The United Auto Workers said it had “reasonably productive conversations with Ford” but did not mention G.M. or Stellantis.

Nightingale CEO Elie Schwartz allegedly gambled with investor money and lost.

Schwartz, the man behind the troubled real estate investment firm, diverted $12 million in crowdsourced investor funds in March for purposes other than their intended use.

The funds were originally meant to acquire the Atlanta Financial Center but were instead used to purchase $6 million in First Republic stock and another $6 million in First Republic options, according to Eric Lee, the chief restructuring officer for the entities created by Schwartz to raise these funds, BisNow reported.

The move came during a tumultuous time in the financial sector, with the collapses of Silicon Valley Bank and Signature Bank fresh in the minds of investors. 

First Republic, the bank in which Schwartz invested, was also under scrutiny as analysts raised concerns about its stability, causing its shares to plummet by more than half in just two weeks prior to Schwartz’s stock purchase.

The dire consequences of Schwartz’s gamble on First Republic became evident when, on May 1, the FDIC took control of First Republic due to a run on deposits and promptly sold it to JPMorgan Chase. That resulted in the complete wipeout of shareholders in the bank, rendering the shares and options Schwartz had purchased almost worthless.

During a webinar hosted by Anna Phillips, the independent manager appointed to oversee the entities created by Nightingale on the CrowdStreet platform, Lee disclosed further unsettling details. 

It was revealed that Schwartz had personally used $5.5 million of the misappropriated funds, which amounted to over $50 million, for personal and business expenses, including credit card payments and luxury watches.

Moreover, Schwartz directed $23 million of CrowdStreet investor funds to pay numerous third parties, ranging from minor transactions to a substantial $9.4 million payment. The identities of these entities were not disclosed during the webinar, and Lee expressed doubts about the feasibility of recovering these funds through litigation, given the potentially high legal expenses involved.

Thel saga began when Nightingale initiated two crowdfunding campaigns on CrowdStreet, raising $45 million from retail investors with the intention of purchasing the Atlanta Financial Center. However, neither deal went forward, and suspicions arose when the funds did not end up in escrow as intended. Instead, they were funneled directly into LLCs controlled by Schwartz.

Phillips was subsequently appointed to take control of the LLCs and subsequently pushed both entities into bankruptcy in an effort to recover the missing millions. Nightingale also faced troubles with other investments, including a Chicago office building and properties in Philadelphia, Brooklyn, and Manhattan.

The repercussions of Nightingale’s alleged fraud sent shockwaves through the real estate crowdfunding industry, prompting competitors to reassure their investors about the safety of their investments while acknowledging the hit to the industry’s reputation.

Phillips also announced during the webinar that her team had reached a settlement with Nightingale on behalf of the two bankrupt entities. While details of the settlement were not disclosed, Philips said it would form the basis for both entities to exit bankruptcy, pending investor approval and court consent.

Phillips also noted her ongoing cooperation with various regulatory bodies, including the Department of Justice, the Securities and Exchange Commission, and the FBI, in their investigations into Schwartz and Nightingale. However, she emphasized that her primary focus remains on recovering investors’ funds rather than pursuing criminal charges.

— Ted Glanzer

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A bayfront estate in Sarasota’s exclusive Harbor Acres Estate section has been listed for $33.8 million. 

Set on nearly an acre of land with nearly 150 feet of bay frontage, the 11,275-square-foot custom home at 1233 Hillview Drive has eight bedrooms and eight bathrooms, according to the listing, which is reported to be the most expensive in Sarasota.

Barbara May and Fred Sasson of Michael Saunders and Co. have the listing.

Designed by Stofft Cooney Architects and built by Perrone Construction over two-and-a-half years, the home has hardwood flooring, architectural ceilings, and light fixtures as well as a a kitchen, bar, and primary bathroom designed by Matthew Quinn of Design Galleria.

