Amazon HQ2 In NYC Is Not A Done Deal Yet, And The Critics Aren’t Letting Up

Amazon has faced intense opposition against its planned new headquarters campus in Long Island City, and while the tech giant is now trying to soothe its critics and repair its image it has also hinted that this new project is not yet set in stone.

“We were invited to come to New York, and we want to invest in a community that wants us,” Amazon Vice President for Public Policy Brian Huseman said during a hearing Wednesday before the City Council, the New York Times reports.

At the end of the session, he said the Jeff Bezos-led company wants to “be part of the growth of a community where our employees and our company are welcome.”

Though Amazon said it is committed to Long Island City, executives have reportedly griped in private they have not received the same kind of welcome as provided in Crystal City, where legislation at the state and local level has proceeded without staunch opposition.

The e-commerce behemoth has not yet closed on the purchase of a parcel of land that it needs to build the campus, according to the Times.

Amazon has shifted gears in recent weeks, attempting to win over detractors after more than a year of silence regarding the HQ2 process. It started sending out flyers to local community members.

Amazon Vice President for Real Estate John Schoettler ate at a Long Island City Italian restaurant with 20 local business owners. And at the City Council meeting this week, Amazon promised to pay for computer science classes at 130 high schools in the city, hire 30 public housing residents for jobs and create a certificate program at LaGuardia Community College.

Long Island City Council member Jimmy Van Bramer described the offerings as “crumbs off the table,” Curbed reports.

Ultimately, either New York City or Amazon could pull out of the deal. The agreement with the city is nonbinding and many of the details have not been ironed out, despite the victorious tone Gov. Andrew Cuomo and Mayor Bill de Blasio struck at their press conference announcing the deal in November.

This week’s meeting grew heated at times. Protesters held orange signs saying “Caution: Amazon lies” while council members lobbed tough questions and criticisms at state officials and Amazon representatives.

“Why do you need our money?” Council Speaker Corey Johnson asked, according to Curbed. “We have 63,000 people sleeping in homeless shelters in New York City, we have subways that are falling apart, we have schools that aren’t getting the money they deserve … This seems like vulture, monopolistic capitalism at its worst.”

Amazon will received some $3B in combined state and city incentives, officials said when the deal was announced last year. However, a new report from the City Council’s Finance Committee released Wednesday found Amazon could earn an extra $987M if it hires more than 25,000 workers.

Council member Daniel Dromm, the head of the finance committee, reportedly said Wednesday that the city had its “head in the sand” over the issue of tax credits, adding that Amazon is “reaping the benefit” of the city’s failure to do a proper review.

One tax credit Amazon will not avail itself of is the opportunity zone program. Amazon Head of Economic Development Holly Sullivan said it will not use the campus’ location in an opportunity zone to defer capital gains taxes, Bloomberg reports, despite its eligibility to do so. Their decision would not preclude its landlords or development partners from investing deferred capital gains from an opportunity fund into its projects, however.

https://www.bisnow.com/new-york/news/economic-development/amazon-hq2-in-nyc-is-not-a-done-deal-yet-and-the-critics-arent-letting-up-97279

NYCHA, HUD reach tentative deal for more federal oversight

The embattled New York City Housing Authority (NYCHA), which oversees more than 175,000 apartments with around 400,000 residents in New York City, may soon be under much closer scrutiny from the federal government.

According to the New York Times, the U.S. Department of Housing and Urban Development, NYCHA, the U.S. district attorney’s office, and the city have reached a tentative agreement to bring a federal monitor in to oversee the housing authority. While the specific details of the deal were not immediately apparent, the Times reports that the monitor would effectively replace NYCHA’s current interim chairman, Stanley Brezenoff, who was appointed by Mayor Bill de Blasio last April following former chair Shola Olatoye’s resignation.

The terms of the deal also stipulate that the city will invest $1 billion into NYCHA over the next four years, and $200 million each year thereafter. NYCHA will also be required to hit certain benchmarks relating to some of the biggest problems that have plagued the authority in recent years.

Those problems include an ongoing lead paint scandal, the extent of which was concealed by authority officials, as well as ongoing problems with heat, hot water, and dismal conditions in its thousands of apartments. Last year, NYCHA claimed the top spot on then-public advocate Letitia James’s “worst landlords” list, a first for the beleaguered authority.

