Bravo pausing “Million Dollar Listing NY” after 9 seasons – Robert Khodadadian

The drama and deal-filled run of “Million Dollar Listing New York” has come to an end after nine seasons. Variety first reported the development for the Bravo series, citing unnamed sources. When reached for comment, the network said only that it was “on pause,” but declined to elaborate. Bravo favors designating shows as “on pause” …

Bisnow CEO Will Friend dies at 33 – Robert Khodadadian

William Friend, a British emigré who lived a life worthy of a Horatio Alger novel, becoming one of the youngest leaders in commercial real estate media, has died. He was 33. Friend, the head of Bisnow, was struck by lightning Sunday while on a boat in North Carolina, near Masonboro Island, according to WECT News. …

SL Green gets restraining order against HNA at 245 Park Ave – Robert Khodadadian

A federal judge has granted SL Green’s request to prohibit an affiliate of HNA Group from dumping assets to avoid paying it $185 million in their long-running legal dispute over 245 Park Avenue. The REIT obtained a temporary restraining order against the Chinese conglomerate that prevents its entity from selling assets until SL Green receives …

Robert Khodadadian – Commercial Observer

Robert Khodadadian – Commercial Observer Acore Capital provided an $88.5 million construction loan to Tortoise Properties for a luxury housing and retail development in West Palm Beach. Tortoise plans to build two eight-story towers across Eucalyptus Street from each other at 740 and 840 North Dixie Highway. A skybridge will link the two towers, which will comprise 264 units of

Acore Capital provided an $88.5 million construction loan to Tortoise Properties for a luxury housing and retail development in West Palm Beach.

Tortoise plans to build two eight-story towers across Eucalyptus Street from each other at 740 and 840 North Dixie Highway. A skybridge will link the two towers, which will comprise 264 units of studio, one- and two-bedroom apartments, according to Tortoise Properties.

Together, the two properties span 2.5 acres that Tortoise purchased for $18.8 million in December 2021, according to Palm Beach County records. The previous owners had purchased the land for $3.2 million in June 2020.

Tortoise Properties CEO Jake Geleerd said in a statement that the firm had obtained all the necessary permits ahead of securing the loan, which comes as interest rate hikes loom over the lending industry. 

“This loan propels this mixed-use development forward in a fundamentally strong market,” Geleerd said in the prepared statement. 

Tortoise Properties’ portfolio consists of mixed-use properties not only in South Florida but also in Chicago and Toronto, Canada. They include the Jupiter Innovation Center in Jupiter, Fla. and Burnham Pointe in Chicago’s South Loop.

Acore Capital did not immediately respond to a request for comment.

Mark Hallum can be reached at mhallum@commercialobserver.com.

Acore Capital provided an $88.5 million construction loan to Tortoise Properties for a luxury housing and retail development in West Palm Beach. Tortoise plans to build two eight-story towers across Eucalyptus Street from each other at 740 and 840 North Dixie Highway. A skybridge will link the two towers, which will comprise 264 units ofRead MoreChannel, Construction, Design + Construction, Finance, 840 North Dixie Highway, Acore Capital, Jake Geleerd, Tortoise Properties

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Robert Khodadadian – Commercial Observer

Robert Khodadadian – Commercial Observer Residential landlord MD Squared Property Group will triple its footprint in New York City. MD Squared inked a five-year sublease to relocate from less than 5,000 square feet on the fourth floor of 801 Second Avenue to a 14,855-square-foot space across part of the sixth floor of 7 Penn Plaza, also known as  370 Seventh

Residential landlord MD Squared Property Group will triple its footprint in New York City.

MD Squared inked a five-year sublease to relocate from less than 5,000 square feet on the fourth floor of 801 Second Avenue to a 14,855-square-foot space across part of the sixth floor of 7 Penn Plaza, also known as  370 Seventh Avenue, between West 30th and 31st streets, Commercial Observer has learned. 

The landlord moved into the space in May, taking it over from payroll software provider Cast & Crew Entertainment Services, which was subleasing the offices from the media and analytics company ComScore, according to Lee & Associates NYC, whose team of Justin Myers, Dennis Someck and Conor Krup represented MD Squared in the deal. Lee & Associates declined to comment on the asking rents.

