The bombshell probe also found that minorities had to meet more stringent financial qualifications than white buyers. (Credit: iStock) A three-year undercover investigation by Newsday found 40 percent of Long Island brokers routinely discriminate against minority buyers. Black testers experienced unfair treatment 49 percent of the time, Latinos 39 percent and Asians 19 percent. Black buyers were on average shown the fewest of an agent’s listings in majority-white neighborhoods, Newsday found. The bombshell probe also found that minorities had to meet more stringent financial qualifications than white buyers. In seven cases, minority buyers without a pre-approved mortgage were blocked from home tours, but whites were not. A quarter of the brokers directed white buyers to listings in majority-white communities, while black and Latino buyers were steered toward more integrated communities. Brokers spoke with white buyers about the racial or ethnic makeup of certain communities, which is illegal according to fair housing laws. Newsday used paired-testing, a federally approved method for finding violations of fair housing laws. One white and one black, Asian or Latino tester would approach the same agent for help, providing similar financial details and identical preferences in home location and features. Testers approached some of the island’s biggest brokerages: Douglas Elliman, Century 21 Real Estate LLC, Charles Rutenberg Realty, Coldwell Banker Residential Brokerage on Long Island, Coach Realtors, Daniel Gale Sotheby’s International Realty, Laffey Fine Homes, Keller Williams Realty, the Corcoran Group, Signature Premier Properties, Realty Connect USA and RE/MAX LLC. No unfair treatment was exhibited by agents from the Corcoran Group or Daniel Gale Sotheby’s International Realty, according to the study.  — TRD Staff The post appeared first on .
More than 4,000 people are expected to receive notice in coming weeks (Credit: iStock) More than a third of WeWork’s 12,000 employees will likely receive notice this week that they no longer have a job. The layoffs are part of an effort by the struggling office-space company to cut costs, close ancillary businesses and narrow its offering to subletting office space. WeWork chairman Marcelo Claure (Credit: Getty Images) In a company email sent by chairman employees were told that layoffs will begin this week in the U.S., and that a planned all-hands meeting will be postponed from Tuesday to Friday, where Claure will present the company’s five-year plan. “In the areas of the business that do not directly support our core business goals, we have to make some necessary job eliminations,” Claure said in the email, which was seen by The Real Deal. “We are going to eliminate and scale back certain functions and responsibilities, which will increase efficiency and also accountability.” A person familiar with the matter told TRD that employees in the legal and human resources departments will begin receiving notice Monday. WeWork declined to comment. WeWork employees have waited weeks to hear notice of the layoffs, since the company abandoned plans for an IPO and had its valuation slashed from $47 billion to $8 billion. After CEO and co-founder left the company in October, SoftBank, its largest investor, committed to a $9.5 billion lifeline to bail out the company, and installed a Claure to implement a turnaround strategy. In sum, more than 4,000 people are expected to receive notice in the coming weeks, according to multiple people familiar with the matter. Those include 1,000 maintenance workers who have been informed that their employment will be terminated on Dec. 9, according to a group of employees. The group, WeWorkers Coalition, formed in recent weeks and sent a letter to management earlier this month stating that they “don’t want to be defined by the scandals, the corruption and the greed exhibited by the company’s leadership.” The group announced over the weekend that WeWork had reached an agreement with JLL to accept close to 1,000 maintenance and cleaning workers, many of whom would then be contracted to work in WeWork buildings. However, the group raised alarm at the terms of the deal, and said that employees were told by WeWork to sign the terms of the contract by Monday, otherwise it would consider their resignations voluntary. The group said on Twitter that the contract has confused employees with pay discrepancies, and demanded a deadline extension. In a separate tweet, the group added that WeWork “is not following through on its promise to treat employees with ‘dignity and respect’ during this restructuring process.” Many employees and shareholders with stock options are also waiting to hear when a $3 billion tender offer by SoftBank will be launched, after being delayed for almost two weeks. The post appeared first on .
The site for the Cloud Kitchens at 4131 N Rockwell Street and former Uber CEO Travis Kalanick (Credit: Google Maps and Getty Images) In Chicago, the cloud kitchen remains closed, at least for now. City officials have blocked a startup by Uber co-founder Travis Kalanick — the company builds commercial kitchens centered around delivery food service — from opening a space in North Center. Officials were concerned that a zoning change to the proposed construction of a 9,000-square-foot commercial kitchen at 4131 N. Rockwell St. could increase traffic congestion, according to Block Club. Kalanick’s venture, CloudKitchens, was pursuing status for the North Center construction. The designation provides city incentives to projects near transit hubs, decreasing the required number of parking spots the developer must build. Alderman Matt Martin said it “became clear that CloudKitchens’ business model would result in a significant increase in car traffic on Rockwell Avenue and in the surrounding residential streets,” according to the report. Kalanick he was investing $150 million into CloudKitchens’ parent company, City Storage Systems LLC. It supplies the equipment, delivery services and marketing services to companies. It is unclear whether CloudKitchens will move forward with the planned development.  — Jacqueline Flynn The post appeared first on .
