Category : Headline

A suburban withdrawal

REW October 15, 2014 October 15, 2014

by REWOctober 15, 2014October 15, 20141081

Stamford and Manhattan are only a few miles apart, but as far as commercial real estate goes, they might as well be on different continents. A day before brokerage CBRE announced that Manhattan’s net office absorption in the third quarter exceeded one million s/f, news broke that the 527,424 s/f office building 400 Atlantic Street in Stamford would lose its three largest tenants by 2018. These two examples are symptomatic of a larger rift. While New York City’s commercial real estate market is booming, Fairfield County, Long Island and Westchester are, at best, stagnating. In order to turn their fate around, suburban office centers will have to reinvent themselves on a scale not seen in decades.

Deals & Dealmakers Headline

Spielberg wants real estate ‘liars’

Linda O'Flanagan October 9, 2014 October 9, 2014

by Linda O'FlanaganOctober 9, 2014October 9, 20141596

Mel Brooks as Harry Macklowe in a Steven Spielberg blockbuster about the titans of New York real estate? Jeff Daniels as Donald Trump? Brad Pritt playing ex-Vornado chief Mike Fascitelli? It could happen if a searing new book by author Vicky Ward translates to big bucks on the bookshelves. In an exclusive interview with Real Estate Weekly to coincide with this publication’s free giveaway of her book, The Liar’s Ball, Ward revealed, that Hollywood is “very curious” about real estate’s dream chasers.

Construction & Design Headline Residential

Luxury builders reap rewards as new condo prices soar

REW October 1, 2014 October 1, 2014

by REWOctober 1, 2014October 1, 20141213

Manhattan’s apartment sales market has continued its steep climb, benefiting from strong demand for luxury new development. The median sales price grew by 4.2 percent year-over-year to $908,242 while the average price grew by 17.4 percent to $1.684 million, according to Miller Samuel’s report for Douglas Elliman, as luxury sales far outpaced the rest of the market. The median sales price in the luxury market — defined as the top ten percent in terms of price — rose by 22 percent, while the number of sales at or above $10 million grew by 89.7 percent. And as demand continues unabated, new condo developers like HFZ Capital Group are seeing strong demand for their units.

Headline Lawsuits

Brokers struggle to pick sides

REW September 10, 2014 September 10, 2014

by REWSeptember 10, 2014September 10, 20141274

Can appraisers objectively value a building if they know their job depends on a high price tag? Once upon a time, such potential conflicts of interest were widely considered a main culprit of the 2008 financial meltdown and a systemic flaw in need of fixing. But as the crash fades in memory, so do hopes of reform. While banks have been forced to separate some of their business lines in the past years and private equity may be next, real estate firms are still left largely unchecked. Lawyers reckon this is unlikely to change.

Deals & Dealmakers Headline

Savanna betting on Long Island City

REW August 27, 2014 August 27, 2014

by REWAugust 27, 2014August 27, 20141927

Fresh off a $335-million sale in Manhattan, Savanna is placing a big bet on Long Island City. The firm acquired a controlling interest in the 51-story office tower One Court Square from an investor group led by David Werner for an undisclosed amount. Werner and his partners, who had bought the property from SL Green for $500 million in 2011, will retain a share in the 1.5-million-s/f building. One Court Square is the tallest tower in New York City outside of Manhattan. For Savanna, which declined to comment for this article, the deal seems to indicate a growing focus on the outer boroughs. In January, the firm had bought a development site at 141 Willoughby Point in Downtown Brooklyn, also for an undisclosed amount.

Construction & Design Deals & Dealmakers Headline

Lone office building a grey area for Brookfield as giant presses ahead with building a new Manhattan

REW August 6, 2014 August 6, 2014

by REWAugust 6, 2014August 6, 20141270

There is a mysterious grey square on the otherwise well-labelled site map of Brookfield’s Manhattan West project. It is nestled in the middle of a U-shaped string of planned restaurants, retail units, an office tower and a hotel, exactly where planners might envision a public plaza. As it turns out, the grey square is a 13-story office building owned by Raju Shah’s Vectra Management Group. It is the only building on the block not under Brookfield’s control, and has become the figurative thorn in the side of the company’s $4.5 billion mixed-use megaproject. For years, Vectra has resisted Brookfield’s attempts to buy the pre-war building at 424 West 33rd Street, forcing the company to build around it, measure every tiny vibration and limit construction work during business hours

Deals & Dealmakers Headline Retail

Flatiron foot traffic outpacing Fifth Ave.

Holly Dutton July 23, 2014 July 23, 2014

by Holly DuttonJuly 23, 2014July 23, 2014

By Holly Dutton An ABS leasing team is marketing retail space in a Flatiron corridor that has outstripped Fifth Avenue as the hottest spot for … Continued

Deals & Dealmakers Headline

Robert Durst makes big profit with Brooklyn deals

REW Staff July 11, 2014 July 11, 2014

by REW StaffJuly 11, 2014July 11, 20141704

Robert Durst, estranged scion of the Durst clan and confessed killer, appears to have made a hefty profit with his Brooklyn real estate investments. Two multifamily buildings Durst reportedly bought in November 2011 for a total of $8.65 million now sold for $21.15 million. BCB Property Management, a firm run by Robert Durst’s wife, Debrah Lee Charatan, announced the sale of the properties at 234 Union Avenue in Williamsburg and 250 Pacific Street in Carroll Gardens. BCB claims to have owned the buildings and Durst was not mentioned in the press release, but court filings from April 2013 revealed that he bought the properties in November 2011 with money from his $43-million dollar trust fund, as DNAInfo previously reported. The two buildings haven't changed hands since then, according to public records.

Headline

Brokers bask in summer leasing boom

REW Staff July 9, 2014 July 9, 2014

by REW StaffJuly 9, 2014July 9, 2014727

Amid strong leasing in the second quarter, Manhattan’s office availability has fallen to its lowest level since 2008, reports by commercial brokerages Cassidy Turley and Cushman & Wakefield show. Manhattan’s availability rate fell to 10.1 percent, according to Cassidy Turley’s Second Quarter Manhattan Office Report – down from 10.4 percent in the first quarter. The decline was accompanied by one of the largest total leasing volumes in recent decades.

Deals & Dealmakers Debt & Equity Headline

Loose lending sparks fear of cash crash

REW July 2, 2014 July 2, 2014

by REWJuly 2, 2014July 2, 20141110

Real estate lending is making a triumphant return, but not everyone is happy about it. A growing number of observers openly worry that the recent uptick in commercial lending activity is being accompanied by a return of the lax underwriting that helped cause the 2008 crash. “There is a deterioration of underwriting standards independent of what is happening to (market) fundamentals,” said Sam Chandan, an economist who follows the U.S. real estate markets. “Lenders have good reason to be concerned right now about some of the trends we are observing.” Brokers and economists warn that lending is growing at a faster pace than market fundamentals in many parts of the U.S., spurred by laxer underwriting standards. The most visible symptoms include rising loan-to-value ratios, shrinking interest rate spreads, a growing appetite from lenders for riskier markets, and the return of interest-only loans.