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    Category: Retail Space Construction

    Developers of Zero Irving Manage a Construction Shutdown and Leasing – Commercial Observer - April 6, 2020 by admin

    Although work has stalled because of coronavirus restrictions, the developers of the Union Square Tech Hub now known as Zero Irving are still on the hunt for office tenants and planning their next steps for construction.

    RAL Development halted work on the 21-story office building earlier this week after Gov. Andrew Cuomo announced that all nonessential construction was suspended to prevent the spread of the respiratory virus. Before then, workers had put up six stories of concrete and were getting ready to pour the seventh floor on the site of the former P.C. Richards store near Union Square South.

    However, its not your typical office project. The development, which is being built on city-owned land, is going to be partially devoted to training new generations of coders and helping them get jobs. It will also include step-up space for young, growing tech companies.

    The ground floor retail space is about to be leased to Urbanspace, which will operate a 10,000-square-foot food hall with a 1,700-square-foot outdoor terrace in the rear yard. Tech networking group Civic Hall plans to operate the second through seventh floors on a significantly below-market lease of $50 per square foot. (Civic Hall has been involved in the project for quite some time, but its lease is not yet finalized.) There will be an event and conference center on the second floor, and the third, fourth and fifth floors will be licensed to job training and workforce development organizations focused on placing people at tech companies. The eighth through 12th floors will offer step-up space for younger startups that need shorter lease terms, ranging from six months to five years. As part of RALs ground lease with the city, the developer cant ask for more than one years security deposit from tenants who rent on these floors. The rent for these floors will not be discounted.

    The remaining 13 floors will be typical market-rate office space for established tech firms. Asking rents range from $95 to $145 per square foot, with higher floors renting at pricier rates. The 14th and 21st floors have smaller private terraces, and there will be a top floor, 6,300-square-foot roof deck with seating and landscaping thats accessible to all of the office tenants. The building will also feature a full-service gym. JLLs Mitch Konsker and Ben Bass are handling the leasing.

    Some developers have struggled with supply chain issues since coronavirus hit China and Italy, but RAL planned so far ahead that most of its materials were ordered before the pandemic.

    The vast majority of our curtain wall system is actually coming from Colombia, said RAL President Spencer Levine. Weve been working on the curtain wall for two years. The vast majority is ready to ship. We have a small portion that is being fabricated in China. There is a slight delay in that and were seeing how we can work with the sequencing of construction to fit that in afterwards.

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    Developers of Zero Irving Manage a Construction Shutdown and Leasing - Commercial Observer

    Stalled by coronavirus pandemic, American Dream rethinks its future and retail becomes an afterthought – CNBC - April 6, 2020 by admin

    An indoor garden at the American Dream.

    Source: American Dream

    It is becoming even harder to call American Dream a megamall.

    Instead, theroughly 3 million-square-foot developmentthat sits alongside a bustling highway in East Rutherford, New Jersey, is morphing into more of an ultimate amusement park. More like Disneylandif it fit under one roof. With shifts in strategy over time, retail is becoming even more of an afterthought, while entertainment takes center stage.

    Prior to the coronavirus pandemic hitting the U.S., American Dream was slated to be a mix of 55% entertainment-related tenants and 45% retailers, when it was completely finished. Now, the project will be roughly 70% entertainment and 30% retail, according to its developer, Triple Five Group.

    American Dream shifting its leasing strategy amid this pandemic could serve as the most damning evidence we have seen against the retail industry to date. The property, years in the making, has helped to take the pulse of retail as long as it has been under construction.

    When ground was broken in 2004, under the project's original developers,Amazon's ascent and the e-commerce boom was just beginning. Names like Circuit City, Sports Authority, Blockbuster, RadioShack and Toys R Us were still in business. American Dream's blueprint has, as a result, been rewritten time and time again.

    Now, this project will also be the true test for consumers paying for touch-and-feel experiences, once coronavirus restrictions are lifted. Will people want to ride roller coasters? Ride down water slides? Go ice skating within 6 feet of someone else? Play put-put? American Dream will teach us.

    "We are going to come out of this super strong ... really strong on the entertainment side," Don Ghermezian, co-CEO of American Dream, told CNBC in an interview. "I think when [coronavirus] is over, people will be so stir crazy. Initially there will be some trepidation ... but I think we are going to have so many people."

