A newsworthy week for Michael Shvo; mounting losses and sinking stock at Elliman... and more

The best national real estate stories from The Real Deal Jun 29, 2024 [View in Browser]( | [$1 for 1 Month]( [The Real Deal Logo](   [The National Logo](   In this week’s newsletter, a flashy investor faces a [rash]( of [bad]( [news]( days. Plus, we look into whether Official can forge ahead without its star brokers; why Elliman is struggling to keep its stock afloat; and one midtown office tower hits an online auction platform. These and more below.   A newsworthy week for Michael Shvo Michael Shvo is used to making headlines. But he might not be happy with a few of the latest. Shvo has been on a big acquisition streak over the past few years, snapping up trophies like the [Transamerica Pyramid]( and planning big projects like the [Raleigh redevelopment]( and condos in conjunction with luxury brand [Mandarin Oriental](. Two weeks ago, on the same day, two [major]( [publications]( put out pieces on Shvo. With different details, they suggested the same thing — that despite an ambitious strategy, he is struggling to deliver. They cited sluggish sales at the Mandarin Oriental in New York, slow construction at the Raleigh in Miami Beach and San Francisco’s notoriously bad office market, plus lawsuits, partner disputes and more. A spokesperson disputed some of Business Insider’s claims. In an interview with the Wall Street Journal, Shvo maintained his business “is in the best place it has ever been.” Shvo barely got a break in coverage since. On Tuesday, Serdar Bilgili, the wealthy Turkish businessman Shvo previously referred to as his “best friend” and who helped back the developer through his acquisition spree, hit him with another [lawsuit](. This time, Bilgili claims that his former friend diluted his stake in Vlad Doronin’s Aman-branded condo project at 730 Fifth Avenue. Bilgili previously sued Shvo for [cutting him out]( of the Transamerica deal, along with one for Chicago’s “Big Red” office building. Then on Wednesday, he was hit with a [lawsuit]( from the Core Club alleging that he over-promised and under-delivered on developing high-profile club locations in New York City, San Francisco and Milan. Shvo sued the members-only club a few weeks ago, claiming it defaulted on a loan to build the three locations. The latest suit alleges that Shvo lured the club into unfair loan terms and leases to enhance the value of his properties and attract other high-profile tenants. Shvo’s attorney denied the lawsuit’s version of events and characterized it as a pressure tactic. “The lawsuit filed today is a desperate attempt to bail out the owners of Core Club from fulfilling the very clear obligations they committed to in a series of binding, written agreements,” the lawyer said in a statement. Finally, on Thursday, The Real Deal learned Shvo is [cutting ties]( with embattled brokerage [Official]( at its Rosewood Residences at the Raleigh in Miami Beach after two of its co-founders, brother Tal and Oren Alexanders, were [accused]( of rape and sexual assault. Anna Sherrill, who joined Official at the end of May, will stay on in her current role as sales director, a spokesperson for Shvo confirmed. We’ll have to wait and see when Shvo reappears in the headlines, but based on the past few weeks, it’s anyone’s guess as to how he could get there.   Together with Masterworks This painting sold for $8 million, these everyday investors profited [Masterworks]( When the painting by master Claude Monet (you may have heard of him) was bought for $6.8 million and sold for a cool $8 million just 631 days later, investors in shares of the offering received their share of the net proceeds. All thanks to [Masterworks, the award-winning platform]( for investing in blue-chip art. To date, every one of Masterworks’ 23 sales out of its portfolio has returned a profit to investors. With 3 sales, investors realized net annualized returns of 17.6%, 17.8%, and 21.5%! How does it work? Simple, Masterworks files each offering with the SEC so that nearly anyone can invest in [highly coveted artworks]( for just a fraction of the price of the entire piece. Shares of every offering are limited, but Real Deal readers can [skip the waitlist with this exclusive link.]( Past performance is not indicative of future returns. Investing involves risk. See Important disclosures at [www.masterworks.com/cd](   [I'm an image]( [Mounting losses, sinking stock: Elliman’s tough spot]( Douglas Elliman is stuck with mounting losses and a share price near $1 as executives tout deep cost cuts to help bottom line [I'm an image]( [What is Official without the Alexanders?]( Allegations that Oren and Tal Alexander raped women has threatened to bring down the brokerage firm they co-founded, Official backed by Side. [I'm an image]( [UBS looks to offload a 1M sf Midtown office building on Ten-X]( 135 West 50th Street is listed on Ten-X with a $7.5M starting bid   Advertisement   [I'm an image]( [Sponsored Meet The Company Auditing Rental Leases for Free with AI]( [I'm an image]( [Former Warriors GM makes priciest Santa Monica home buy this year]( Basketball executive and TV analyst Bob Myers acquires estate “with every conceivable amenity.” [I'm an image]( [KKR plunks $2.1B down on Quarterra portfolio]( Private equity giant KKR deemed the time right to buy multifamily, snapping up a portfolio for $2.1 billion. [I'm an image]( [Florida laws tied to HOAs, condo-hotels, insurance and building permits go into effect July 1]( While Gov. Ron DeSantis shot down efforts to establish heat protections for workers, he approved bills that impose more oversight on association boards. [I'm an image]( [Can Day, Beraznik work out $258M in troubled floating rate loans?]( At least nine vintage apartment complexes in 29th Street Capital’s portfolio are tied to adjustable rate loans with interest swallowing revenue.     [The Real Deal Logo]( [Facebook]( [Twitter]( [Instagram]( [LinkedIn]( [YouTube]( [Manage Newsletters]( | [Unsubscribe]( | [Privacy Policy]( | [Subscribe]( | [Advertise]( The Real Deal 450 West 31st Street, New York, NY 10001 ©2024 TheRealDeal. All rights reserved. [View Online](