Hurricane damage in Florida (Credit: Wikimedia Commons, Pexels)

As South Florida braces for hurricane season and as wildfires devastate California, property insurers are increasingly using aerial technology and artificial intelligence to process claims.

But some in the industry are having trouble utilizing the new tech and some property insurers are reopening claims because their initial repair estimates were too low, according to the Wall Street Journal.

Everest Re Group, a reinsurance company, said it increased its estimated 2017 net catastrophe losses by $400 million, in part because so many customers had to reopen claims in Florida and Puerto Rico. The new technology was in part to blame.

But the high tech devices also slightly reduced the time for policyholders to receive payments for residential property damage. The time it now takes has dropped to 16.5 days from 17.4 days, according to a J.D. Power survey.

Allstate reported it settled 16,500 claims with flights, drones and aerial imagery in the first half of this year, up from 12,600 in 2017, the Journal reported.

Thousands of homeowners filed insurance claims last year after Hurricane Irma struck in September.

The hurricane missed most of South Florida, except for some of the Florida Keys, where many homes are still feeling the effects. In Big Pine Key, housing inventory rose 11 percent from January 2017 to January 2018, according to Keys Weekly, and average sale prices have declined on a year-over-year basis.

In California, the Carr Fire has scorched more than 160,000 acres and destroyed more than 1,600 homes. [WSJ]  — Keith Larsen

Rendering of hotel project at 315 Northwest First Avenue and Driftwood’s Carlos J. Rodriguez

Driftwood Acquisitions & Development just scored nearly $30 million in construction financing for its dual-branded hotel in Fort Lauderdale’s Flagler Village neighborhood.

Property records show 315 Flagler Owner, LLC, led by Driftwood principal Carlos Rodriguez, secured $28.48 million from Bank OZK, previously known as Bank of the Ozarks. The Arkansas bank has been one of biggest construction financiers in South Florida and across the country, and is reponsible for about a quarter of South Florida condo construction between 2013 and 2017.

Driftwood is partnering with Dev Motwani’s Merrimac Ventures to develop the project, which is currently under construction at 315 Northwest First Avenue. Records show a partnership led by Motwani acquired the development site in January 2016 for $1.9 million.

The planned 19-story hotel will operate under the brands Tru by Hilton and Home2 Suites by Hilton. The hotel will have 112 rooms under the Tru brand and 106 extended-stay rooms under the Home2 Suites brand with separate lobbies. The project is expected to be completed by May 2020.

Driftwood owns and manages more than 45 hotels across the United States, according to its website.

The dual-branded hotel joins a number of developments underway in the trendy neighborhood, including the Gallery at FATVillage, a 14-story, 168-unit project being developed by the Related Group and partners Doug McCraw and Lutz Hofbauer. Miami developer Ricardo Vadia also plans to build a rental project at 626 Northeast First Avenue.

The developers of Paramount Miami Worldcenter topped out the luxury condo tower on Friday along with hundreds of construction workers, engineers and subcontractors.

Paramount developers Dan Kodsi, Nitin Motwani and Art Falcone hosted the event along with the project’s general contractor, CoastalTishman.

The 60-story, 500-plus unit tower is part of Motwani and Falcone’s mixed-use, master-planned community in downtown Miami. Paramount is expected to open next spring, according to a spokesperson.

OneWorld Properties is handling sales of the luxury condo tower, which will feature an amenity deck with a soccer field, tennis courts, and a resort-style pool. Prices start at about $750 per square foot, or about $885,000. Sales so far total more than $400 million, according to a release.

Camilo Miguel CEO of Mast Capital, photo of 1500 Brickell Avenue

Mast Capital just sold a historic French chateau on Brickell Avenue for $6.25 million, where it planned to bring an Italian restaurant.

Mast Capital sold the 5,837-square foot building at 1500 Brickell Avenue to Chateau Petit Douy LLC for $1,070 per square foot, property records show. Camilo Miguel, CEO of Mast Capital, said Chateau Petit Douy is controlled by the hospitality group that is bringing a restaurant to the location. He said the restaurant will open in early 2019.

Italian restaurateurs Fabrizio and Diana Bianconi were planning to bring their first restaurant to the site.  The couple could not immediately be reached for comment.