    Up until March 13, when Triple Five Group announced it would be temporarily closing American Dream to try to help halt the spread of COVID-19, what had already opened there was aNickelodeon theme park, an NHL-regulation-size ice skating rink, and an indoor snow park for skiers and snowboarders that had opened in the winter. The only retail at American Dream, so far, had been a towering IT'SUGAR candy store.

    On March 19, a first wave of retailers like Zara and H&M were anticipated to open their doors to the public, in addition tothe world's first DreamWorks Animation Water Park.But all of that, along with the final construction at the property, has been delayed until further notice. A fresh reopening date has not been set, with the entire country still uncertain when this pandemic will subside.

    Coping with its own losses, American Dream has furloughed "most staff" and cut the salaries of others, according toGhermezian. "This has cost us a lot of money," he said.

    But the onesilver liningin the situation if there ever was one has been being able to rethink the future of American Dream, the co-CEO said. As of March, the development was not yet fully leased, giving Triple Five Group flexibility to reassess the new deals it wants to sign.

    "There is no doubt that when this is over, there will be retailers that were just making it along ... trying to survive. Those retailers that were on the bubble I fully expect a number of those retailers to be gone," Ghermezian said.

    "They cannot handle having no income coming in," he said. "And some of them are furloughing. It is a very difficult time. I fully expect there will be records set for retailers' closing [in 2020]. This virus has exacerbated that situation. A lot of retailers aren't going to reopen."

    Ghermezian said no retailers have backed out of American Dream to date. The property is slated to have a Saks Fifth Avenue department store in the luxury wing, along with a variety of high- and low-end retailers including Ulta, Lululemon and Old Navy.

    Now, instead of adding even more apparel and shoe stores, American Dream will have a trampoline park and one-of-a-kind, Instagram-worthymuseums,where visitors can pay to spend an afternoon exploring themed rooms with extravagant props and backdrops, Ghermezian said, citing these as two examples of what is to come post-COVID-19.

    American Dream is also zoned for 3,500 hotel rooms, with plans to construct several hotels that will connect directly to the rest of the project via skybridges. The hotel operators have not yet been announced.

    The purpose of adding this space, according toGhermezian, is to give out-of-town visitors easy access and room to spend a night or two during their excursions.

    American Dream said it will be adding eight more rides to the already open Nickelodeon theme park, building on its early success.

    Source: American Dream

    To be sure, after living for weeks or months in social isolation, being advised to wear face masks and ordered to stay at minimum 6 feet away from anyone else, it will likely take many consumers additional time to ease back into day-to-day life, as they remember it, before coronavirus.

    Also, many people are being put out of work either temporarily furloughed or permanently laid off by closures related to the outbreak.

    The wave of Americans looking for unemployment insurance skyrocketed at the end of March, as more than 6.6 million new claims were filed, bringing the total of Americans who have filed to roughly 10 million over the most recent two weeks, according to the Labor Department. And the unemployment rate in the U.S. has risen to 4.4% from 3.5% its highest level since August 2017.

    But the situation will grow much worse before it gets better, according to analysts. Goldman Sachs has forecast that the unemployment rate will peak at around 15% later this year.

    "I think it will take a while for people to get comfortable," Mizuho Securities analystHaendel St.Juste said about consumers going back to America's malls.

    Until recently, it has been in commercial real estate landlords' best interests to bring "experiences" to malls, St. Juste said. "But now experiential equals human risk. Humans are not going to the mall."

    "In theory, yes, it's still a good idea to build assets with things people cannot do online," he added. "Ultimately we will see fewer malls."

    Skeptics also still abound that American Dream will ever be 100% completed. Mall of America owner Triple Five Group took over the project, when it was named Xanadu, in 2011. Construction has been stalled and restarted on and off for years. Opening dates have been pushed back. The coronavirus has drawn out, even further, an already extensive timeline.

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    Stalled by coronavirus pandemic, American Dream rethinks its future and retail becomes an afterthought - CNBC

    Riverlife Apartments on track for July opening – WSAU News - April 6, 2020 by admin

    Monday, April 06, 2020 5:54 p.m. CDT by Michael Leischner

    WAUSAU, WI (WSAU) -- Wausau Mayor Robert Mielke provided an update Monday on the progress of the city's Riverlife development near the Wisconsin River.

