Hudson Yards redeems itself; Terra’s $1.2B deal dead ... and other top stories from the week

The best national real estate stories from The Real Deal. Jun 24, 2023 [View in Browser]( | [$1 for 1 Month](     In today’s newsletter, we look at [Hudson Yards’ redemption story](, as told by a former critic of the megaproject. Plus, a [record-setting deal falls apart](, an [enigmatic spec developer prepares to step away](, and one real estate executive claims to have found [America’s worst housing market](. These and more stories below.   [Lander candid on Hudson Yards: “I got it wrong”]( Few developments in New York history have drawn as much public ire as Hudson Yards. The $25 billion development wouldn’t have been possible without the Bloomberg administration's hefty public assistance, which included tax breaks and public investment in the surrounding area. That government financing scheme, valued by some at $6 billion, was heavily criticized, especially given the development’s reputation as a playground for billionaires. But now, some of its doubters have to admit defeat. “Hudson Yards is financing that debt and now returning, again, a couple hundred million dollars more to the city than we expected,” said Brad Lander, the current NYC comptroller and a former Hudson Yards critic. Lander was honest about his previous criticism of the Bloomberg administration’s financial backing: “They basically used the city’s credit card to finance Hudson Yards and put the city at risk,” he said. The move was likened to public (read: taxpayer) funding for multi-billion dollar football stadiums, which provide huge profits for their billionaire owners but limited benefit to the general public. The difference maker for Hudson Yards has been its Class A office space, Lander said. While many of the city’s offices sit vacant, with commercial landlords desperate for a way out and developers trying to make the math work on residential conversions, new trophy buildings are still doing well, the comptroller noted. Plus, much of the city’s financing funded a subway extension, a pedestrian bridge, and public parks, projects that typically fall under the government’s umbrella anyways. It won’t be the end of criticism for Hudson Yards and other megaprojects that rely on public funding. But it is a significant victory for the infamous development.     [I'm an image]( [Terra’s $1.2B purchase of Genting’s Miami assemblage called off]( Terra’s record-setting purchase of Genting Group’s highly coveted 15.5-acre assemblage in downtown Miami was supposed to jump-start the city’s sluggish development industry. Now, the deal is dead. But other developers are circling the site, which is still likely to sell for over $1 billion. [I'm an image]( [Building owners cough up cash to buy more time on mortgages]( At a time when refinancing is prohibitively expensive, some commercial investors are paying their lenders lump sums in exchange for extensions. It’s a desperate move, but one that makes sense as banks face a $1.5 trillion wall of maturities in the commercial sector. [I'm an image]( [Meet the enigmatic developer behind one of LA’s most inventive spec mansions]( Shahram Balakhani just finished building a $68 million Bel Air spec mansion, which has been touted as one of LA’s grandest properties. But it could be the last home he ever builds. After all, development is little more than a side hustle for Balakhani.   Advertisement   [I'm an image]( [Brand Studio Adapting to Change: How LightBox Helps CRE Firms Enter the Digital Age]( [I'm an image]( [Why S2 Capital CEO thinks Austin is the “worst housing market”]( The US housing market is chock full of issues. But Austin, Texas, may have the worst market of them all. So said Scott Everett, CEO of Dallas-based S2 Capital. His reason: it’s growing too fast. [I'm an image]( [Macklowe, CIM quarrel at Billionaires’ Row tower]( Developer Harry Macklowe is feuding with CIM Group over 432 Park Avenue, a Billionaires’ Row tower that the two built together. Macklowe says CIM owes him $110 million, while CIM is looking to foreclose on $45 million in loans to the developer. So far, the dispute has been full of spite and catty accusations. [I'm an image]( [Can Oakland make a comeback?]( Downtown Oakland was once a bustling city center. Now the area is a ghost town, with high office vacancy and low foot traffic. But some real estate professionals think it’s primed for a resurgence. [I'm an image]( [Brand Studio Why developers partner with Poggenpohl for elevated kitchens]( [I'm an image]( [Mother vs. Son: Lerner family fight intensifies in new lawsuit]( A few months ago, Michael Nathan Lerner settled a lawsuit brought by his father over a major land sale in Chicago. Now, Lerner is facing another lawsuit courtesy of his mother, who says her son failed to loop her into his deals. [I'm an image]( [Tom Brady scores $35M construction loan for Indian Creek mansion]( NFL great Tom Brady has big plans for his 2-acre waterfront lot in Indian Creek, Florida. The seven-time Super Bowl champ took out a $35 million construction loan from JP Morgan to build his new compound, which will include a security building, gym, cabana, pool, sport court, emergency generator and more.   [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](