By the time you are done reading this newsletter you should run to Stop & Shop and pick up dogs, burgers, mustard, relish and any other necessary equipment missing from your pantry because, in case you forgot, tomorrow is Memorial Day.
Unfortunately, he feels that political confrontation will not be avoided at this year’s barbecue. Beyond the heartbreaking shootings in Buffalo, NY, and Uvalde, Texas, Americans are still reeling from the leak of the Supreme Court’s stunning draft opinion Roe vs. Wade. Those in real estate who think they can sit on the sidelines quietly consuming frankfurters are probably wrong.
In a job market where employers have serious problems attracting and retaining talent, site selection is going to matter a lot more to companies than ever before. And that means local, state and federal issues matter more than ever to real estate professionals.
“Basically, nobody wants to touch it, but everyone has to,” Alison Taylor, executive director of ethical systems at New York University’s Stern School of Business, told Commercial Observer. about the post-Roe vs. Wade surroundings. Internal debates are already raging in companies, even if they have not yet burst into the media.
“There’s a concern about Sun Belt states that have done so well that you can’t take economic development success for granted,” said John Boyd, director of The Boyd Company, a national site-selection firm. . “There are legitimate fears that it could eliminate a city in Texas or place a rival location above it.”
It’s just business
Some might disagree. There are many people in real estate who see a good site as always a good site, no matter what state policy, or who or what is involved.
For example, some might have thought that the Florida developer’s reputation David Martin of Terra – which was building the condominium next to Champlain Towers South when it collapsed last year, killing 98 people – could have suffered when part of the blame for the collapse was blamed on Terra. (Terra denies any wrongdoing, but she nevertheless agreed to participate in a $1 billion settlement with survivors of the Champlain Towers.)
In fact, not so much. Martin remains one of South Florida’s largest and most sought-after developers. Terra just landed a $141 million loan to build a 1.8-acre mixed-use development in the Bay Harbor Islands; he unveiled plans for a 709-unit project called Upland Park; and next year it will open the 402-unit Grove Central.
CO contacted dozens of real estate professionals for our Martin story, all of whom declined to comment on the matter because, as one publicist put it, “They may want to make deals with Terra at the coming.”
Heck, a lot of people in real estate don’t believe there will be any lingering doubts about the Champlain Towers site itself. Dubai-based developer Damac Properties paid $120 million for the 1.9 acre lot last week.
But whether the developers or sites are politically or socially radioactive, Florida state officials seem to take security issues seriously. Last week they law passed unanimously calling for more frequent safety inspections and demanding that condo boards hold more money in reserve for needed repairs. (It still needs the governor’s signature before it becomes law.)
And it’s not like Florida’s pace of development is slowing down. Just this week, Stephen Ross of Related Companies announced that he purchase of the Deauville Beach Resort in Miami Beach (from where the Beatles made their second appearance on the “Ed Sullivan Show” in 1964) and enlisted the services of architect Frank Gehry to be in charge of the redesign.
Also, the development of Two Roads was destroyed $150 million to buy out Biscayne 21 residentsa 191-unit condo at 2121 N. Bayshore Drive facing Biscayne Bay, which the company plans to turn into an “ultra-luxury” residential development.
Back to normal? (Kind of)
For the first time since the pandemic hit, we heard the acronym “ICSC” along with the words “Are you okay?” »
Yes, ICSC was back! (Although instead of the International Council of Shopping Centers it is now officially called… Innovative commerce at the service of communities? Uh, OK.) And CO was on the ground.
Co-hosted CO an event at Zone 15, Fisher Bros.’ a gargantuan 120,000 square foot “immersive bazaar” as its owners call it, which featured mall offerings such as the “House of Eternal Return” (described as a “multidimensional mystery house”); virtual golf; ax throwing; food and drink; and a “2,000 square foot bamboo volcano”. (You might have to go to Vegas to get a full look at this one. But there are some cute party pics in this slideshow.)
And it was good to be back in the Vegas ICSC swing. There was the normal stalls and breakfasts. There was a lot to discuss: convergence of retail and laborfor example. ESG and retail was on the minds of many. And there were even optimism in the air on the state of retail.
Of course, retail is still a raw subject for many people. There is always lots of bustling malls. Even the biggest of the big retailers no longer offers sunny, thoughtless bromides. Earlier this month, CO talked to Ronald Dickerman, head of Madison International Realty, which made headlines a few years ago with its purchase of the Forest City retail portfolio. While he was always bullish on the right kind of retail, he was a bit more measured on retail in general.
“We don’t invest so much in New York as we invest in new asset classes in the United States and Europe,” Dickerman told CO.
Madison isn’t the only one to stay level-headed and realistic. Vornado, one of the nation’s largest retail owners, finally cut the cord on his Lincoln Center mall on Lincoln Road in Miami Beach for $35 million less than he paid for the property in 2012, after defaulting on an $83 million loan last year.
Looking north
It should be noted that commercial leases take place in New York!
For example, Capital Grid is taking up a whopping 15,000 square feet for a new steakhouse that will open in 2023 at 200 Park Avenue. Black Seed Bagels and Jack’s Stir Brew Coffee also announced leases in the building above Grand Central Terminal owned by Tishman Speyer and Irvine Company.
Open Squash, the city’s only public non-profit squash club, is taking up 21,432 square feet at 100 Pearl Street in the Financial District.
And the money men and women still see a future for good deals: Midtown Equities, Centaur Properties and Cipriani SA landed $100 million refinancing for Casa Cipriani, a luxury hotel and members club in Lower Manhattan. Additionally, Maverick Real Estate Partners sees security in the 110 million dollar note that the Chetrit family has on their planned 323-key hotel at 255 West 34th Street, which they picked up (with a “slight discount”) from Arbor Commercial Mortgage.
But New York is not just about retail. There were also office leases; Berkeley Research Group renewed his lease at 810 Seventh Avenue of SL Green Realty. (It was a pretty good week for SL Green; the REIT won a $185 million arbitration from HNA Group on the management of 245 Park Avenue.) Consumer Reports Nonprofit Research Point took a lease of 8,189 square feet at 675 Third Avenue of the Durst organization. And Connecticut-based investment firm Eldridge took 37,150 square feet at the GM building.
On that note…
You know who’s having a good Memorial Day? Adam Neumann.
This week, we learned that the WeWork founder and his partners made a profit of $70 million on the sale of a 662-unit multi-family development in Norwalk, Conn., which they bought for $226 million two years ago.
Happy Remembrance Day!
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