For Christmas Eve, Deals and an Assessment

  • Posted at 2:09, December 24, 2013
  • By Quidnunc Staff

Three topics to start Tuesday:

  • "Mayor Bloomberg moved mountains." That's the assessment in the real estate part of the roundup of the exiting mayor's accomplishments in Tuesday's Wall Street Journal, HERE
  • The WSJ also posted late last night for Tuesday's paper a big lease deal--20 years, 516,000 square feet--at 3 World Trade Center, for Group M, an advertising firm that is the consolidated media investment management operation of London-based WPP plc.  The lease would bring together Group M's 2,400 employees from midtown locations into the first nine floors of the tower, the story says.  It also notes that developer Silverstein Properties Inc. "stopped construction on the tower after eight floors, because a 2010 agreement enabling the project to receive government aid required signing a tenant for at least 400,000 square feet." Silverstein will have to raise $300 million to then trigger government support to allow it to qualify for tax-exempt Liberty Bond financing, the article says.
  • The tabloids were on this story earlier.  The Daily News posted the story on the deal Monday afternoon, HERE. The New York Post ran it last night, HERE. And HERE is Silverstein Properties' release.
  • Magnetar Capital LLC, an investment firm based in Evanston, Ill., with an office on Park Avenue, is the subject of a Bloomberg News investigative report into its conduct in Huber Heights, Ohio, where it bought one third of the homes to convert to rentals. It asked for a tax break on the 1,200 residences so it could expand, but the concession--granted but greatly reduced from what Magnetar's property manager sought--hit local school operations hard.  The story portrays the clash between living in Middle America, Wall Street, development, and even philanthropy in stark terms, noting that Magnetar operates a youth academy to increase high schoolers' financial literacy near Chicago.  The article, posted Tuesday, is HERE.
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