The U.S. District Attorney’s office and NYCHA reached a settlement agreement last summer that would have imposed similar rules, including a federal monitor and dedicated funding for repairs, on the authority. However, the settlement was rejected by a judge in November, and since then, the idea of receivership—i.e. a full federal takeover of NYCHA—had been bandied about as a way to pull the struggling authority out of a hole. The tentative deal reportedly stops short of full receivership.

On Wednesday night, HUD Region 2 head Lynne Patton teased a “huge and historic announcement” for NYCHA residents on Twitter, adding that “whether or not this announcement will be great news for [de Blasio] remains to be seen.”

Lynne Patton (HUD)

@LynnePattonHUD

Thrilled to announce that @SecretaryCarson is coming to NYC tomorrow to make a huge & historic announcement that will be great news for the residents of @NYCHA! However, whether or not this announcement will be great news for the @NYCMayor remains to be seen…press details in AM

1,153

7:02 PM – Jan 30, 2019

Comptroller Scott Stringer issued a statement on the deal, saying that, “The time for talk and political stunts is over. Cut the long overdue check from the federal government to fully fund the needed repairs, listen to the real NYCHA monitors, put a plan in place, and get to work.”

https://ny.curbed.com/2019/1/31/18205314/nycha-hud-federal-oversight-ben-carson

’70s Slowly Taking the Design World by Storm

Right now in home design and even fashion, it feels like a total ’70s takeover. Some might argue that the ’90s are going strong, too. But the ’90s were the first real throwback to the ’70s, so there you go. This time period had two pretty distinct things going on—boho hippie vibes and glam, glitzy disco feels, which means you can probably find a way to work something ’70s into your home no matter your aesthetic. Let’s first focus on the more natural side of things here though, because those are the trends coming on strong right now in the home world for the most part.

https://www.instagram.com/p/Bic4UFRlFrk/embed/?cr=1&v=12&wp=540&rd=https%3A%2F%2Fwww.apartmenttherapy.com&rp=%2F70s-decor-trends-262586#%7B%22ci%22%3A0%2C%22os%22%3A5708.610000001499%7D

I think we’ve all added the word “terrazzo” back to our design encyclopedias. Designer Sarah Sherman Samuel put it on the map again in a big way with the Architectural Digest-featured home of actress Mandy Moore, where terrazzo was used liberally. But other designers have also been advocating for it. “Find a way to bring back terrazzo,” says Donna Mondi of Donna Mondi Interior Design. “Whether it’s flooring, countertops, or walls, it’s mid-century modern at its finest.” The play-it-safe way to do this flecked, composite stone would be in countertop accents, bath accessories, or even a single feature like a fireplace surround. But if you’re totally obsessed, a big installation on a floor or kitchen island would be amazing.

(Image credit: Winkie Visser)

Macrame is another ’70s trend that seems to be everywhere as of late. This material is definitely easier to incorporate into your home than terrazzo, and it’s also way less of an investment. Try a macrame wall hanging over your bed or as part of a gallery wall. Or you can go the plant lady route, and use a macrame hanger for your latest fern or succulent. The more adventurous option here would be a macrame chair or another big piece of furniture. What’s nice about this construction is it consists of knots, so it’s quite strong.

https://www.instagram.com/p/BgGuSASgoGn/embed/?cr=1&v=12&wp=540&rd=https%3A%2F%2Fwww.apartmenttherapy.com&rp=%2F70s-decor-trends-262586#%7B%22ci%22%3A1%2C%22os%22%3A5723.050000000512%7D

Shag rugs make me think of “Austin Powers,” but these floor coverings’ popularity lasted throughout the swinging ’60s well into the ’70s. I think that’s because, although somewhat of a pain to keep clean, they’re neutral enough to go with any type of furniture. I mean, they certainly have that far out vibe. But cream colored shags and sheepskins are also fixtures in Scandinavian design, and you can’t find more 0f a clean-lined or grounded style than that. Plus, they’re comfy. “Anything with an intentional focus on the comforts of the space, cozy pillows and throws or soft carpets underfoot is a trend to embrace,” says Mondi. If you like this textured look and can deal with the maintenance, the shag rug is definitely a do. I’ve been covering design for close to a decade now, and they’ve had staying power the entire time. So I don’t see that changing anytime soon.

