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Acquisitions

Real Estate Roundup 11.11.19

Brookfield Place (Credit: Brookfield)

Real Estate Roundup

Acquisitions

The New York Times will buy back its Manhattan headquarters at 620 Eighth Avenue in December for $245 million… The Times spent $619 million on the 52-story building and moved into the space in 2007. Two years later, the company entered into a sale-leaseback agreement and raised $225 million to help pay down its debts. The deal came with an option to buy the building back in 2019. (NYTimes)

Leasing

Accounting firm Shanholt Glassman Klein Kramer & Co. inked a 12-year lease for 16,648 SF on the 18th floor of the Feil Organization’s 488 Madison Avenue. Asking rent on the deal was $68 per SF. (CO)

The New York City Board of Education Retirement System has subleased 50,992 SF on the 50th floor of 55 Water Street. The sublease deal with foreign exchange brokerage FXCM will last through May 2026. Asking rents in the building range from $55 to $59 per SF. (CO)

The Quality Branded restaurant group has inked a 15-year, 5,600 SF lease at 2 Bank Street in the West Village. Asking rent on the deal was $200 per SF. The space contains 2,800 SF on the ground floor, and 2,800 SF on the lower level. (CO)

Fasano Hotel and Restaurant Group has signed a lease at SL Green + Vornado’s 280 Park Avenue, with plans to open a high-end Italian restaurant in the first half of 2020. (NYPost)

Financing

Manatus Development Group has secured $24 million in construction financing from TD Bank for its project at 362 East 148th Street in Mott Haven. The six-story, mixed-use office development and community center will comprise 84,000 SF. The two-year loan carries a rate of 4.5 percent, which is 2.75 percent over 30-day Libor, and a 70 percent loan-to-cost. (CO)

Teddy Li has secured a $46 million construction loan from Madison Realty Capital for his 119,000 SF hotel at 38-59 11th Street in LIC. The deal included condo units and a medical office property in Flushing as additional collateral. (TRD)

Tech news 

Office leasing startup SquareFoot has raised a $16 million Series B round led by DRW VC. This brings the company’s total funding to $29 million. (DailyBeatNY)

Real estate data company Reonomy has raised a $60 million Series D round led by Georgian Partners. This brings the company’s total funding to $128 million. (DailyBeatNY)

Real estate crowdfunding startup CrowdStreet has raised $12 million from strategic investors. This brings the company’s total funding to $25 million.

Side has raised a $35 million Series C round led by Sapphire Ventures’ Paul Levine. The company empowers residential agents with technological tools and resources. (Yahoo)

WeWork rival Knotel plagued by vacancies… Roughly 260,000 SF of Knotel’s space is presently empty, and around 574,000 SF will be vacant within the next six months. That combined square footage represents nearly a third of the company’s New York City portfolio. (Crain’s)

Take a look at SoftBank’s bizarre charts for its ‘simple’ plan to save WeWork. (CNBC)

Zillow iBuying revenue soars — but losses mount as company focuses on its instant home-buying program… During the third quarter, home buying generated $384.6 million in revenue, up 55 percent from the second quarter. But the company’s losses also widened to $64.6 million from $492,000 a year ago. (TRD)

Politics 
  Gowanus could be in for another facelift. The Department of City Planning is drafting a rezoning of the neighborhood that would pave the way for thousands of apartments and affordable units, retail and manufacturing developments. A set of NYCHA buildings could also be in for a revamp. (Crain’s)

Anonymous buyers can stay anonymous after all. In a stunning reversal, the state issued a memo this week clarifying that a law requiring LLC property buyers to disclose their identity does not apply to condos. The shift follows an earlier guidance saying condos were subject to the law, which triggered panic in New York City’s real estate industry. (TRD)

Other news 

Tale of two retail markets: Fifth Avenue retail rents between 42nd and 49th streets dropped 25 percent from the same time last year. But between 49th Street and Central Park, lease prices declined only 0.7 percent. (Bloomberg)

The median age of first-time home buyers has increased to 33, the oldest in records dating back to 1981. The median age of all buyers also hit a new high, 47; in 1981 it was 31. (Bloomberg)

E-Commerce drives NYC Warehouse Boom… Warehouse sales have bucked the cooling trend in NYC real estate, rising to nearly $1.7 billion during the first nine months of the year— more than double the total for the same period in 2016. (WSJ)

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