Earnings season brings challenges; Nightingale faces foreclosure ... and more

The best national real estate stories from The Real Deal. Jul 29, 2023 [Share]( | [View in Browser]( | [$1 for 1 Month](     In today’s newsletter, we look at the good and the bad of this earnings season. Plus, [Tides’ biggest investor starts pointing fingers](, [Nightingale faces another foreclosure](, and former WeWork CEO [Adam Neumann defaults on an office tower](. These and more stories below.   [Earnings season brings more challenges than successes across the industry]( Earnings calls are notorious for their positive spin, as CFOs do their best to put lipstick on a pig. But the numbers don’t lie, and many of the numbers were bad this time around. Take New York Community Bank. The company’s CEO was positive during the report, saying, “We’re not seeing any late pays; we’re not seeing any delinquencies on multifamily.” The [truth is not quite so positive.]( The lender’s non-performing debt jumped 154 percent to $33 million in the second quarter, meaning a growing share of its multifamily loans are 90 or more days past due. Investors like Blackstone and SL Green also expressed optimism despite troubling circumstances. SL Green, NYC’s biggest office landlord, saw [occupancy fall below 90 percent](. “We expect that to be a low point,” said the company’s chair. “We expect to gain occupancy regardless of which way the market goes.” Blackstone earnings were [down 40 percent thanks to a stalled commercial sales market](. But there are better times ahead as markets heal, CFO Michael Chae said. At Goldman Sachs, there seemed to be a little [less optimism about real estate assets](. The investment giant lost $1.15 billion in the second quarter, with real estate bearing much of the blame. The bank shared plans to shift away from real estate by exiting roughly half of its alternative commercial investments. Even homebuilding, a sector that has rallied for much of the year, [saw disappointing results](. But it wasn’t all bad news. Anywhere Real Estate [marked a positive turn](, posting a net income of $19 million after losing $138 million in the first quarter. CoStar Group also [had reason to celebrate](, as the firm’s residential platforms Homes.com and Apartments.com saw a spike in activity in the second quarter. The firm claimed to be the second-most visited residential platform after its largest rival, Zillow. As the economy continues to show mixed results, the real estate industry will continue to do the same. Even as it does, you can almost always count on earnings calls for a good dose of optimism.     [I'm an image]( [Tides’ largest backer warns investors, faults syndicator for diverting funds]( AMC Investments, the biggest backer of Tides Equities, has sounded the alarm on the syndicator’s financial situation. AMC blamed Tides for mismanaging funds, which could force investors to pour more capital into the struggling syndicator. [I'm an image]( [Nightingale faces foreclosure on Wall Street]( Things are going from bad to worse for Nightingale. The firm, already facing multiple foreclosures and accusations of misappropriating funds from CrowdStreet, is also facing foreclosure at its marquee asset: 111 Wall Street. [I'm an image]( [Adam Neumann defaults on San Jose office building loan]( Adam Neumann may not be running a co-working startup anymore, but he is still in the business. The former WeWork CEO recently defaulted on a $31 million loan tied to a San Jose office building, which includes 61,000 square feet of co-working space (and another 70,000 of traditional office).   Advertisement   [I'm an image]( [Brand Studio Redefining the Built World: Suffolk’s Bold Approach to Adding Value and Boosting Productivity]( [I'm an image]( [Banc of California to buy PacWest]( In a move that could bolster West Coast real estate lending, Banc of California will buy Pacific West Bank. The move comes at a critical time for PacWest — the firm’s stock is down over 70 percent for the year, and it’s been offloading billions in mortgage debt. [I'm an image]( [Joy Jordan’s $13M West Loop development site deal killed, seller sues]( Joy Jordan was an office broker for Sterling Bay. But she took a shot at the big time by purchasing a $13 million West Loop dev site and planning a $100 million office tower. The problem? The site purchase didn’t close, and the would-be seller is suing Jordan in response. [I'm an image]( [Nick Saban revealed as buyer of Jupiter Island home]( A prized waterfront home on Jupiter Island (near Palm Beach) sold to a mystery buyer in May for $17.5 million. The Real Deal found the buyer, and it’s one of college football’s greatest-ever coaches. [I'm an image]( [Brand Studio Developers tackle growing wave of office-to-apartment conversions]( [I'm an image]( [Current’s Charnas eyed in SEC probe]( Instagram-savvy broker Brandon Charnas of Current Real Estate Advisors is facing an SEC investigation for potential insider trading violations tied to his sale of Office Depot stock at the start of the year. [I'm an image]( [Austin looking like YIMBY City]( Although Texas is often known for its developer-friendly environment, Austin has stood out with some of the state's strictest zoning regulations. However, as the city grapples with a housing crisis, the city has shifted away from some of its NIMBY traditions.   [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](