(Image credit: Amber Hakim)

Wood was also a big ’70s material, but not just any old species. The pendulum definitely swung away from heavier, more traditional dark cherry and ebony styles and towards lighter rattans, which, sourced from climbing palms, gained traction in the ’70s. Rattan really did define the decade’s quintessential boho look, and it’s important to recreating it today. Visually, rattan furniture is light and airy, so it’s great for small spaces IMO. You could try a side table or chair, or go big with a headboard or bed. You probably don’t want to fill a whole room with rattan furniture, but one standout piece like this shelving unit is great as an accent.

https://www.instagram.com/p/BeGLMNuHvJt/embed/?cr=1&v=12&wp=540&rd=https%3A%2F%2Fwww.apartmenttherapy.com&rp=%2F70s-decor-trends-262586#%7B%22ci%22%3A2%2C%22os%22%3A5735.294999991311%7D

Okay, we have to get a little glam in here somewhere. And that’s where black and gray marble come in and sort of bridge the gap between ’70s natural and ’70s glamour. Because these darker stones can really go either way depending on the styling around them, making them very versatile. I mean, who doesn’t love marble? “This year in an ode to ’70s and ’80s glam we’re seeing gray and black marble finishes on furniture,” says Alessandra Wood, director of style at Modsy. “Live it up, but perhaps refrain from installing a black marble bathroom, so you don’t feel like you’ve dated your space as the trends shift.” Well-said. But if I were in the market for a new kitchen, I’d consider darker marbles for countertops. They can be a bit more forgiving than white Carrera.

Right now, it’s pretty hard to ignore the ’70s resurgence in design—it’s happening all around us. And I think it’s because it was a pretty chill decade, decor-wise, at least. The comfier and more neutral the trends are overall, the more staying power they’ll have this time around—and next.

http://cb1.so/0zl3s4?fbclid=IwAR2zDjSSuaRIu9ZIUJ07PQv7nx64l1fIZbm5KfrovLyzP2d7X9azuKzei5M

Amazon Adds Incentives For Apartment Landlords To Add Package Lockers

Amazon has started offering apartment landlords a bundle of services to persuade them to install package lockers.

The incentives — collectively known as Easier with Amazon — include free one-year Prime membership and an Echo device (Alexa, that is) for tenants, along with locker access.  Landlords would also receive assistance in installing and maintaining the lockers.

So far, the retail giant has partnered with at least four apartment buildings — three in Texas and one in Oregon — to offer the new service bundle, The Information reports.

The incentives seem to be an effort by the company to expand the reach of its apartment-building locker program and, presumably, encourage more ordering from Amazon.

For tenants, it would protect against package theft. Porch piracy is a serious issue for online retailers. According to a 2017 survey by Shorr Packaging Corp., 31% of respondents report having a package stolen off their porches.

Amazon has package delivery competition. UPS is expanding its partnership with Latch, a smart lock startup that allows drivers to enter apartment buildings to make deliveries. Currently operating in New York and San Francisco, Latch will open in eight other major U.S. cities by mid-2019.

Amazon is now floating the idea of allowing delivery workers to open garage doors to drop off packages. It is a slight tweak on its earlier Amazon Key platform, which allowed Amazon inside homes to drop packages and wasn’t particularly successful, The Verge reports.

https://www.bisnow.com/national/news/retail/amazon-adds-incentives-for-apartment-landlords-to-add-package-lockers-97177

Johns Hopkins To Buy Newseum Building On Pennsylvania Avenue For $373M

The large Pennsylvania Avenue building that houses the Newseum will soon be converted into an educational facility for Johns Hopkins University. The Baltimore-based university has reached a deal to acquire the building from the Freedom Forum, the foundation that runs the museum, Johns Hopkins President Ronald Daniels announced in a letter Friday.

The 400K SF building at 555 Pennsylvania Ave. NW sold for $372.5M, the university said in a separate blog post detailing the deal. The university plans to begin renovating the building next year and move in by early 2023. It is consolidating its D.C. operations from three separate buildings into the Pennsylvania Avenue space. Johns Hopkins currently occupies four buildings on the 1600 and 1700 blocks of Massachusetts Avenue NW. It owns three of the buildings and said it plans to sell them to help finance the Newseum building acquisition, in combination with institutional and philanthropic money. Johns Hopkins in November received a $1.8B donation from Michael Bloomberg

“The renovated building will provide opportunities for every academic division of the university to pursue research and educational activities in Washington—complementing and drawing on those conducted on our flagship Baltimore campuses and deepening our connections to debates over national and global policy,” Daniels wrote in the letter.

