show. She renovated the 5,900-square-foot house and its oceanfront pool in 2016, according to property records. She bought an oceanfront compound in Jupiter Island for $35 million in 2022, and listed the Jupiter Inlet Colony house for $24.5 million in November. 

Rizzuto’s house and pool were not damaged, but part of the backyard, some fence and palm trees were washed away, Russo said. He said his job just got harder. 

It doesn’t help the sales effort, that’s for sure,” Russo said. But, “oceanfront property is still highly desirable.” 

Other homeowners affected include Kid Rock, whose legal name is Robert J. Ritchie. He bought his oceanfront home at 11 Ocean Drive for $3.2 million in 2012, records show. His stairway to the beach and part of his back deck washed away with the erosion, according to a video reviewed by The Real Deal

Also affected are Merrill Lynch wealth advisers Greg and Kellie O’Hare, who bought the house at 13 Ocean Drive for $945,000 in 1997, records show. The O’Hares lost part of their backyard, fence and beach access.

Facing the most severe damage are Ron and Gail Fink, who were about to finish construction of their home at 12 Ocean Drive. The couple bought the vacant oceanfront half-acre for $4.9 million in 2020, and filed a notice of commencement to build a new single-family home in 2021, records show. The waves wiped away the ground below almost the entirety of the Fink’s backyard, stripping their stairway to the beach and leaving the naked shell of the pool. 

Milla Russo, also an agent with the Russo Group at Illustrated Properties, represented the couple in their 2020 purchase.

“[The town is] trying to act quickly,” she said of efforts to shore up the properties. “Unfortunately with the way things are, you have to get permits.”

While damage this severe may be a first for Jupiter Inlet Colony, the reality of climate change means increasing coastal erosion. More frequent and stronger storms, coupled with rising sea levels are washing away more beaches and cliffs across the country, including in Dana Point, California, and Fire Island, New York. According to the Environmental Protection Agency, more than $1 trillion of property is located within 700 feet of the coastline, raising questions of adaptation and mitigation actions like Jupiter Inlet Colony’s plans for revetment. 

Dr. Gary Griggs, an expert on coastal erosion at the University of California, Santa Cruz, said one of the first steps for municipalities responding to this crisis is acknowledging which properties, whether public or private, are most vulnerable.

“Nobody wants to say that. Nobody wants to admit it because they don’t want to lower their property values,” he said. 

Beach nourishment programs, which involve restocking beaches with sand, is a costly, short-term solution, as is building seawalls and revetments, according to Griggs. In some cases, retreating from the coastline is the best answer. 

There’s absolutely nothing we can do in the long run to hold back the Atlantic Ocean,” he said. But Griggs is hopeful that cities and counties are beginning to accept that denial is no longer a workable plan, and are starting to take action. 

Broker Russo said that now that adaptation plans are in the works in Jupiter Inlet Colony: “A year from now, this is going to be a blessing in disguise.”

The post Beach erosion hits Kid Rock, Babe Rizzuto’s oceanfront Jupiter homes appeared first on The Real Deal.

  

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.

Uncategorized, Climate Change, Jupiter, Jupiter Inlet Colony, Palm Beach County The Real DealRead MoreKid Rock and Conair heiress Babe Rizzuto are among homeowners who lost land to the sea this past weekend in Jupiter Inlet Colony.  Pumping surf washed the sand out from underneath four oceanfront homes, tearing out fencing, trees and pipes from the earth. Video footage captured by local photographers reveals the empty shell of the
The post Beach erosion hits Kid Rock, Babe Rizzuto’s oceanfront Jupiter homes appeared first on The Real Deal

The Real Deal – Robert Khodadadian

The Real Deal – Robert Khodadadian

Dutch fintech firm Adyen is poised to sublease 130,000 square feet of offices in San Francisco’s SoMa.

The Amsterdam-based financial technology company is close to signing a sublease from Pinterest at 505 Brannan Street, the San Francisco Chronicle reported, citing two unidentified sources close to the deal. The sublease would run through May 2033.

Financial terms of the pending office deal, which could be the largest in the city this year, were not disclosed

If the deal closes in the next few weeks, Adyen will vacate its offices at 274 Brannan Street. A major rival of Stripe, a payment processing firm based in South San Francisco and Dublin, Adyen saw a 22 percent burst in revenue last year, according to an earnings report.

The South of Market lease would help lower the city’s office vacancy of 35.9 percent following a broad shift led by tech firms to remote work. Artificial intelligence firms, including OpenAI and Anthropic, have also signed new office leases.

In 2015, Pinterest leased offices at the six-story building at 505 Brannan as its fourth office within a half-mile in South of Market. The 150,000-square-foot building, developed by Pasadena-based Alexandria Real Estate Equities and locally based TMG Partners, was completed in 2016.

But the image-sharing social media platform bailed out of the building last year and put the offices on the sublease market

Pinterest, one of the first firms to shed offices during the pandemic, paid nearly $90 million to terminate its lease for 490,000 square feet at an unbuilt tower at 88 Bluxome Street, in SoMa. In late 2022, it also vacated two floors at 410 Townsend Street nearby.

Early last year, the company planned to reduce its workforce by 4 percent and to close another office at 149 Bluxome Street. 

At the end of last year, Pinterest had 500,000 square feet of remaining office leases around the world, according to a public filing this year, saying its facilities “are sufficient for our existing needs.”

Read more

San Francisco

Pinterest to bail out of SF offices in SoMa

In October, TMG filed plans to add 11 stories above its six-story office project at 505 Brannon, including an unspecified number of apartments or condominiums, according to SFYimby. 