MD Squared would have stayed in 801 Second if its landlord, Tri Realty, could have accommodated an expansion for the firm, but since it didn’t have enough room MD Square chose 7 Penn Plaza because its employees wanted a more convenient commute to come back to the office two days a week, Michael Mintz, MD Squared’s CEO, said. 

“We are excited to be able to give everyone on our team a little more space as our team returns to the office post-COVID and we continue our expansion,” Mintz said in a statement. 

The Feil Organization’s 411,000-square-foot 7 Penn Plaza is also home to Starbucks’ northeast regional headquarters, Douglaston Development and Sean O’Sullivan’s life sciences venture capital firm SOSV.

SavillsErik Schmall and Daniel Thompson, who has since moved to Cushman & Wakefield, represented Cast & Crew in the deal. C&W declined to comment, and Schmall did not immediately respond to a request for comment. The Feil Organization’s David Turino represented the landlord.

Celia Young can be reached at cyoung@commercialobserver.com.

Residential landlord MD Squared Property Group will triple its footprint in New York City. MD Squared inked a five-year sublease to relocate from less than 5,000 square feet on the fourth floor of 801 Second Avenue to a 14,855-square-foot space across part of the sixth floor of 7 Penn Plaza, also known as  370 SeventhRead MoreChannel, Leases, Office, 370 Seventh Avenue, 7 penn plaza, 801 Second Avenue, Cast & Crew Entertainment Services, comScore, Lee & Associates NYC, MD Squared Property Group, Michael Mintz

Robert Khodadadian, skyline properties, ground leases

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American Express tycoon’s 174-year-old townhouse tops Brooklyn luxury market – Robert Khodadadian

A Brooklyn Heights townhouse topped the borough’s luxury market 174 years after it was built. The priciest of the 30 contracts signed last week was 158 Clinton Street, which asked $6.6 million, according to Compass’ weekly report of homes asking $2 million or more. The house, built in 1847, was home to Henry Wells, a …

Robert Khodadadian – Commercial Observer

Robert Khodadadian – Commercial Observer Parakeet Communities has landed a $114 million debt package to refinance a portfolio of 12 mobile home communities in Florida and North Carolina, while also positioning itself for future expansion in the Southeast, Commercial Observer has learned. Madison Realty Capital originated the financing for Parakeet’s portfolio of 1,100 total pad sites situated primarily along the

Parakeet Communities has landed a $114 million debt package to refinance a portfolio of 12 mobile home communities in Florida and North Carolina, while also positioning itself for future expansion in the Southeast, Commercial Observer has learned.

Madison Realty Capital originated the financing for Parakeet’s portfolio of 1,100 total pad sites situated primarily along the east coast of Florida. An initial loan of $50.9 million will finance closing costs, repay corporate debt and create light capital improvements. It will be upsized to as much as $114 million to fund future acquisitions when Parakeet identifies additional strategic investments that fit the same profile as the portfolio’s initial assets.

“The institutional approach and operational efficiencies of scale that Parakeet brings to a typically disaggregated rental market will provide under managed parks with much-needed capital improvements to maximize their growth potential and improve quality of living for residents,” Josh Zegen, managing principal and co-founder of Madison Realty Capital, said in a statement. “As demand for low-cost rental housing continues to grow across the Southeast, Madison Realty Capital is pleased to provide a flexible financing solution to an experienced group with an eight-year track record investing in MHCs for the continued expansion of their well-leased portfolio of mobile home communities throughout the region.”

Washington, D.C.-based Parakeet Communities is an owner and operator of manufactured homes, recreation vehicles and marina properties nationwide. 

The portfolio currently includes a small percentage of park-owned homes in the Florida communities of Miami, West Palm Beach, Panama City, Cape Canaveral, Ruskin, DeLand, Cocoa and Mount Dora, as well as Atlantic Beach, N.C. Collectively, the sites are currently 88 percent occupied. 

The day-to-day operations of the mobile home parks are managed by a Parakeet affiliate, which is focused on capturing positive mark-to-market in rents from targeted low-cost capital initiatives such as road paving, landscaping and utility installation.  

“We are incredibly excited to be partnering with Madison Realty Capital on this financing solution to support the accelerated growth of our asset base throughout the Southeastern U.S,” Jonathan Wyss, co-founder and chief investment officer of Parakeet, said in a statement. “Their team and platform were great to work with throughout the whole transaction process, and we look forward to expanding our relationship with them into the future.”

