Scorecard: Short-term investment sales are making a killing

New York /
Jan.January 18, 2016 04:30 PM
 

From the January issue: Some of the most profitable short- and medium-term commercial property deals that took place in Manhattan in 2015 fetched the sellers a hefty sum.

Those returns averaged between 44 percent and 59 percent annually, according to a TRD review of city records of assets acquired for more than $50 million since January 2011. In addition, TRD found that the four biggest investment sales of the year netted owners between $1.4 billion and $1.7 billion.

 

Meridian Capital Group’s David Schechtman said several factors, including taxes, often prompt owners to sell valuable cash-flowing assets. In addition, he said, “people sell because they want to feed [other] lines of business through new capital.”

TRD also analyzed the Manhattan hotel-buying market over the last five years. The $1.95 billion purchase of the Waldorf Astoria in 2015 made the Chinese firm Anbang the biggest hotel buyer. Its one purchase amounted to more than what any other company spent on hotels combined.

 

Some predicted that Manhattan could see less hotel construction ahead. “If RevPar [revenue per available room] is flat and costs for land, building and finance are working against you, theoretically that is putting pressure on new construction of hotels,” said Eastern Consolidated’s Ronald Solarz.

 
 

Related Articles

arrow_forward_ios
Clockwise from top left: 162 West 13th Street, 325 Avenue Y in Brooklyn, 1281 Viele Avenue in the Bronx (Credit: Google Maps)

Here’s what the $10M-$30M NYC investment sales market looked like last week

Here’s what the $10M-$30M NYC investment sales market looked like last week
 Robert Morse, executive chairman of Bridge Investment Group, one of the major Opportunity Zone investors focusing on real estate.  (Bridge, Stanford)

Opportunity Zone investments got a boost in 2020

Opportunity Zone investments got a boost in 2020
333 Johnson Avenue with Royalton Capital’s Jin Lee, Sciame Construction's Frank Sciame and Normandy Real Estate Partners' Finn Wentworth (Royalton Capital, Sciame, Normandy)

Normandy sued by former partners for hiding Netflix deal

Normandy sued by former partners for hiding Netflix deal
Fabric co-founder, CEO Elram Goren (Getty, Elram Goren via LinkedIn)

Startup wants to bring “micro-warehouses” to vacant retail

Startup wants to bring “micro-warehouses” to vacant retail
Security around Trump Tower to be reduced after 45th POTUS leaves office. (Getty, The Trump Organization)

Fifth Avenue will look different after Trump leaves office

Fifth Avenue will look different after Trump leaves office
(Getty, iStock)

Booster shot: NYC real estate sees salvation in vaccine

Booster shot: NYC real estate sees salvation in vaccine
Before the pandemic, national tenants paid 94 percent of rent. (Getty)

Retail rent collections rebound to 90%

Retail rent collections rebound to 90%
Cindat Capital Management CEO Greg Peng and Hersha Hospitality Trust CEO Jay Shah with 51 Nassau Street (Google Maps)

7 Manhattan hotels head to auction block

7 Manhattan hotels head to auction block
arrow_forward_ios

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

Loading...