In late 2020, Singapore-based Ascendas Real Estate Investment Trust bought the buildings at 505 Brannon and 510 Townsend for $572 million. Ascendas REIT is a unit of Capitaland International, a public company owned by the government of Singapore.

— Dana Bartholomew

The post Fintech firm Adyen slated to sublease Pinterest offices in SF’s SoMa appeared first on The Real Deal.

  

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.

Uncategorized The Real DealRead MoreDutch fintech firm Adyen is poised to sublease 130,000 square feet of offices in San Francisco’s SoMa. The Amsterdam-based financial technology company is close to signing a sublease from Pinterest at 505 Brannan Street, the San Francisco Chronicle reported, citing two unidentified sources close to the deal. The sublease would run through May 2033. Financial
The post Fintech firm Adyen slated to sublease Pinterest offices in SF’s SoMa appeared first on The Real Deal

The Real Deal – Robert Khodadadian

The Real Deal – Robert Khodadadian

Former Side agents Mollie Poe and Declan Hickey are returning to Compass. Working under the brand Indigo Real Estate Team since departing Compass in 2020, Poe and Hickey were one of the city’s top 20 teams in 2023, according to TRD figures. They had $110 million in sales volume that year, according to a press release announcing their move.

Poe and Hickey, who are married as well as business partners, declined to comment on why they left Compass after being two of its founding members back in 2016, but Poe said “Compass leadership” brought them back after three years working on their own Indigo brand

All roads lead to home,” she said in the release, with Hickey adding that they returned in part because Compass’ “community and technology seamlessly intersect under the same roof.” 

Side calls itself a “brokerage platform” that handles the back end of residential deals for independent agents, while allowing them to develop their own public-facing brands and teams. In contrast, Compass is a full-service brokerage that emphasizes technology to streamline agents’ work.

Kevin Patsel, Compass regional vice president of Northern California, referred to Poe and Hickey’s return as a “reunion,” adding that they will help “secure Compass’ position as the leading brokerage in the Bay Area.”

Indigo’s four-person support team includes Director of Operations Julie Reber, Broker Associate Shane Nugent, Sales Associate Tasmin Eboo and Transaction Coordinator Tasneem Karimbai.

Read more

San Francisco

Shift in SF’s top agent mix

San Francisco

The Agency grows in NorCal with brass from Vanguard, agents from Compass

The post SF agents Mollie Poe and Declan Hickey rejoin Compass after Side trip appeared first on The Real Deal.

  

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.

Uncategorized, Compass, Residential, Side The Real DealRead MoreFormer Side agents Mollie Poe and Declan Hickey are returning to Compass. Working under the brand Indigo Real Estate Team since departing Compass in 2020, Poe and Hickey were one of the city’s top 20 teams in 2023, according to TRD figures. They had $110 million in sales volume that year, according to a press
The post SF agents Mollie Poe and Declan Hickey rejoin Compass after Side trip appeared first on The Real Deal

The Real Deal – Robert Khodadadian

The Real Deal – Robert Khodadadian

Zillow ended last year with another quarterly loss, though executives said they’re doubling down on growth through its “housing super app.”

The company lost $73 million in the fourth quarter of 2023its fourth consecutive quarterly loss. The decline was on par with the net loss the firm reported in the same period in 2022

Zillow reported $474 million in revenue last quarter, up from $435 million in the same period in 2022. The firm’s adjusted EBITDA was $69 million in the fourth quarter, down from $73 million. 

Zillow CEO and co-founder Rich Barton said the company is continuing to monitor the antitrust lawsuits over broker commissions. He added that the firm is poised for continued expansion and adaptation, despite the headwinds facing the industry.

The firm also launched a website, advocacy.zillowgroup.com, which outlines Zillow’s support for policies that increase transparency for consumers and independent representation for buyers and sellers.

Barton noted that the firm backed legislation in Washington state that would require buyer’s agreements. He also said the company was working closely with officials in New York to advocate for legislation related to issues such as rental affordability.

“Zillow is well positioned for all weather,” Barton said. “All roads lead to Zillow.”

But it’s still largely reliant on the market for home sales, the weather for which was lousy in 2023, thanks to low inventory and elevated high mortgage rates. Some modest signs of improvement have appeared this year.

The firm’s rental segment continued to grow last quarter, up 37 percent year-over-year to $93 million in revenue. The company credited the revenue jump to an increase in multifamily listings on its site, up to 37,000 at the end of the fourth quarter. 

Earlier this month, the company announced that it would allow individual room listings on its rental marketplace. 

Revenue from Zillow’s mortgage segment rose to $22 million last quarter, up from $18 million in the fourth quarter of 2022.

The company in 2022 began integrating Zillow Home Loans with its Premiere Agent program in certain “enhanced markets,” which included Denver, Phoenix, Atlanta, Raleigh, Charlotte, Durham, Las Vegas, Orlando and Riverside.

Last month, it added Los Angeles, Portland, Sacramento and San Diego, and company executives said it would continue to roll out enhanced markets in 2024. 

Read more

Zillow loses $28M in third quarter

Zillow nears end of copyright infringement case 

Redfin, Zillow adopt ChatGPT plugins

The post Zillow loses $73M in fourth quarter appeared first on The Real Deal.

  

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.

