RXR’s bets on Texas, while Rechler’s ship-to-hotel plan in deep trouble; NAR’s latest shakeup ... and more

The best national real estate stories from The Real Deal. Jan 20, 2024 [Share]( | [View in Browser]( | [$1 for 1 Month](     In today’s newsletter, we look at the latest from Scott Rechler’s RXR, including the firm’s [big bet on Dallas]( and a troubled [ship-to-hotel conversion]( that may be in trouble. Plus, the impact of [NAR’s frequent leadership turnover](, Gary Barnett’s [Extell sets a new sales record](, and lenders [hand out nine-figure construction loans]( in South Florida like [Oprah used to hand cars](. These and more stories below.   [RXR’s play for Texas starts in Dallas]( (Plus: [Rechler’s ship-to-hotel plan in deep trouble]() Last year, RXR’s Scott Rechler made headlines with Project Kodak, his plan to get rid of obsolete properties by handing them back to lenders. That’s given his firm the chance for a new area of focus: Dallas, Texas. Like many in the industry, RXR was drawn to the state’s favorable demographics. Even as cities like Austin have seen rent growth slow over the last year, Dallas has seen a continued influx of residents. RXR’s expansion into the state began with its purchase of a historic building in Dallas' Deep Ellum district. The developer will convert the 100-year-old structure, previously a school, for multifamily use. But, its plans for Deep Ellum go much further. The firm’s head of sustainability investments, Eric Clement, sat down with TRD to discuss RXR’s plans for Texas. Spoiler: They’re just getting started. But, as the firm focuses more on Texas, it’s still a New York company. Rechler may be looking to get away from aging office properties, but he has [big plans for the SS United States](, a 70-year-old ocean liner. Unfortunately, the plans might be too big. Rechler hoped to convert the ship into a hotel and keep it at a New York City pier. The problem? The ship is too big to fit in a New York City pier, and the city has rejected pleas for accommodation. To make matters worse, the 990-foot ocean liner is facing eviction from its current home in Philadelphia. If RXR and the SS United States Conservancy fail to find a permanent home for the historic ship, its fate could be in a scrapyard.     [I'm an image]( [New scandal, same problems: NAR’s latest shakeup]( Last year was one to forget for the National Association of Realtors. But the turmoil shows no signs of stopping. The trade group has failed to enact much needed changes, thanks in large part to the revolving door that is its leadership team. [I'm an image]( [Central Park Tower penthouse sells for $115M, snags Extell record]( Gary Barnett has reached new heights with the sale of a Central Park Tower duplex penthouse for $115 million. Even with the record, the sale was still tens of millions of dollars below its listing price. But, with one pricier unit left in the building, Barnett can always set a new record. [I'm an image]( [Construction lending swells in South Florida, bucking the national trend. Here’s why]( For most of the country, getting a construction loan is all but impossible, given high interest rates and building costs. But, in South Florida, developers scored over $1.2 billion in financing in the last few weeks.   Advertisement   [I'm an image]( [Brookfield forecloses on 2,150-unit Veritas portfolio]( Brookfield took over more than 2,000 San Francisco apartments from Veritas this week with an uncontested $464 million bid on the properties. The purchase makes Brookfield the city’s biggest landlord. As it gains properties in San Francisco, it could be poised to lose a Brooklyn office building after its $148 million was [sent to special servicing](. [I'm an image]( [Hochul takes another crack at 421a, but throws curveball after speech]( The real estate industry had been waiting for Gov. Hochul’s 421a replacement announcement. Instead, it got something different. Hochul remains committed to finding new avenues for residential development, but the replacement might not come from her office. [I'm an image]( [Here’s the path forward for Chicago transfer tax lawsuit]( A host of Chicago industry groups are seeking to block the vote for a new transfer tax. It’s likely too late to remove the referendum from the ballot, but a successful challenge could nullify the upcoming vote. [I'm an image]( [Related relaunches SF penthouse with 50% price cut, new Compass team]( In 2019, Related listed the penthouse at its San Francisco Avery tower for $41 million. Nobody bought it. But, after a makeover, the listing is back at a massive discount. [I'm an image]( [Shekhter’s WS Communities loses half its portfolio to lenders after defaults]( Neil Shekhter’s WS Communities has lost half of the company's portfolio to lenders after $1.1 billion in defaults. The firm signed deeds-in-lieu of foreclosure on more than two dozen multifamily buildings and development sites, sending them to some of the biggest names in real estate lending.   [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](