WeWork’s potential implosion; Who is Nightingale’s Elie Schwartz ... and more

The best national real estate stories from The Real Deal. Aug 12, 2023 [View in Browser]( | [$1 for 1 Month](     In today’s newsletter, we look at the potential [impact of a WeWork bankruptcy](. Plus, an investigation into the [man behind the Nightingale/CrowdStreet fiasco](, [Soloviev nears a milestone]( in Midtown, and a [“Million Dollar Listing” star spars]( with another resi power broker. These and more stories below.   [WeWork's looming Implosion: A reality check for real estate]( WeWork's tumultuous journey has taken yet another dire turn, with the company [expressing "substantial doubt" about its survival](. The firm’s latest financial filings point to losses and negative cash flow, fueled in part by the ebbing demand for office space. But negative cash flow was par for the course throughout its existence. Co-founder Adam Neumann hailed WeWork as a "tech company," and the firm raised and burned money like a Silicon Valley startup. Now, that burn rate is likely to prove fatal, with the firm approaching Chapter 11 or Chapter 7 bankruptcy. Employees, shareholders and early investors like SoftBank are clear losers. But WeWork's downfall will hurt others in the industry. Many of WeWork's lease agreements are tied to older buildings, the type that bore the brunt of the pain as office tenants flock to newer spaces. The challenge of replacing a tenant of WeWork's magnitude could be impossible for some landlords to overcome. Landlords are facing the tough decision of either forcing WeWork into liquidation or navigating treacherous bankruptcy negotiations to maintain some semblance of solvency. Time will tell how far the damage will go.   Together with Opendoor Benefit from smooth, straightforward offers Give your clients a seamless experience with our simple solutions. [Get started](   [I'm an image]( [Spotlight on: Elie Schwartz, dealmaker at heart of missing-millions scandal]( In July, a fiduciary announced that Nightingale and its principal Elie Schwartz had misappropriated tens of millions of dollars raised through CrowdStreet. The crowdfunding company’s CEO stepped down. But Schwartz has remained quiet about his role in the fiasco. [I'm an image]( [Soloviev nears full occupancy at 9 West]( It’s a bad time to be bullish on office, but don’t tell Stefan Soloviev. The real estate mogul and heir predicted in May that his office at 9 West 57th would approach full occupancy this year. It seems the Midtown tower could hit that mark ahead of schedule. [I'm an image]( [Top agents trade jabs over $23.5M Orange County mansion sale]( “Million Dollar Listing” star Josh Altman sparred with Paul Daftarian, another prominent Southern California resi broker, over who deserved more credit for a $24 million sale in Orange County. The two also argued over key qualities for high-end brokerages.   Advertisement   [I'm an image]( [Brand Studio Unveiling the Appliance Hub: Bosch, Thermador, and Gaggenau]( [I'm an image]( [Individual lenders pull CA Ventures into string of lawsuits as firm seeks liquidity]( CA Ventures is being sued after the Chicago firm failed to pay back a $10 million loan from two investors. The lawsuit has raised all sorts of questions about CA Ventures, which claims to have $15 billion in assets. [I'm an image]( [The rent may finally be too damn high]( New York broke rent records across boroughs in July, with rents hitting $4,400 in Manhattan, $3,950 in Brooklyn, and $3,641 in Queens. With those gut-wrenching numbers came weakening demand, and thus the prospect of slowing rent growth. [I'm an image]( [Houston hits decade-high multifamily deliveries]( Houston’s multifamily market has made headlines for the wrong reason this year, with syndicator Applesway losing four properties to foreclosure. But the market has proved resilient: multifamily deliveries hit a 10-year peak, with 52,600 units added to the city in the first half of the year. [I'm an image]( [Sponsored New Bath + Racquet Sarasota Residences: An Icon of Design, Leisure & Sport]( [I'm an image]( [Party’s over? South Florida apartment occupancy drops, concessions rise]( South Florida's multifamily market is facing a potential downturn, with occupancy dipping across markets. Landlords did their part to fight back, yielding to concessions like free rent. The cooldown stands in stark contrast to the market of the past few years, when an influx of residents bolstered the state’s housing industry. [I'm an image]( [Starwood set to launch distress investment fund]( Last week, Starwood’s Barry Sternlicht said his firm was “foaming at the mouth” to deploy capital. Now, the firm has hinted at how it might do that by kicking off talks of launching a distress fund.   SUBSCRIPTION SUMMER SALE [CLAIM OFFER](   [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](