What Trump’s executive orders mean for real estate; Joel Schreiber avoids prison after providing 18,000 documents to Starwood… and more

THE RUNDOWN:

???? President Donald Trump kicked off his second term with a wave of executive orders targeting federal workforce reforms, housing affordability and energy policies — moves that could impact real estate.

?? Joel Schreiber kept himself out of jail after a judge determined he made “substantial efforts” to provide information related to a judgment that Starwood Capital has been trying to collect on.

?? Tal Alexander’s wife has filed for divorce as the former top broker faces federal sex trafficking charges alongside his brothers, Oren and Alon Alexander.

??? The billionaire owner of a $33 million penthouse at Arte, an oceanfront luxury condo building in Surfside, Florida, is claiming construction defects have rendered the unit nearly unlivable.

?? Lloyd Goldman’s Montauk resort was heralded as a pandemic winner, but that was before the BLDG Management founder defaulted on a $217 million loan tied to the luxury property.

?? A housing rights nonprofit is accusing 165 Chicago-area real estate agents, brokerages and landlords of discriminating against low-income renters after a “sweeping undercover investigation.”

THE DETAILS:

???? These Trump executive orders could impact real estate

The president signed off on dozens of executive actions aimed at rolling out his second-term agenda and peeling back actions taken during the Biden administration.

• In columnist Erik Engquist’s latest story, he digs into the lack of specifics in Trump’s executive order to reduce housing costs and other expenses — pointing to his talent for showmanship and marketing to get a point across.
• As promised, Trump ordered federal workers back to offices, froze hiring and launched the Department of Government Efficiency, led by Elon Musk, potentially reducing demand for office space.
• He also pledged to tap into natural resources to expand the energy supply, potentially impacting data centers — a key growth area for investors.

?? Joel Schreiber avoids prison after providing 18,000 documents to Starwood

The former WeWork investor sent more than 18,000 pages of documents to Starwood’s counsel through his attorney — enough to stave off prison time but not enough to satisfy Kings County Judge Aaron Maslow.

• The two judgments totaling over $88 million relate to loans Starwood provided for Schreiber’s Broadway Trade Center in Downtown Los Angeles.
• On multiple occasions Schreiber’s attorney referenced the investor’s financial struggles, but what happened to the money he made on his WeWork stock remains a mystery.
• Maslow ordered another hearing in March and instructed Schreiber to respond in the format Starwood requested and provide all information his former lender wants.?

?? Tal Alexander’s wife files for divorce ahead of sex trafficking trial

Arielle Alexander, a former investment analyst and venture capitalist, married Tal in the fall of 2023 and recently gave birth to their first child.

• “I will continue to provide my young baby with love and support as I leave my husband,” Arielle said in a statement provided to TRD by her attorney.
• All three Alexander brothers were arrested in Miami last month and were transferred to New York where they will remain in federal custody until and through their trial.?
• The FBI searched the couple’s apartment the day Tal was arrested and recovered a hard drive with videos and photos that prosecutors claimed show Oren and Alon engaging in sexual contact with women who appear to be intoxicated or under the influence.?

??? Billionaire sues Alex Sapir over alleged construction defects at Arte condo in Surfside

Veritas Capital’s Ramzi Musallam filed a lawsuit against Alex Sapir, accusing the Arte developer of being aware of “significant” defects that should have been disclosed.

• A complaint filed months after Musallam closed on the unit cited water intrusion, mold, water damage to the drywall, cracks on multiple diffusers, poor installation of AC units, defective sliding glass doors and more.
• The lawsuit follows other complaints from Arte unit owners, including a recent case involving a $12.8 million unit alleged similar defects.
• The 12-story Arte building has drawn high-profile residents, including Ivanka Trump and Jared Kushner.

?? Ritzy Montauk Resort was a pandemic winner — until Lloyd Goldman’s $217M default

Despite a $54 million renovation and a high-end spa upgrade in 2014, cash flow at Gurney's Montauk Resort & Seawater Spa has deteriorated as demand for local destinations weakens post pandemic.

• The floating-rate loan landed in special servicing after BLDG failed to refinance or extend the mortgage before its maturity, though COO Justin Kleinman claims the transfer stemmed from an “administrative issue.”
• Consistent increases in airline travel combined with seasonal challenges at the Gurney's Montauk Resort & Seawater Spa were likely to blame for the resort’s dip in occupancy.

?? Discrimination complaints hit 165 agents, brokerages, landlords

Watchdog group Housing Rights Initiative filed the complaints after having investigators pose as prospective tenants with Housing Choice Vouchers, formerly known as Section 8 vouchers.

• The investigators messaged brokers and landlords and allegedly found that voucher holders were discriminated against about 36 percent of the time.
• Some of the area’s top brokerages were named in the complaints, including Coldwell Banker Real Estate, Christie’s International Real Estate, Keller Williams Realty, Baird & Warner, Berkshire Hathaway HomeServices, RE/MAX and Kale Realty.
• The series of 176 complaints filed against the defendants makes this the largest housing discrimination case in Illinois history.

THE CLOSE:?

How will Trump’s executive orders affect the industry? Keep reading TheRealDeal.com to find out.

###