The Real Deal New York

Posts Tagged ‘Commercial Real Estate’

  • 32-01 57th Street and a Tibetan Community performance

    The oldest and largest organization for Tibetans in North America has purchased an industrial building and adjoining vacant lot for $4.4 million in Woodside, Queens, and is planning an expansion of its communal and social services, as well as its affiliated school.  [more]

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  • Click to enlarge

    From the January issue: The uncertain economy kept larger companies at bay in 2012 when it came to buying and leasing Manhattan office buildings. On the investment sales side, the top 10 priciest building sales of last year included only three office buildings — a weak showing compared to the year before, when there were eight. Meanwhile, there was a steep drop-off on the office-leasing front, which saw activity fall by as much as a third from 2011, preliminary data from Cassidy Turley revealed. [more]

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  • Eastern Consolidated’s chief economist Barbara Byrne Denham and 666 Fifth Avenue, which help retail jumo 729 percent, with Vornado’s $707.8 million purchase.

    Manhattan’s retail property sales volume surged in the fourth quarter, posting sevenfold increase,  its strongest performance since 2007, according to preliminary data from Eastern Consolidated, cited by the New York Observer. The final quarter of 2012 saw nearly $13 billion in sales volume, which is the best increase since record-breaking sales volumes — fueled fears of impending capital gains taxes – were posted. The market peaked in the second quarter of 2007 at $19 billion. “This was definitely fiscal-driven growth,” Barbara Byrne Denham, Eastern Consolidated’s chief economist, said.  “Sellers wanted to cash out and buyers knew it, so they were eager to come to the table as well.”… [more]

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  • A Mandee location at 3860 E. Tremont Avenue in the Bronx

    The retailer Big M, owner of  low-priced chains Mandee and Annie Sez, filed for Chapter 11 bankruptcy protection yesterday afternoon, after Hurricane Sandy shut down its stores in New York and New Jersey, Crain’s reported.  The Totowa, N.J.-based company cited both assets and liabilities of between $50 million and $100 million. It owes money to more than 1,000 creditors. Big M operates at least 15 Mandee stores in New York City, several of which were on hard-hit Staten Island. In total, the Big M operates 84 Mandee stores, 35 Annie Sez stores and 10 Afaze stores…. [more]

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  • Mercedes-Benz’s 11th Ave dealership in the base of Mercedes House

    A new Maserati dealership coming to a remote area of 11th Avenue is set to pay more rent than many Soho retailers for a space leased until recently by an industrial tool supplier — a sign of the far West Side’s rapidly changing real estate market, according to the Wall Street Journal. And Maserati isn’t the only car dealership rushing into the gentrifying neighborhood.
    [more]

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  • From the January issue: Although the European debt crisis seems to be further from investors’ minds today than it was a year ago, fresh hurdles like the fiscal cliff standoff in Washington, prospective tax changes and a New York City mayoral election loom. And those are not the only questions that industry pros are pondering as 2013 gets underway. Also on their minds: Will the tech sector continue to prop up commercial leasing? What kinds of housing stock will move — and what will languish on the market? Where will the next wave of retail condo sales take place? And which overall sectors of the market will investors gravitate towards? This month, The Real Deal talked to New York City real estate insiders from several different sectors of the market to get their industry predictions for 2013. [more]

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  • Office leasing lows

    January 02, 2013 04:30PM

    From the January issue: Despite a small flurry of deals last month, 2012 was one of the slowest years in recent memory for office leasing. Total leasing volume for 2012 fell to roughly 26.8 million square feet, a 33 percent drop from 40.7 million in 2011, preliminary figures from commercial firm Cassidy Turley showed. That drop-off, experts say, was due largely to big companies’ concerns about committing to space during these uncertain political and economic times (see related story: The office slump). But this year may be a different story. [more]

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  • 2012’s biggest money makers

    December 10, 2012 10:30AM

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    From the December issue:  Typically, investment sales deals are ranked by the sale price, but that emphasis hides the figure that real estate players truly care about most: how much money the deal made. Indeed, the number that real estate investors brag about at the end of the day is their return on equity. That figure reveals how effectively an investor deployed his or her money.

    So for the first time, this month The Real Deal ranked Manhattan’s top commercial building sales for 2012 by their estimated return on equity. [more]

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  • RCA Commercial Property Price Index values from 2001 to 2012, according data from Real Capital. The RCA CPPI are a suite of over 200 granular commercial property indices that measure the empirical change in commercial property prices over time. Click to enlarge

    It will come as no surprise to those following the Manhattan multifamily investment market that prices are at record levels. Now that’s borne out by Real Capital Analytics’ new commercial property price indices. The RCA data shows that the average sale prices of Manhattan apartment building are higher than they were in the second quarter of 2008. [more]

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  • Office market chugs along

    December 04, 2012 04:30PM

    From the December issue: In a weird twist, Hurricane Sandy made no measurable impact on November’s office leasing numbers. That’s despite the storm rendering nearly 20 million square feet of office space unusable as of late last month.

