The commercial building market is facing the worst of inflation, new telecommuting, interest rate hikes and lack of funds.
Due to funding issues, 452 Fifth Ave across from Bryant Park, which was sold by Eastdil Secured. A $ 855 million transaction for the HSBC Building in Tokyo has recently occurred.
The buyer's InnovoPropertyGroup was unable to secure support due to the relocation of the building's anchor tenant, HSBC. Currently, Israeli seller PBC USA has the potential to pocket $ 35 million in deposits.
A trading catastrophe can give a suspension to someone else who deposits a building deposit without cash on hand.
"Everything that requires capital or proforma work in free space, or renewal or financing at a higher rate today, has been priced," Cushman's capital markets said. Chairman Douglas Harmon said. 158} Wakefield. "Very high quality, well-leased new assets are still highly sought after."
Harmon, at a price expected to exceed $ 555 million, 5 We offer 500,000 square feet of office condominiums at 575 Avenue.
Long-term while investors are still bidding bullish Banking Office Market Recovery — Transactions are high despite the large amount of cash on the sidelines.
"We have been plagued by low interest rates for a long time. When mortgage rates go from 2% to 3%, or 3% to 5%, payments increase by 60%. JLL Andrew Scandalios, co-head of Capital Markets, said: "Many people don't have it, and it affects their transactions and portfolios."
Scandalios said. We predicted that both telecommuting and the move to higher quality spaces around transit nodes would "change the nature of the office market."
"The Grand Station is hot again."
CBRE Chairman and Capital Markets Head Darcy Stacom
Earlier this year, 475 Fifth Avenue, located on 41st Avenue opposite the Public Library and Bryant Park, was sold. Through Darcy Stacom, Chairman of CBRE and Head of Capital Markets, RFR was funded by current tenant Penske Media for $ 291 million.
Stacom said, "Grand Central is hot again" thanks to the opening of Wonder Built and the excitement surrounding the 1,575-foot-high 175 Park Avenue with Hyatt hotels on the east side of Grand Central Terminal. I am. above.
"It's very positive for [For] leasing brokers," Stacom said.
She also 609 Fifth Ave for SL Green. Touted 139,000 square feet of office space above the Puma store in. She is currently contracting for $ 105 million, or $ 723 per foot.
The latest office building on the market, 1330 Sixth Ave. A little north between West 53rd Street and 54th Street. Blackstone and RXR have allocated sales to Eastdil Secured with a goal of $ 350 million per foot, or $ 658. Seller RXR spent $ 400 million in 2010 on a building that was confiscated when Harry McCrow was in default after paying $ 489 million in 2007. Per foot, depending on the required leasing and capital improvements.
450 Park Avenue will be $ 445 million to SL Green Realty Corporation through Stacom because the retail area rents negotiated with new tenants Bank United and Aston Martin during the pandemic are much lower. Sold at. The $ 545 million price paid in 2014 for Oxford and Crown.
March, 25,693 sq ft retail space at the foot of Times Square's 1600 Broadway — M&M stores and two billboards (each bringing rent over $ 1.1 million) — Harmon Sold from Sherwood Property to Paramount for $ 191.5 million through.
30 Times Square, also known as 719 Seventh Avenue, diagonally on the street. Marcus&Millichap's Senior Managing Director, Eric Anton, sells a small but vacant new 10,040-square-foot retail building in SL Green. Much of its $ 60 million value is for 5.2 million pixels glowing with six signs covering the 5,800 square feet of the façade.
All of these deals offer ripples and pauses for those who want the lowest price to enter or expand into Big Apple, despite the many challenges in the market. Serves as proof of what is being considered. Year point.
Adelaide Polsinelli, Vice President of Compass, said 230 W. We sell properties at 72nd St. , She showed to 20-30 small developers.
"I'm aware that 90% of the buyers I work for are new, have never purchased in New York, and are at low pricing levels. . Smart money has been purchased and this is how families build their heritage. "
Compass Vice Chairman Adelaide Polsinelli
" These buyers are fresh I'm coming with my eyes, "she said. "90% of the buyers I work with are new and have noticed that they have never bought in New York and are at a low level of pricing. Smart money is being bought. This is how families build their heritage. ”
Eugene Asset Management, the first Korean syndicate purchased in the US and New York City, was sold by Harmon on behalf of Related 255 W. 96th St. Paid $ 267 million to Lyric Apartment Tower.