The +Plus Homes house in Pilsen (Credit: Redfin, iStock) An environmentally-friendly townhouse just set a price record in . The house at 905 W. Cullerton Street sold for nearly $850,000 on Nov. 11, Crain’s reported. That’s a record for a single-family home in the neighborhood. Three years ago, Cill Dara Construction started delivering green homes as part of its +Plus Houses series. Without disclosing their contracted sales prices, the developer bet buyers would be willing to pay top dollar, including a premium of about $50,000 for the green features, in the gentrifying neighborhood. In the last three years, seven other +Plus Homes have sold, with prices rising after the first record-priced sale in the series: a three-bedroom on Newberry Avenue sold for almost $685,000 in October 2016. Cill Dara, a venture by Patrick Buckley, and Phil Buoscio of Better Living Realty, plans to end its +Plus Homes series at nine houses due to rising land costs that would drive up prices above the threshold of what it believes buyers are willing to pay. Since November 2016, home values have increased by nearly 10 percent in the Pilsen area, compared with 5 percent citywide, according to Zillow data. Other builders have had difficulty with developments in Pilsen, as residents have pushed back against the rising prices that could displace them. New York-based developer Property Markets Group recently for the third time for its controversial “ParkWorks” project on a 7.2-acre site at 18th and Peoria streets.  — Brianna Kelly The post appeared first on .
Close to 100 employees were given notice on Monday morning (Credit: iStock) Ten-X Commercial, an online real estate transaction platform, laid off half its workforce after efforts to sell the company fell through. Close to 100 employees in offices in Texas, New York and California were given notice on Monday morning during a call with executives, according to people on the call and those familiar with the matter. Thomas H. Lee Partners, the private equity firm that owns Ten-X Commercial, has been trying to sell the company since the start of the year. CoStar Group had been in talks for a potential acquisition until recently, according to former Ten-X employees. Thomas H. Lee Partners declined to comment. Ten-X and CoStar did not respond to multiple requests for comment. Ten-X says that more than $50 billion in real estate transactions have been conducted through its marketplace. It was founded in 2007 as Auction.com, a residential real estate deal platform. In 2016, it launched a separate platform known as Ten-X Commercial, which provided a marketplace for commercial properties. Along the way, it received investments from multiple firms, including Barry Sternlicht’s Starwood Capital, Stone Point and CapitalG. In 2017, Thomas H. Lee Partners a majority interest in Ten-X for close to . The private equity firm quickly set about separating the two products — Auction.com and Ten-X Commercial — into siloed companies. Shortly after, Ten-X Commercial of its staff in early 2018. Since the private equity firm began marketing Ten-X earlier this year, it attracted multiple suitors, including Newmark Knight Frank. Newmark declined to comment. The post appeared first on .
Uptown La Grange apartments at 31 E Ogden Ave and JVM Realty CEO James Madary (Credit: Realtor and JVM Realty) JVM Realty paid $89 million for a luxury apartment complex in La Grange, adding to its growing residential portfolio in the Chicago area. The Oak Brook developer acquired the 254-unit Uptown La Grange from Minneapolis-based Opus Group, which built the complex in 2017. The complex is located at 31 E. Ogden Ave. Along with the sale, JVM landed a $61 million construction loan from Axa Equitable Life Insurance, property records show. on the sale last month without the price or loan amount. Units range from $1,700 per month for a studio, to $4,000 a three bedroom, according to Zillow. This is the fifth luxury apartment complex JVM has invested in the Chicago area, according to recent reports. Those include Aventine in Oakhurst North in Aurora, Avant at the Arboretum Apartments in Lisle; the Enclave at 127 Apartments in Plainfield; and the Randall Highlands townhomes in North Aurora. The post appeared first on .
Pam MacPherson, Hayley Westhoff and Robert Reffkin Compass just snagged one of @properties’ top broker teams in the . Pam MacPherson, Hayley Westhoff and their team of eight agents started at the venture-backed real estate brokerage on Monday, Compass said. The MacPherson Westhoff Group have worked $225 million worth of transactions in the last six years, including $80 million in the past year, Compass said in a statement. Most of their deals are in the north side of the city, the Western suburbs and northern suburbs of Glenview, Golf, Evanston, Wilmette, Winnetka and Kenilworth. In August, the team sold the CA Hemphill residence in Evanston for $2.6 million, one of the biggest sales of the last few years in the city. MacPherson and Westhoff have carved out a niche in working with clients who wish to sell their homes and move to the suburbs. They have about $7 million in listings, according to their now-deleted @properties page, including a single-family home in Lincoln Park listed at $1.9 million, and a sprawling mansion in St. Charles with an asking price of $1.7 million. A representative with @properties did not immediately respond to a request for comment. MacPherson and Westhoff’s move to Compass represents the latest escalation between the two brokerages. Since its Chicago launch in late 2017, Compass has lured away a few of @properties’ top producers, including new development specialist Heather Gustafson. It’s also scooped up agents Cindi Sodolski, Jordan Euson and Rafael Murillo from @properties. Compass used a familiar playbook in its recruitment efforts in Chicago: offering stock options, bonuses and 100 percent-commission deals for the first year. Despite the money and buzz, @properties remains the undisputed leader in a $15 billion residential market. Still, the company hasn’t kept its thoughts about to itself. In early 2018, the firm put up a billboard near Compass’ Lakeview offices cautioning locals not to “ask for directions from a tourist.” In The Real Deal’s January rankings, @properties had $6.5 billion in Cook County sales across 2018. By contrast, handled over $1.4 billion in total sales, placing it sixth. The post appeared first on .
