Nonprofits look to cash in on real estate holdings

New York /
Mar.March 18, 2013 08:30 AM

An increasing number of nonprofits are taking advantage of the real estate market’s resurgence by cashing in on their property portfolio, Crain’s reported.

Last week, St. John’s University announced that it was putting its 10-story Tribeca business school building on the market, in a deal that experts say could net the university $200 million. The Jewish Board of Family and Children’s Services will also be selling a site on West 7th Street that would allow up to 100,000 square feet of residential development, sources told Crain’s, and could rake in up to $45 million. And in February, a joint venture between ClearRock Properties and Juster Properties acquired two adjacent Midtown buildings from Yeshiva University for $29 million. 

“Being able to generate proceeds from this sale will definitely help us continue to deliver services,” David Rivel, chief administrative officer of JBFCS, told Crain’s.

The stakes also keep rising, according to data from Cushman & Wakefield, which showed that the average price of Class A office space nearly touched $800 per square foot last year, up from $740 the year before.

Nonprofits are aping their for-profit counterparts by learning how to more efficiently fit people into fewer space, and selling the surplus space to generate income. “You see nonprofits treating their real estate much more entrepreneurially,” Susan Kahaner, a nonprofit specialist at CBRE told Crain’s. “Since there’s not a nonprofit that isn’t using their office more efficiently right now, many of them are out there selling what they no longer need.” [Crain’s]  –Hiten Samtani


Related Articles

arrow_forward_ios
WATCH: How climate change puts real estate at risk
WATCH: How climate change puts real estate at risk
WATCH: How climate change puts real estate at risk
Illustration of Amazon's Jeff Bezos (Photo illustration by Kevin Rebong for The Real Deal)
No room in the warehouse: Amazon fuels shortage
No room in the warehouse: Amazon fuels shortage
President Joe Biden (Getty)
Biden’s proposal to cut 1031 exchanges may be “tremendous blow” to real estate: experts
Biden’s proposal to cut 1031 exchanges may be “tremendous blow” to real estate: experts
The Plaza Hotel, St. Regis Hotel, and Waldorf Astoria (iStock)
Outlook for hotels improves — from awful to merely bad
Outlook for hotels improves — from awful to merely bad
CBRE’s Darcy Stacom and Bill Shanahan; Cushman & Wakefield’s Doug Harmon and Adam Spies
Titans of the towers: TRD’s annual ranking of NYC’s top investment sales firms
Titans of the towers: TRD’s annual ranking of NYC’s top investment sales firms
(Getty)
Manhattan retail market awaits recovery as vacancies rise in Q1
Manhattan retail market awaits recovery as vacancies rise in Q1
CBRE CEO Robert Sulentic and One World Trade Center (CBRE, iStock)
Port Authority taps CBRE to manage WTC
Port Authority taps CBRE to manage WTC
From left: JLL’s Tim Rivers, Levine Kellogg’s Jeffrey Schneider, Meland Budwick’s Mark Meland, Blanca Commercial Real Estate’s Tere Blanca, Savills’ Tom Capocefalo and Collier’s Jonathan Kingsley
The money’s moving to South Florida. Will the office leases follow?
The money’s moving to South Florida. Will the office leases follow?
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...