Andrew Coen can be reached at acoen@commercialobserver.com

 

Parakeet Communities has landed a $114 million debt package to refinance a portfolio of 12 mobile home communities in Florida and North Carolina, while also positioning itself for future expansion in the Southeast, Commercial Observer has learned. Madison Realty Capital originated the financing for Parakeet’s portfolio of 1,100 total pad sites situated primarily along theRead MoreChannel, Finance, Refinance, Jonathan Wyss, Josh Zegen, Madison Realty Capital, Parakeet Communities

Robert Khodadadian, skyline properties, ground leases

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Robert Khodadadian – Commercial Observer

Robert Khodadadian – Commercial Observer Think expensive U.S. metros, and coastal bastions such as San Francisco and New York leap to mind. Over the course of the pandemic, however, many secondary and tertiary cities, often seen as alternatives, have seen rents rise at record rates, far more than the traditionally expensive metros. And, without San Francisco- and New York-like incomes

Think expensive U.S. metros, and coastal bastions such as San Francisco and New York leap to mind.

Over the course of the pandemic, however, many secondary and tertiary cities, often seen as alternatives, have seen rents rise at record rates, far more than the traditionally expensive metros. And, without San Francisco- and New York-like incomes to match, those cities are seeing a much higher rate of rent-burdened residents, according to a report from Moody’s. 

In fact, since late 2019, the number of U.S. metros where the rent-to-income ratio is higher than 30 percent — the definition of rent-burdened — has increased from eight to 23. 

Moody’s report lists 15 metros it deems “inflationary metros.” These are areas where average rents grew at least 25 percent between the end of 2019 and the start of 2022 — and weren’t already rent-burdened. The majority of the 15 are in the Sun Belt, including Tampa, Jacksonville and Fort Myers in Florida; Memphis, Tenn.; Savanna, Ga.; and Albuquerque, N.M. Between the fourth quarter of 2019 and the first quarter of 2022, rents in these metros rose an average of 29.6 percent. Rent in expensive metros, by contrast, rose 7.5 percent during the same period, according to data from Moody’s.

Income did not keep pace — not even close. Since the end of 2019, average income decreased slightly in the inflationary metros while increasing slightly in those traditionally expensive metros. Changes in both directions were by less than 1 percent and without accounting for inflation. 

That’s partially because places that were heavily dependent on hospitality, such as Reno and Las Vegas, were hit hard by job losses during the pandemic, but still experienced runaway rent growth. In Las Vegas — the most extreme case — median income fell by more than 18 percent, while the rent-to-income ratio went from 23.2 percent pre-COVID to 36.2 percent in the first quarter of 2022.

“That’s bad news for those who have to carry that burden,” said Lu Chen, an economist at Moody’s and co-author of the report. “It’s created a scenario where renters at the lower ends of the spectrum are carrying that burden.”

Another reason is migration. Six of the inflationary metros are in Florida and one is in Texas, the states which have seen the highest in-migration in the country over the pandemic. The Florida cities are mostly in the northern part of the state or along the Gulf Coast, because the South Florida cities that have seen similar inflationary growth were already expensive before the pandemic. In fact, pre-pandemic Miami was the second most unaffordable city in the country after New York when measured by rent-to-income ratio.

“In inflationary metros, there is a greater skewing of incomes,” said Thomas LaSalvia, co-author of the report. “People who move from California and New York have higher incomes. And, as they move down there, they’re able to pay more than some of the local population.”

This is pushing people out of these cities and even further afield — from Austin to nearby Killeen, say, where rents have increased 27.7 percent over the pandemic, or from Raleigh, N.C., to the cities of Greensboro and Winston-Salem about an hour’s drive west.

“There is displacement,” LaSalvia said. “Especially in areas where there’s constraints, you see sorting by socioeconomic status, or income status more specifically.”

As the second quarter of the year closes, it appears that rent growth has peaked in most cities, and not merely because of recession concerns. It’s simply reached the top of what the market could support. “We have maxed out in terms of where the rent-to-income ratios are going,” LaSalvia said.

That’s little comfort to people facing a 10, 20 or 30 percent increase in their rent. That puts an inordinate amount of pressure on residents struggling to make rent, as well as city governments that must deal with a housing crisis so widespread that it’s almost impossible to avoid it by moving somewhere else. 

