Wednesday was an unparalleled day in recent memory of New York City Real Estate News.
The morning started with the failure of two casino offers in Manhattan. Firstly, a Community Advisory Committee voted 4-2 to reject the pitch of SL Green for a $ 5.4 billion casino in Times Square, which means that the proposal will not continue to the last round of the Casino License competition.
After the meeting was over, SLEN CEO got up Marc Holliday and punished the committee members, next to those appointed by the mayor and governor, the only yes votes.
“What you did here today was a despicable representation of cowardice, lack of leadership, lack of attention for all people who would benefit from this proposal,” Holliday shouted against the members when they came out of the room.
Moments later, the Holliday company was accompanied by rejection by Silverstein Properties.
A six -member Community Advisory Committee rejected its proposal for a casino in a “gigantic hole in the ground” on 41st Street and 11th Avenue, in a vote of 4 to 2.
Silverstein, in addition to Rush Street Gaming and Greenwood Gaming & Entertainment, threw the Avenir, a $ 7 billion casino complex planned for a long -term site. The project is said to have had a Hyatt hotel with 1,000 key, as well as restaurants, bars and an entertainment location with 150 seats.
The developer also promised to finance the conversion of offices in 2,000 homes.
The double rejections leave Soloviev Group as the only Casino competitor in Manhattan – The developer is planned to get a date for the CAC within the week.
On Wednesday morning, the Drama also brought Paramount Group to the foreground of real estate trust.
Rithm Capital agreed to acquire Paramount Group for $ 1.6 billion, with plans to buy the outstanding shares of the large office renter for $ 6.60 per watered share.
The acquisition is an important gamble on the revival of office values, in which Rithm CEO Michael Nierenberg pronounced optimism about the office market and the expected interest rate cuts by the Federal Reserve (more about it later).
But the deal comes in the midst of controversy around the CEO of Paramount Group, Albert Beler, including a SEC study into unknown payments and concerns about the reward of the executive and conflicts of interest.
The rage of the morning made way for an afternoon with the development that would probably influence the largest strip of the industry: an interest rate reduction.
The Federal Reserve lowered its benchmark interest with a quarter point, the first such reduction in nine months, although it was not as drastic as President Donald wanted Trump.
In anticipation of the meeting, players from the real estate sector have broadcast their hope that lower rates could stimulate commercial transactions and help tackle the affordability crisis for homes.
Although the mortgage interest rate recently fell, they do not immediately follow the changes of the FED’s interest rate and it is not certain how much they will fall.
And all that unfolded in the course of a few hours. Who said Wednesday was boring?
Read more
Spel over for SL Green’s Times Square Casino
End of the road for the Casino proposal of Silverstein
Rithm Capital Inks Deal to buy Paramount for $ 1.6 billion
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