The home is equipped with hurricane-impact windows and doors, a screened covered porch with motorized bug screens and hurricane shutters, and a whole-house generator. 

The main level has a living/dining room with a fireplace and floor-to-ceiling windows, a gourmet kitchen, family room, playroom, clubroom, a gym, a primary suite, and a guest wing that features three en-suite bedrooms, a lounge area, and a private outdoor entrance.

The second level has a second primary suite and three guest suites, as well as a lounge area with a balcony for enjoying the breathtaking views. The home is equipped with an automation system, motorized drapery/shades, a home theater speaker system, a Lutron lighting system, and an automated mosquito spraying system.

Outdoor amenities include a kitchen, dining and gathering areas, and an overflow pool with a spa, sun shelf, and fire bowls with automated lighting. 

A 27,000–pound high-speed boat lift and a 4,500-pound dual Jet Ski lift with an aluminum-framed platform provide access to the water.

Florida has been a popular destination for the rich and famous. Gisele Bundchen recently bought a home with an equestrian ring and full-size soccer pitch for $9 million. And soccer star Lionel Messi and his wife, Antonela Roccuzzo, acquired a 10,500-square-foot, eight-bedroom estate in Fort Lauderdale’s Bay Colony through a company led by Messi’s wealth manager, Alfonso Nebot, records show.

— Ted Glanzer

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We have some bad news for fans of real estate reality TV: Ryan Serhant’s upcoming Netflix show won’t run until next year at the earliest.

Filming is expected to wrap up in October for the show, which follows agents at Serhant’s eponymous brokerage. The project is moving forward under the working title of “House of Serhant”, although sources familiar with the matter say the name could be subject to change. The title appears on staffmeup.com, a job site for production staff.

A source told The Real Deal the show follows Serhant and his agents as he builds the agency. 

“It’s not ‘Million Dollar Listing,’” they said. “It features everybody.”

A source confirmed to TRD that agents are getting paid to appear on the show but declined to comment on how much. Agents on “Million Dollar Listing: New York”, which followed a small cast of agents, paid its stars $10,000 per episode. 

The show has not been impacted by the writers’ strike, as reality producers are non-union, according to the Los Angeles Times.

Ryan Serhant launched his eponymous brokerage in 2020 after a 12-year career at Nest Seekers, nine of which he spent as a regular cast member on “Million Dollar Listing”. Serhant’s firm was one of the fastest growing brokerages in New York last year in terms of sales volume and recruitment, finishing sixth on TRD’s ranking of Manhattan brokerages, with $540 million in on-market, sell-side deals in 2022. Serhant recruited a net gain of 128 agents last year and opened a second New York City office in June.

The firm this spring expanded to six more markets along the East Coast but has since suffered some setbacks. The firm was sued over its expansion into Pennsylvania and Florida, and has since seen two high profile departures when The W Team left in July and agent Loy Carlos left earlier this month. 

Read more

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Texas Attorney General Ken Paxton was acquitted of all charges in a long-awaited impeachment trial vote Saturday morning. The Republican-controlled State Senate, which acts as the jury in impeachment trials, voted almost entirely along party lines on most of the counts. Paxton would have been the first statewide office holder in Texas to face such a fate since 1917, when Governor James “Pa” Ferguson was impeached and resigned a day before he could be convicted by the Senate. 

Real estate played a central role in the case. Austin real estate investor Nate Paul was named in several of the impeachment charges, which alleged that Paxton took a range of improper actions to help Paul. 

In particular, Paxton was accused of accepting bribes from Paul in the form of a large campaign contribution, free home renovations and free Uber rides. Impeachment managers also accused Paul of hiring Paxton’s mistress so she could stay in Austin, closer to the attorney general’s home than where she lived in San Antonio. In return, Paxton’s office was accused of delivering a legal opinion designed to help Paul avoid foreclosures on several of his properties, and helping Paul access information about the FBI raid on his home and office in 2019. 