"It shows that the world's capital is still chasing New York City homes, in this case dueling with domestic buyers," Harmon said.
A 49% stake in One Manhattan West's new office tower was acquired by Blackstone in a transaction sold by Harmon's team on behalf of Brookfield and the Qatar Investment Authority and re-acquired to $ 2.85 billion. It was evaluated.
Google, represented by Stacom, bought a 1.3 million square foot office building under construction on 550 Washington Street in Tribeca for $ 2.1 billion near other new offices in Pier 57. ..
Still, some properties are floating in the sales market in many pandemics, waiting for prices to improve or for owners to refinance.
"We have done a lot of evaluation and Advise clients on what to do and when to do it. I think most of what was pulled or not launched [from the market] is due to what's happening in the credit market. " Said Scandalios.
Another broker who wants to remain anonymous said, "I'm worried that some of the big payers won't hang in their portfolios, prevent them from being swallowed by lenders, or go out to buy. Some people are doing it. "
In March, the Court Square Queens development site, which is scheduled for a 66-story tower, plans to give Carmel Partners $ 176 million through Woody Heller, the founding partner of Brunton Realty Services. Sold with a permit. Seller Stawski Partners has gained a foothold to certify more than 900 future units of the 421a exemption that ended June 15.
However, due to the lack of an ongoing 421a type tax cut program, Kibosch is JLL's co-head of the capital markets, Bob Nakar, who mentioned the sale of land and the construction of rental apartments in Outer Blow. rice field. Manhattan's land is still being traded, he said, but only for new condominiums.
The conversion market for renting up to condominiums and co-operative apartments is Dead but 2019 state law requires 51% of current tenants to buy units, and old residential office towers are beginning to emerge downtown.
Rudin Management is 55 BroadSt through Eastdil Secured. Has an agreement to sell to Silverstein and MetroLoft Management ventures. MetroLoftManagement is the most active rental property in downtown.
Similarly, in direct transactions, Metroloft and Jeffglall's GFP Real Estate have a contract to purchase 4 New York Plaza aka 25 Water Street. This is a million square foot tower that needs more windows to capture. The view of the harbor. Seller Edge Funds bought for $ 270 million in 2015 and owns a $ 250 million mortgage. The tenant and former owner, JP Morgan Chase, is attempting a sublease and is being rescued when the lease expires in January 2025.
“We have changed the rebranding, conversion and pricing of our assets. We expect trading volumes to be lower in the second half of this year than in the same period in 2021.
Cushman's capital market chair Douglas Harmon& Wakefield
"Some of these cannot be converted into housing," Polsinelli said. I advised about that property. , Point out issues such as zoning and regulation that require more exits. "It's not like a shoe-in that just looks back and transforms."
This makes the hotel an affordable home by Governor Hokul this month relaxing zoning and funding restrictions. Another reason to sign a law that makes it easy to convert.
Housing sales also support the market.
One of the biggest home sales of the year, the Angled Connected American Copper Building at 636First Ave. On East 33rd Street, it was sold by Harmon to Josh Gottrib's Black Spruce Management for $ 877 million for Michael Stern's JDS and Bowpost Group.
Two other residential towers are for sale by Equity Residential. 140 Riverside Blvd. The 354 former Trump Place rental properties in Douglas Eisenberg were sold to A&E Real Estate in Douglas Eisenberg for $ 266 million through Stacom in April.
Due to its ease of trading, A&E, now one of the city's largest rental owners, is about 4 against Equity's 455 units of the 160 Riverside Blvd, according to sources. He said he signed a $ 100 million contract. Both towers were built as 80/20 buildings by the Trump Organization.
A&E also purchased 1,000 units of 22 Cunningham Heights complex in Queen's Village earlier this year for $ 130 million.
160 Another 80/20 rental tower on Madison Avenue is offered by JLL for $ 400 million, with cuts and low funding going on for a few more years. The BoConcept store is in a renegotiated pandemic rent that will be raised within four years.
"It's an interesting time when assets are being rebranded, converted and priced," Harmon said. "We expect trading volumes to be lower in the second half of this year than in the same period in 2021."