—— LIC’s Tallest Residential Tower Secures $425M Loan; US Stock Short Positions Top $1 Trillion; NYC Luxury Rentals Target Wealthy Tenants; Startup Valuations Fall 61%; US Distressed Commercial Real Estate Hits $64B; Jobless Claims Remain Elevated; US Existing Home Sales Rise
1. LIC’s Tallest Residential Tower Secures $425M Loan
Recently, The Orchard, a new mixed-use residential tower project in Long Island City, secured a $425 million construction loan provided by M&T Bank, U.S. Bank, and Bank of China, among others.
Upon completion, The Orchard will become the tallest building in Long Island City, offering 824 residential units, 207 parking spaces, over 100,000 square feet of amenity space, and 13,000 square feet of retail space.
Additionally, The Orchard qualifies for the 421-a tax abatement program, meaning 30% of the units will be designated as affordable housing.
Greystone, the leading financing firm that arranged the loan, stated that the project’s successful financing reflects investors’ strong confidence in high-quality multifamily properties.
The Orchard will surpass the Skyline Tower in height, breaking the record in Long Island City.
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2. US Stock Short Positions Top $1 Trillion
According to the latest data from S3 Partners LLC, the value of short positions against US stocks has surpassed $1 trillion this month, the highest level since April 2022.
Many traders believe the S&P 500’s 14% rally this year will soon lose momentum. Despite the ongoing stock surge, short sellers are currently facing a combined unrealized loss of over $101 billion but remain patient for a reversal.
B. Riley Wealth Chief Market Strategist Arthur Hogan commented that the higher the market rises, the stronger the short-selling sentiment becomes. However, if the rally continues, short sellers may be forced to cover, further fueling the rally.
US stocks have been rallying aggressively this year, defying much of the underlying economic data.
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3. NYC Luxury Rentals Target Wealthy Tenants
On Wednesday, the Anagram Columbus Circle building on Manhattan’s Upper West Side began leasing units ranging from $4,930 studios to $26,150 four-bedroom apartments.
The 26-story Anagram tower offers condominium-grade finishes and targets affluent renters who prefer luxury living without committing to ownership.
Billionaire developer Eyal Ofer stated that many wealthy individuals in New York prefer renting due to lifestyle flexibility or short-term stays, making Anagram an ideal fit for such tenants.
Over the past three months, Manhattan rents have repeatedly hit record highs due to limited inventory.
Four-bedroom units facing Central Park are listed at $26,000, catering to affluent tenants seeking flexibility.
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4. Startup Valuations Fall 61%
According to a new report by Forge Global Holdings, as of May 31, startup valuations have fallen a median 61% compared to their last funding rounds.
As many quality startups become attractively priced, secondary markets for startup shares are drawing renewed interest from venture capital funds. Forge Global believes now is the best VC buying opportunity since 2008.
Phil Haslett, founder of the VC secondary platform EquityZen, noted that while hedge funds and VCs avoided startups a year ago, today they are well-capitalized and hunting for bargains.
Sources revealed that Andreessen Horowitz, Bain Capital, Kleiner Perkins, and Tiger Global are all actively increasing their stakes.
Startup valuations have dropped a median 61%, presenting prime opportunities for VC investments.
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5. US Distressed Commercial Real Estate Hits $64B
MSCI Real Assets’ latest report showed that US distressed commercial property value rose 10% in Q1 to $64 billion, with another $155 billion at potential risk.
Over the past year, Fed rate hikes have severely impacted commercial real estate, causing property values to drop and forcing owners into default.
Tighter lending conditions have made refinancing challenging for many properties.
Retail and office properties are the most stressed sectors, with distressed values of $23 billion and $18 billion, respectively.
Manhattan remains the largest US market for distressed commercial property, totaling $2.6 billion, or 19% of the national figure.
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6. Jobless Claims Remain Elevated
The US Department of Labor reported today that for the week ending June 17, initial jobless claims held at 264,000, the highest level since October 2021, slightly above economists’ expectations.
Continuing claims fell to 1.76 million.
The rise in jobless claims is mainly driven by large-scale layoffs in the tech and finance sectors and reduced demand for short-term and part-time workers.
California, New Jersey, and Connecticut reported the largest increases in claims, while Georgia, Missouri, and Indiana saw declines.
New York’s rise in claims is primarily attributed to layoffs in the financial sector.
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7. US Existing Home Sales Rise
The National Association of Realtors (NAR) reported today that US existing home sales rose 0.2% in May to an annualized rate of 4.3 million units, though sales were down over 18% year-over-year.
The median price for existing homes fell 3.1% year-over-year to $396,100, still considered relatively high.
Available inventory dropped 6.1% year-over-year to 1.08 million homes, marking the lowest level since 1999.
The report showed that 74% of homes sold in May were on the market for less than a month, with the average listing lasting 18 days, down from 22 days in April.
(Note: Bitcoin prices remain highly volatile, with both positive and negative news driving large swings.)
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This content is sourced from Financial Times, Bloomberg, and The Real Deal, among other financial news outlets.