New York City real estate can sometimes feel like a blood sport, with a host of rivals vying to get the upper hand. Luckily, here at The Real Deal, we have a ringside seat. And in 2013, the industry did not disappoint. Office towers traded for more than $1 billion, retail rents cracked $3,000 per square foot, and $100 million became the new $50 million in residential listings. The Midtown East rezoning came and went, as did more than one commercial brokerage CEO. And let’s not forget that little matter of the mayoral election. Read on for the editorial staff’s picks of the biggest stories of the year. [more]
Posts Tagged ‘michael fascitelli’
Vornado Realty Trust will sell more properties than it acquires this year, chairman Steven Roth said in his annual letter to investors, according to Bloomberg News.
“I can see the bubble on the horizon; the fat lady entering the building,” Roth wrote in the letter, filed with the U.S. Securities and Exchange Commission on Friday. “My belly tells me that prices are now higher than future prospects and therefore, we will buy carefully and likely sell more than we buy.” [more]
From the April issue: Investors and analysts listening in on Vornado Realty Trust’s recent fourth-quarter earnings call were taken aback when, instead of hearing the raspy, Rhode Island accent of CEO Michael Fascitelli, they were greeted by the booming New York voice of chairman Steven Roth.
What followed was largely unexpected, even among the company’s closest followers. Roth announced that Fascitelli, Vornado’s longtime golden boy, would be stepping down this month. [more]
Michael Fascitelli’s decision to step down as the chief executive officer of Vornado Realty Trust represents a failure of succession planning at the $30 billion-plus real estate investment trust and creates uncertainty about the firm’s long-term strategic direction, according to an internal research report seen by The Real Deal. [more]
A columnist for Forbes, Brad Thomas, is speculating that Vornado Realty Trust’s bet on struggling retailer JC Penney is what forced CEO Michael Fascitelli to step down this week.
Fascitelli announced his resignation in an earning call, explaining to analysts that “it’s been an intense 16 years … not all of it has been perfect … not all of it has been fun … it just felt like the right time to change.” [more]
Vornado Realty Trust has nabbed a $950 million refinance of the 43-story, 2 million-square-foot office tower at 1290 Sixth Avenue, GlobeSt reported. This comes in the wake of Vornado’s announcement that it would upgrade the building, including a new turnstile system, updated restrooms and a refurbished cooling tower.
Vornado has a 70 percent controlling interest in the property, where tenants include Cushman & Wakefield, Wenner Media and Microsoft. [more]
Vornado Realty Trust’s CEO Michael Fascitelli was bullish on Upper Fifth Avenue in the company’s first ever earnings call, covering the second quarter of 2012. Fascitelli said that the firm expected to receive a huge bump in rent as the lease for a large retail location on Fifth Avenue ends.
“In just the next couple of years, one of our best leases on Fifth Avenue expires,” he said during the call. “Re-leasing there could produce an annual increase in rent of more than $20 million.” [more]
The recession had “almost no impact” on Vornado Realty Trust’s cash flow, CEO Michael Fascitelli said in a video interview with REIT.com.
Fascitelli said the company focused on paying down $2 billion of debt and extending maturity of other obligations during the downturn to help maintain operating leeway and flexibility. [more]
Starwood Capital is raising money for a new investment fund, CEO Barry Sternlicht said yesterday at NYU Schack’s capital markets conference at the Waldorf Astoria Hotel, and may also choose to sell a key portfolio as the government discourages the fund from leveraging its assets (see photos from the day-long event above).
“We want to leverage the portfolio and the government doesn’t want us to,” he said. “We’re going to have to sell it because it’s stupid to own it unleveraged. Our leverage levels are less than 30 percent. It’s crazy.”
Starwood previously raised $2.8 billion through two funds in 2010 — the Starwood Global Opportunity Fund VIII, which raised more than $1.8 billion, and the Starwood Capital Global Hospitality Fund II, which raised $965 million, The Real Deal previously reported. … [more]
From left: Bradley Mendelson, executive vice president of Cushman & Wakefield; Jeff Blau, president of Related Companies; Amira Yunis, executive vice president of Newmark and Jason Pruger, Executive Managing Director at Newmark
New York retail brokers and principals are making late appointments and boarding flights over the next few days in preparation to attend the world’s largest retail real estate show in Las Vegas.
Most of the city’s real estate professionals who focus on leasing and sales of store spaces will be at the International Council of Shopping Centers global convention known as RECon, from Sunday to next Wednesday, at the Las Vegas Convention Center.
