Why NAR and Compass settled; What a Manhattan neighborhood foretells about the future of offices ... and more

The best national real estate stories from The Real Deal. Mar 23, 2024 [View in Browser]( | [$1 for 1 Month]( [The Real Deal Logo](   [The National Logo](   In today’s newsletter, we look at [why NAR settled the commission lawsuits](, and why Compass was [so fast to follow suit](. Plus, a Manhattan neighborhood provides an [insight into the city’s office market](, billionaires [flock to Miami’s luxury penthouses]( and Rialto is accused of [forcing a borrower into default](. These stories and more below.   [Here’s why NAR settled the commission lawsuits]( ... [AND why Compass did, too]( [( Once upon a time, the National Association of Realtors’ was steadfast in its commitment to fight commission suits to the bitter end. But, the organization settled for the most paramount of reasons: money. Under the terms of the proposed settlement (which still needs the judge’s approval), NAR agreed to pay $418 million over four years, along with changes to commission-sharing rules at the center of the litigation. But, in settling the dispute, the trade group could have saved themselves billions. Had NAR appealed the decision, they would have been forced to post bond for their portion of the $5.4 billion in damages. How large was that portion? It’s impossible to know, as the figure would have been up to the judge’s discretion. But it certainly could have been greater than NAR could afford, even if it won the appeal. Had it lost, the damage could have been fatal. Just a week after NAR’s settlement, [Compass cut a deal of their own](. The company agreed to pay $57.5 million and to make similar changes to its commission rules. Like NAR, Compass could have easily been on the hook for a lot more. NAR’s settlement released all associated brokerages with less than $2 billion in transaction volume. But Compass sits above that threshold. The firm could have bought in to the trade group’s deal, but it may have had to pay up to $500 million in damages if it did. Not all of the residential industry’s recent shake ups have come via the courts, though. Several firms have [shaken up their c-suites]( in recent weeks. Keller Williams, Anywhere Real Estate, and RE/MAX all made leadership changes amidst lackluster earnings and ongoing uncertainty over broker commission litigation.   Together with Masterworks Elton John’s $1.9 million Banksy sale reveals unexpected investment opportunity [Masterworks]( Just last month, an iconic Banksy painting from the collection of Sir Elton John, shattered expectations when it sold for a whopping $1.9 million at auction. But there’s a surprising group of investors also celebrating this sale: 61,000 everyday users of [one investment platform.]( Why? Because that platform, called Masterworks, enables anyone to invest in shares of blue-chip paintings by artists like Banksy, Basquiat, and Picasso. This way, not only the music moguls and billionaires of the world can benefit from the art market. In fact, [each of Masterworks’ 21 exits have delivered a profit](, with Masterworks investors realizing returns of 13.9%, 14.6%, and 17.8% and more. Best of all, as a special partner, The National readers can [skip the waitlist to join here.]( Past performance is not indicative of future returns. Investing involves risk. See Important disclosures at [www.masterworks.com/cd](   [I'm an image]( [What a Manhattan neighborhood foretells about the future of offices]( Office owners on Manhattan’s Third Avenue are dealing with low occupancy in a handful of different ways. As the strategies play out, the corridor has become a microcosm of New York’s office landscape. [I'm an image]( [What’s driving billionaire buyers to Miami’s most expensive penthouses]( As a mystery buyer prepares to pay $120 million for a Miami Beach penthouse, South Florida has staked a claim as the go-to destination for the world's billionaires, who prize the city’s penthouses for privacy and exclusivity. [I'm an image]( [“Wanton dishonesty”: Rialto, FDIC accused of botching Signature loan extension]( A Staten Island retail landlord is suing special servicer Rialto and the FDIC, alleging that the pair intentionally drove him to default after they took over Signature Bank’s loan book. Meanwhile, across the country, Rialto was also in the news this week after it [lost a San Mateo office building](.   Advertisement   [I'm an image]( [Sponsored Luxury Closet Design and Inspiration from California Closets]( [I'm an image]( [Chicago says no to new transfer tax — real estate reacts]( A transfer tax hike proposed by Chicago Mayor Brandon Johnson [looks set to fail]( after the first few days of counting votes. While the tally is not complete, real estate players in the Windy City are celebrating the implications of their possible victory. [I'm an image]( [Rent-stabilized portfolio in contract for $180M — a 40% discountÂ]( Another portfolio of rent-stabilized properties in New York City sold at a massive discount this week, when Sentinel Real Estate offloaded 1,300 apartments for $180 million [I'm an image]( [Malibu mansion sells for $38.5M in priciest LA deal this year]( An estate on Malibu’s Pacific Coast Highway has just set a new high-water mark for L.A. County this year. The $38.5 million property was once home to the co-creator of the TV show “Friends.” [I'm an image]( [Patrick Carroll under police-mandated mental health evaluation]( South Florida-based developer Patrick Carroll was taken in by police for a mandatory mental health assessment after neighbors called 911 on him for firing a gun in his backyard. Carroll will also be required to turn in all of his firearms to authorities. [I'm an image]( [Another Texas multifamily syndicator faces foreclosure]( A multifamily syndicator is set to lose a pair of Fort Worth-area properties. The foreclosures are the latest instance of the distress that has come to dominate Texas multifamily.     [The Real Deal Logo]( [Facebook]( [Twitter]( [Instagram]( [LinkedIn]( [YouTube]( [Manage Newsletters]( | [Unsubscribe]( | [Privacy Policy]( | [Subscribe]( | [Advertise]( The Real Deal 450 West 31st Street, New York, NY 10001 ©2024 TheRealDeal. All rights reserved. [View Online](