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These Beverly Hills condos chase record prices with private pools, butlers and a five-star restaurant

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These Beverly Hills condos chase record prices with private pools, butlers and a five-star restaurant

A $100-million boutique condominium advanced rising within the vaunted Golden Triangle district of Beverly Hills is escalating Southern California’s luxurious vertical-living rivalry with a possible five-star restaurant, non-public swimming pools and the form of pampering that may lure elite downsizers from their sprawling estates.

The swanky 17-unit constructing the place a house might promote for greater than $40 million — a value not but seen within the area’s rental market — can be managed by Rosewood Resorts & Resorts, a Hong Kong hospitality firm identified for working luxurious residential-style inns, builders stated Tuesday.

The announcement of Rosewood Residences Beverly Hills comes as top-echelon condominiums are hitting new peaks in Los Angeles County with potential to high the document value of $35 million set in 2010 by Sweet Spelling, widow of producer Aaron Spelling, when she purchased a penthouse in Century Metropolis. On the new 8899 Beverly luxurious constructing in West Hollywood, house owners need $50 million for a penthouse.

Rosewood Residences is below building at 9900 S. Santa Monica Blvd. on a web site final occupied by the Friars Membership, a legendary non-public membership began in 1947 by comic Milton Berle and different present biz luminaries of the postwar period, together with Ronald Reagan. The Friars constructing was demolished in 2011.

The positioning is adjoining to the Peninsula Beverly Hills lodge and throughout Santa Monica from the Beverly Hilton and Waldorf Astoria Beverly Hills inns. Deliberate subsequent to the Waldorf and Hilton is One Beverly Hills, a $2-billion backyard advanced with greater than 300 condos and a boutique Aman lodge and residences. A whole lot extra upscale condos had been lately accomplished in close by Century Metropolis.

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Rosewood Residences, set to open in 2024, can be at “the middle of this new burgeoning hall that’s going to be the way forward for residential actual property” round Beverly Hills, developer Genghis Hadi of Nahla Capital stated. “This web site is irreplaceable.”

The builders hope to command $4,000 per sq. foot for items, which might put it on the high finish of the market.

Final month a penthouse on the Pendry Residences West Hollywood modified fingers for $21.5 million, or $3,412 a foot, within the priciest rental sale of the yr up to now. Two different items on the Pendry bought for properly greater than $4,000 a foot final yr.

A rendering exhibits the principle entrance to Rosewood Residences Beverly Hills on Charleville Boulevard.

(The Boundary)

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The marketplace for such high-priced housing is so rarified that it’s onerous to investigate statistically, stated economist Richard Inexperienced, director of the USC Lusk Heart for Actual Property.

“It’s virtually like watches and artwork,” Inexperienced stated. “They clearly have worth to a small variety of people who find themselves all bidding in opposition to one another, however past that it’s onerous to clarify why they’re value what they’re value.”

Rosewood Residences can be laden with options meant to make it stand out within the premium market, Hadi stated, beginning with unit dimension. The typical residence can be 4,100 sq. ft, simply bigger than a typical home within the Los Angeles space however maybe smaller than the properties that consumers could also be leaving.

“We’re specializing in the Beverly Hills and Los Angeles owners who’re shifting out of enormous properties and want quite a lot of the facilities that a big house provides them however need the safety and security of a residential constructing,” he stated, the place there’s a doorman, valet parking and folks to care for landscaping, pool upkeep and different duties.

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Kitchens can have double islands, a distinguished characteristic in homes in Beverly Hills and Bel-Air, he stated. “One for sensible cooking and one for entertaining.”

Every residence will even have non-public elevator entry, a big entry lobby, out of doors dwelling areas and a mudroom/laundry room reached by a discrete service elevator. Six of the items can have non-public swimming pools on their terraces and a few can have totally outfitted out of doors kitchens, moist bars and fireplace pits.

There will even be a shared rooftop pool, health heart and out of doors leisure space with areas for eating.

The most important unit at 7,300 sq. ft will embrace two inside fireplaces, a butler’s pantry and an expansive entertaining nice room with a full bar. Exterior can be a personal pool with a full kitchen on a 2,500-square-foot terrace.

The builders hope it should promote for about $40 million, or greater than $5,000 per sq. foot of inside house.

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A rendering shows a rooftop pool at Rosewood Residences Beverly Hills.

A rendering exhibits a rooftop pool for owners at Rosewood Residences Beverly Hills. Six of the 17 items will even include a personal pool.

(The Boundary)

The constructing and interiors had been designed by Thomas Juul-Hansen, a Danish architect identified for designing a number of the priciest flats in New York.

Included within the constructing can be an intimate restaurant open to the general public, that will even serve residents of their properties or on the rooftop non-public lounge on request, Hadi stated. He hopes the restaurant can be worthy of high trade rankings for high-quality eating.

It will likely be the primary stand-alone rental improvement in California operated by Rosewood, which additionally has stand-alone residential tasks within the pipeline for Florida and Phuket, Thailand.