    According to the developers, the apartment complex is now 50% complete and leasing for the units is underway, with a quarter of the 75 units spoken for.

    The apartments will lease for $925 a month with each unit including cable TV and managed WiFi. Other amenities will include heated underground parking, secure access, and a fitness center.

    An on-site manager for the apartment complex has also been hired by the management company. According to Monday's release, the units should be ready for occupancy by July 2020.

    The Riverlife development began as a mixed-use office and retail space that was to be built by Mike Frantz and Quantum Ventures. The group racked up more than $2 million in debt to local contractors during initial construction and later abandoned the project. That led to legal proceedings that left the project delayed for more than a year.

    RELATED: Frantz officially out as Riverlife developer

    Later, the city chose Oregon, WI-based Gorman and Company was chosen to take over the project. That was later shifted to Wausau Riverlife LLC, a conglomerate of three local developers that shifted the project from mixed-use retail and residential to all apartments.

    RELATED: Wausau group to take over Riverlife Development

    Developers have since expressed interest in adding a complex of condominiums to the area, along with other retail and dining options. The city will also be extending Fulton Street to serve the new neighborhood, that project is currently out for bids.

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    Riverlife Apartments on track for July opening - WSAU News

    Sterling Awarded a $26.4 Million Project in Utah by the Woodbury Corporation – Yahoo Finance - April 6, 2020 by admin

    Sterling Construction Company, Inc. (NasdaqGS: STRL) ("Sterling" or "the Company") today announced that its subsidiary, Ralph L Wadsworth Construction, LLC ("RLW") was selected by the Woodbury Corporation for a Utah structural project totaling $26.4 million.

    The $26.4 million project is part of a $500 million revitalization effort of University Place, a 120-acre multi-use development project located in Orem, Utah. RLW is contracted to provide the structural concrete for a nine-story structure with the bottom five levels consisting of 115,000 square feet of structured parking and a lobby and the top four levels with over 115,000 square feet of Class A office space, boasting unobstructed 360-degree views of Utah Valley. Construction is scheduled to begin this Spring and is expected to be completed in the Fall of 2021.

    Joe Cutillo, Sterlings CEO, commented, "We are pleased to begin work with the Woodbury Corporation, one of the premier retail developers in the United States and the local community. Residents of Utah County have made their desire for growth, urban town centers and diverse housing choices known, and we are extremely glad that, we are able to aid in the redevelopment effort of University Place."

    Sterling, a Delaware corporation, operates through three operating groups specializing in heavy civil, specialty services and residential projects in the United States, primarily across the southern U.S., the Rocky Mountain States, California and Hawaii, as well as other areas with strategic opportunities. Heavy civil includes infrastructure and rehabilitation projects for highways, roads, bridges, airfields, ports, light rail, water, wastewater and storm drainage systems. Specialty services projects include site excavation and improvement, foundations for multi-family homes, parking structures and other commercial concrete projects. Site excavation and improvement entails construction site preparation primarily in the Southeast region of the United States for blue-chip customers in the distribution center, warehousing, e-commerce, data center, big box retail and energy sectors, as well as other growing end markets. Residential projects include concrete foundations for single-family homes in Texas.

    This press release includes certain statements that fall within the definition of "forward-looking statements" under the Private Securities Litigation Reform Act of 1995. Any such statements are subject to risks and uncertainties, including overall economic and market conditions, federal, state and local government funding, competitors and customers actions, and weather conditions, which could cause actual results to differ materially from those anticipated, including those risks identified in the Companys filings with the Securities and Exchange Commission. Accordingly, such statements should be considered in light of these risks. Any prediction by the Company is only a statement of managements belief at the time the prediction is made. There can be no assurance that any prediction once made will continue thereafter to reflect managements belief, and the Company does not undertake to update publicly its predictions or to make voluntary additional disclosures of nonpublic information, whether as a result of new information, future events or otherwise.