Chateau Petit Douy lists its manager as Dale Chappell, a managing member of the hedge fund Black Horse Capital Advisors. The buyer financed the deal with $3.25 million of seller financing.

Mast Capital bought the property in August 2013 for $2.58 million, and got it rezoned for retail and commercial uses. The company also upgraded the electrical and air conditioning and completed other renovations.

The building was originally built in 1928 and sits on a 15,300-square-foot lot near the intersection of Brickell Avenue and 15th Street, across from 1450 Brickell Avenue.

Bianconi’s Miami location would add to Diana and Fabrizio Bianconi’s portfolio of restaurants, which include Via Veneta and Bianconi in Los Angeles and L’Isola and L’Isoletta in St. Barts.

Nasim Ghanadan, Floria Hakimi and Lara Shepherd

Three Pacific Union International agents were among the five people killed Sunday when their small plane crashed near a shopping center in Santa Ana.

Nasim Ghanadan, Floria Hakimi and Lara Shepherd all worked at a Pacific Union office in Danville, the Los Angeles Times reported.

Hakimi’s son, Navid Hakimi; and Shepherd’s husband, Scott Shepherd, also died. Shepherd, who was also a real estate developer, was piloting the Cessna 414 when it went down in a Staples parking lot. Santa Ana is about 30 miles southeast of L.A.

No one on the ground was injured.

“Our entire Pacific Union family is mourning the loss of our colleagues, family and friends,” CEO Mark McLaughlin said in a statement. “Life is precious and we are focused on comforting the loved ones affected by this devastating event.”

The plane, which took off about in Concord, about 400 miles up the coast from Sant Ana, banked low before it nose-dived into the ground, witnesses said. Investigators have yet to determine what caused the crash, the Times reported.

Pacific Union, a San Francisco-based brokerage, is the eighth-largest brokerage by sales volume in the country, according to its website. It has 1,700 agents and staff across 50 offices in Northern and Southern California. [LAT] — Natalie Hoberman

As a part of The Real Deal’s series on diversity in real estate, the August story, “Female hardhats breaking barriers,” examined the major gender gap within the construction industry — where women only account for 9.1 percent of laborers nationwide. In New York City, that number is 7.6 percent.

Reporter Kathryn Brenzel interviewed dozens of women who work on both construction sites and as executives at some of the city’s largest construction management firms to get an idea of why the lack of diversity persists, what challenges women working in the industry endure, and how management firms can help create a more inclusive environment. Watch the video above to learn more and read the full story here.

Video produced by Jhila Farzaneh

Bahia Cabana Beach Resort

The owner of the now-closed Bahia Cabana Beach Resort in Fort Lauderdale just sold the property for $17.27 million, after years of trying to expand and redevelop the hotel and marina complex.

Riviera Resort Club Developers, led by Bryan Cohen and Roni Amid, sold the 70-key hotel to a Bahamian company, 3001-18 Harbor Drive LLC, for about $247,000 per room, according to property records show.

The 1.8-acre property at 3001 Harbor Drive faces the Intracoastal Waterway and is across the street from the beach. It closed in October due to “extensive damage” from Hurricane Irma and has not reopened.

Before that, the seller had big plans for the site, which included building a hotel, restaurant and pedestrian pathways. Riviera Resort Club Developers also offered to build a new fire station for the city at another location in exchange for the current fire station’s land, but the city of Fort Lauderdale rejected that proposal in 2016.

The hotel was completed in 1957.

Stephen Weisz and The Strand Hotel at 33 West 37th Street (Credit: Marriott Vacations Worldwide and Loving New York)

Marriott Vacations Worldwide, the timeshare and vacation homes arm of Marriott International, is raising $750 million to fund its acquisition of rival ILG.

In April, the two firms agreed to a $4.7 billion stock and cash deal that is expected to create the largest luxury timeshare company in the world. If the deal closes, the combined firms will operate seven brands serving 650,000 owners.

Marriott is offering $750 million worth of senior notes that mature in 2026. The firm intends to use the proceeds from the offering, along with the funds from a new $900 million credit facility, to pay for the cash portion of the acquisition. For each of their shares, ILG stockholders will receive $14.75 in cash and 0.16 of a share of Marriott Vacations stock.

