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
(iStock)

Manhattan asking retail rents continue downward spiral

Manhattan asking retail rents continue downward spiral
Shadow inventory in Manhattan’s flex-office market is contributing to the rising overall availability rate (iStock)

WeWork and Co’s woes add to rising shadow office inventory

WeWork and Co’s woes add to rising shadow office inventory
CBRE CEO Robert Sulentic (iStock)

CBRE lowers SPAC IPO valuation target to $350M

CBRE lowers SPAC IPO valuation target to $350M
CBRE CEO Robert Sulentic (Getty, iStock)

CBRE latest real estate firm to hop on SPAC bandwagon

CBRE latest real estate firm to hop on SPAC bandwagon
CBRE CEO Bob Sulentic; the firm has shifted its global HQ from LA to Dallas. (CBRE, Getty)

“Sad day” in LA: CBRE’s corporate exit latest blow to dented office market

“Sad day” in LA: CBRE’s corporate exit latest blow to dented office market
JLL CEO Christian Ulbrich and CBRE CEO Bob Sulentic (Getty; CBRE; Pixabay)

JLL, CBRE keep cutting as recovery drags

JLL, CBRE keep cutting as recovery drags
Bob Sulentic (Getty, iStock)

CBRE income falls nearly 10%

CBRE income falls nearly 10%
CBRE CEO Robert Sulentic and the Dallas HQ building at 2100 McKinney Avenue in Texas (CBRE; Google Maps)

CBRE moving HQ from LA to Dallas

CBRE moving HQ from LA to Dallas
arrow_forward_ios

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

Loading...