    Just after the storm hit, brokers worked feverishly to find alternate spaces for their clients, unsure how long they would be out of their offices. But instead of signing new leases, many large companies moved to their firm’s own satellite offices, used spaces borrowed from friendly business associates or clients — or had employees work remotely. [more]

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  • Rockaway retail starts slow recovery

    November 19, 2012 09:30AM

    Rockaway Beach Boulevard after Hurricane Sandy

    Hurricane Sandy left Rockaway Beach Boulevard, the commercial drag of Rockaway, Queens powerless and the streets full of debris. But only two weeks after the storm, the first signs of a retail recovery can be seen in some area shop windows, Crain’s reported.

    Thanks to a generator, Eden Delicatessen, at 11507 Rockaway Beach Boulevard, has “Open” written in  pink across the store’s window. [more]

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  • 168-10 Douglas Avenue in Jamaica

    With the announcement that Hostess Brands is closing up shop in the face of a  Bakers Union strike, the world must carry on without the company’s whimsically named baked goods. Treats such as Twinkies, Ding Dongs, Sno Balls and Ho Ho’s are gone — that is, unless a buyer with a sweet tooth steps in — and with them will go some 33 bakeries, 565 distribution centers and 570 bakery outlet stores throughout the United States, according to the company’s website.

    The 82-year-old company will close all of it facilities, meaning that a number of its properties could soon hit the market. A search of public records revealed that Hostess owns at least four commercial properties in New York City’s outer boroughs, and one on Long Island. [more]

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  • From left: Richard LeFrak, Rob Speyer and Haim Chera

    Increasingly low interest rates are driving commercial property prices through the roof, leaving investors vulnerable when rates inevitably climb back up, real estate pros said today at the Bloomberg Commercial Real Estate Summit.

    The $380 million sale of a prime retail condominium inside the St. Regis New York hotel is just one high-profile example of sky high prices, they said. Swiss luxury-goods company Richemont North America bought the 24,800-square-foot condo from a partnership led by Crown Acquisitions, Goldman Properties and the Feil Organization for $15,100 per square foot, it was previously reported. [more]

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  • 4 New York Plaza

    Despite the Financial District’s current state of water pumping, closed buildings and workers in Hazmat suits walking down the streets, analysts don’t think that Hurricane Sandy damage will cause tenants to pack their boxes en masse, the New York Times reported. Not only that, commercial tenants interested in setting up shop in the neighborhood won’t likely be deterred from the area over flood concerns. Brokers say it’s a good place to do business.

    Similarly, Lower Manhattan residential properties remain in demand despite the storm’s impact. [more]

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  • Sixth Avenue space piles up

    November 07, 2012 04:30PM

    From the November issue: In a stark reminder that large tenants have retreated, the amount of available office space is piling up on a stretch of Sixth Avenue that is home to many of the city’s premier office addresses.

    Last month, Manhattan landlords and tenants listed another 384,000 square feet in six buildings located between 41st and 55th streets on Sixth Avenue, a survey of commercial data website CoStar Group showed. [more] 

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    Pumping water at Pearl and Broad streets (credit: Adam Pincus)

    Commercial buildings housing at least 17.3 million square feet of office space in Lower Manhattan had their basements flooded by Hurricane Sandy — and remain shuttered, a survey by The Real Deal found.

    The survey conducted on foot and by phone found that at least 15 buildings (see chart on the jump) on the east side of Lower Manhattan were closed and had flooding in the basements, and in many cases the sub-basements…. [more]

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  • David Kessler of CohnReznick

    A slew of federal policies are set to take effect in January that will radically cut federal spending and end some of the Bush-era tax cuts. But the so-called fiscal cliff will have radically different effects on commercial real estate values across the country, CoStar reported.

    In New York City, “the real estate sector is about to take a big kick in the gut,” David A. Kessler, a commercial real estate specialist at public accounting firm CohnReznick, told CoStar. Kessler predicted that every commercial real estate sector will seem some decline, but the hardest hit will be office and industrial, hurt by declining government and consumer spending. [more]

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  • A room at the Trump Soho

    As the holiday season approaches, demand for temporary lodging in New York is high — with an average price of $300 a night and some 180 hotels being planned or built. And according to Forbes, the surge in the hotel sector is fueling the city’s commercial real estate recovery, as demand outweighs the supply of properties.

    Early this month, Blackstone Group acquired the Motel 6 brand and its approximate 1,100 owned or franchised properties in a $1.9 billion deal. And since Blackstone took Hilton Hotels private in 2007 it has become the fastest growing major hotel chain. [more]

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  • Thomas LaPerch

    From the October issue: Westchester-based residential brokerage Houlihan Lawrence last month launched a new commercial division.

    The new division will do office and industrial leasing, investment sales, retail leasing and sales and some consulting work. Thomas LaPerch and Steven Salomone, both formerly of the Hudson Valley–based brokerage Prudential Serls, have been tapped to head the operation. LaPerch will serve as director of the commercial group, and Salomone as director of real estate investment sales. [more]

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  • Peter Duncan of George Comfort & Sons and Worldwide Plaza

    As the commercial real estate market improves, there are hefty profits to be made from selling properties purchased when the market was at its nadir, the Wall Street Journal reported. Now, the values of prime properties, which fell 38 percent in the recession’s early years, are within 4 percent of the highs recorded in 2007. Increased values are tied to ever-lower interest rates and more readily available credit.

    In a turn-around, midsize commercial real estate players that bought properties at the bottom are the ones selling today, as opposed to bigger names like Starwood and Blackstone, which made similar moves in the 1990s. [more]

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