Uncategorized, Earnings, Proptech The Real DealRead MoreZillow ended last year with another quarterly loss, though executives said they’re doubling down on growth through its “housing super app.” The company lost $73 million in the fourth quarter of 2023its fourth consecutive quarterly loss. The decline was on par with the net loss the firm reported in the same period in
The post Zillow loses $73M in fourth quarter appeared first on The Real Deal

Robert Khodadadian - Skyline Properties

Strikes, Slumping Office Market Hurt Hudson Pacific’s Bottom Line in 2023 Robert Khodadadian | Commercial Observer

Hudson Pacific Properties(HPP) stock price declined more than 16 percent Tuesday after the company announced results from a particularly trying 2023, and said show business has been slow to boost the company’s prospects for 2024.

After a year with historic Hollywood labor strikes, high interest rates and declining demand for office space, the Los Angeles-based REIT reported lower revenues, less leasing and much greater net losses compared to 2022. Hudson Pacific Chairman and CEO Victor Coleman said the “once-in-a-generation dual studio union strike effectively shut down the entertainment industry,” leading to a 40 percent drop in film and TV production in 2023.

“Many industries, including tech, focused on cost cutting, in part through layoffs and real estate downsizing,” Coleman said on Tuesday during HPP’s fourth-quarter earnings call. “While the nationwide office leasing activity improved incrementally in the fourth quarter, it remained about 10 percent below the five-year quarterly average.”

The office and studio REIT reported $952.3 million in total revenue on the year, compared to $1.03 billion in 2022. Its office revenue declined 4.7 percent in 2023, from $852.7 million to $812.4 million, while studio revenue fell more than 19 percent to $140 million in 2023 when compared to 2022.

That led to a net loss attributable to common stockholders of $98 million in the fourth quarter, and $192.2 million on the year, which is more than 3.5 times greater than it was last year. 

In the fourth quarter, HPP and Macerich sold the Google-leased One Westside and Westside Two office redevelopment to UCLA for $700 million, as well as a 5.3-acre land parcel in North San Jose for $43.5 million. Further, Hudson Pacific also sold tranches of debt associated with the Blackstone-based Hollywood Media Portfolio, generating $145.8 million.

Hudson Pacific’s office portfolio declined in the fourth quarter at 80.8 percent occupied and 81.9 percent leased primarily because of the sale of One Westside. And HPP displayed little hope for major improvement in office leasing activity this year.

In 2022 and 2023 we had an atypically high number of office leases expire, largely the result of short-term renewal leases signed during the pandemic,” HPP President Mark Lammas said. “[This year] our occupancy will likely be under pressure at least during the first three quarters of the year with the potential to return to essentially flat occupancy by year-end.”

Despite the sale of One Westside, Google is still HPP’s largest office tenant, leasing four properties for almost $52 million per year, making up 10 percent of the landlord’s base rent. Amazon, Netflix and Riot Games are the next largest tenants. Remarkably, nine L.A. offices are 99.6 percent leased. (Most of HPP’s office portfolio is in the San Francisco Bay Area, and that portion is only 74.6 percent leased.

HPP’s studio portfolio ended the year 80.4 percent leased after a tenant vacated six stages at Sunset Las Palmas due to the actors and writers strikes. The return is slowing progress and activity in 2024, too.

“Following SAG-AFTRA’s contract ratification in December, production companies have been slow to greenlight new productions,” Coleman said. “In January, production counts remain approximately 20 percent below 2021 and 2022. Based on the level of activity we’re seeing in real time, we now anticipate that production levels may not materially improve until the second half of the year. Media companies are still adjusting their business models through both revenue-generating and cost-saving measures.”

Coleman emphasized, however, that original content remains integral to subscriber growth, and pointed out that Netflix budgeted $17 billion in spending on content for the year, which is in line with the streaming service’s 2021 and 2022 pre-strike spend. 

In 2024, our priorities are fourfold,” he said. “Aggressive leasing within our studio and office portfolio, executing on opportunistic dispositions, successfully progressing our New York studio development, and further fortifying and deleveraging our balance sheet.”

Gregory Cornfield can be reached at gcornfield@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.

Robert Khodadadian, skyline properties, ground leases, ground lease, off market, investment sales, khodadadian, Commercial Real Estate Sales, The Commercial Observer, Retail For Lease, Commercial Observer, Commercial Office Lease

Channel, Leases, More, Office, Studio and Soundstages, office, STUDIOS, Victor Coleman, Los Angeles, San Francisco, Hudson Pacific Properties Articles about Robert Khodadadian from Commercial Observer New York’s authority on commercial real estate leasing financing deals and culture.

Read MoreCommercial Observer 

Robert Khodadadian - Skyline Properties

Furniture Distributor Renews 250K-SF Lease at Miramar Industrial Park Robert Khodadadian | Commercial Observer

Coaster Fine Furniture is staying put in all 250,441 square feet it occupies in South Florida.

The importer and distributor of furniture renewed its showroom and distribution center lease at the Miramar Park of Commerce, according to the landlord, Sunbeam Properties

The L.A.-based company moved into the Miramar light industrial park in 2001, taking 150,000 square feet after relocating from Pompano Beach. 

When Coaster needed to expand, Sunbeam completed the 250,441-square-foot, built-to-suit warehouse within the industrial park that the tenant occupies today. Located at 10700 Enterprise Way, the property sits just north of the Ronald Regan Turnpike

“Originally, Coaster was focused on moving to Miami and ultimately decided that the Miramar Park of Commerce was the ideal location due to our easy access to all of South Florida’s major highways and cargo hubs,” Peter Apol, Sunbeam’s director of leasing and marketing, said in a statement.

A representative for Sunbeam did not immediately respond to an inquiry about the length of the lease. A spokesperson for Coaster did not immediately respond to a request for comment.