During the trial, several shocking details were revealed about Paul and Paxton’s relationship. Aides testified that Paxton harangued his staff for not pursuing Paul’s allegations of corruption and unfair treatment by the FBI, even after their repeated pleas that he stay away from Paul. The pair met for lunches in which even Paxton’s body man was prevented from sitting with them. And Paxton allegedly pressured his employees to get involved in a lawsuit between Paul and a nonprofit, the Mitte Foundation, intervening to a degree they said was highly unusual for him.

To remove Paxton from office, 21 of the 30 senators would have had to vote to convict him on any of the charges. None of the votes, however, even reached a majority to convict.

Paul, meanwhile, has already been indicted by the FBI on eight counts of lying to lenders in order to obtain financing. He did not appear at Paxton’s trial, and has been out on bail since his arrest in June. His trial will not begin until next year due to the huge volume of evidence to be reviewed. 

READ MORE LINKS:

https://therealdeal.com/texas/2023/09/14/did-texas-ags-midnight-opinion-stop-nate-paul-foreclosures/,

https://therealdeal.com/texas/austin/2023/09/07/the-ags-lunch-with-nate-paul/

https://therealdeal.com/magazine/national-july-2023/judgment-day/

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A national commercial real estate developer has acquired  $38.2 million in construction financing for the first phase of a massive industrial park in Gaffney, South Carolina. 

Chicago-based Glenstar, a developer specializing in industrial properties, received the funding from CrossHarbor Capital Partners, according to a release.

The industrial park, which is being developed in partnership with Creek Lane Capital, is poised to become Cherokee County’s largest, spanning 290 acres and featuring five buildings.

The initial phase of the project will kick off with site preparation for Building 2A, a 555,520-square-foot flexible facility with the potential for expansion to 1.3 million square feet. 

It will offer a cross-docked layout, accommodating up to 232 dock doors, four drive-in doors, 540 auto parking spaces, and 452 trailer spaces. Completion is scheduled for fall 2024.

Matt Klein, director at CrossHarbor Capital Partners, expressed enthusiasm for the project, highlighting the prime location of CCC-85 in one of the fastest-growing transportation and logistics corridors in the United States.

Future phases of CCC-85 may encompass four additional warehouses, ranging from 211,640 to 1.65 million square feet. The facilities will cater to the demand for modern industrial space in the corridor stretching between Greenville-Spartanburg, South Carolina, and Charlotte, North Carolina. 

Key specifications include 40-foot clear heights, 56-by-50-foot column spacing, and 60-foot speed bays.

Glenstar Principal Brian Netzky emphasized CCC-85’s strategic location, offering easy access to Inland Port Greer and the Port of Charleston, which is of particular interest to companies involved in Southeastern production, including electric vehicle, battery, and semiconductor manufacturers.

Cherokee County’s industrial submarket is already home to several major players, such as DHL Supply Chain, Mann+Hummel, Techtronic Industries, and Dollar Tree. 

The area has a strong labor pool and low vacancy rates, the release says.

CCC-85 is located at a four-way I-85 interchange, with convenient proximity to the BMW Group Plant Spartanburg, Inland Port Greer, and Charlotte. 

The Conlan Company is the project’s general contractor, with Ware Malcomb serving as the architect and SeamonWhiteside as the civil engineer. 

Leasing for the project will be handled by Colliers’ Spartanburg office, with John Montgomery, Garrett Scott, Brockton Hall, and Dillon Swayngim leading the effort.

The post Glenstar Secures $38.2M for SC industrial park appeared first on The Real Deal.

What’s being called the “summer of strikes” comes at a time when workers increasingly fear new technologies will threaten their jobs.

The videos violate copyright laws, but they remain available—for now.

A start-up used the Hebrew word “chai” and its numerical match, 18, to bump up giving amounts. What magic number would do the same for you?

Investors are worried that the postpandemic travel surge will fade.