The Newseum opened its Pennsylvania Avenue building in 2008, moving from Rosslyn. The foundation said it committed more than $600M to build and fund the museum. But it reportedly faced financial challenges, including $300M in debt, and in February it retained Eastdil Secured to market its building for sale.

Freedom Forum CEO Jan Neuharth said the museum will remain open through 2019 and the foundation is exploring options for a new home in the D.C. area.

“This was a difficult decision, but it was the responsible one,” Neuharth said in a release. “We remain committed to continuing our programs — in a financially sustainable way — to champion the five freedoms of the First Amendment and to increase public awareness about the importance of a free and fair press.”

https://www.bisnow.com/washington-dc/news/capital-markets/johns-hopkins-buys-iconic-newseum-building-on-pennsylvania-avenue-for-373m-97128

Too Ugly to Be Saved? Singapore Weighs Fate of Its Brutalist Buildings

The Pearl Bank Apartment in Singapore. So-called Brutalist landmarks are emerging havens for the sort of gritty, artsy subcultures that are mostly absent in Singapore.CreditCreditOre Huiying for The New York Times

On a balmy Friday night, Zara Tan and two friends went drinking at an open-air pop-up bar in Golden Mile Tower, a 1970s-era building with a raw concrete exterior that overlooks Singapore’s financial district.

Ms. Tan, 24, said the atmosphere at the bar, the Great Escape, was more down-to-earth than what she normally encountered in Singapore’s slick downtown clubs. And that was the point.

“It would be kind of boring if everything was the same,” she said through a thicket of pink and green strobe lights at the bar, which sits in an upper-level parking lot. “That’s why this place is so valuable to people like us.”

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Landmarks of so-called Brutalist architecture, like Golden Mile Tower, are emerging havens for the sort of gritty, artsy subcultures that are mostly absent in Singapore, a banking center known for its tidy streets and often-overbearing governance.

A tenant of the Golden Mile Complex in Singapore. It went on the market in November for a minimum price of 800 million Singapore dollars, about $587 million.CreditOre Huiying for The New York Times

Others see them as important markers of national identity because they were designed by a generation of up-and-coming local architects just after the city-state’s founding in 1965, when the area’s growth was fueled by large-scale urban renewal projects.

But a few prominent Brutalist landmarks are on the verge of being sold to private developers, which has prompted a last-ditch scramble by enthusiasts to have the buildings protected by conservation laws. It has also set off a thorny debate about what type of architecture is worth saving in the first place.

Brutalist buildings represent Singapore’s early “hopes and aspirations,” said Darren Soh, an architectural photographer. He said destroying them would add to a sense among many residents of this former British colony that buildings of all kinds are being demolished and replaced too quickly.

“At some point in time, all this glitz is going to become old,” Mr. Soh said at Golden Mile Tower, referring to the glass towers of the nearby financial district. “What are we going to do then?”

Brutalism, once a pejorative term, typically refers to modernist buildings of stark simplicity and raw edges, whose primary feature is unfinished concrete. The style was most commonly used in the design of government buildings and public housing.

A scene outside the Golden Mile Complex. The fate of the complex is seen as a bellwether of how the city’s Brutalist landmarks will ultimately fare.CreditOre Huiying for The New York Times

Singapore’s 1970s-era Brutalist movement was influenced partly by a similar one in postwar Britain, said Ho Weng Hin, a partner at Studio Lapis, a local architectural consultancy. He said many of the Singaporean architects who advanced the style had trained in Britain or Australia.

Singapore’s own take on the Brutalist style, Mr. Ho said, evolved to reflect local sensibilities and a tropical climate, so he said a better term for it would be “Singapore modernist.”

Brutalism fell out of favor worldwide around the 1980s, but that has recently been changing in the West — for example, in London, where Brutalist behemoths like the Barbican Center are winning new fans. A group of designers and architects in Boston has even proposed renaming the style “heroic” architecture.