The lease marks the second substantial industrial renewal in South Florida this year. Last month, shipping company Seaboard renewed two leases totaling 308,000 square feet at Prologis (PLD) Palmetto Tradeport in Medley, Fla.

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.

Robert Khodadadian, skyline properties, ground leases, ground lease, off market, investment sales, khodadadian, Commercial Real Estate Sales, The Commercial Observer, Retail For Lease, Commercial Observer, Commercial Office Lease

Channel, Industrial, Leases, Miramar Park of Commerce, Florida, South Florida, Coaster Fine Furniture, Sunbeam Properties Articles about Robert Khodadadian from Commercial Observer New York’s authority on commercial real estate leasing financing deals and culture.

Read MoreCommercial Observer 

Robert Khodadadian - Skyline Properties

Howard County Housing Authority Acquires Ellicott City Apartments for $63M Robert Khodadadian | Commercial Observer

The Howard County Housing Authority has acquired Orchard Meadows Apartment Homes, a 240-unit multifamily complex in Ellicott City, Md., for $62.6 million.

The nonprofit used bonds to acquire the cluster of four-story apartment buildings, using a “right of first refusal” county law to close the deal over a private developer who also made an offer, according to the Baltimore Business Journal. 

CREC Real Estate was the seller, having acquired the property in 2018 for $50 million as part of a seven-property investment fund. Over the ensuing six years, the company completed a renovation plan and strengthened the property’s operational performance, according to Aaron Dixon, president at CREC. 

The Howard County Housing Commission will offer 50 units to residents making 60 percent of the area median income, which is $129,549 for a household of four. Currently, Orchard Meadows has just 15 affordable units.

Located about a mile south of Interstate 70 at 3411 Sonia Trail, Orchard Meadows was built in two phases — 96 two-bedroom units in 1998 and 144 one- and two-bedroom units in 2012. Select units include stainless steel appliances, granite countertops and individual full-size washers and dryers.

Community amenities at Orchard Meadows include a swimming pool, fitness center and outdoor entertainment area with a TV, foosball table and fire pit. 

Ellicott City is the wealthiest county in Maryland and sixth wealthiest in the U.S., according to U.S. News & World Report. The federal government is a major employer in the area, which includes Fort George G. Meade Army base, Johns Hopkins Applied Physics Lab, the Social Security Administration and the Centers for Medicare and Medicaid.

Requests for comment from both parties were not immediately returned.

Keith Loria can be reached at Kloria@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.

Robert Khodadadian, skyline properties, ground leases, ground lease, off market, investment sales, khodadadian, Commercial Real Estate Sales, The Commercial Observer, Retail For Lease, Commercial Observer, Commercial Office Lease

Channel, Residential, Sales, 3411 Sonia Trail, CREC Real Estate, Howard County Housing Authority, Orchard Meadows Apartment Homes, Baltimore, Maryland, Washington DC Articles about Robert Khodadadian from Commercial Observer New York’s authority on commercial real estate leasing financing deals and culture.

Read MoreCommercial Observer 

Robert Khodadadian - Skyline Properties

Wegmans Chairman Signs Deal for Bed Bath & Beyond’s Former UWS Space Robert Khodadadian | Commercial Observer

Wegmans might be ringing up a second Manhattan location after signing a lease near Lincoln Center, but plans for the space are unclear.

The grocery chain’s chairman, Danny Wegman, signed a lease for 58,874 square feet at ​​Glenwood Management’s 1932 Broadway, Wegmans confirmed. 

The deal is a bit of a second chance for Wegman, as 1932 Broadway was the supermarket chain’s first choice for entering the New York City market before opening its Astor Place location last year. Now that Bed Bath & Beyond has vacated the spot following its bankruptcy in early 2023, Wegmans was able to secure the retail space.

But the lease signed directly by the Wegmans chairman appears to be some kind of a personal investment and exact plans for the space are not known, according to a spokesperson for the chain.

The New York Post first reported the deal.

“Prior to opening our Astor Place store, we were working with Glenwood to lease the space at 1932 Broadway. When that didn’t pan out, we had the opportunity to sign the lease for Astor Place,” a spokesperson for Wegmans told Commercial Observer. “Following the Astor Place opening, Danny Wegman learned the 1932 Broadway space was still available. He restarted negotiations and recently signed a long-term lease for the space.”

Wegmans did not provide the asking rent or the length of the lease for the space between West 64th and 65th streets, but retail rents on Broadway between West 72nd and 86th Streets are $242 per square foot, according to a Real Estate Board of New York report on the second half of 2023.

At 1932 Broadway, Bed Bath & Beyond leased a ground-floor entryway and two spacious floors below street level. If Wegmans moves into the space, it will compete with a Whole Foods at Columbus Circle and a recently opened Morton Williams supermarket three blocks north at 2015 Broadway.

Ripco Real Estate‘s Beth Rosen, Ben Davis, Gene Spiegelman and co-founder Peter Ripka negotiated the transaction for both the landlord and the tenant, according to the Post. The brokerage did not immediately respond to a request for comment.

Following its bankruptcy action in the early days of 2023, Bed Bath & Beyond planned to exit ​​109 of its leases, with Burlington Coat Factory paying up to $12 million to take over 44 of those locations, CO reported at the time. BB&B abandoned the 1932 Broadway space in the process.

Mark Hallum can be reached at mhallum@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.