    View source version on


    Sterling Construction Company, Inc.Ron Ballschmiede, Chief Financial Officer281-214-0777

    Investor Relations Counsel:The Equity Group Inc.Fred Buonocore, CFA 212-836-9607Mike Gaudreau 212-836-9620

    Sterling Awarded a $26.4 Million Project in Utah by the Woodbury Corporation - Yahoo Finance

    NEWSOM gives thumbs up to CA construction NAVY fires whistleblower carrier captain GRANDFATHER who attended TRUMP LA property party dies of Covid-19… - April 6, 2020 by admin
    Rezoning would allow office building on Baymeadows property – Jacksonville Daily Record - April 6, 2020 by admin

    Owners of a 9.8-acre parcel on Point Meadows Drive want to change the Baymeadows propertys zoning to allow up to 15,300 square feet of retail, commercial or office space.

    DER Investments LLC, led by David Ergisi, owns the site. Ergisi, president and CEO of Cross Regions Group, is listed as the manager of the LLC. He bought the property in 2019.

    A site geometry and layout plan filed with the rezoning request show a two-story, 15,300-square-foot professional office building. Theres a pond on the parcel that owner intends to fill for the project.

    Ergisis MRED Investments I LLC owns the adjacent parcel to the south at 8100 Point Meadows Drive. He paid $862,000 for the vacant 2.6-acre site in 2018 and built a two-story, 30,000-square-foot structure in 2020.

    The parcels are west of Interstate 295 and north of Baymeadows Road.

    The Touring Company, a Jacksonville-based civil engineering and construction company, is listed as the applicant for the rezoning application.

    Ergisi said April 6 his plans for the property were not yet certain and declined to comment further on the project.

    DER Investments LLC wants to change the zoning from one Planned Unit Development to another with no change to its land use.

    It is called Point Meadows Phase II.

    Excerpt from:
    Rezoning would allow office building on Baymeadows property - Jacksonville Daily Record

    COVID-19 Is Threatening the Ability of Insurtech to Combat Business Interruption – Workers Comp Forum - April 6, 2020 by admin

    As business interruption risks become increasingly complicated during COVID-19, will Insurtech be able to step up and find ways to cover losses?

    Coronavirus crept through the world methodically. First came warnings of international cases. Soon social media feeds were filled with images of desolate Chinese cities and videos of Italians singing in unison from their balconies.

    In what seemed like a sudden flash, the virus was on American shores closing down schools, shuttering restaurants and leaving far too many casualties.

    The economic damage was swift and heavy. The stock market crashed, unemployment claims skyrocketed, and industries like construction, retail and hospitality were decimated.

    Everyone seemed to have the same question: Would insurance companies cover business interruption resulting from the pandemic?

    The short answer: no. Business interruption is typically part of property insurance and doesnt kick in unless theres actual damage to property.

    Attorneys will undoubtedly get creative as they fight for coverage. One recently claimed that contaminated surfaces inside a New Orleans restaurant counted as property damage. Perhaps courts will agree. Perhaps business interruption becomes part of a government stimulus package. The answers remain to be seen.

    What is immediately clear? Business interruption (BI) coverage has quickly become top-of-mind for companies of all types.

    BI has always been the red-headed stepchild of insuring your business, said Matthew Struck, partner and co-founder of Treadstone Risk Management.

    Everyone is always concerned about traditional risks. What happens if my building burns down? What happens if someone sues me? Only if you were a risk management purist were you thinking of Black Swan events like coronavirus.

    Traditionally, business interruption hasnt been tough to underwrite or assess. If a business were shut down for the entire month of August due to a natural catastrophe, a simple analysis of financials could determine probable revenue loss during that time.

    But business isnt that simple anymore. Supply chains have gotten complicated. Technology is quickly evolving. Industries are changing. Its made business interruption underwriting and claims adjusting much more difficult.

    Matthew Struck, partner and co-founder, Treadstone Risk Management

    Even before the coronavirus crisis took hold, companies specializing in Insurtech technological innovation meant to create savings and efficiencies in the insurance industry have been making business interruption underwriting and claims adjusting easier and more accurate.

    Thats due to the rise of Big Data and technology like artificial intelligence, machine learning, and natural language processing. Insurtech companies have created models to predict business interruption losses; analyze mountains of data; and output metrics in easy-to-understand charts and digital dashboards.

    Companies are creating more sophisticated modeling techniques for specific losses in order to understand what a business interruption event might look like from a financial standpoint, said Chris Cheatham, CEO of RiskGenius.