Advocates of the style in Singapore hope that the same trend will take hold here as well. But they face a number of obstacles.

Singapore’s downtown skyline is dominated by glass and steel towers, much like any other global financial hub. The highlights include the triple-towered Marina Bay Sands hotel, by the Israeli-born architect Moshe Safdie, and a nearby art-and-science museum that he designed in the shape of a lotus flower.

Golden Mile Tower, a 1970s-era building with a raw concrete exterior, overlooks Singapore’s financial district.CreditOre Huiying for The New York Times

The city-state is also known for its meticulously restored shophouses and other examples of British Colonial architecture, as well as contemporary green buildings that were designed to look stunning but also save energy in a tropical climate.

The city’s Brutalist buildings, in contrast, are widely considered eyesores by the general public.

These buildings often have a shared ownership of common facilities. And because many owners think that selling their units collectively is a better financial bet than investing in a conservation or retrofitting plan, the buildings have largely fallen into disrepair because no one wants to pay for short-term upkeep.

A prominent example is Golden Mile Complex, a dramatically terraced Brutalist building that is down the street from Golden Mile Tower and that went on the market in November for a minimum price of 800 million Singapore dollars, about $587 million.

Eileen Chua, whose family has lived in the Golden Mile Complex for three generations and owns a cramped convenience store on its ground floor, said the 16-story building had grown “sleazy” over the years as maintenance tapered off.

“I love heritage buildings,” Ms. Chua, 40, said on a recent evening outside the family store, which is in a florescent-lit corridor alongside massage parlors and money-changing kiosks. “But this building is disgusting.”

The Marina Bay Sands Hotel in Singapore, representative of the steel and glass towers that now dominate the Singapore skyline.CreditLauryn Ishak for The New York Times

While the buildings’ designs and current conditions may not inspire much affection among ordinary Singaporeans, advocates are calling on the government to earmark some for conservation status, just as it did in the 1980s for the shophouses.

They say that while Brutalist buildings may not be as conventionally pretty as shophouses — two- or three-story buildings, with a shop on the ground floor and residences above — they are better expressions of Singaporean identity because they embody a true vernacular architecture.

Any “self-respecting” global city would see value in the buildings, not least because they offer inexpensive rents for the creative class, said Karen Tan, a former investment banker who runs the Projector, an art-house cinema in Golden Mile Tower, which houses offices, shops and restaurants. She described the space as a welcome counterpoint to Singapore’s polished veneer.

Tan Huey Jiun, the director for conservation planning at Singapore’s Urban Redevelopment Authority, said in an email that the agency has conserved more than 7,000 buildings, including several state-owned modern ones.

But conserving a large modern building with multiple private owners is challenging, she added, in part because owners may disagree on how to maintain it — or whether it is worth conserving.

The owner of the Projector, an art-house cinema in Golden Mile Tower, said the Brutalist buildings offered inexpensive rents for the creative class.CreditOre Huiying for The New York Times

“Where there are merits to conserve such buildings, we will work with the owners to facilitate the process,” she said.

But the agency’s critics note that under Singapore’s Land Titles Act, 100 percent of owners in such buildings must approve a conservation plan, whereas 80 percent approval is required to put a building older than 10 years up for a collective sale. They say that makes the bar for conservation almost impossibly high.

“The economic logic works against it,” said Eunice M.F. Seng, an architectural historian at the University of Hong Kong who has studied Singapore’s modern architecture.

The fate of Golden Mile Complex, which is on the market until Jan. 30, is seen as a bellwether of how the city’s Brutalist landmarks will ultimately fare.

The Dutch architect Rem Koolhaas once praised it as a “unique work” animated by “bold intentions,” and the Urban Redevelopment Authority recently told the local news media that it had received a proposal to preserve the building, rather than to demolish it, and add a new one beside it.

The carpark of the Golden Mile Tower. Architecture advocates are calling on the government to earmark some of the Brutalist buildings for conservation status.CreditOre Huiying for The New York Times

“The fact that people find it ugly means that it already has authenticity,” said Jonathan Poh, an architect who has an office on an upper floor.

But a Singaporean politician once called Golden Mile Complex a “vertical slum,” and the recent decision to sell won support from more than 80 percent of the building’s owners.

