Clockwise from top left: RXR Realty launches $500M fund, Drew Barrymore sells Hollywood Hills home, McDonald’s shelling out $6B to upgrade and modernize its restaurants, and Tiffany & Co plans $250M revamp of flagship store.
RXR Realty launching a new $500M fund that will target “opportunity zones”
Last year, the tax code passed by Republicans in Congress set up an “opportunity zone” program that lets investors either defer or avoid capital gains taxes if they invest in low-income neighborhoods, and it appears the new initiative presented RXR Realty with an opportunity of its own. The real estate developer plans to launch a $500 million fund that would invest in the zones, and the firm has several developments underway that could get the tax benefit, according to Bloomberg. The program has garnered both praise and criticism, with some detractors saying developers could avoid taxes on projects they were already planning to construct. [TRD]
McDonald’s shelling out $6B to upgrade and modernize its U.S. restaurants
McDonald’s outposts across the country will be getting renovated and updated, the Associated Press reported. The fast food chain plans to shell out $6 billion to modernize its U.S. restaurants with features like new counters for table service, digital self-order kiosks and designated parking spots for those picking up orders placed via mobile. The restaurants’ interiors and exteriors will also be getting an overhaul that will include “modernized dining rooms with globally and locally inspired decor.” All of the changes are expected to be carried out by 2020. [TRD]
HUD plans to take on zoning rules in an effort to spur home construction
The U.S. Department of Housing and Urban Development hopes to spur home construction by providing grants to communities that consider revamping their zoning codes, the Wall Street Journal reported. Fewer homes are being constructed due to restrictive zoning rules, and low-income families are struggling to find affordable homes as a result, HUD Secretary Ben Carson said. Carson’s plan diverges from the Obama administration’s, which aimed to foster low-income housing development in wealthier neighborhoods. “The last administration, when they put this together they really went down an ideological pathway,” Carson added. “We are going to look at the people who are actually affected, what are they saying, what will be helpful to them.” [TRD]
Rising interest rates threatening affordable housing construction, developers say
Interest rates are rising, and it’s hurting affordable housing development, the Wall Street Journal reported. The rates offered from national lenders have steadily increased over the last few years, developers said. In addition to that, the number of multifamily housing bonds, often used to pay for affordable housing projects, has decreased 29 percent year-over-year. Labor shortages and tariffs on building materials are also hurting affordable housing development, according to the outlet. [TRD]
MAJOR MARKET HIGHLIGHTS
Tiffany & Co plans $250M revamp of its flagship store next door to Trump Tower in Manhattan
Tiffany & Co’s flagship store, at the Trump Organization‘s 6 East 57th Street, located directly next door to Trump Tower in Manhattan, is getting a multimillion dollar upgrade, Bloomberg reported. The iconic jewelry store plans to renovate and expand, a project that could cost around $250 million, according to the outlet. Construction is slated to start in 2019 and wrap up by the end of 2021. “We are extremely excited about the opportunity to transform our iconic New York flagship store and create a dramatic new experience for customers,” Tiffany’s CEO Alessandro Bogliolo said. The company has reportedly been trying to draw younger shoppers to its brand. [TRD]
David Guetta buys Richard LeFrak’s Miami Beach apartment for $9.5M
DJ and music producer David Guetta has snapped up developer Richard LeFrak’s Miami Beach apartment. Guetta dropped $9.5 million for the three-bedroom unit at the Setai. Guetta is currently renting out the home for $30,000 a month. Up until recently, the Setai was home to Russian oligarch Oleg Baibakov and Theory co-founder Andrew Rosen — both of whom sold their units. The building boasts oceanfront swimming pools, a gym and a spa. [TRD]
Illinois Attorney General’s Office hits Trump International Hotel & Tower with lawsuit
The Illinois Attorney General’s office has filed a lawsuit against the Trump International Hotel & Tower in Chicago claiming it’s been dumping polluted water into the Chicago River without a valid permit. The state issued the tower a permit that lets it discharge a “limited amount” of dirty water into the river, but the permit has expired, Crain’s Chicago Business reported. The EPA is seeking an order that would hit the hotel with a fine and stop its water intake system. A spokesperson for the Trump Organization claimed the lawsuit was “motivated by politics.” [TRD]
WeWork takes four floors at San Francisco building amid mid-sized portfolio expansion
WeWork inked a deal on space for its new “HQ By WeWork” line, which aims to help mid-sized businesses find office space. The coworking company is taking 17,500 square feet at the building on Market Street, which is owned by investment management firm Invesco. It’s one of several new leases WeWork has signed recently as part of a push to expand its mid-sized portfolio, which they define as firms with 10 to 250 employees. They’ll allow some brands to more prominently display their own branding within the building. [TRD]
LLC shells out $16.5M for Drew Barrymore’s Hollywood Hills home
Drew Barrymore has sold her 8,000-square-foot Hollywood Hills home, according to the Los Angeles Times. A Swedish LLC called Hillcrest AB purchased the property for $16.5 million in an off-market transaction. The price was significantly more than the $4.35 million the actress dropped for the home back in 2002. The property, which was once owned by director John Bowab, came with a guest house, a swimming pool and four fireplaces. [TRD]
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