The New York State Attorney General’s office has launched an investigation into WeWork, Reuters reported. The embattled office-space company, which is soon set to of workers, confirmed to the news outlet that it had received a request from the state’s AG office, led by Letitia James. James’ office is reportedly looking into multiple transactions involving former CEO Adam Neumann that were scrutinized for potential self-dealing. One arrangement involved millions of dollars paid to Neumann by WeWork to lease buildings that he owned. Another transaction reportedly being examined is a $5.9 million payment to Neumann by the company to buy from him the trademark “We.” The inquiry follows a last week that stated the U.S. Securities and Exchange Commission had launched a separate probe into WeWork, and pointed to the same transactions as potentially being examined by the agency.  — David Jeans The post appeared first on .
Clockwise from top left: 1109 W Washington Blvd., 1851 N Halsted St., 3223 N Hoyne Ave, 401 N Wabash Ave. and 3453 N Seeley Ave. (Credit: Redfin) At the top of this week’s list of priciest residential sales is a newly-constructed penthouse that sold for $4.5 million on Wednesday. Condos were popular this week, claiming three of the top five spots. Check out the rest of the list below: Price and property details were found using Redfin This newly-constructed penthouse at Sulo Development’s the Hayden West Loop sold yesterday for $4.5 million. Eleven units at the boutique project have sold for over $2 million, including two penthouses at $4 million and up. This penthouse was originally listed in July 2017 for $2.2 million and then upped the price two days later to $3.9 million. The unit includes four beds, 4.5 baths and two fireplaces. It was listed by Timothy Sheahan and Marl Icuss with Compass. Stephanie Derderian with Berkshire Hathaway HomeServices KoenigRubloff repped the buyer. This 4,000-square-foot unit sold this week for $2.16 million. This home includes four bedrooms, 4.5 baths and a private elevator. It was built in 2017 and sold later that year for $2.3 million. It was listed with Jeff Lowe with Compass. Jordan Chalmers with Baird & Warner represented the buyer. This unit in Trump Tower sold yesterday for $1.7 million. With floor-to-ceiling windows, this home features sweeping views of the Chicago River and Lake Michigan. This view can be seen not only from the living and dining rooms, but also in the two bedrooms. The unit includes three bathrooms and two fireplaces. It was listed with Farzan Setayesh with Baird & Warner. Mike Larson with Gold Coast Realty Chicago represented the buyer. This brick-faced home has five bedrooms, 3.5 bathrooms and a rooftop terrace to look over the yard. The home sold this week for $1.42 million and was originally built in 2011. The 4,200-square-foot home was listed by Daniel and Jatherine O’Donoghue with Baird & Warner and bought with Jeff Lowe with Compass. This colonial-style, single-family home sold yesterday for just under $1.4 million yesterday. It features six bedrooms, five bathrooms and three fireplaces. The 4,000-square-foot home was built in 2016. It was listed for $1.5 million. It was listed with Timothy Brent with Chicago Apartment and Condo Inc. Nichole Veihman with @properties represented the buyer. The post appeared first on .
TRD is bringing some of the brightest minds in real estate to the Bahamas this winter. We’re excited to begin announcing some of the experts and innovators who will join us for our second annual Future City event. REBNY president Jim Whelan, JDS’ Michael Stern, Gil Dezer of Dezer Development, Young Woo, Anna Zarro and Rotem Rosen are just a few of the thought leaders who have already signed on. REBNY president Jim Whelan Future City is an exclusive three-day retreat that gives 200 C-level executives a chance to learn from and network with the biggest dealmakers in the country. From February 23rd to 25th, TRD will take over the Baha Mar resort to provide participants with a chance to gain high-level knowledge as well as practical, applicable strategies for today’s changing market. VC funding for Proptech hit record levels in 2019 as new technology helped real estate revolutionize. Our workshops and breakout sessions are tailored to the specific needs of our audience. We host cocktail events, group meals, and keynote speeches throughout. Plus, Future City’s luxury venue provides additional activities that will include golf, fitness, poker, backgammon, and more. JDS’ Michael Stern Last year’s sessions included workshops like “How to get on the venture capital train” and “Construction innovations changing the development landscape.” Attendees included Ken Fisher, John Catsimatidis, Sharif El-Gamal, Anthony Scaramucci, Meir Cohen, Don Peebles, Bruce Mosler, Chris Wein, Bently Zhao, Kobi Karp, Edgardo DeFortuna, Brad Metzler, Shaun Osher, Bess Freedman, Justin, Ehrlich, and many more. If you are VP level or higher, please email FutureCity@TheRealDeal.com for further details. Space is limited and subject to approval. The post appeared first on .