The attendee list is a Who’s Who of New York City retail, from landlords like Vornado Realty Trust, Crown Retail Services and Forest City Enterprises to brokerages like Cushman & Wakefield, CB Richard Ellis and Northwest Atlantic. … [more]
The rebound in U.S. commercial property prices is outpacing that of commercial rents, painting an unrealistically optimistic picture of the market, Michael Fascitelli, CEO of Vornado Realty Trust, told a crowd at Manhattan’s De La Salle Academy yesterday. “I think we’ve bottomed, and we’re going in an upward trend,” Fascitelli said, but added that “the pricing is indicating a much more robust recovery in three to five years than I think we might have.” According to Reuters, Fascitelli cautioned that an inevitable rise in interest rates might soon stall that upward pricing trend, leaving landlords dependent on still-sagging rental income to maintain their property values. … [more]
From left: James Stuckey, dean of the NYU Schack Institute of Real Estate and Michael Fascitelli, CEO of Vornado Realty Trust; Panelists from left: Larry Silverstein, Michael Fascitelli, Willliam Mack, Marc Holliday and Bill Rudin
“Sometimes being a REIT felt like being between a dog and a fire hydrant,” Vornado Realty Trust CEO Michael Fascitelli said this afternoon, reflecting on the past couple of years in the industry before a packed ballroom at the Waldorf-Astoria hotel, and pausing for effect.
But no longer.
While public real estate investment trusts suffered significant losses in the immediate aftermath of the real estate crash, they’ve bounced back with impressive vigor, Fascitelli said. Plus, he offered as proof, there were very few bankruptcies.
Speaking on a panel at NYU Schack Institute of Real Estate’s annual conference on capital markets, Fascitelli was joined by Marc Holliday, who said that life is pretty good over at SL Green right now, too. … [more]
Some of the top 100, from left: Stephen Ross, Marc Holliday, Andrew Mathias, Mort Zuckerman, Dolly Lenz
The New York Observer has released its list of the 100 most powerful people in New York City real estate, with Stephen Ross, chairman of Related Companies, ousting last year’s number one ranked player, President Barack Obama from the top spot. The list is populated with many long-time real estate bigwigs. SL Green honchos Marc Holliday and Andrew Mathias jointly took the second place title, up from last year’s showing at number seven, while Boston Properties CEO Mort Zuckerman stayed in the third place position. … [more]
The city should help modernize its corporate offices by giving developers incentives to replace Park Avenue’s aging towers, Steven Roth, chairman of Vornado Realty Trust, said in his annual letter to investors, which was released yesterday in a regulatory filing. “To keep regenerating New York, why not upzone Park Avenue as an economic incentive to tear down old buildings and replace them with new-builds which may be, say, half again the size,” he said, noting that this strategy has already worked in London. In the letter, Roth, who stepped down as Vornado CEO last year as Michael Fascitelli took the helm, was otherwise optimistic about the direction the market is headed. He said Vornado is keeping many of its vacant New York office spaces off the market in anticipation of rising rents. But while that’s good news in many ways, it also means the best deals in real estate may already be behind us, Roth said. “All the money was made buying securities in the panic,” he wrote, describing the ongoing bidding war over bankrupt General Growth Properties. “Whoever the final acquirer turns out to be, they will be paying a fair, not distressed price.” [WSJ] and [NYO]
While several of the city’s top brokers said the leasing market is approaching a floor for the current down cycle, potential office building buyers are preparing for years of further rent declines, real estate experts said at a forum this morning. “This is a unique city. It is at the bottom or close to [it],” Bruce Mosler, president and CEO of Cushman & Wakefield, said of office leasing in Manhattan. He was on a panel organized by business publisher Bisnow at Cooper Union. But just half an hour earlier at the same event, Michael Fascitelli, president and CEO of landlord Vornado Realty Trust, said potential buyers of office buildings were not predicting rents to increase for several years. He said that expected annual rent increases during the boom years, which were as high as 15 percent, are now at zero. And they could remain at zero for years. He added that to buy a building, a purchaser has to forecast a rent increase at some future time. … [more]
Office landlord Vornado Realty Trust is meeting with investors in the
hope of raising $1 billion to launch a private equity fund, the Wall
Street Journal reported. The fund, seeded with $200 million of
Vornado’s own money, will purchase distressed assets. Vornado Chairman
Steven Roth and Chief Executive Michael Fascitelli will oversee the
fund. Vornado owns or manages about 100 million square feet of office
and retail real estate, concentrated in New York City and Washington,
D.C. … [more]