That includes Ms. Chua, who said her family had purchased its ground-floor store 40 years ago at a “dirt cheap” price. She said she now expected it to fetch at least two million Singapore dollars, or nearly $1.5 million, and that the sale could not come quickly enough.

She said the building’s unusual design elements, including its sloped concrete terraces, were not enough of a factor to change her mind.

“This is all about the dollars and cents” of the property market, she said. “It’s not worth even renovating these tiles if they’re chipped.”

SL Green Weighs Selling ‘News Building’ In Midtown For As Much As $1B

SL Green’s office tower on East 42nd Street could be the latest trophy asset in the city to hit the market. The REIT has asked brokers to pitch to market the “News Building” at 220 East 42nd St., The Real Deal reports, citing unnamed sources. The asking price could be between $900M and $1B, sources with knowledge of the pricing guidance told the publication.

Cushman & Wakefield, CBRE, JLL and Newmark Knight Frank all offered pitches. The Art Deco building is 476 feet tall and was built to serve as the New York Daily News’ headquarters in 1920. SL Green paid $265M for it in 2003. The Visiting Nurse Service of New York closed on its 30-year leasehold condominium there last year, paying $91.8M. The healthcare nonprofit took 308K SF in the building as part of the transaction, which was announced in 2016.

SL Green, which is developing the One Vanderbilt supertall office tower in Midtown East, has been among the city’s most active deal-makers in recent months.  Last month, it announced it reached a deal to buy a majority stake in 460 West 34th St. — previously known as the Master Printers Building — in Hudson Yards from the Kaufman Organization, in a deal that values the building at $440M.

Last year, it reached an agreement to invest $148.2M in 245 Park Ave., for which HNA Group paid $2.2B back in 2017. It has also sold several holdings in the city in the last year, including major stakes in office buildings at 3 Columbus Circle and 1745 Broadway, as it executes a campaign to buy back stocks and clean up its balance sheet.

https://www.bisnow.com/new-york/news/capital-markets/sl-green-weighs-selling-news-building-in-midtown-for-as-much-as-1b-97020

Fannie Mae and Freddie Mac regulator discussing plan to end conservatorship

The acting director of the Federal Housing Finance Agency has told the agency’s employees that the regulator will announce a plan within weeks to take the government-sponsored enterprises out of conservatorship.

Joseph Otting, who is leading the FHFA as Mark Calabria awaits Senate confirmation, said at an all-hands meeting on Thursday that a plan to lift Fannie Mae and Freddie Mac out of the conservatorship that has permeated the institutions since the financial crisis will soon be announced, according to an attendee of that gathering.

A spokesperson for the agency confirmed there was discussion about ending Fannie and Freddie conservatorship but denied there was any talk of timing or details.

“Acting Director Otting held the internal meeting to meet FHFA staff and establish open lines of communication,” the FHFA said. “He mentioned, as he previously has, that Treasury and the White House are expected to release a plan for housing that will include details about reform and will likely include a recommendation for ending Fannie Mae and Freddie Mac conservatorships. [Treasury] Secretary Mnuchin has said that the goal of the [Trump] administration is to take the GSEs out of conservatorship. Acting Director Otting said that he and FHFA will work to advance that plan.”

Fannie and Freddie were rushed into government control at the height of the financial crisis. Then, in 2012, the terms of the 2008 bailout were amended to steer the quarterly profits of both enterprises to Treasury. That wiped out holders of the companies’ stock, and they’ve fought the federal government in court ever since.

Congress has made several attempts at reform, but has not succeeded. As previously reported, the business-friendly Trump administration has been expected to find ways to work around legislators.

Once the Obama appointee Mel Watt, who ran FHFA until early January, departed, and Otting was appointed, the path cleared. What makes these efforts unique is that the White House seems to be determined to go it alone without Congress’s help.

In a key speech outlining her priorities, House Financial Services Chairwoman Maxine Waters, the California Democrat, said she would support housing finance reform that included “core principles” such as maintaining access to the 30-year fixed rate mortgage, ensuring sufficient private capital is in place to protect taxpayers and providing stability and liquidity to withstand any future crisis.

The over-the-counter shares of both Fannie Mae FNMA, +33.89% and Freddie Mac FMCC, +31.49% have soared this month in anticipation of administration action, though it’s not clear these shareholders would be rewarded.