Robert Khodadadian, skyline properties, ground leases, ground lease, off market, investment sales, khodadadian, Commercial Real Estate Sales, The Commercial Observer, Retail For Lease, Commercial Observer, Commercial Office Lease

Channel, Leases, Retail, 1932 Broadway, Bed Bath & Beyond, Danny Wegman, Glenwood Management, Ripco Real Estate, Wegmans, New York City, Manhattan Articles about Robert Khodadadian from Commercial Observer New York’s authority on commercial real estate leasing financing deals and culture.

Read MoreCommercial Observer 

Robert Khodadadian - Skyline Properties

CMBS Distress Rate Rises in January With Office Back Above 10 Percent Robert Khodadadian | Commercial Observer

The CRED iQ overall distress rate for commercial mortgage-backed securities increased by 22 basis points in January to 7.39 percent from 7.17 percent, snapping a two-month streak of declines. 

The office segment added 55 basis points in January following a 315-point increase in December. Office has now crested over 10 percent in overall distress for the first time since October. 

Meanwhile, multifamily, retail and hotel sectors all saw decreases in the January numbers.

CRED iQ’s overall distress rate aggregates the two indicators of distress – delinquency rate and special servicing rate – into an overall distressed rate.  This includes any loan with a payment status of 30-plus days or worse, any loan actively with the special servicer, and includes nonperforming and performing loans that have failed to pay off at maturity.    

The CRED iQ delinquency rate rose in parallel with the overall distress rate, adding 23 basis points, while the specially serviced rate shaved off 5 basis points.    

The self-storage segment, which has spent most of the past 12 months under 1.0 percent in overall distress, saw its overall distress level skyrocket in January. Most of this is attributable to a $2.1 billion loan backed by a 112,084 square-foot portfolio consisting of 16 self-storage properties throughout New York City.

The New York City self-storage loan passed its Jan. 9, 2024, maturity date, but continues to perform. It was added to the servicer’s watchlist in December due to upcoming maturity. Servicer commentary indicates the borrower’s request for a maturity extension is being reviewed.

Office remains the segment with the consistently highest percentage of overall distress at 10.50 percent (excluding this month’s self-storage spike, which we expect to come down to below 1.0 percent). 

Additionally, One Market Plaza, a 1.6 million-square-foot office tower in San Francisco, is backed by a $975 million loan that was transferred to the special servicer in January due to its Feb. 6, 2024, maturity. Servicer commentary indicates the borrower is discussing a potential extension. The property was 95.8 percent occupied as of September 2023 with Google the largest tenant at a 21.6 percent gross leasable area.

The industrial segment, once again, saw the greatest decrease in overall delinquency — dropping 24 basis points in January following a whopping 3.8 percent reduction in December. We discussed the anomalies in the industrial data in October and November as largely attributable to the $2.2 billion industrial portfolio (BX Trust 2021-ACNT) that failed to pay off on its initial Nov. 9, 2023, maturity date. With the loan now listed as current by its servicer, KeyBank, the industrial sector settles back to familiar territory with 0.32 percent overall distress.    

Mike Haas is the founder and CEO of CRED iQ.

  

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.

Robert Khodadadian, skyline properties, ground leases, ground lease, off market, investment sales, khodadadian, Commercial Real Estate Sales, The Commercial Observer, Retail For Lease, Commercial Observer, Commercial Office Lease

Channel, CMBS, Distress, Finance, Mike Haas, National, CRED iQ Articles about Robert Khodadadian from Commercial Observer New York’s authority on commercial real estate leasing financing deals and culture.

Read MoreCommercial Observer 

The Real Deal – Robert Khodadadian

The Real Deal – Robert Khodadadian

The wall of maturities closing in on commercial real estate this year is taller than previously estimated, but opportunities for owners to combat the wave of distress are better.

Roughly $929 billion in commercial loans are set to mature this year, Bloomberg reported. The projection by the Mortgage Bankers Association is a 40 percent jump from its previous estimate of $659 billion in maturities for 2024.

The increase is due in part to loans extended into this year and other delays pushing back previously scheduled maturations, not new transactions. Almost 20 percent of the country’s outstanding commercial debt is maturing this year.

While that degree of looming maturities is a frightening prospect for property owners, the Federal Reserve is expected to halt interest rate hikes and possibly even cut rates later this year. 

“Volatility and uncertainty around interest rates, a lack of clarity on property values and questions about some property fundamentals have suppressed sales and financing transactions,” MBA’s Jamie Woodwell said in a statement, adding that more clarity “should begin to break the logjam.”

Selling properties hasn’t been a viable option for many owners because a dearth of activity in the last two years has made it difficult to determine values, especially in the office market. Commercial property prices are down 21 percent since early 2022, according to Green Street, including a 35 percent decrease in office prices.

At the end of last year, there was an estimated $85.8 billion in commercial real estate that was distressed, according to MSCI Real Assets. An additional $234.6 billion was considered potentially distressed.

There’s approximately $4.7 trillion in outstanding debt backed by commercial real estate. ​​Banks hold $441 billion of commercial-property debt due to mature this year.

Holden Walter-Warner

Read more

CRE debt problem to get worse through 2027

Why real estate is so difficult to price right now

The post CRE staring down $929B of maturities this year  appeared first on The Real Deal.

  

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.

Uncategorized, Debt, Distress, Lending, Real Estate Finance The Real DealRead MoreThe wall of maturities closing in on commercial real estate this year is taller than previously estimated, but opportunities for owners to combat the wave of distress are better. Roughly $929 billion in commercial loans are set to mature this year, Bloomberg reported. The projection by the Mortgage Bankers Association is a 40 percent jump
The post CRE staring down $929B of maturities this year  appeared first on The Real Deal

The Real Deal – Robert Khodadadian

The Real Deal – Robert Khodadadian

Irving Langer’s E & M Associates must fork over a $3.4 million broker’s commission the company had refused to pay. 