    Typically, actuaries, underwriters and brokers are not necessarily technology wizards. And when you dont fundamentally understand technology, its hard to understand what constitutes business interruption in the technology space.

    Cheathams company has raised more than $60 million in venture capital funding, according to Crunchbase, and hes a frequent commentator on the subject to his 150,000 LinkedIn followers.

    RiskGenuis uses artificial intelligence to quickly and accurately review insurance policies to streamline work for brokers and underwriters. In the business interruption space, RiskGenius can analyze which policies will cover it and what that coverage may look like. It counts FM Global, Liberty Mutual and Everest Insurance as partners.

    Its surprising, but a lot of carriers dont have that kind of analysis done on their portfolios, said Cheatham.

    We call it emerging risk analysis, where you can look at all the insurance policies in a portfolio, find out which ones fall into which buckets and then triage around those.

    Another company born out of Insurtech is Bold Penguin, a commercial insurance exchange that uses artificial intelligence and natural language processing to match small businesses with insurance companies.

    Our process makes it 300% faster. It gets done without calling around and guesswork, said Amber Wuollet, director of marketing at Bold Penguin. We dont pass along any risk that doesnt meet an insurance companys underwriting criteria.

    Wuollet said coronavirus fears quadrupled inquiries for business interruption coverage on Bold Penguin since February 9.

    We have had many owners and risk managers calling in specifically mentioning business interruption coverage, said Wuollet.

    With so many slight differences in language from policy to policy, Bold Penguin helps small businesses easily find the coverages or bundles of coverage that fit their businesses and unique needs.

    Corvus Insurance uses machine learning and AI to make cyber coverage around business interruption more accurate. Corvus analyzes a companys web hosting, ISP providers, email providers and software to learn about its cyber security posture.

    There is tons of information about individuals online. That same idea applies to companies, said Brian Alva, vice president of cyber underwriting at Corvus.

    Were able to look at all their public-facing infrastructure to see what security they have then we map that to see which providers have above average or below average histories of client breaches. We can scan the dark web to see if employee credentials are for sale. These things can show evidence of a past breach or prevent a future breach.

    An advantage of using tech like Corvus is not having to rely on error-prone questionnaires filled out by clients who unknowingly submit incorrect or out-of-date information.

    Chris Cheatham, CEO, RiskGenius

    We can get more up-to-date information automatically without relying on clients to answer applications. That gives us a lot more insight into what were doing on the underwriting side, Alva said.

    The cyber risks that Corvus and others are working to stop have broadened in recent years.

    Historically, cyber issues meant a health care organization losing records or retail companies suffering a breach of credit card information. But cyber is now a major business interruption risk due to dangerous ransomware and malware attacks.

    Ransomware attacks have extracted an average of $2,300 per victim in 2019, up from $210 four years prior. One called Samsam infected more than 200 U.S.-based victims and collected $6 million and counted local governments as victims.

    Before any attack occurs and stops business in its tracks, Corvus analyzes a companys email security protocols to recommend things like email filters and other security measures.

    From an underwriting standpoint, calculating a business interruption claim from the actual costs incurred is still difficult but we can look at things that make someone more or less likely to suffer a claim and tailor underwriting that way, said Alva.

    With the economy suffering in the wake of the coronavirus, expect Insurtech innovation to suffer in the short-term.

    Startup funding is expected to dry up and companies could struggle to keep internal innovation teams afloat. Still, business interruption is so top-of-mind that innovation from Insurtech is all but inevitable.

    Another wave is coming. Call it wave two of Insurtech, said Cheatham. Thats going to be great, because youre going to see a lot of ideas that are more tangible and salient start to take hold.

    What will wave two look like? Expect more specialization and modeling for specific business interruption events. Data will continue to be accessible and abundant helping to further refine what constitutes business interruption and the damages associated with it.

    And expect the data to be disseminated in ways that are easy to understand, like cellphone apps or interactive dashboards.

    All these new data points available to people will be extremely helpful in modeling out scenarios for business interruption that we just never thought of before, said Cheatham.

    I think youre going to see a lot of specialization around that.

    With the coronavirus proving that business interruption coverage is hardly a given, many could look to insurtech to make sure the data and risks are disseminated accurately, so businesses are better prepared next time around.

