We thought we felt well rested after a couple of days off for Thanksgiving. ⦠[But noooo](. Obit writers nationwide were working fast and furious all week starting with the [death of investment legend Charlie Munger](. This was followed a day later by the [death of Henry Kissinger](. And, finally on Friday, came [the death of Sandra Day OâConnor](, the first woman on the Supreme Court. And thatâs just the obits. Weâre not even mentioning news like the [expiration of the truce]( in Gaza, or the expulsion of [George Santos](, ersatz Baruch College [volleyball standout](, from the House of Representatives. We heard about Munger at Commercial Observerâs [opportunistic investment forum]( at 22 Vanderbilt last Tuesday. At this forum some of the best brains in the business opined about where and how to deploy capital in the coming months, as the dry powder that has been sitting on the sidelines is starting to make everybodyâs fingers itchy. Indeed, while thereâs reason to believe that the [bottom has not yet been reached](, there are some deals that are already taking form. âI actually think the reason why deals are happening where people donât see them is because there are off-market opportunities,â said Shlomo Chopp of Terra Strategies. âIf youâre a borrower with a lender, you can transact off-market without the lender coming to market.â (Chopp has more to say [here](.) In a conversation with JLLâs Bob Knakal, Scott Rechler said that, as prices have declined, his RXR has quietly been taking equity positions in a number of buildings around the city. And he was philosophical about the hand-wringing over values and interest rates. âEveryone who had been borrowing and buying over the last 15 to 20 years now needs to reset the value of their real estate, reset their capital structure, and thatâs a painful process,â Rechler said over cocktails at the programâs closing keynote. Rechlerâs not alone in terms of well-capitalized firms taking a stake in projects or companies. Invesco Real Estate announced that it was [acquiring a stake]( in the industrial firm Faropointâs platform. (Just how much of a stake was not revealed but itâs a minority interest.) And [Global Holdings is joining MAG Partners and Safanad]( in capitalizing their new 194-unit, mixed-use luxury development at 300 East 50th Street in Turtle Bay. And Norges Bank Investment Management [purchased a 45 percent interest]( in two of Boston Propertiesâ life sciences developments in Kendall Square in Cambridge, Mass., which valued the properties at about $1.66 billion. We understand why those life sciences properties were attractive. Itâs an industry that still requires physical space and the tenants are usually decently capitalized. Yes, a scientifically inclined tenant is a godsend. For instance, last week Weill Cornell signed one of the biggest New York leases of 2023 when it [scooped up 200,000 square feet]( at the Breuer Building at 945 Madison Avenue, once home to Sothebyâs. (We would be remiss if we didnât say there were other good leases, too: SoundCloud[subleased 23,000 square feet]( at 2 Gansevoort Street; Hawthorne Country Day School [took 35,000 square feet](at the Woolworth Building; and Current, the mobile banking app, [took 71,692 square feet]( at 620 Avenue of the Americas.) Trouble in the city? Mayor Eric Adams did not have a great week. He had to [distance himself]( from his (now former) top fundraiser Brianna Suggs weeks after the FBI raided her home; just before Thanksgiving the mayor was [accused of sexually assaulting]( an unnamed complainant back in 1993; and this all comes after the mayorâs phone was seized and questions were raised about his top donor. Itâs gotten so bad that apparently even Andrew Cuomo is toying with [running against him](. We canât speak to Mayor Adamsâs next election (and he has not been accused of any wrongdoing and denies the assault allegation), but if he were somehow forced to resign real estate should think about [a post-Adams New York](. For one thing, the guy who would step into the role of acting mayor is not someone we would call a friend of real estate: Jumaane Williams. But we might be getting a little ahead of ourselves. Life in the city rolled on â that is, it rolled on for now. It might be way more expensive to roll on come next year thanks to the Traffic Mobility Review Board. On Nov. 30, the group submitted to the MTA its[recommendation on price congestion]( in which most drivers entering Manhattan below 60th Street would get charged $15 and trucks would be hit with $24 to $36 in charges depending on their size. And the mayor announced a [crackdown on illegal cannabis shops]( by targeting landlords. Owners could face fines anywhere from $1,000 to $5,000 for every day an illegal head shop is in operation on their property. One final piece of cruddy news for real estate folks: It looks like New York [Gov. Kathy Hochul backed down]( on mandatory housing targets in negotiations with state lawmakers. This was something that was going to add 800,000 units of housing over the next decade. âChange is hard and it takes a long time for large legislative changes in the state to get through the process,â RuthAnne Visnauskas â head of New York State Homes and Community Renewal (HCR) â [told CO in a Sit-Down]( last week. âThe governor understands itâs a marathon and not a sprint.â Try to relax Wise words, Ms. Visnauskas. Truthfully we should try to relax at, like, a spa. Or a clinic. Or something. And, if not us, then our pets should be at least allowed to unwind. And this is actually more possible than ever before because [pet clinics are on the rise](. A perfect thing to read while you forget about New York woes on this December Sunday. See you next week. [View in Browser]( | [Advertise]( | [Forward to a Friend](
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This newsletter was published 12/03/2023