E & M, its principals and 52 affiliated LLCs, owe brokerage Georgia Malone & Company a commission for the 2013 purchase of an 87-building portfolio in Harlem, a jury ruled.

The case has been winding through court for a decade.

It has been a long 10-year battle but in the end the jury upheld our client’s rights to duly earned commission,” said Claude Castro, the attorney for the brokerage.

Georgia Malone & Company was acting as a buyer’s broker for E & M when it inked a deal to purchase the 1.4 million square-foot portfolio. Both sides had agreed to a 1% commission.

But E&M – under principals Michael Langer, Irving Langer, Scott Katz and Leiber Lederman – bought the portfolio under newly formed LLCs and refused to pay the commission, saying it didn’t make the purchase under the name on the brokerage agreement, according to the 2014 complaint filed in State Supreme Court.

The court dismissed the case in 2017. But a 2018 appellate court ruling called for a trial to weed through the “conflicting language” in the agreement and determine if the LLCs were bound to the agreement because of their connection to E & M. 

A jury ultimately decided that E & M and the LLCs are bound. Now they must pay the brokerage fees plus interest and legal fees, which is now more than double what they originally owed.

It appears that E & M has already gotten rid of the portfolio. Langer began selling his Harlem holdings in 2018. By the end of 2019, E & M had shed 92 buildings in three sales, raking in $400 million.

He also sold off properties outside New York City in 2021 to pay off a defaulted loan he used to leverage his 3,000-unit multifamily portfolio.

E & M did not respond to a request for comment.

Read more

Irving Langer’s E&M just sold off another big Harlem portfolio

Multifamily giant Irving Langer racing to refi 3K-unit portfolio

E&M looks to sell Washington Heights portfolio for $200M-plus

Burned-out tenants put heat on E&M’s Irving Langer

The post Irving Langer’s E & M owes $3.4M broker’s fee for Harlem portfolio appeared first on The Real Deal.

  

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.

Uncategorized The Real DealRead MoreIrving Langer’s E & M Associates must fork over a $3.4 million broker’s commission the company had refused to pay.  E & M, its principals and 52 affiliated LLCs, owe brokerage Georgia Malone & Company a commission for the 2013 purchase of an 87-building portfolio in Harlem, a jury ruled. The case has been winding
The post Irving Langer’s E & M owes $3.4M broker’s fee for Harlem portfolio appeared first on The Real Deal

The Real Deal – Robert Khodadadian

The Real Deal – Robert Khodadadian

Rose Equities and Garden Communities aim to build 272 apartments in Torrance.

The Beverly Hills- and San Diego-based developers have filed plans to for a four-building complex at 2325 Crenshaw Boulevard, Urbanize Los Angeles reported. 

It would replace a single-story, 60,800-square-foot office building now occupied by the Los Angeles County Department of Children and Family Services.

Rendering of plans for 2325 Crenshaw Boulevard (Rose Equities)

The 5.5-acre development, dubbed Torrance Del Amo, would include four buildings of four or five stories with 272 studio, one-, two- and three-bedroom apartments. The homes would be built atop a two-level garage for 467 cars.

The developers aim to employ density bonus incentives in exchange for 28 affordable apartments set aside for very low-income households.

The project, designed by Santa Monica-based Moore Ruble Yudell Architects & Planners , would have four lines of apartments separated by courtyards. The brown and beige project includes a swimming pool, according to renderings.

Three-story complexes would line the north side next to single-family homes, while five-story complexes would line the south side along commercial Sepulveda Boulevard.

Rendering of plans for 2325 Crenshaw Boulevard (Rose Equities)

“Lantern-like gable roofs and syncopated balconies contribute to the village-like feel,” according to a project description. “The buildings are clad in white plaster and stone, with louvers that shade balconies.”

Pending approvals, construction is expected to take 30 months. 

Rose Equities is also developing a larger project, with more than 1,000 apartments in Costa Mesa, according to Urbanize.

Rendering of plans for 2325 Crenshaw Boulevard (Rose Equities)

In November 2022, Rose Equities and Garden Communities paid $71 million for the former site of a Renaissance Hotel in Westchester County, New York, with plans to redevelop it into a 760-unit luxury apartment complex.

Garden Communities is the property management arm of the Wilf family’s New Jersey-based Garden Homes. The family patriarch, Zygi Wilf, runs the Minnesota Vikings, and engineered a controversial taxpayer-funded covered stadium for the team in Minneapolis. 

In 2017, an associate by marriage of the Wilf family died before being accused of a mass shooting at the family-built La Jolla Crossroads apartment complex in University City in San Diego, the San Diego Reader reported. 

— Dana Bartholomew

Read more

Tri-State

Massive rental complex planned for Westchester hotel site after $71M sale

Herbalife lists Torrance office for sale with industrial pitch

Torrance upgrades zoning to allow homes along commercial corridors

The post Rose Equities and Garden Communities team for Torrance apartments appeared first on The Real Deal.

  

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.