    As that demand grows, youll see new forms of companies particularly Insurtech companies coming to market to help meet those needs, said Alva.

    This pandemic has brought business interruption to the forefront. As an industry were going to view the demand there to see what solutions we can come up with. &

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    COVID-19 Is Threatening the Ability of Insurtech to Combat Business Interruption - Workers Comp Forum

    141 Willoughby Street Cleared and Ready for Excavation in Downtown Brooklyn – New York YIMBY - April 6, 2020 by admin

    By: Michael Young 7:30 am on April 4, 2020

    YIMBY checked in on141 Willoughby Streetin Downtown Brooklyn, the site of a forthcoming 23-story office building. Demolition has concluded and the land sits awaiting excavation for the360-foot-tall structure, which is being designed by Fogarty Finger Architectswith SLCE Architectsas the architect of record. Gregory Jaffe ofSavannais listed as the owner on the applications that were filed in June 2019.

    Photos show the state of the trapezoidal plot, which is bound by Willoughby Street, Gold Street, and the southbound lanes of Flatbush Avenue. The site was formerly occupied by a three-story low-rise building that housed the Institute of Design and Construction.

    141 Willoughby Street. Photo by Michael Young

    141 Willoughby Street. Photo by Michael Young

    141 Willoughby Street. Photo by Michael Young

    The proposed development will span 363,336 square feet, with 310,077 square feet designated for offices. The steel superstructure will include retail space on the cellar and ground floors. No official renderings for the upcoming office edifice have been seen, but the property will certainly be conspicuous when exiting the Manhattan Bridge and entering the heart of Downtown Brooklyn. Though far short of the skyscraper status boasted by nearby developments like Brooklyn Point, 141 Willoughby Street would nevertheless bring a wealth of new office space to the expanding neighborhood.

    The site is one block away from the DeKalb Avenue subway station, serviced by the B, Q, and R trains. The 2 and 3 trains at the Hoyt Street station are also nearby to the south on Fulton Street.

    A start and completion date for 141 Willoughby Street has not been announced.

    Subscribeto YIMBYs daily e-mailFollowthe YIMBYgram for real-time photo updatesLikeYIMBY on FacebookFollowYIMBYs Twitter for the latest in YIMBYnews


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    141 Willoughby Street Cleared and Ready for Excavation in Downtown Brooklyn - New York YIMBY

    Innovo Property, Square Mile Capital Receive $305M Construction Financing for Industrial Facility in the Bronx – REBusinessOnline - April 6, 2020 by admin

    Construction is underway for a distribution facility at 2505 Bruckner Blvd., with completion slated for first-quarter 2022. The property is situated nine miles from LaGuardia Airport, 15 miles north of John F. Kennedy International Airport and at the intersections of Interstates 95, 278 and 295.

    NEW YORK CITY Innovo Property Group (IPG) and equity partner Square Mile Capital Management LLC have received $305 million in financing for the development of a 1 million-square-foot, two-story industrial facility in New York Citys Bronx borough.The joint venture acquired the land in 2017. Construction is underway with completion slated for first-quarter 2022.

    The last-mile distribution property is situated on 20 acres at 2505 Bruckner Blvd., nine miles from LaGuardia Airport, 15 miles north of John F. Kennedy International Airport and at the intersection of Interstates 95, 278 and 295. Additionally, the facility is located within 30 miles of 9.4 million people.

    The facility will feature 133 exterior parking spaces for trailers and box trucks as well as 664 interior parking spaces for cars and sprinter vans. The building will offer direct loading on the first and second floors, each with a 130-foot truck court. The first floor will feature 32-foot clear heights, 40-foot-by-40-foot column spacing and cross-docked loading with 74 dock doors and two drive-in doors. The second floor will be accessible to 53-foot tractor-trailers via two double-wide ramps and will feature 28-foot clear heights, 80-foot-by-80-foot column spacing, 37 loading dock doors and two drive-in doors.

    As in many U.S. metro areas, New York Citys need for well-located, last-mile distribution facilities has been underserved, says Square Mile Capital CEO Craig Solomon. The current pandemic has certainly exacerbated that need for sufficient supply-chain infrastructure as demand for secure deliveries is threatening to far outstrip our warehouse space supply. This is not just a momentary spike in demand; it will continue to grow. Accordingly, we have established a focused last-mile property investment strategy and will continue to seek more opportunities.

