City of Yes: NYC's $5B Bet to Tackle Housing Crisis
NYC just greenlit a $5 billion plan to build 80,000 homes, tackling its worst housing crisis in 50 years with sweeping rezoning and infrastructure investments.
Han-Gwon Lung & Jordan B.
November 25, 2024
Together with
Good morning. New York City is taking bold steps to address its housing shortage with a $5 billion commitment tied to the landmark "City of Yes" rezoning plan, which could pave the way for 80,000 new homes.
Today’s issue is brought to you by QC Capital.
🎁🎁🎁 Searching for the perfect fit to this year’s holiday party or need some last-minute gifts for your team? We've got you covered. Shop our limited-edition ugly Christmas sweaters—CRE Daily's version.
Market Snapshot
|
|
||||
|
|
*Data as of 11/22/2024 market close.
Politics & Housing
NYC's "City of Yes" Passes with Developer Support and Big Compromises
New York City’s ambitious “City of Yes” housing reform cleared a key hurdle, balancing pro-development incentives with concessions to community concerns.
Victory for developers: The plan aims to deliver 80,000 new housing units over 15 years—down from the original 109,000 due to amendments that preserved parking mandates in many areas and restricted backyard accessory dwelling units in single-family zones. Despite these reductions, developers celebrated the easing of zoning restrictions, particularly in transit-oriented and high-density areas.
Map of where parking minimums apply (Credit: City Council / TRD)
Immediate impact: Affordable housing developers, like Camber Property Group, stand to benefit from the rollback of parking requirements in locations such as the Bronx. With each parking space avoided saving between $75,000 and $150,000, developers can redirect resources to enhance project viability and affordability.
Balancing act: New density bonus programs, such as the Universal Affordability Preference (UAP), require deeper affordability for units but may hinder project feasibility.
Critics say: Brooklyn Borough President Antonio Reynoso and housing advocates criticized the exclusion of single-family zones from contributing to increased housing supply. Similarly, parking compromises were viewed by some, like Sara Lind of Open Plans, as a missed opportunity to reduce car dependency in transit-served areas.
➥ THE TAKEAWAY
Big picture: The plan's advancement represents a critical win for Mayor Adams, who has faced corruption allegations and dwindling approval ratings. While the plan's scope was reduced from 109,000 to 80,000 housing units over 15 years, advocates view it as a significant victory toward alleviating the housing crisis.
What’s your take on NYC’s “City of Yes” plan? |
TOGETHER WITH QC CAPITAL
QC Car Wash Fund II is Here!
Calling all accredited investors! QC Car Wash Fund II is now live, offering an exclusive incentive: Invest by December 15th to earn an extra 1% annual return at maturity.
With QC Capital’s Car Wash Fund, you’ll enjoy:
✅ Steady Cash Flow: Earn up to 12% annually from a proven business model.
✅ Tax Benefits: A 60-70% tax loss on the 2024 K-1.
✅ Proven Expertise: Trust a team with a history of successful projects.
✅ Diversification: Reduce risk with a recession-resistant investment.
Don’t miss this limited-time opportunity. Click the below to learn more.
*Please see the advertising disclosure at the bottom of this newsletter.
✍️ Editor’s Picks
-
Ackman's bet: Billionaire hedge fund manager Bill Ackman has acquired a $2.6 billion stake in Brookfield Corp., citing undervaluation and growth potential tied to critical infrastructure and expanded U.S. market presence.
-
Squeezed: CRE borrowers face mounting challenges as rising rates and reduced cash flows strain refinancing efforts, prompting banks to increase reserves against potential losses.
-
New heights: A proposed 1,010-foot tower on Brickell Avenue could become Miami's tallest building, surpassing the 868-foot Panorama Tower.
-
Change of the guard: Howard Lutnick steps down from Newmark after his nomination as U.S. Commerce Secretary.
-
Legal hurdle: Developers face compliance challenges as print newspaper closures threaten public notice requirements for real estate projects.
-
Buyback: CBRE expanded its stock repurchase program by $5B, citing undervaluation despite a 40% year-to-date rally in its stock price.
-
Crypto cash-out: Bitcoin's 35% post-election surge is driving investors to convert gains into real estate.
🏘️ MULTIFAMILY
-
Negative leverage: Multifamily investors face increasing risks as negative leverage and rising interest rates squeeze returns on bad loans.
-
City of Yes: New York City's "City of Yes" plan, expected to add 80,000 housing units over 15 years, passed with reduced parking mandates but increased affordability requirements.
-
Big bet: Brookfield Properties acquired an $845M multifamily portfolio from Blackstone REIT, targeting eight properties across Nevada, North Carolina, Arizona, and Ohio as apartment demand recovery looms.
-
Zoning shift: Evanston considers ending single-family zoning to increase housing options, drawing comparisons to Minneapolis' success and resident concerns over community impact.
-
Howard County: Continental Realty bought Dartmoor Place for $86.5M amid a $6.5B multifamily sales surge in the Baltimore-D.C. region.
🏭 Industrial
-
Class A facility: LaSalle Investment Management acquired a 233,818-square-foot Class A industrial facility at Apex Commerce Center in Apex, N.C., highlighting Raleigh-Durham's steady industrial market expansion.
-
Smart buy: Goldman Sachs has purchased Rockingham Farms Building 9, a 942,210-square-foot industrial facility in Savannah, Ga., for $100.6 million.
🏬 RETAIL
🏢 OFFICE
-
Stake sale: Mori Building Co. acquired an 11% stake in One Vanderbilt, valuing the iconic Manhattan tower at $4.7B as SL Green retains a 60% interest.
-
New high: According to Savills Research & Data Services’ Q3 2024 report, the office leasing market experienced its strongest quarter since 2019.
-
Dickies departs: After 102 years in Fort Worth, Dickies is moving its headquarters to Costa Mesa, California, consolidating with its parent VF Corporation's Vans brand.
🏨 HOSPITALITY
-
Devaluation: Oakland's Courtyard Downtown sold for $10.6M—76% below its $43.8M price—highlighting post-pandemic hotel struggles.
A MESSAGE FROM CRE DAILY
CRE Daily Subscribers Get 10% Off + Free Shipping!
Searching for the perfect fit to this year’s holiday party or need some last-minute gifts for your team? We've got you covered. Shop our limited-edition ugly Christmas sweaters—CRE Daily's version.
Subscribers can enjoy 10% off with promo code CREDAILY and get free ground shipping on orders over $75!
*Please see the advertising disclosure at the bottom of this newsletter.
📈 CHART OF THE DAY
Washington, DC, and Charlotte joined this month's top 10 employment markets, alongside repeat entries like Houston, Dallas, and Atlanta, while St. Louis and Riverside dropped off the list.
You currently have 0 referrals, only 1 away from receiving B.O.T.N Multifamily Deal Screener .
What did you think of today's newsletter? |