Please note that the report was first published in March comparing year-end 2019 numbers to year-end 2021 numbers, when average rents rose 27 percent in inflationary metros and 4.4 percent in expensive metros. Commercial Observer used updated data from the first quarter of 2022, provided by Moody’s, and has confirmed that the pattern holds, though rent growth has begun to equalize, according to the authors of the report. 

Think expensive U.S. metros, and coastal bastions such as San Francisco and New York leap to mind. Over the course of the pandemic, however, many secondary and tertiary cities, often seen as alternatives, have seen rents rise at record rates, far more than the traditionally expensive metros. And, without San Francisco- and New York-like incomesRead MoreAnalysis, Channel, More, Lu Chen, Moody’s, Thomas LaSalvia

Robert Khodadadian, skyline properties, ground leases

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Sale brewing for legendary North Fork coffee shop – Robert Khodadadian

Every year, someone writes a “discovering the North Fork” story and Greenport gets a little busier — but no bigger. So anyone who bought commercial property in the modest village decades ago is now looking at a handsome capital gain from the investors buying and renovating in the area. But that’s not the reason Aldo …

Robert Khodadadian – Commercial Observer

Robert Khodadadian – Commercial Observer After many years of negotiations, governors Kathy Hochul and Phil Murphy finalized the first phase of state funding to build new train tunnels beneath the Hudson River on Tuesday, signing an agreement to split costs 50-50 between New York and New Jersey.  The two states have committed $2.7 billion for the $14 billion first phase

After many years of negotiations, governors Kathy Hochul and Phil Murphy finalized the first phase of state funding to build new train tunnels beneath the Hudson River on Tuesday, signing an agreement to split costs 50-50 between New York and New Jersey. 

The two states have committed $2.7 billion for the $14 billion first phase of the Gateway project via the Port Authority of New York and New Jersey. The first big piece of work will involve the replacement of the Portal North Bridge between Secaucus and Kearny, N.J., which the federal government is funding 60 percent and the states are splitting the remaining 40 percent of the cost, according to Hochul. Each state will pay $386.2 million in construction costs, for a total of $772.4 million in shared costs.

The Federal Transit Administration is also expected to shoulder 60 percent of the costs to dig the new subterranean tunnels, which will replace the century-old Hudson River tubes that flooded during Hurricane Sandy

“We are establishing the framework to get this project over the finish line and are making good on our promise to modernize the state’s transportation infrastructure and create a mass transit system worthy of New Yorkers,” Hochul said in a statement. 

Work on the 111-year-old Portal North Bridge is expected to start immediately, while construction of the Hudson River tunnels is scheduled to begin in 2023. 

Murphy said, “as we proceed with construction of a new tunnel under the Hudson River, we advance one step closer toward a New Jersey that is better connected and better positioned to reap the full economic benefits of our status as a regional crossroads.”

The agreement between Hochul and Murphy marks something their predecessors struggled to accomplish. In 2015, former New Jersey Gov. Chris Christie and former New York Gov. Andrew Cuomo were in talks on how to fund the Gateway project — after the federal government said it would split the bill with the two states — but couldn’t come to terms on the split, Politico reported.

They finally struck a deal in 2017, but the Trump administration stalled the public approval process. The project got back on track once “Amtrak Joe” Biden took office.

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

After many years of negotiations, governors Kathy Hochul and Phil Murphy finalized the first phase of state funding to build new train tunnels beneath the Hudson River on Tuesday, signing an agreement to split costs 50-50 between New York and New Jersey.  The two states have committed $2.7 billion for the $14 billion first phaseRead MoreChannel, Construction, Design + Construction, Infrastructure, Politics & Real Estate, Federal Transit Administration, gateway project, Hudson River, Hurricane Sandy, Kathy Hochul, Phil Murphy, Port Authority of New York & New Jersey

Robert Khodadadian, skyline properties, ground leases

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Korean heiress buys $11M Fifth Avenue condo – Robert Khodadadian

Property records indicate that Lee Seo-hyun, the youngest daughter of the late Samsung Electronics chairman Lee Kun-hee, will become the latest high-profile owner at 212 Fifth Avenue. Seo-hyun bought unit 8A, a three-bedroom, 3.5-bathroom apartment, for $10.5 million from seller Shea Acquisition LLC, the records show. The purchase was agreed to in May and closed …