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

Who needs New York? Garden State multifamily portfolio trades for $146M

How much for that CVS building? In Greenwich, the price is $30M

Vineyard Vines HQ sold in Stamford, Avon inks Rye deal & more Westchester and Fairfield real estate news

Mack-Cali sells Paramus office property, Murphy enacts land bank reforms & more North Jersey real estate news

New heights for Everest as insurer inks North Jersey’s largest lease deal of 2019

Multifamily properties trade in Bridgeport, Toll Brothers buys in White Plains and more Westchester & Fairfield real estate news

Have no fear? Debt brokers say Deutsche Bank quelled concerns about real estate lending

Somerville moves forward with 31-acre transit village, Woodcliff Lake office property sold for $36M & more North Jersey real estate news

arrow_forward_ios