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The closest lodge within the Rosewood chain is Rosewood Miramar Seashore close to Santa Barbara, the place friends have been identified to remain for weeks at a time although typical day by day charges begin at $2,000.

“Our friends would really ask us, ‘Why don’t you construct residences? I wish to dwell in one in all your properties,’” stated Radha Arora, president of Rosewood Resorts & Resorts.

In Beverly Hills, Rosewood will usher in skilled personnel to supply providers, together with a crew of butlers “to ensure each want is met” for owners, “like having a home supervisor at house when you’ve got a big property.”

Duties would possibly embrace bringing in a personal chef for a celebration or arranging care of a resident’s non-public jet — “all of the issues an prosperous shopper of Rosewood would count on,” Arora stated.

Nahla Capital, primarily based in New York, is growing the property with GPI Cos. of Los Angeles. Models are set to go on sale subsequent yr via Compass Growth Advertising and marketing Group.

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Albania Gives Jared Kushner Hotel Project a Nod as Trump Returns

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Albania Gives Jared Kushner Hotel Project a Nod as Trump Returns

The government of Albania has given preliminary approval to a plan proposed by Jared Kushner, Donald J. Trump’s son-in-law, to build a $1.4 billion luxury hotel complex on a small abandoned military base off the coast of Albania.

The project is one of several involving Mr. Trump and his extended family that directly involve foreign government entities that will be moving ahead even while Mr. Trump will be in charge of foreign policy related to these same nations.

The approval by Albania’s Strategic Investment Committee — which is led by Prime Minister Edi Rama — gives Mr. Kushner and his business partners the right to move ahead with accelerated negotiations to build the luxury resort on a 111-acre section of the 2.2-square-mile island of Sazan that will be connected by ferry to the mainland.

Mr. Kushner and the Albanian government did not respond Wednesday to requests for comment. But when previously asked about this project, both have said that the evaluation is not being influenced by Mr. Kushner’s ties to Mr. Trump or any effort to try to seek favors from the U.S. government.

“The fact that such a renowned American entrepreneur shows his interest on investing in Albania makes us very proud and happy,” a spokesman for Mr. Rama said last year in a statement to The New York Times when asked about the projects.

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Mr. Kushner’s Affinity Partners, a private equity company backed with about $4.6 billion in money mostly from Saudi Arabia and other Middle East sovereign wealth funds, is pursuing the Albania project along with Asher Abehsera, a real-estate executive that Mr. Kushner has previously teamed up with to build projects in Brooklyn, N.Y.

The Albanian government, according to an official document recently posted online, will now work with their American partners to clear the proposed hotel site of any potential buried munitions and to examine any other environmental or legal concerns that need to be resolved before the project can move ahead.

The document, dated Dec. 30, notes that the government “has the right to revoke the decision,” depending on the final project negotiations.

Mr. Kushner’s firm has said the plan is to build a five-star “eco-resort community” on the island by turning a “former military base into a vibrant international destination for hospitality and wellness.”

Ivanka Trump, Mr. Trump’s daughter, has said she is helping with the project as well. “We will execute on it,” she said about the project, during a podcast last year.

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This project is just one of two major real-estate deals that Mr. Kushner is pursuing along with Mr. Abehsera that involve foreign governments.

Separately, the partnership received preliminary approval last year to build a luxury hotel complex in Belgrade, Serbia, in the former ministry of defense building, which has sat empty for decades after it was bombed by NATO in 1999 during a war there.

Serbia and Albania have foreign policy matters pending with the United States, as both countries seek continued U.S. support for their long-stalled efforts to join the European Union, and officials in Washington are trying to convince Serbia to tighten ties with the United States, instead of Russia.

Virginia Canter, who served as White House ethics lawyer during the Obama and Clinton administrations and also an ethics adviser to the International Monetary Fund, said even if there was no attempt to gain influence with Mr. Trump, any government deal involving his family creates that impression.

“It all looks like favoritism, like they are providing access to Kushner because they want to be on the good side of Trump,” Ms. Canter said, now with State Democracy Defenders Fund, a group that tracks federal government corruption and ethics issues.

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Craft supplies retailer Joann declares bankruptcy for the second time in a year

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Craft supplies retailer Joann declares bankruptcy for the second time in a year

The craft supplies and fabric retailer Joann filed for bankruptcy for the second time in less than a year, as the chain wrestles with declining sales and inventory shortages, the company said Wednesday.

The retailer emerged from a previous Chapter 11 bankruptcy process last April after eliminating $505 million in debt. Now, with $615 million in liabilities, the company will begin a court-supervised sale of its assets to repay creditors. The company owes an additional $133 million to its suppliers.

“We hope that this process enables us to find a path that would allow Joann to continue operating,” said interim Chief Executive Michael Prendergast in a statement. “The last several years have presented significant and lasting challenges in the retail environment, which, coupled with our current financial position and constrained inventory levels, forced us to take this step.”

