Transactions increase, but weaknesses linger in development site deals

TRD New York /
Feb.February 20, 2012 10:00 AM

Sales of large development sites in prime areas of Manhattan grew five-fold between 2009 and 2011, according to Massey Knakal Realty Services data cited by Crain’s, but market conditions still remain vastly different from the pre-crash era.

There were 51 sales of sites larger than 10,000 square feet south of Harlem in 2011, and 142 sales of development parcels in the four boroughs outside of Staten Island. The four-borough sales are twice what they were two years ago and represent a 38 percent price increase per square foot over that period to $173.22.

But despite those improving figures, glaring weaknesses linger in the commercial market. The total number of large development site sales in Manhattan still sits below the 75 to 80 dealt in a typical year, and prices in the borough tumbled 17 percent in the last two years to $311.22 per square foot.

And the biggest difference in post-crash development deals might be the type of buyer. Whereas buyers needed little equity or experience to secure financing during the boom, today’s developers typically bring a long track record and half of the required money to the table. [Crain’s]


Related Articles

arrow_forward_ios
Billy Macklowe and Key Food at 120 Fifth Avenue in Brooklyn (Credit: Getty Images and Google Maps)

Billy Macklowe looking to break into Brooklyn

From left: The Blau and Berg Company's Karine Blanc, TD and Partners' Nana Duncan and Lemor Development Group's Kenneth Morrison (Credit: Blauberg, TD+Partners and Lemor)

Black developers say partnerships aren’t always equal

85 4th Avenue in Brooklyn (Credit: Google Maps)

New details of Boerum Hill’s next big project unveiled

TF Cornerstone president Frederick Elghanayan and 595 Dean Street (Credit: CityRealty, Google Maps)

TF Cornerstone’s Prospect Heights two-tower project unveiled

Assemblyman David Chiu and Gov. Gavin Newsom (Credit: Wikipedia and iStock)

California passes landmark rent control law

The Watchtower building at 25 Columbia Heights, CIM Group’s Shaul Kuba (right) and LIVWRK’s Asher Abehsera (Credit: Wikipedia, CIM Group, and LinkedIn)

JPMorgan leads $335M refi for CIM and LIVWRK’s Watchtower renovation

Chicago’s top 5 general contractor firms were approved to build over 9 million square feet of new development

The construction giants catching a Windy City windfall

David Marx of MDG Real Estate and the site at 71-05 Parsons Boulevard in Queens (Credit: Google Images and iStock)

Here’s a weird one: David Marx plans towers at Queens site he bought from his own company

arrow_forward_ios