BisnowTV: New York Real Estate Morning Update presented by EisnerAmper
Winter Storm Jonas
The storm dumped down 26.8 inches by midnight Saturday for the second-largest New York snowfall on record—going all the way back to the 1860s. New Yorkers dealt with Gov. Cuomo’s State of Emergency, Mayor de Blasio’s travel ban and, of course, late and canceled Seamless orders.
New Federal Oversight Of Luxury Real Estate
The US Treasury’s Financial Crimes Enforcement Network announced Tuesday that it will require title insurance companies to report the true “beneficial owner” of $3M-plus Manhattan and Miami-Dade County units that are bought without mortgages. The new regulation is meant to stop the flow of “dirty money” through shell corporations, but there are worries that the new oversight could mean a slowdown in high-level sales.
Fox, News Corp To Keep HQs In Midtown
21st Century Fow and News Corp have decided to stay on Sixth Avenue in Midtown, going back on their letter of intent to lease 1.3M SF in 2 World Trade Center, the New York Post reports. Their Midtown leases will run through 2020, with extensions that could run through 2025.
CMBS, eREITs and Crowdfunding: The Future Of Real Estate Investments
Fundrise’s eREIT sold out in four hours last month, Morgan Stanley is finding crowdfunding in CMBS portfolios, and CrediFi launched a new platform branded as the “Zillow of CMBS”. All of this is to say, real estate tech is equalizing the market, as crowdfunding and transparency give expanded access to investments. Topping it off, the SEC passed Title III of the 2012 JOBS Act, allowing non-accredited investors to get in on billion-dollar equity crowdfunding game with just $1k.
Suspension Of The 421-A Tax Abatement Program
The 421-A Tax Abatement Program, which provides tax incentives to developers if they include affordable housing units in multifamily projects, has been suspended, as local construction unions failed reach a wage agreement for 421-A projects. The suspension of the deal is a blow to de Blasio’s plan for 200,000 new affordable housing units.
New Hotels To Flood Downtown Manhattan
The Financial District and Lower East Side are fueling a hotel boom in NYC, the New York Post reports. Managing director of PFK Consulting USA’s CBRE Hotels division, Mark VanStekelenburg says “the city is undergoing the largest hotel boom in its history, adding over 18,000 rooms since 2010, with another 36,000 rooms in the pipeline and 12,600 of those rooms currently under construction.”