Nonprofits look to cash in on real estate holdings

TRD 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
Brookfield Property Partners' Brian Kingston, Silverstein Properties' Larry Silverstein and Empire State Realty Trust's Anthony Malkin (Getty)

Real estate firms lead cautious return to NYC offices

Real estate firms lead cautious return to NYC offices
Hana CEO Andrew Kupiec, The Real Deal's Hiten Samtani and Hana's EVP of Occupier Solutions Georgia Collins

The REInterview: How flex space could upend supply-demand dynamics in the office market

The REInterview: How flex space could upend supply-demand dynamics in the office market
Matthew James (Credit: ABC)

First black “Bachelor” for ABC comes from real estate world

First black “Bachelor” for ABC comes from real estate world
“We’re not in the business of land-grabbing:” Hana CEO on the future of flex space

“We’re not in the business of land-grabbing:” Hana CEO on the future of flex space

“We’re not in the business of land-grabbing:” Hana CEO on the future of flex space
Director of Research & Analytics for CBRE Tri-State Nicole LaRusso, Vice Chairman & Director at Savills David Goldstein, and President of Newmark Knight Frank's Tri-State region David Falk

“For years we all laughed at them”: office brokers warm to virtual tours

“For years we all laughed at them”: office brokers warm to virtual tours
Director of Research & Analytics for CBRE Tri-State Nicole LaRusso, Vice Chairman & Director at Savills David Goldstein, and President of Newmark Knight Frank's Tri-State region David Falk

How to open up our offices on tonight’s TRD Talk

How to open up our offices on tonight’s TRD Talk
CBRE CEO Robert Sulentic (Credit: Getty Images, iStock)

CBRE plans cuts to NYC tech team

CBRE plans cuts to NYC tech team
The Black Rock bulding at 51 West 52nd Street and Viacom CEO Bob Bakish (Credit: Google Maps, Getty Images)

The price is right? CBS asking more than $1B for Sixth Ave HQ

The price is right? CBS asking more than $1B for Sixth Ave HQ
arrow_forward_ios

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

Loading...