Joann’s more than 800 stores and websites will remain open throughout the bankruptcy process, the company said, and employees will continue to receive pay and benefits. The Hudson, Ohio-based company was founded in 1943 and has stores in 49 states, including several in Southern California.

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According to court documents, Joann began receiving unpredictable and inconsistent deliveries of yarn and sewing items from its suppliers, making it difficult to keep its shelves stocked. Joann’s suppliers also discontinued certain items the retailer relied on.

Along with the “unanticipated inventory challenges,” Joann and other retailers face pressure from inflation-wary consumers and interest rates that were for a time the highest in decades. The crafts supplier has also been hindered by competition from others in the space, including Michael’s, Etsy and Hobby Lobby, said Retail Wire Chief Executive Dominick Miserandino.

“It did not necessarily learn to evolve like its nearby competitors,” Miserandino said of Joann. “Not many people have heard of Joann in the way they’ve heard of Michael’s.”

Joann is not the first retailer to continue to struggle after going through bankruptcy. The party supply chain Party City announced last month it would be shutting down operations, after filing for and emerging from Chapter 11 bankruptcy in 2023.

Over the last two years, more than 60 companies have filed for bankruptcy for a second or third time, Bloomberg reported, based on information from BankruptcyData. That’s the most over a comparable period since 2020, when the COVID-19 pandemic kept shoppers home.

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Discount chain Big Lots filed for bankruptcy last September, and the Container Store, a retailer offering storage and organization products, declared bankruptcy last month. Companies that rely heavily on brick-and-mortar locations are scrambling to keep up with online retailers and big-box chains. Fast-casual restaurants such as Red Lobster and Rubio’s Coastal Grill have also struggled.

High prices have prompted consumers to pull back on discretionary spending, while rising operating and labor costs put additional pressure on businesses, experts said. The U.S. annual inflation rate for 2024 was 2.9%, down from 3.4% in 2023. But inflation has been on the rise since September and remains above the Federal Reserve’s goal of 2%.

If a sale process for Joann is approved, Gordon Brothers Retail Partners would serve as the stalking-horse bidder and set the floor for the auction.

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U.S. Sues Southwest Airlines Over Chronic Delays

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U.S. Sues Southwest Airlines Over Chronic Delays

The federal government sued Southwest Airlines on Wednesday, accusing the airline of harming passengers who flew on two routes that were plagued by consistent delays in 2022.

In a lawsuit, the Transportation Department said it was seeking more than $2.1 million in civil penalties over the flights between airports in Chicago and Oakland, Calif., as well as Baltimore and Cleveland, that were chronically delayed over five months that year.

“Airlines have a legal obligation to ensure that their flight schedules provide travelers with realistic departure and arrival times,” the transportation secretary, Pete Buttigieg, said in a statement. “Today’s action sends a message to all airlines that the department is prepared to go to court in order to enforce passenger protections.”

Carriers are barred from operating unrealistic flight schedules, which the Transportation Department considers an unfair, deceptive and anticompetitive practice. A “chronically delayed” flight is defined as one that operates at least 10 times a month and is late by at least 30 minutes more than half the time.

In a statement, Southwest said it was “disappointed” that the department chose to sue over the flights that took place more than two years ago. The airline said it had operated 20 million flights since the Transportation Department enacted its policy against chronically delayed flights more than a decade ago, with no other violations.

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“Any claim that these two flights represent an unrealistic schedule is simply not credible when compared with our performance over the past 15 years,” Southwest said.

Last year, Southwest canceled fewer than 1 percent of its flights, but more than 22 percent arrived at least 15 minutes later than scheduled, according to Cirium, an aviation data provider. Delta Air Lines, United Airlines, Alaska Airlines and American Airlines all had fewer such delays.

The lawsuit was filed in the United States District Court for the Northern District of California. In it, the government said that a Southwest flight from Chicago to Oakland arrived late 19 out of 25 trips in April 2022, with delays averaging more than an hour. The consistent delays continued through August of that year, averaging an hour or more. On another flight, between Baltimore and Cleveland, average delay times reached as high as 96 minutes per month during the same period. In a statement, the department said that Southwest, rather than poor weather or air traffic control, was responsible for more than 90 percent of the delays.

“Holding out these chronically delayed flights disregarded consumers’ need to have reliable information about the real arrival time of a flight and harmed thousands of passengers traveling on these Southwest flights by causing disruptions to travel plans or other plans,” the department said in the lawsuit.

The government said Southwest had violated federal rules 58 times in August 2022 after four months of consistent delays. Each violation faces a civil penalty of up to $37,377, or more than $2.1 million in total, according to the lawsuit.

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The Transportation Department on Wednesday also said that it had penalized Frontier Airlines for chronically delayed flights, fining the airline $650,000. Half that amount was paid to the Treasury and the rest is slated to be forgiven if the airline has no more chronically delayed flights over the next three years.

This month, the department ordered JetBlue Airways to pay a $2 million fine for failing to address similarly delayed flights over a span of more than a year ending in November 2023, with half the money going to passengers affected by the delays.

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