?? NY housing deal finally passes; WeWork must consider Neumann’s bid, creditors say … and more

THE RUNDOWN:

?? New York state lawmakers finally passed a new housing deal last weekend. The agreement includes a replacement for 421a , a form of good cause eviction , and a measure to help landlords fund repairs of run down rentals.?

?? WeWork’s bankruptcy proceedings have been fraught with trouble. Now, its creditors are demanding that the co-working firm consider a buyout from the ousted co-founder Adam Neumann.?

?? Elon Musk is using a controversial “de-annexation” law to break Tesla’s gigafactory away from Austin , sparing the property from the city’s taxes and regulations.?

?? Another New York billionaire is making a highly publicized move to South Florida . This time, it’s hedge funder Larry Robbins.

?? On Chicago’s South Side, a string of multifamily deals made by a pair of investors raised eyebrows in the real estate community. Now, twelve of the properties are all being foreclosed on .?

?? A recent office sale in Downtown Los Angeles has set a new price floor for the region’s commercial market. Meanwhile, another bigtime sale in the neighborhood fell apart .?

THE DETAILS:

?? Housing deal finally passes; here are the details

New York Governor Kathy Hochul passed a housing deal last weekend, setting off reactions by landlords, tenant advocates and more.?

• The deal included a replacement for 421a called 485x. The new policy will provide long-term tax breaks for rental projects that meet an affordability requirement.
• Hochul passed a law to “bring vacant apartments back on the rental market.” But landlords say the law is all but useless .
• The bill also included a form of good cause eviction . But the state’s socialists aren’t happy with the outcome.?

?? Creditors demand WeWork consider Adam Neumann’s offer

As WeWork’s bankruptcy runs into trouble, the coworking firm’s creditors have urged leadership to continue an offer from their controversial co-founder Adam Neumann.

• WeWork is looking to raise up to $400 million to exit bankruptcy.
• Neumann announced his offer earlier this month, claiming he could pay 10 percent more than any other offer on the table.
• An attorney for the creditors said the firm’s possible decision to “ignore” potentially viable alternatives” was inexcusable.

?? Musklandia: Tesla breaks gigafactory land from the city of Austin

Tesla’s move to Austin was filled with press and fanfare. But, the carmaker’s gigafactory won’t be in Austin much longer.?

• Tesla is using a “de-annexation” law to move a 2,100 acre patch of land outside of the city’s jurisdiction, freeing the company from the local taxes and regulations.
• Texas’ Senate Bill 2038 allows property owners on the outskirts of a town to de-annex their land.

?? Another New York billionaire heads for sunnier pastures in Florida

Hedge funder Larry Robbins will be moving his family down to the Sunshine State, though his firm will continue to operate from New York.?

• Robbins purchased a mansion in Palm Beach Gardens for $13.9 million in February.
• He also warned that NYC could be in trouble if more of its wealthiest residents flee the city’s high taxes for South Florida.?
• Other billionaires to make recent moves to South Florida include Citadel founder Ken Griffin and Amazon founder Jeff Bezos.

?? How $20M in South Side Chicago flips got fumbled into foreclosure

Over the past several years, Shaunte Porter and Carlos Perez bought fourteen multifamily buildings on Chicago’s South Side. Now, twelve of those buildings are facing foreclosure.

• While the pair frequently worked together, their professional relationship remains unclear. In one instance, Porter paid $515,000 for a building, then sold it to Perez the next day for $1.8 million.
• Perez financed 11 of his purchases through lender A&S Capital, which then quickly sold the debt before the properties headed to foreclosure.

?? Swig finds a new bottom while Brookfield deal falls apart

A recent string of L.A.-area office sales seemed to establish a price floor of about $135 per square foot. But, recent news has some doubting that number.?

• Brookfield’s sale of 777 Tower in Downtown L.A. fell apart this week. The deal, struck in March, was for $145 a square foot.
• Kent Swig agreed to sell his Downtown L.A. tower for $20.5 million, or just $94 per square foot, setting a new floor for the distressed office market.?

THE CLOSE:?

Can WeWork raise enough money to get out of bankruptcy? Keep reading TheRealDeal.com to find out.