In an earnings call on Monday, Marriott Vacations president and CEO Steve Weisz called the deal a “clear win” for the shareholders of both companies. The combined companies will have 110 locations with a projected total revenue of $4 billion.

Before agreeing to the acquisition, activist investors had been pushing Miami-based ILG to strike a deal with a rival. Investment adviser FrontFour Capital, which owns a two percent stake in the company, sent a letter to the ILG board in May of last year, warning that it will review its options if the board declined a Marriott bid.

Mariott, through its brands Marriott Vacation Club, Ritz-Carlton Destination Club and Grand Residences by Marriott, operates 65 resorts. Last November, it purchased the Strand Hotel at 33 West 37th Street for $158.5 million.

The shareholders of both companies are scheduled to vote on the acquisition on Aug. 28. If the deal gains shareholder approval, it is expected to close on August 31.

770 South Dixie Highway and Marcus & Millichap’s Douglas Mandel

UPDATED, Aug. 7, 5:40 p.m.: Midtown Capital Partners just paid $14.75 million for a Coral Gables office building as part of a sale-leaseback deal.

Steiner Management Services, the parent company of One Spa World, which has its headquarters at the property, sold the 58,500-square-foot building at 770 South Dixie Highway to Midtown Capital Partners, a commercial investment firm led by Alejandro Velez and Alexander Saieh.

The buyer financed the 12-year sale leaseback an $8.1 million mortgage from Citibank, according to a press release. Douglas Mandel and Benjamin H. Silver of Marcus & Millichap represented the seller.

Mandel said the property, near the University of Miami, attracted 13 offers from investors looking for “strong lease guarantees” and land-banking developers. “UM isn’t going anywhere, so it’s a safe bet for a covered land play,” he added.

Steiner paid $7.5 million for the then-vacant building in 2012, according to property records, and later renovated the interiors, Velez said. It was built in 1990.

Midtown Capital Partner has been busy picking up office properties in South Florida. In December, the company paid $42 million for an office building in Pembroke Pines, and in August 2017, it purchased a portion of the Plantation Pointe Office Park for about $57 million.

Steiner was acquired by L Catterton in 2015 for roughly $925 million, including the assumption of debt. L Catterton is the result of a merger between Louis Vuitton Moet Hennessy, Groupe Arnault and Catterton Partners. The private equity firm is reportedly in talks to sell One Spa World for roughly $1 billion.

An earlier version of this story misspelled Benjamin Silver’s name from a press release. 

Douglas Elliman’s Howard Lorber (Credit: iStock)

Douglas Elliman is still struggling with the new development slump.

In the second quarter, the brokerage’s revenues rose to $205.6 million, compared with $198.7 million a year earlier. But net income was $5.9 million, falling from $16.1 million last year, according to Vector Group, which owns Elliman and New Valley, a real estate investment vehicle.

“One area is the lack of really much revenue on the new development side,” CEO Howard Lorber said on the earnings call. “We do expect more of that starting this quarter.”

The brokerage sold $7.5 billion worth of real estate during the second quarter, up slightly from $7.2 billion in the second quarter of 2017. Lorber noted that the while the Florida market has been stronger, it’s a lower-margin region than New York City.

“The place where the bulk of the money is made, traditionally, has always been New York,” he said.

In New York, new development sales have traditionally proven profitable for Elliman. But sales have been falling in Manhattan, as inventory piles up. In the second quarter, the median sale price for a Manhattan apartment saw its fourth straight decline. New development, in particular, has slumped — with a 37 percent drop in sales volume.

Lorber mentioned the market is resetting, and is likely to be fare better some time next year, though it’s tough to pinpoint specific timing.

“It’s a cyclical business,” he said. “ We’ve had big run-ups, now this is the adjustment phase.”

Last quarter — during which Elliman sold $6.1 billion worth of real estate — Lorber said the New York market was starting to pick up, as sellers readjusted their expectations for pricing.

Overall, Vector Group reported $481.5 million in revenues during the second quarter, compared with $472.0 million a year earlier. Net income for the quarter was $17.8 million, down from $26.8 million.

Porsche Design Tower, the flag of PDVSA and the Venezuelan flag

UPDATED, Aug. 7, 4:55 p.m.: Federal officials are seeking to seize a condo unit at Porsche Design Tower in Sunny Isles Beach that they allege is tied to a $1 billion Venezuelan money laundering scheme.