    Bank OZK and Denver-based EverWest Real Estate Investors provided the $305 million construction loan to the developers. Adam Spies, Adam Doneger, Steve Kohn and Alex Hernandez of Cushman & Wakefield arranged the financing on behalf of the borrowers. JLL will handle leasing efforts of the property, targeting a variety of users including e-commerce, third-party logistics and omnichannel retail companies.

    New York City-based IPG is a privately held real estate investment and operating platform focused on acquiring and managing assets in and around New York City. Andrew Chung founded IPG in 2015, and the company is backed by Nan Fung Group, a Hong Kong-based global conglomerate with core businesses in property development and investment.

    Square Mile Capital, also based in New York City, is a privately held, integrated institutional real estate and investment management firm that supplies flexible equity and debt capital solutions.

    Alex Tostado

    Excerpt from:
    Innovo Property, Square Mile Capital Receive $305M Construction Financing for Industrial Facility in the Bronx - REBusinessOnline

    Realty braces for the worst amid cash flow pressures – Livemint - April 6, 2020 by admin

    BENGALURU :The three-week lockdown to contain the covid-19 pandemic has deeply impacted Indias real estate sector, which was already reeling from a liquidity crunch and weak residential sales.

    The impact on discretionary spending may disrupt the retail mall business for a long time, while a sharp drop in home sales will heighten liquidity and cash flow pressures for developers. Affordable housing, which has held up in the five-year-long slowdown, may also get hit by the ongoing crisis.

    However, the commercial office business, which has been an outlier of sorts, may face limited impact though this may be determined by how the information technology (IT) sector, one of the largest occupiers of office space, performs in the near future.

    Residential sales are down by 70-80% because of the lockdown and distancing, and there is a postponing of decisions by buyers that may take some time to return to normal. However, housing is a necessity and we hope that those who need homes will buy at some point. The situation is critical and the impact on the sector would depend on how the government handles the situation and the incentives it gives," said Niranjan Hiranandani, co-founder and managing director, Hiranandani Group.

    Shopping malls would see a 10-12% year-on-year erosion of rental income, given the temporary closure of malls and the risk of reduced footfall and discretionary consumption spends in 2020-21, a 27 March note by India Ratings and Research said. Cash flow gaps could widen in the residential sector, with limited sales in the coming months and debt servicing could be a challenge, especially for non-Grade 1 developers, it said.

    The situation has added to the liquidity and cash flow crunch in the sector, said Gautam Chatterjee, chairman, Maharashtra Real Estate Regulatory Authority (RERA).

    There is a lot of uncertainty now on how long this crisis will last and what happens after that. How long will construction remain stalled? When will migrant labourers return because it is a labour-intensive sector? Lack of money had stopped construction work in many cases and with this crisis now, its important that the construction cycle resumes soon," Chatterjee said.

    On Thursday, Maha-Rera extended the completion deadline of registered projects by three months. However, Hiranandani said the impact could last longer and a one-year moratorium would be better.

    Given the impending economic slowdown and job losses, if housing finance companies and banks were to tighten their home loan disbursements criteria, sales or collections could see further pressure especially in the affordable segment, the India Ratings report said.

    Bengaluru-based Brigade Groups residential sales were good until the lockdown, said its chief financial officer, Atul Goyal. However, once the lockdown kicked in, customer bookings stalled, though Brigade is now taking bookings online. Payments are still coming but the run rate is down. A lot will also depend on job and salary cuts and how the IT sector performs. It helps that Brigade has a diversified real estate portfolio because those only into residential or retail projects may face challenges. Well-capitalised developers will survive, but many others may go for loan deferments," Goyal said. Brigade has already made interest repayments for March, he said.

    Embassy Group chairman Jitu Virwani said fund-raising may be a problem if this continues, but so far, there has been no significant impact on the office leasing business.

    The liquidity crisis has been a concern for over a year, with non-banking lenders staying away. The epidemic couldnt have come at a worse time, when the residential sector was expected to slowly recover over the coming months.

    Originally posted here:
    Realty braces for the worst amid cash flow pressures - Livemint

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