Uncategorized The Real DealRead MoreRose Equities and Garden Communities aim to build 272 apartments in Torrance. The Beverly Hills- and San Diego-based developers have filed plans to for a four-building complex at 2325 Crenshaw Boulevard, Urbanize Los Angeles reported.  It would replace a single-story, 60,800-square-foot office building now occupied by the Los Angeles County Department of Children and Family
The post Rose Equities and Garden Communities team for Torrance apartments appeared first on The Real Deal

The Real Deal – Robert Khodadadian

The Real Deal – Robert Khodadadian

As Chicogans gear up for their first property tax assessments since the onset of the pandemic, Cook County Assessor Fritz Kaegi is left with the tricky task of determining valuations during a period marked by commercial distress and sluggish sales

With fewer than five major office buildings changing hands last year, and those that did being sold at substantial losses ranging from 50 to 90 percent, determining accurate property values has become increasingly complex, Bloomberg reported

Kaegi is considering excluding distressed sales from his calculations due to the challenges posed by those transactions.

“If there’s some kind of duress or serious time pressure where they couldn’t be properly shopped, that’s one of those things that might make you take that value with a grain of salt, just as you would any other asset that trades under distress conditions,” Kaegi told the outlet.

The potential exclusion of distressed sales raises concerns about the fairness of tax burdens, particularly for property owners who are still grappling with the economic repercussions of the pandemic. 

The valuation of properties in downtown Chicago is integral to determining how the tax burden is distributed among residents and businesses, and recent transactions paint a grim picture. For instance, a 41-story building on Michigan Avenue sold for roughly 50 percent less than when it last traded in 2017.

Critics, such as Farzin Parang, executive director of BOMA Chicago, question whether Kaegi will acknowledge the drastic depreciation of downtown office buildings. High-profile exits, such as billionaire Ken Griffin’s relocation of his hedge fund to Miami in 2022, exacerbate concerns.

Chicago’s office vacancy reached a record high of 23.8 percent in the fourth quarter. That’s significantly higher than the 13.1 percent vacancy at the end of 2019. However,  newer “trophy” buildings are reportedly faring better, offering a glimmer of hope amid the broader market downturn, the outlet reported.

Kaegi’s office is diligently sifting through data to inform property assessments, a process complicated by the unpredictable market conditions. In navigating these complexities, Kaegi’s team is engaging with stakeholders and meticulously analyzing vacancies, rents and sale prices. 

Property assessments, conducted every three years in Chicago, are eagerly awaited as they will shape tax policies and address pension deficits. Total assessed property value increased by 31 percent to $47 billion from 2018 to 2021, with the bulk of that increase coming from nonresidential properties, according to the Cook County assessor’s website.

—Quinn Donoghue 

Read more

Chicago

Property taxes surge by 15.7% in northern suburbs

Chicago

Fritz Kaegi ties Evanston tax hikes to appeals on commercial properties

Chicago

City Council sends property transfer-tax hike to ballot   

The post Chicago’s first post-pandemic property tax valuations coming soon appeared first on The Real Deal.

  

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.

Uncategorized, Politics, Property Taxes, Residential The Real DealRead MoreAs Chicogans gear up for their first property tax assessments since the onset of the pandemic, Cook County Assessor Fritz Kaegi is left with the tricky task of determining valuations during a period marked by commercial distress and sluggish sales.  With fewer than five major office buildings changing hands last year, and those that did
The post Chicago’s first post-pandemic property tax valuations coming soon appeared first on The Real Deal

Robert Khodadadian - Skyline Properties

The Real Deal – Robert Khodadadian

Matthew Stafford, the quarterback for the Los Angeles Rams, may have closed on his new Hidden Hills mansion in December — but the brokers on the deal are now locked in a legal fight over a commission payout, The Real Deal has learned. 

Beverly Hills Estates, the boutique brokerage run by Branden and Rayni Williams, has claimed the escrow company, Escrow of the West, has refused to pay out 50 percent of $1.12 million in broker commissions upon request of the seller, Ronen Nachum of DOR Homes, according to court records. 

“To try and illegally withhold and extract money from the agent, so the agent can’t immediately have their money — especially in this harder marketit’s highly unethical,” Branden Williams said. “We will not stand for it.”

The deal for 25067 Jim Bridger Road in Hidden Hills closed in December, according to court records. The brokers declined to comment on the buyer, but reports disclosed it was the Rams’ Stafford. 

Escrow of the West, run by Galit Ofengart, claimed that DOR Homes “demanded that EOTW withhold all funds” and “alleged misconduct and damage caused to DOR” by Beverly Hills Estates during the escrow and sale process. 

The escrow company has now asked an L.A. Superior Court to determine “to whom the escrow funds should rightfully be delivered,” according to a court filing earlier this month. 

The filing came after Beverly Hills Estates filed a complaint against Escrow of the West with the California Department of Financial Protection and Innovation. 

The Williams’ said the firm signed an “irrevocable commission agreement,” which stated Beverly Hills Estates would receive 50 percent of the total commission, as an agent for the buyer. 

According to the California Association of Realtors, “broker compensation instructions are irrevocableand “subsequent instructions from principals that contradict the commission instructions submitted by the brokers should not be followed by the escrow holder.”

The post Beverly Hills Estates claims “illegal” escrow hold in deal for NFL star’s mansion  appeared first on The Real Deal.

  

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.

Uncategorized, Commissions, LawsuitThe Real DealRead MoreMatthew Stafford, the quarterback for the Los Angeles Rams, may have closed on his new Hidden Hills mansion in December — but the brokers on the deal are now locked in a legal fight over a commission payout, The Real Deal has learned.  Beverly Hills Estates, the boutique brokerage run by Branden and Rayni Williams,
The post Beverly Hills Estates claims “illegal” escrow hold in deal for NFL star’s mansion  appeared first on The Real Deal

Robert Khodadadian - Skyline Properties

Goldman Sachs Provides $395M Refi on Manhattan’s 70 Pine Street Robert Khodadadian | Commercial Observer

A notable skyscraper in Manhattan’s Financial District is being refinanced for a nice chunk of change. 

