The CEOs of the major New York REITs- Clockwise from top: Marc Holliday, Michael Fascitelli, Owen Thomas, David Neithercut, Dennis Friedrich, Timothy Naughton
The large New York-focused real estate investment trusts struggled in the first quarter of 2013, unlike their national counterparts, with only SL Green Realty outperforming both the MSCI US REIT Index and the Standard & Poor 500 Stock Index. [more]
From left: Avalon Bay CEO Timothy Naughton, the Archstone Chelsea at 800 Sixth Avenue and Equity Residential head Samuel Zell
Last week’s revelation that Sam Zell’s Equity Residential and AvalonBay Communities were buying Archstone for $16 billion has helped multi-family stocks rally, Businessweek reported.
Before the sale, Lehman Brothers hand been planning to take Archstone public in a $3.45 billion initial public offering, but with the new acquisition, apartment stocks ended their 13 percent slide since their July peak. [more]
A rendering of 88 Willoughby Street
Completing a four-years process, residential developer AvalonBay Communities has acquired the last two properties from United American Land needed to construct an 861-unit rental apartment building in Downtown Brooklyn, at 88 Willoughby Street. When completed, the tower is currently expected to be the tallest residential building in the borough.
AvalonBay, a real estate investment trust based in Arlington, Va., paid United American $125.5 million for 11 properties at the corner of Willoughby and Bridge streets in a series of sales that began in 2008, an analysis of city property records show. [more]
From left: TF Cornerstone Chairman Thomas Elghanayan, President Fred Elghanayan and 602 West 57th Street
Updated: Residential developer TF Cornerstone signed a long-term lease to take control of four parcels on the West Side where AvalonBay once considered building a luxury rental tower.
Thomas and Fred Elghanayan’s TF Cornerstone closed on the 99-year lease for 602 West 57th Street with property owner Four Plus, a real estate investment company based in Montgomery, Ala., on May 29, documents filed with the city show. [more]
From left: renderings of Three Northside Piers, 388 Bridge Street and 88 Willoughby Street
As space for residential development dwindles in Manhattan, developers are turning to Brooklyn, the Wall Street Journal reported, but they must be careful if they want to appeal to the different sensibilities of Brooklyn renters.
Citing a report by Nancy Packes, a consultant to some of the city’s largest developers, the Journal said 14,000 new residential units are being planned for Brooklyn in the coming years, compared to just 5,000 in Manhattan. [more]
Long Island is beginning to approve developers’ plans for multi-family housing at a faster rate, as the construction industry suffers and the demand for downtown-area housing picks up, the New York Times reported.
For example, in downtown Riverhead concrete was poured last week for the foundation of a four-story, 52-unit rental complex with a restaurant, cafe and shops called Summer Wind Square being developed by Epic Partners. [more]
From left: Rendering of 388 Bridge Street and 88 Willoughby StreetThe Brooklyn skyline continues to grow, as two planned towers are vying for the title of tallest building in the borough, according to the Wall Street Journal, after the mark was set last year by Equity Residential and the Clarett Group’s the Brooklyner.
Early next year, the Stahl Organization will break ground on a 590-foot residential tower, at 388 Bridge Street in Downtown Brooklyn, that would surpass the height of the Brooklyner, at 111 Lawrence Street, by 76 feet. That building was the first to rise taller than the Williamsburgh Savings Bank Tower, which was built more than 80 years ago to 512 feet tall. … [more]
The Associated Builders and Owners of Greater New York held its 101st annual dinner dance to honor achievements and contributions from notable members of New York City’s real estate community last night. About 200 members filled the ballroom of the Ritz-Carlton Hotel in Battery Park City to take part in the celebration.
This year’s honorees were: Police Commissioner Raymond Kelly as Public Servant of the Year; George McDonald, founder of the DOE Fund, as Jerome Belson Humanitarian of the Year; Fred Harris, senior vice president of AvalonBay Communities, as Development Company of the Year; and Massey Knakal Realty Services Chairman Robert Knakal for leading the Brokerage Company of the Year. – Marc Becker… [more]
Mayor Michael Bloomberg’s failed 2012 Olympic bid paved the way for the development of Manhattan’s Far West Side, which has given birth to 15 residential towers and 12 hotels since 2005, when the International Olympic Committee selected London to host the games.
According to the New York Times, the city rezoned and adjusted land use laws for the area to facilitate development for the Olympics and began planning the $2 billion extension of the 7 subway line to 34th Street and 11th Avenue. Though the Olympics didn’t follow, development has. In addition to the Related Companies’ Hudson Yards site, Avalon Bay is planning a 30-story rental development at 11th Avenue and 29th Street, and the Gotham Organization broke ground on a $520 million residential complex 15 blocks to the north. New parks and a boulevard between 10th and 11th avenues are also on the docket. … [more]
Sam Zell’s Equity Residential has emerged as the leading bidder in a race to buy 53 percent of rival Archstone, offering more than $2.5 billion in cash for the stake, currently held by Bank of America and Barclays, the Wall Street Journal reported. The rest of the company, a real estate investment trust, is owned by the bankruptcy estate of Lehman Brothers Holdings.
The proposed sale to Equity Residential would value Archstone at about $16 billion, the Journal said. If sold as a whole company, Archstone currently could be worth as much as $18 billion.
Real estate giants the Blackstone Group, Brookfield Asset Management, Equity Residential and AvalonBay Communities have all submitted bids for Archstone in recent months, it was previously reported. … [more]
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