Prosecutors allege the scheme laundered money out of Venezuela’s state-run oil company, PDVSA, and into fraudulent investments and Miami real estate. One deal allegedly involved was the $5.3 million purchase of unit 2205 at Porsche Design, a 132-unit, 60-story luxury condo tower built by Dezer Development.

Federal officials are now seeking to seize the unit and recently filed a notice of lis pendens in the U.S. District Court for the Southern District of Florida. Andrew Ittleman, a partner at Fuerst Ittleman David & Joseph who focuses on white collar defense and money laundering, said filing a notice of lis pendens makes the property “impossible to sell until the resolution of the case.”

Paladium Real Estate Group LLC purchased the unit from the developer in January 2017, according to property records. State records show that the wife of the Venezuelan Ministry of Oil and Mining’s former legal counsel originally managed the LLC. Juris Magister, a Brickell law firm, is the registered agent.

In the initial indictment, federal prosecutors allege the former legal counsel, Carmelo Urdaneta Aqui, discussed transferring the unit to an alleged Venezuelan money launderer, Jose Vincente Amparan Croquer, as compensation for his services. Amparan’s wife was added as a manager of the buyer’s LLC in September 2016. A year later, Urdaneta’s wife was removed, “leaving Amparan in control of Paladium and the condominium,” according to the indictment.

In a statement provided to The Real Deal, Dezer Development cited the Fair Housing Act and other laws that “require us to sell to buyers that have the ability to sign a contract and send a deposit. We are precluded by these laws from conducting background searches or any action that would be deemed as discriminatory. We simply live in a society where we cannot choose our neighbors.”

Conspirators in the alleged scheme include former PDVSA officials and members of the Venezuelan elite, also known as “boliburgués.” Shortly after the indictment was filed in late July, the Miami Herald reported that Venezuela President Nicolás Maduro is under investigation by the U.S. government for his role in the alleged scheme.

The U.S. Attorney’s office declined to comment, citing pending litigation.

Ittleman said that when the federal government looks to seize an asset in a money laundering case, it is usually successful.

Dezer completed the beachfront tower in November 2016, and a number of owners have tried to flip their units since then. The building is known for its “Dezervator,” a patented car elevator that takes residents up to their units in their cars.

Zillow CEO Spencer Rascoff (Credit: iStock)

UPDATED, Aug. 6, 6:20 p.m.: Thanks to its lucrative Premier Agent ad program, Zillow Group’s revenue rose 22 percent during the second quarter, the listings giant said Monday.

The Seattle-based company said revenue for the quarter hit $325.3 million, compared to $266.9 million during the second quarter of 2017. Zillow’s net loss narrowed to $3 million, compared to $21.8 million during 2017’s second quarter.

Zillow’s revenue from Premier Agent — a program that lets buy-side agents advertise on listings — also rose 22 percent to $230.9 million during the second quarter. Zillow’s rental business line was its fastest-growing segment, with $33.3 million in revenue, up 40 percent year over year.

In New York, Zillow has tried to monetize StreetEasy through Premier Agent and a $3-per-day fee to post rental listings. Spencer Rascoff, the company’s CEO, called the price a “screaming deal” for anyone posting listings.

“We haven’t changed that price,” he said during an earnings call on Monday. “We have no plans to change [it] in the near term, but it is a terrific deal and very ROI positive for anyone who advertises rental listings on StreetEasy.”

On Monday, Zillow also said it acquired Mortgage Lenders of America, a 300-person mortgage brokerage in Overland Park, Kansas. While Zillow already sells ad products for mortgage lenders, the company said the acquisition is related to “Zillow Offers,” a new program through which it buys and sells homes from consumers.

During the earnings call, Rascoff described the deal as part of Zillow’s broader push to evolve beyond a lead-generation platform into “an end-to-end provider on housing-related services.”

And he said it would enable Zillow to further monetize Zillow Offers.

“On a Zillow-owned home, when we’re re-selling it to a consumer, we’ll provide mortgage origination,” said Rascoff, who estimated that if the company buys and sells 10,000 homes a month, that could generate revenue north of $800 million from mortgage origination alone.

Zillow debuted the program in Phoenix, Arizona, and recently said it would expand to Denver and Atlanta. During the second quarter, Zillow said it purchased 19 homes in Phoenix through Zillow offers.