Both stocks surged about 30% after MarketWatch’s publication of the article Friday morning. Fannie’s preferred stock FNMAS, +9.40%   rose about 8%.

https://www.marketwatch.com/story/fhfa-acting-director-discussing-plan-to-take-fannie-and-freddie-out-of-conservatorship-2019-01-18

NYC’s Housing-Market Weakness Spreads From Manhattan To The Outer Boroughs

Throughout vast swaths of New York City, members of the city’s vast middle class work force can barely afford even a modest apartment. Yet for years after the post-crisis housing market recovery began, that reality did little to slow down the rise in home valuations as foreign capital and rock bottom interest rates fueled a buying frenzy, pushing rents ever-higher. But after citywide rents peaked in 2014, the NYC housing market, particularly the most expensive areas of Manhattan, has started to soften.

But whereas only a few quarters ago that weakness was largely confined to the top tiers of the city’s housing market, the pressure on sellers to lower their asks has swiftly spread. Now, in almost every neighborhood in Manhattan and in nearly every one of Brooklyn’s trendiest neighborhoods, more than one-fifth of sellers have been forced to lower their asks – sometimes substantially so – as mortgage rates rise and global growth begins to slow.

Here’s more from Bloomberg:

In almost every Manhattan neighborhood, at least a fifth of the listings got a price cut in the last three months of 2018, data from StreetEasy show. The biggest share was in the East Village, where 33 percent of homes were offered for less.

Inventory is piling up across the city, and that’s good news for buyers in search of a bargain. For sellers with dreams of making a big profit, it’s time for a reality check.

“What we’re seeing right now is a lot of folks being forced to adjust their expectations,” said Grant Long, senior economist at StreetEasy. “We expect that prices are going to have to come down even more for it to make sense for a lot of buyers who are in the market.”

In Brooklyn, 21 percent of listings in trendy Williamsburg were reduced. The share was 22 percent in nearby Greenpoint, and 39 percent in Fort Greene.

Unsurprisingly, one exception to the trend of price declines in trendy neighborhoods is Queens’ Long Island City, soon to be the host of Amazon’s new HQ2 (or one of them, at least). Only 12% of sellers in LIC had to lower their expectations.

As we pointed out earlier, the softness in NYC is having a knock-on effect on markets outside of NYC: In tony Greenwich, Conn., home sales plunged during Q4 as buyers who were forced to lower the ask on their NYC apartments cut their budget for homes in Greenwich. And with brokers warning about the looming impact of Trump’s SALT elimination, sellers who are holding out for a better price might soon wish they had sold sooner.

https://www.zerohedge.com/news/2019-01-18/home-prices-are-falling-across-nyc-mortgage-rates-rise

WeWork CEO Earns Millions In Rent From Buildings He Owns Leased To WeWork

We Company CEO Adam Neumann is also a WeWork landlord in some cases, using money he has made as founder of one of the country’s most valuable startups to buy buildings in which WeWork is a tenant.

The arrangement concerns a number of investors in WeWork as a potential conflict of interest, the Wall Street Journal reports.

Since gaining effective control of WeWork about five years ago, Neumann has bought an interest in 88 University Place in Manhattan and properties in San Jose, California, all of which lease space to WeWork.  According to a prospectus published by WeWork last year, it paid more than $12M in rent to buildings “partially owned by officers” of the company in 2016 and 2017. Such officers stand to make $110M more from those leases before they expire, the prospectus said.

That kind of arrangement is regarded as unusual in corporate governance, since it might inspire executives to act in their own interest over that of the company, Fortune reports. WeWork denies any conflict.

“WeWork has a review process in place for related party transactions,” the company said in a statement. “Those transactions are reviewed and approved by the board, and they are disclosed to investors.”

Word of Neumann’s landlord status came not long after he unveiled a restructuring of the organization this month. The We Company, which lists Neumann, Miguel McKelvey and Neumann’s wife, Rebekah, as founders, is now the umbrella company for three separate branches: WeWork, WeLive and WeGrow. At the same time the restructuring was announced, WeWork closed on a $6B investment from SoftBank, $4B of which had previously been disclosed. The latest SoftBank deal values WeWork at $47B.

https://www.bisnow.com/national/news/office/wework-ceo-has-invested-in-buildings-that-lease-space-to-wework-96812