Despite an “overheated” market, Bank of America is ramping up its CRE exposure

The bank has taken its own advice and recently leased two buildings on Sixth Avenue

TRD New York /
Dec.December 05, 2018 09:30 AM

Brian Moynihan and One Bryant Park

As New York’s commercial real estate market continues to heat up, Bank of America is going headfirst into the market after holding off large investments.

“We’re actually, quite frankly, increasing our exposure right now in commercial real estate because we stayed out,” said Brian Moynihan, the company’s chief executive, according to Bloomberg.

He flagged the new direction at a Goldman Sachs conference in New York this week, which comes as the company seeks to introduce a campus-like model to its spaces after acquiring new spaces around its Bryant Park hub.

The Manhattan office condominium market reached new heights this year. Over $230 million in deals were done in the first half of the year, and the average price per square foot topped out at $934, up 23 percent over the previous five-year average.

Last year, the bank signed a lease for all 386,000 square feet of space at the 15-story 1100 Sixth Avenue in Midtown,  and in January took 127,000 square feet at 1114 Sixth Avenue.

Bank of America was also tapped last month to help Anbang Insurance Group sell a $5.5 billion hotel portfolio, including the Essex Hotel in New York.

Bank of America placed 15th on The Real Deal’s January 2018 ranking of the top 15 construction lenders in New York, with $302 million in loans. It also originated $1.23 billion in non-construction commercial loans between October 2016 and September 2017, according to our ranking[Bloomberg]David Jeans


Related Articles

arrow_forward_ios
(Getty)

When the music stops: Guitar Center could file for bankruptcy

When the music stops: Guitar Center could file for bankruptcy
Abandoned malls are being turned into senior housing, giving planners a chance to rethink retirement communities (iStock)

Abandoned malls get new life as senior housing

Abandoned malls get new life as senior housing
Blackstone Group president Jonathan Gray (Getty)

Blackstone makes $1.2B deal with Brookfield for self-storage company

Blackstone makes $1.2B deal with Brookfield for self-storage company
Matt Borstein, Deutsche Bank’s global head of CRE, is moving to Oak Hill Advisors (Photo via Deutsche Bank)

Deutsche Bank’s CRE head moves to Oak Hill Advisors

Deutsche Bank’s CRE head moves to Oak Hill Advisors
J.C. Penney CEO Jill Soltau and Aurelius Capital Management CEO Dirk Markus (Getty; Wikipedia Commons)

J.C. Penney creditors want slow down “bad faith” sale

J.C. Penney creditors want slow down “bad faith” sale
An aerial view of a pop-up drive-in theater built in the parking lot at the Broadway Commons in Hicksville, New York (Getty)

Covid pummeled shopping centers, but their parking lots are thriving

Covid pummeled shopping centers, but their parking lots are thriving
20 West 33rd Street (20West33rd)

Furnishing firm picks up 4 condos at 60 Guilders, Carlyle’s Midtown South project

Furnishing firm picks up 4 condos at 60 Guilders, Carlyle’s Midtown South project
Bank OZK CEO George Gleason (Unsplash; Bank OZK)

Bank OZK’s lending up in third quarter

Bank OZK’s lending up in third quarter
arrow_forward_ios

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

Loading...