At the behest of Arizona regulators, Zillow recently obtained a brokerage license in that state. In a letter to regulators dated August 6, Zillow stressed that it’s not looking to cut brokers out of the home-buying and selling operation — a concern that some traditional brokerage firms have expressed. (Zillow Offers uses Premier Agents to broker deals.)

“Our intention to obtain a license is not an indication of any change to Zillow Offers, nor does it mean we will be operating as a traditional brokerage,” the letter said. “With Zillow Offers, Zillow will still be represented by a local agent who is part of a separately licensed brokerage.”

Update: This story has been updated to include quotes from Zillow’s Q2 earnings call. 

Condo sales in Miami-Dade rose last week, led by a sale on Fisher Island.

Condo sales totaled 173 closings for a combined $63.2 million, 49 fewer units and about $15 million less than the previous week. Condos last week sold for an average price of about $365,000 or about $300 per square foot.

The priciest closing was at Seaside Villas on Fisher Island in Miami Beach. Unit 19251 sold for $2.6 million, or $938 per foot. The three-bedroom, 2,800-square-foot condo was listed with Zhanna Block. Don Pingaro brought the buyer.

The second most-expensive sale was unit 3701 at Acqualina in Sunny Isles Beach, which sold for $2.55 million, or $932 per square foot. Michael Goldstein, head of sales for Acqualina’s projects, represented the seller. Marla Cohen represented the buyer. The unit sat on the market for 456 days before it closed.

Here’s a breakdown of the top 10 sales from July 29 to Aug. 4. Click on the map for more information:

Most expensive
Seaside Villas #19251, Miami Beach | 171 days on market | $2.6M | $938 psf | Listing agent: Zhanna Block | Buyer’s agent: Don Pingaro

Least expensive
Echo Brickell #1903, Miami | 78 days on market | $950k | $581 psf | Listing agent: Zachary Fernandez | Buyer’s agent: Lauren Snell

Most days on market
Acqualina #3701, Sunny Isles Beach | 456 days on market | $2.55M | $932 psf | Listing agent: Michael Goldstein | Buyer’s agent: Marla Cohen

Fewest days on market
Indian Creek #20CD, Miami Beach | 67 days on market | $971k | $335 psf | Listing agent: Cinthia Ane | Buyer’s agent: Anthony DeRosa-Marra

(Credit: iStock)

Freddie Mac is launching a new program to help keep rents down.

The initiative will offer owners who cap rent increases for the duration of their loans lower-cost financing, according to the Wall Street Journal. It works similar to rent control but is a voluntary program.

Freddie Mac plans to announce the program on Tuesday and launch it immediately. The firm will provide mezzanine debt to owners at below market cost, which could be appealing to real estate investors facing a rental market that has been slowing down.

Owners who get the loans are required to make at least 50 percent of their units affordable for houses making the local median income or less, and they have to limit rent increases on 80 percent of the units.

The company started offering low-cost loans for owners who agree to cap rent increases this spring, but the new program will apply more broadly because it applies to investors that do not have an explicit focus on affordable housing, according to Freddie Mac executive vice president David Brickman.

“You’re taking some of the opportunity to hit a home run off the table,” he told the Journal, “but arguably making it more likely you can hit a single or a double.” [WSJ] – Eddie Small

Christopher Phillips and Marley Dominguez

Triple-net lease specialist Doug Aronson joined Colliers International South Florida as a senior vice president.

Aronson has 13 years of commercial real estate experience, including the previous five years as managing director of Calkain Companies, a commercial real estate firm based in Herndon, Virginia, that focuses on triple-net leases. Colliers will create a net lease platform for Colliers in South Florida.

The Bainbridge Companies hired Christopher Phillips as senior vice president and chief financial officer. Phillips left Kayne Anderson Real Estate, where he was also CFO. He’ll be based out of the multifamily developer’s Wellington office.

One Real Estate Investment hired Marley Dominguez from the Kuwait Pension Fund in Miami. Dominguez, who was vice president of acquisitions and asset management at the Kuwaiti pension fund, is now a director at Jeronimo Hirschfeld’s firm. The company also brought on David Flores as vice president of acquisition. Flores has previously worked for Nitya Capital in Houston, and at PM Realty and Greystar.