DTH Capital and Rose Associates have secured a $395 million refinancing for 70 Pine Street, the 67-story, mixed-use tower that was converted from an office building into a hotel and luxury apartment complex in 2016, Commercial Observer has learned. 

The Art Deco high-rise, completed in 1932 during the Great Depression, was designated by New York City as a historical landmark in 2011. 

Goldman Sachs (GS) provided the nearly $400 million loan, while the JLL Capital Markets team of Chris Peck, Geoff Goldstein and Christopher Pratt arranged the financing on behalf of the sponsors. 

“Rose Associates and DTH Capital are amongst the most experienced sponsors in the industry,” said Peck in a statement. “Their market-leading redevelopment of this iconic property presented lenders with a spectacular opportunity in New York’s strong luxury housing market.” 

Mark Ehrlich, Rose Associates’ chief investment officer, said in a statement that even in a tough credit market, the refinancing for 70 Pine drew “significant interest” from other parties. 

“This property has outperformed as an asset since leasing began in 2016, and it is a shining example of a successful office-to-residential conversion,” said Ehrlich. 

Located in the heart of the Financial District — where it is flanked by 40 Wall Street and the Woolworth Building at 233 Broadway — 70 Pine has long been regarded as an indelible part of the New York City skyline, as its trapezoidal crown and numerous limestone setbacks recall the heyday of Art Deco architecture in America. 

Originally built exclusively for office use, the building was the third-tallest skyscraper in the world upon opening in 1932. For much of its history, 70 Pine was the corporate headquarters for the Citgo energy conglomerate and later world headquarters for AIG, which bought controlling ownership in the building in 1976 and held onto it until its 2009 bankruptcy

Beginning with their 2012 purchase, Rose Associates and DTH Capital began transforming 70 Pine from an outdated office tower into a luxury apartment complex and hotel. Renovations were completed in 2016, with the 165-key Mint Hotel opening that year. 

Aside from the Mint Hotel, 70 Pine boasts 612 market-rate rental apartments, replete with stainless steel appliances and high-end finishes. Residents have access to a 22,000-square-foot fitness center, two golf simulators, two bowling alleys, a screening room and a historic bank vault from the 1930s. 

Moreover, 70 Pine includes a pair of Michelin-starred restaurants: Saga and Crown Shy. The building is near eight subway lines, and steps from Fulton and Wall streets. 

Brian Pascus can be reached at bpascus@commerecialobserver.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.

Robert Khodadadian, skyline properties, ground leases, ground lease, off market, investment sales, khodadadian, Commercial Real Estate Sales, The Commercial Observer, Retail For Lease, Commercial Observer, Commercial Office Lease

Channel, Finance, Refinance, 70 Pine, Art Deco, Chris Peck, Christopher Pratt, Geoff Goldstein, Mint Hotel, New York City, Manhattan, DTH Capital, Goldman Sachs, JLL Capital Markets, Rose Associates Articles about Robert Khodadadian from Commercial Observer New York’s authority on commercial real estate leasing financing deals and culture.

Read MoreCommercial Observer 

Robert Khodadadian - Skyline Properties

Film Studio Operator MBS Group Inks 300K-SF Warehouse Deal in Queens Robert Khodadadian | Commercial Observer

MBS Group has leased a 300,000-square-foot warehouse in Glendale, Queens, to store film equipment, as the film and TV production industry continues to boom in the outer boroughs, Commercial Observer has learned. 

The company, also known as Manhattan Beach Studios, took 300,000 square feet at GLP’s 66-31 and 66-35 Otto Road, according to sources familiar with the deal. MBS Group declined to comment on the transaction or disclose the lease terms of the deal

The property just south of All Faiths Cemetery includes 240,000 square feet of warehouse space, 73,000 square feet of parking and nine loading docks, according to GLP’s website. The site also has freight rail access and is adjacent to Fresh Pond Junction, a large freight yard operated by New York & Atlantic Railway and CSX

JLL’s Leslie Lanne and Adam Citron represented the landlord and declined to comment on the lease. It’s unclear who brokered the deal for the MBS Group.

GLP appears to co-own the property with Sitex Group, which acquired three sites on Otto Road for $36 million in 2019. The Otto Road warehouses seemed to trade hands for $112 million in 2020, sparking confusion. Then Sitex told The Real Deal that it was merely buying out the leases of the existing tenants, and it intended to hold onto the properties for years to come. 

GLP and Sitex didn’t immediately return requests for comment.

MBS Group recently sealed a deal to operate the new Borden Studios, a 220,000-square-foot film production facility within a multistory warehouse project developed by Innovo Property Group at 23-30 Borden Avenue in Long Island City, Queens. It also operates Silvercup Studios and Kaufman Astoria Studios, both nearby in western Queens, according to its website. In addition, MBS provides production services to Steiner and CineMagic East River Studios in Brooklyn, along with York Studios’ campuses in the South Bronx and Maspeth, Queens

Rebecca Baird-Remba can be reached at rbairdremba@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.

Robert Khodadadian, skyline properties, ground leases, ground lease, off market, investment sales, khodadadian, Commercial Real Estate Sales, The Commercial Observer, Retail For Lease, Commercial Observer, Commercial Office Lease

Channel, Industrial, Leases, 66-31 Otto Road, GLP, MBS Group, Sitex Group, New York City, Queens, Ridgewood Articles about Robert Khodadadian from Commercial Observer New York’s authority on commercial real estate leasing financing deals and culture.

Read MoreCommercial Observer 

You Missed