TRD Insights: NY investment sales hit the skids in April and May

CRE market was more notable for scrapped deals than closed ones during those months

TRD New York TRD INSIGHTS /
Jun.June 10, 2020 03:20 PM
(iStock)

(iStock)

March, what now seems like a lifetime ago, was a banner month for investment sales in New York City. That’s when two $900 million-plus office building sales helped propel total deal volume to over $4 billion, the third-highest sum in the past 12 months.

But that data still largely reflected a pre-Covid world, because of the lag between closings and property record filings, as well as the pipeline of deals that were already in the works.

In April, commercial real estate deals fell to $708 million in deals recorded, down 75 percent from the 12-month rolling average, according to an analysis of property records by The Real Deal. The market continued to slow into May, as deal volume plummeted to $551 million.

Investment Sales Dollar Volume by Borough, Past 12 Months

MonthManhattanBrooklynQueensBronxTotal
Jun '19$3,488,826,980$491,583,486$404,936,585$228,998,365 $4,614,345,416
Jul '19$2,055,831,903$635,526,295$225,712,596$231,303,826 $3,148,374,620
Aug '19$994,568,763$549,667,829$163,006,097$248,431,610 $1,955,674,299
Sep '19$2,467,687,345$778,870,723$362,069,402$109,441,020 $3,718,068,490
Oct '19$2,830,091,040$567,269,046$472,470,411$121,591,497 $3,991,421,994
Nov '19$1,542,481,247$502,925,947$643,464,996$99,568,914 $2,788,441,104
Dec '19$2,944,526,061$793,378,103$479,708,549$123,976,948 $4,341,589,661
Jan '20$1,192,344,089$946,933,659$287,534,737$258,234,091 $2,685,046,576
Feb '20$941,738,457$616,060,878$278,359,927$159,804,440 $1,995,963,702
Mar '20$3,354,998,451$357,237,114$286,574,234$189,028,549 $4,187,838,348
Apr '20$363,761,356$200,824,488$79,913,561$63,843,667 $708,343,072
May '20$194,605,422$245,431,527$60,863,297$49,603,595 $550,503,841

SOURCE: The Real Deal analysis of NYC property records (ACRIS)

In March, the deals were enormous. The biggest were Amazon’s $1.1 billion purchase of WeWork’s Lord and Taylor building, and Munich RE’s approximately $900 million acquisition of Abu Dhabi Investment Authority’s 330 Madison.

But April and May saw just one deal larger than $100 million recorded. That was Trinity Place Holdings’ sale of a commercial condominium unit at 77 Greenwich Street. The buyer was the New York City School Construction Authority, which paid $104 million for the property.

Only three other deals surpassed $50 million in April and May, all in Brooklyn: Rockrose Development’s $81 million all-cash acquisition of a development site on the border of Fort Greene and DoBro, Camber Property Group’s $82 million buy of an eight-building Flatbush portfolio, and Fortis Property Group’s acquisition of a Bushwick nursing home for $58.8 million.

Mid-market dealmaking also slowed to a crawl, with several weeks of either just one deal or even zero deals in the $10 million to $30 million range.

The months since the pandemic hit New York have been more notable for the deals that fell through than for the ones that closed.

These include SL Green’s scrapped sale of the Daily News Building to Jacob Chetrit for $815 million, All Year Management’s abandoned sale of a 73-building multifamily portfolio to David Werner for $346 million, and Thor Equities’ $24 million sale of a Flatiron District retail building to Mactaggart Family & Partners. The total value of these abandoned deals is nearly on par with the total volume of recorded deals in the past two months.

See the table below for more details on the largest deals that were recorded from March through May:

Top Four Commercial Real Estate Sales by Borough & Month, Mar-May 2020

BoroughMonthPropertySales PriceBuyer/SellerListing Brokerage
ManhattanMarch 2020424 Fifth Avenue (Lord & Taylor building)$978 millionAmazon / WeWork
ManhattanMarch 2020330 Madison Avenue (office building)$900 millionMunich RE / Abu Dhabi Investment AuthorityCBRE
ManhattanMarch 2020530 Broadway (office building)$382 millionMichael Shvo, Deutsche Finance, BVK & Bilgili Holding / Wharton Properties & Thor Equities
ManhattanMarch 202044 Wall Street (office building)$200 millionGaedeke Group / BlackstoneEastdil Secured & Hodges Ward Elliott
BrooklynMarch 2020123 Hope Street (mixed-use multifamily building)$84 millionHUBBNYC / Adam AmericaPrince Realty Advisors
BrooklynMarch 202035 Jay Street (development site)$62 millionEdward J. Minskoff Equities / Forman Group of CompaniesJLL
BrooklynMarch 2020167-171 North First Street (warehouse)$18 millionNew Mexico-based LLC / Kevsta Inc.
BrooklynMarch 202039 (a.k.a. 45) Ainslie Street (mixed-use multifamily)$11 millionYosef Rabinowitz / Brooklyn Standard Properties
QueensMarch 2020133-25 37th Avenue (development site)$59 millionGary Tsan / Yihai PropertyCushman & Wakefield
QueensMarch 202038-18 Union Street (retail condominium)$42 millionThor Equities & United American Land / F&T Group, AECOM Capital & Rockefeller Group
QueensMarch 2020136-18 Maple Avenue (development site)$24 millionVicki Zhi / Amy Khoudari
QueensMarch 2020301-329 Beach 65th Street (13 three-family homes)$14 millionDavid Ekstein / Marcal Group
BronxMarch 2020Hudson & Harlem Line Train Tracks, Grand Central Terminal & other parcels$33 millionMetropolitan Transportation Authority / Midtown Trackage Ventures
BronxMarch 20202413 Third Avenue (development site)$24 millionRXR Realty / Somerset Partners
BronxMarch 2020North side of Lafayette Avenue between Boynton and Morrison Avenues (development site)$19 millionJoel Braver / Jacob Schwimmer
BronxMarch 20209 Bruckner Boulevard (development site)$11 millionRXR Realty / Somerset Partners
ManhattanApril 202077 Greenwich Street (commercial condo unit)$104 millionNew York City School Construction Authority / Trinity Place Holdings
ManhattanApril 202019-23 St. Mark’s Place (apartment building)$35 millionUBS Realty Investors / Cape AdvisorsJLL
ManhattanApril 2020200 East 95th Street (three commercial condos)$29 millionAnonymous LLC / Extell DevelopmentAvison Young
ManhattanApril 202055-59 Chrystie Street (mixed-use building)$29 millionLam Generation / Bankruptcy auction (formerly CTW Realty)Rosewood Realty
BrooklynApril 202098 DeKalb Avenue (development site)$81 millionRockrose Development / Kotler familyJLL
BrooklynApril 2020251 Douglass Street (development site)$23 millionTavros Capital Partners & Charney Companies / Galinn FundJLL
BrooklynApril 202033 Franklin Street (development site)$19 millionJoel Friedman / Marlborough GalleryJLL
BrooklynApril 2020169 North 10th Street (apartment building)$16 millionMcCarren Management / Great Point PropertiesGaia Property Group
QueensApril 202064-11 Beach Channel Drive (nursing home)$28 millionMT Capital Group / Resort Horizon LLC
QueensApril 202022-70 31st Street (development site)$7 millionLam Generation / Ditmars Associates
QueensApril 202022-60 46th Street (development site)$6 millionMD45 Developers / Mega Realty Holding
QueensApril 202042-44 13th Street (parking lot)$6 millionKedia Bor LLC / On the Nickel LLC
BronxApril 20201226 & 1240 Sherman Avenue (apartment buildings)$17 millionPrana Investments / Morgan Group
BronxApril 2020155 Pilot Street & 192 Schofield Street (marina)$9 millionThomas Auringer / Joseph Briody
BronxApril 20203041 Webster Avenue (development site)$6 millionBolivar Development / Sam’s CarpetJLL
BronxApril 2020512 Tiffany Street (warehouse)$6 millionJack Guttman / Trylon Wire & Metal Works
ManhattanMay 2020309 & 317 West 99th Street (apartment buildings)$37 millionLightstone Group / Sofia Einy
ManhattanMay 2020644 East 14th Street (development site)$31 millionMadison Realty Capital / Opal Holdings
ManhattanMay 2020620 West 153rd Street (development site)$29 millionIsaac Chetrit / Anbau EnterprisesJLL
ManhattanMay 20203 East 63rd Street (apartment building/townhouse)$12 millionBen Braka / Philip YoungCorcoran
BrooklynMay 2020211 Linden Boulevard & seven others (apartment buildings)$82 millionCamber Property Group / Coltown Properties
BrooklynMay 202048 Cedar Street (nursing home)$59 millionFortis Property Group / Riseboro Community Partnership
BrooklynMay 2020510 Gates Avenue (homeless services development site)$11 millionThe Doe Fund / Paul J. Cooper Center for Human Services
BrooklynMay 20206740 Third Avenue (school development site)$11 millionNYC School Construction Authority / Stath Realty Corp
QueensMay 202072-11 Roosevelt Avenue (banquet hall building)$24 millionWerber Management / Delco Properties
QueensMay 2020150-02 Hillside Avenue (former car dealership)$5 millionMina Farah / Estate of Thomas Nemet
QueensMay 202011-24 Borden Avenue (industrial property)$5 millionMadbury Capital / XS Realty Company
QueensMay 202033-26 107th Street (church building)$3 millionFaith Bible Church of Corona / Young Nak Presbyterian Church
BronxMay 20201926 Crotona Parkway (mixed-use building)$5 millionCrotona Ground LLC / Highbridge Community Development Corporation
BronxMay 20206375 Broadway (development site)$5 millionStagg Group / W Group
BronxMay 202052 East 170th Street (retail building)$5 millionFabco Shoes / Stuart Albrecht
BronxMay 20201080 University Avenue & two adjacent lots (apartment building & vacant land)$4 millionSummit Avenue Development I LLC / James W. Taylor Jr. Revocable Trust

SOURCE: The Real Deal analysis of NYC property records (ACRIS)


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