Jeff Gersh and Ben Gluck joined Trez Forman Capital Group, a private commercial real estate lender. Gersh is now a senior vice president of finance, and was previously area vice president for the Florida division of Shea Homes’ active adult lifestyle communities. Gluck joined Trez Forman as an associate in the credit risk and underwriting department.

BGI Capital brought on Malbelys Gonzalez as a commercial account executive. Gonzalez was a transaction/commission coordinator for One Sotheby’s International Realty.

Luisa Londono is now a commercial real estate adviser at Rise Realty.

Michael H. Alaoui joined Marcus & Millichap as a senior associate based in Miami. He’s worked for the Keyes Company and Colliers International South Florida, and founded Think Commercial, a land and industrial real estate firm, in 2010.

The site and Rockpoint Group founder and managing director Bill Walton

A partnership between Houston-based Morgan Group and Boston-based Rockpoint Group just bought a residential development site in Boynton Beach for $19.52 million, as part of larger push to bring luxury multifamily development to the area.

BlackRock sold the 18.5-acre residential development site on Renaissance Commons Boulevard for $1.05 million per acre, property records show.

Morgan Group and Rockpoint plan to develop 378 luxury apartments and 55 townhomes within seven, four-story buildings and 11, two-story townhome buildings with garages, according to a release.

ARA Newmark’s vice chairmen Avery Klann and Hampton Beebe, and director Jonathan Senn represented the seller.

The property is part of the Boynton Village and Town Center’s master plan. The master plan development includes two other multifamily projects – The District Boynton and Alta at Cortina – along with an existing retail center anchored by Target, Total Wine & More, and Best Buy.

Morgan is a privately held national developer and manager of Class A multifamily properties.

Rockpoint Group, a real estate private equity firm, has raised about $19 billion in capital commitments and invested or committed to invest in 408 transactions, according to a release. In June, Rockpoint and the Related Group announced they were partnering on a new division within Related focused on acquiring value-add multifamily properties in Florida and throughout the Sun Belt.

5000 Oakes Road and Longpoint Realty Partners’ Dwight Angelini

Longpoint Realty Partners just paid $15.8 million for an industrial-office complex in Davie, near the Seminole Hard Rock Hotel & Casino.

RREEF America, the real estate investment business of Deutsche Bank’s Asset Management division, sold the Broward Business Park, a five-building, 124,227-square-foot flex property at 5000 Oakes Road.

Records show RREEF paid $6.15 million for the complex in 2000. The property was developed in 1981 and features 22-foot clear ceiling heights, office space and signage along the Florida Turnpike. Asking rents start at $13.50, triple net, according to a CBRE listing.

Longpoint, which was launched by former TA Associates Realty brokers Dwight Angelini, Nilesh Bubna, Reid Parker and Robert Provos, has managed more than $8 billion worth of real estate assets, according to its website.

The commercial investment firm focuses on industrial and retail properties in major East Coast and Texas markets. In June, it paid $10 million for a Publix-anchored shopping center in Boynton Beach.

Demand is strong for industrial properties in Broward, thanks to low vacancy rates and rising rents. Vacancy rates dipped in the second quarter to 3.9 percent from 5.3 percent, on a year-over-year basis, according to a second quarter report by CBRE.

Michael Cohen (Credit: Getty Images)

As other probes into potential wrongdoing by Michael Cohen continue, federal authorities are now looking into whether President Trump’s former attorney committed tax fraud.

Prosecutors are looking into whether Cohen underreported income from his taxi medallion business in federal tax returns, the Wall Street Journal reported. Prosecutors are also examining his relationship with Sterling National Bank, which provided Cohen with financing for his taxi businesses.

The news comes just a few months after Cohen’s longtime business partner Evgeny “Gene” Freidman pleaded guilty to tax fraud, cutting a deal with prosecutors that requires him to cooperate with any ongoing investigations. Freidman previously managed Cohen’s 30-plus medallions in New York.

The prospect of fraud convictions could put extra pressure on Cohen to cooperate with authorities in other probes. The Federal Bureau of Investigation and the Manhattan U.S. attorney’s office are investigating Cohen’s role in hiding negative information about the president, including claims that he had sexual encounters with former Playboy model Karen McDougal and Stephanie Clifford, a former adult-film star. Trump has denied such claims.

