Rent control at the Supreme Court, Compass loses $150M ... and other top stories from the week

The best national real estate stories from The Real Deal. May 13, 2023 [View in Browser]( | [$1 for 1 Month](     In today’s newsletter, we look at a challenge to rent control laws that has been [filed with the U.S. Supreme Court](. The challenge began in New York, but it could have national implications. Plus, an [earnings season update](, a real estate [mogul claims he’s penniless](, and a luxury fashion brand is [dragged into a lawsuit over a lease](. These and more stories below.   [Landlords take rent law challenge to Supreme Court]( Rent control as we know it could be coming to an end. At least, that’s what a group of New York landlords and affiliated trade organizations are hoping for as they take their rent stabilization challenge to the nation’s highest court. The group — which includes the Rent Stabilization Association, the Community Housing Improvement Program and a few individual landlords — first challenged [New York State’s rent reforms]( in 2019. The complaint is simple: the landlords claim that rent controls amount to the government taking their private property — in this case, the income on the properties. Their protest is timely. This month, New York’s Rent Guidelines Board proposed a 2- to 5-percent increase on one-year leases and 4 to 7 percent for two-year agreements. Landlords say that’s not enough, and the state’s rent laws make it difficult for them to raise rents on regulated apartments. The challenge has failed at every level, but the coalition hopes the [Supreme Court will flip the script]( and declare New York’s rent control law unconstitutional. The battle could have national implications. A Supreme Court ruling would up the ante, potentially altering the viability of rent control throughout the country. There’s still a long road ahead for the landlords. First, the justices must agree to hear the case, and they’ve been known to refuse similar cases in the past. Even if they do agree to hear the case, there is no guarantee that the law would be found unconstitutional. Still, the battle could come down to the beliefs of a conservative majority who have historically shown more resistance to such laws. Tenant advocates appear confident, but the matter is far from settled.   Together with Opendoor Sell your client’s home fast Close the sale with a simple solution for happy clients and a seamless experience. [Get started](   [I'm an image]( [Compass loses $150M, beats expectations]( Usually losing $150 million in a quarter is a bad thing. But in Compass’ case, executives sold the number as a sign of better things to come. Wall Street seemed to agree, and the [stock shot up 35 percent]( on Wednesday. Plus, [WeWork](, [Zillow](, and [Anywhere]( reported earnings this week. [I'm an image]( [First Republic’s cut-rate mortgage program likely dead]( First Republic was known for offering cut-rate mortgages to homebuyers. No longer. JPMorgan Chase, which recently took over the collapsed bank, is likely to end that program. [I'm an image]( [Nir Meir: I’m penniless]( Nir Meir’s creditors got hung out to dry when his company, condo developer HFZ, failed. Those creditors say Meir is living the high life, complete with yachts, private jets, fine wines, and a $135,000-per-month home rental. But, the former head of the developer HFZ claims he’s penniless.   Advertisement   [I'm an image]( [Brand Studio 2023 State of the Real Estate Market (East Coast Edition)]( [I'm an image]( [David Martin’s $1.2B downtown Miami buy could rally the market]( This year looked like it would be a quiet one for investors and developers in South Florida. Then, a group of investors — led by Terra’s David Martin — bought a Miami dev site for $1.2 billion. The deal could set the region’s market on fire. [I'm an image]( [Luxury home sales in LA plummet after ULA tax start date]( Los Angeles’s transfer tax came into effect in April, and we can already see the impact. There were only two sales of homes over $5 million last month, down from 109 in March. But that number doesn’t tell the whole story. [I'm an image]( [Vornado warning: REIT slipping toward debt breach]( Goldman Sachs has warned that Vornado Realty Trust may be at risk of defaulting on $2.6 billion in loans due to increasing interest costs and expenses. As Vornado chairman Steve Roth put it last month, the firm is in “the eye of the economic storm.” [I'm an image]( [Brand Studio Stefan Soloviev of Soloviev Group: A Q&A Session]( Fred Latsko thought he hit the jackpot when he signed popular Parisian leather goods brand Goyard to a 10-year retail lease for his Gold Coast property. Now, the Chicago landlord is suing the bagmaker, putting the lease in jeopardy. [I'm an image]( [Latsko sues Goyard in Oak Street dispute]( An iconic Bay Area hotel is changing hands. Ohana Realty purchased the Claremont Hotel & Spa this week for an undisclosed price. The 108-year-old lodge was purchased for $86 million in 2014 and was appraised at $183 million last year.   [Facebook]( [Twitter]( [Instagram]( [LinkedIn]( [YouTube]( [Manage Newsletters]( | [Unsubscribe]( | [Privacy Policy]( | [Subscribe]( | [Advertise]( The Real Deal 450 West 31st Street, New York, NY 10001 ©2023 TheRealDeal. All rights reserved. [View Online](