Authorities are also looking into potential campaign-finance violations, bank fraud and other issues related to Cohen’s business interests.

Cohen recently bought a $6.7 million luxury condominium at Witkoff Group, Fisher Brothers and New Valley’s 111 Murray Street skyscraper in Tribeca. Developers, Steve Witkoff and Howard Lorber, provided financing for the deal. Last year, Cohen sold a home at Trump World Tower for $3.3 million. [WSJ] — Kathryn Brenzel 

Kevin Boeve, Marcus & Millichap office (Credit: Public Domain Pictures)

A former employee at Marcus & Millichap has filed a complaint against the commercial brokerage and one of its executives, alleging she was sexually harassed and then fired for complaining.

In a lawsuit filed on July 17 in Los Angeles Superior Court, Adina Hemley Talkov claims she was repeatedly propositioned for sex by Kevin Boeve, a senior vice president at the company’s office in Ontario, Calif. When she turned him down, he would allegedly punish her by refusing to provide her with leads and advancement opportunities.

Talkov is suing for damages, including wrongful termination in violation of policy, retaliation in violation of the Fair Employment and Housing Act and labor code, and intentional infliction of emotional distress. She worked as a sales associate for the brokerage from November 2015 to June 2017.

The suit also details instances where managers allegedly snorted cocaine off their desks, male salespersons slapped female assistants on their rear ends, and strippers and possibly prostitutes visited the workplace.

Talkov claims that in May 2017 she complained about the issues to a regional manager, a senior vice president and a compliance officer. Later that month, she raised the complaints with Hessam Nadji, the firm’s president and CEO, who advised her to report them to human resources.

She met with human resources in early June to discuss the harassment, and was fired June 17 for being late to a meeting, the suit alleges.

Boeve is an industry veteran that first joined the firm in 1996. He rose through the ranks to become a regional manager at the firm’s Ontario and Palm Springs offices in 2013, according to Marcus & Millichap’s website. He returned to client representation in 2016 as senior vice president of investments.

Talkov is seeking punitive damages for lost earnings, legal costs and interest on loss of wages and benefits.

A spokesperson for the brokerage, Gina Relva, declined to comment on Talkov’s suit. “While we cannot comment on pending litigation, we can state that maintaining a work environment that is free from discrimination, harassment and retaliation is of paramount importance to us,” Relva said.

The suit is the latest allegation to come out of the #MeToo movement, where thousands of women have decried sexual harassment in a variety of industries. In commercial real estate, a dramatic gender gap has made it especially difficult for women to advance the ranks, while also paving the way for instances of misconduct.

In a study published in May by National Real Estate Investor, nearly three-quarters of 252 respondents said that discrimination occurs in the industry. The hurdles include receiving a lower salary than someone of another gender or sexual orientation for doing the same job, and being passed over for assignments and promotions.

An earlier study, also published by NREI, showed that 90 percent of women said that sexual harassment occurs in the real estate industry.

The #MeToo movement has caused some real estate and development firms to take a closer look at some of the industry events they’re sponsoring. In New York, this past holiday season was significantly tamer than the the ones in the past, thanks in part to a heightened awareness.

Softbank CEO Masayoshi Son and the Tokyo Stock Exchange (Credit: Getty Images and WIkipedia)

SoftBank is planning an initial public offering for its Japanese wireless business that could be worth about $30 billion, which would make it the largest IPO ever.

The company is talking to advisers about selling a third of the business in the IPO, but discussions are still preliminary, and the company’s final valuation will depend on feedback from investors, according to Bloomberg.

So far, the biggest market debut has been from Alibaba Group, which came out in 2014 with a $25 billion offering. SoftBank shareholders think the company’s technology partnerships and guaranteed dividend yield could help it achieve a higher valuation.

Masayoshi Son, the founder of SoftBank who famously backed Alibaba’s young CEO Jack Ma, said in a presentation on Monday that he is aiming for a Tokyo Stock Exchange listing. This could arrive as soon as the fourth quarter.

Son has been focusing more on investments lately, putting money into the ride-hailing and co-working industries, and trying to offload some of the company’s mobile assets. The company agreed to invest $4.4 billion in WeWork last year and has provided Compass with $450 million. [Bloomberg]  – Eddie Small