AST has officially opened Robert Wood Johnson University Hospital Ambulatory Medical Pavilion, a 229,000-square-foot medical outpatient building in New Brunswick, N.J. Robert Wood Johnson University Hospital, an RWJBarnabas Health facility, master-leases the property.

The developer broke ground on the project in October 2021, financing its construction with a $120.6 million construction loan from UMB Bank, according to CommercialEdge information. Jones Lang LaSalle Securities arranged the deal.

READ ALSO: Why MOBs Are Still a Strong Bet for Investors

Development partners included Torcon as general contractor, as well as Jarmel Kizel as architecture and mechanical engineering and O’Donnell & Naccarat as structural engineer. Langan Engineering provided civil engineering services. Kelso & Burgess provided legal land use services and Greenbaum, Rowe, Smith & Davis LLP legal transactional services.

The medical office real estate market is experiencing growth, a Savills report forecasting a 26 percent rise in outpatient demand over the next decade. This increase is primarily driven by the aging population, despite the current economic uncertainties affecting the commercial real estate sector.

Part of a larger campus

Located at 210 Somerset St., the facility is adjacent to the Robert Wood Johnson University Hospital campus and less than a mile from downtown New Brunswick. Newark Liberty International Airport is 24 miles away.

The medical facility features a ground-floor lobby with a café and a connection to the parking garage. Services at the Class A building include cardiovascular and neuroscience, plastics and reconstructive, as well as gastroenterology. The mid-rise also has an audiology center.

The 15-story building is part of the three-phase redevelopment of a 1.2-acre city block that began in 2006. Earlier phases included the construction of an 854-space parking garage and a 125,000-square-foot medical office building dubbed 10 Plum. That facility is also leased to RWJUH.

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CBRE Group’s Industrious has signed its newest location in Manhattan, Industrious Lex & E 50th St. Starting this fall, the flex office provider will occupy the entire second floor, spanning 20,000 square feet, at 560 Lexington Ave. in Midtown East. Cushman & Wakefield negotiated on behalf of the tenant, while landlord Rudin had in-house representation.

The new space will have 158 seats available for solo entrepreneurs, growing teams and established businesses. The amenity suite comes with a new café, lounge, conferencing area and outdoor space, currently created by Rudin within the tower.

The Lexington location will join Industrious’ other New York City spaces: Tower 49, at 12 E. 49th St.; Midtown on 50th St, at 135 W. 50th St.; Carnegie Hall, at 152 W. 57th St.; 1411 Broadway; Bryant Park off Fifth, at 25 W. 39th St.; 261 Madison; and Penn 1, at 250 W. 34th St.

Cushman & Wakefield’s Justin Halpern, Ed Wartels and Ben Bouganim assisted Industrious. Kevin Daly of Rudin represented building ownership.

A Midtown Manhattan office building

Built in 1980 and cosmetically renovated in 2015, the office building at 560 Lexington Ave. features floorplates averaging 17,204 square feet and 3,500 square feet of retail space, according to CommercialEdge information. The 22-story high-rise is easily accessible to public transit and Grand Central.

The tower is LEED Silver-certified and gold-certified by WiredScore, featuring a building operation system that optimizes it through AI to reduce emissions. The Class A property recently underwent a modernization program that involved creating a new lobby, adding new elevator cabs and constructing an on-site, glass-enclosed subway entrance for the nearby train station.

State of the NYC coworking market

CommercialEdge listed Manhattan as the top coworking market in the U.S. for total square footage as of February. Chicago and Los Angeles were the other two metros on the podium.

Michael T. Cohen, a principal with Williams Equities, which owns and operates approximately 3.5 million square feet of NYC office space, told Commercial Property Executive, “Coworking is back. Once again, it is part of the mix of tenants expanding into and absorbing office space in Manhattan.”

He added that the epoch of coworking firms “signing a market-rate lease and absorbing the lion’s share of the risk is gone for good.” Similarly, few New York City building owners have been willing to accept the so-called “management deals” under which they enjoy the “upsides and downsides.”

As such, the sophisticated coworking operators have developed new leasing models that involve sharing their profits and losses with the landlord, Cohen mentioned.

READ ALSO: Where’s the Coworking Sector Headed?

“WeWork appears to be making a comeback by leveraging its occupier relationships and taking space where it has a pre-existing commitment to fill. On the other hand, Industrious is exploiting the demand for office suite occupiers and landlords looking to add an amenity to their building and diversify their product mix.”

Cohen said IWG and others are all scouting suitable locations across the city.

“You can expect many coworking lease announcements as the year progresses,” he added.

Adapting to businesses’ needs

Flex space providers’ ability to adapt to businesses’ evolving needs and deliver high-quality office and conference spaces has made them a valued partner for local banks, hedge funds and companies “that simply don’t have enough space for all of their employees,” said Jeff Gural, chairman of GFP Real Estate.

Lee Brodsky, CEO of BEB Capital, told CPE, “While many coworking operators have come and gone, flexible office space has remained essential,” underscoring that today’s hybrid and remote workers “seek spaces that foster community, productivity and connection—beyond a home office or coffee shop.”

Recognizing this demand, BEB Capital launched BEB Work at 26 Harbor Park Drive in Long Island, creating a coworking space designed for professionals to work alongside like-minded individuals in the community.

“Since our February launch, we’ve seen strong demand for private offices and expect momentum to continue growing in the months ahead,” Brodsky concluded.

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Empire Realty had purchased the property for $8.1 million back in 1989. In 2020, Bensalem Shopping Center became subject to a $12.5 million CMBS loan originated by LMF Commercial, with Wilmington Trust as a trustee.

Anchored by Patel Brothers—the largest Indian grocery chain in the U.S.—Bensalem Shopping Center features a diverse mix of regional and national tenants such as Dollar General, Eggmania, Advance Auto Parts, Jack’s Cold Cuts, Smart Choice Pharmacy and Unlimited PCS, among others. The 1972-built property was fully leased at the time of sale.

The retail center occupies some 8.8 acres at 1961 Street Road, in an area where the daily traffic count reaches 32,600 vehicles, according to JLL. Downtown Philadelphia is roughly 18 miles away.

JLL Senior Managing Director Jim Galbally and Director Patrick Higgins led the Investment and Sales Advisory team working on behalf of Empire Realty.

Philadelphia’s retail scene

In 2024, the Philadelphia retail market experienced robust demand, resulting in a net occupancy increase of nearly 600,000 square feet, according to a recent CBRE report. Of the total, 480,000 square feet pertained to newly constructed space.

In line with national trends, this market faced challenges as well. However, the wave of retail store closures and bankruptcies created opportunities for in-demand retailers. Investor interest remained strong—especially for grocery-anchored centers.

By the end of last year, approximately 202,000 square feet of retail space was under construction. The vacancy rate clocked in at 7.5 percent, while rents averaged $19.17 per square foot, the same report shows.

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At the end of 2024, the biggest office metro in the country continued to struggle with new supply, while investment activity picked up pace since 2023, according to CommercialEdge data. Manhattan transaction trends are similar to the sector’s performance on a national level.

Considering the evolution of return-to-office policies, rising maturing debt and high construction costs, the metro showed mixed signals. The borough’s total sales volume for 2024 was the largest in the country and marked a 76 percent year-over-year increase. However, with the increase in discount deals, the average sale price per square foot dipped to $363.62 per square foot.

Manhattan office sales prices dip

In 2024, 11.3 million square feet of office space across 47 properties changed ownership in Manhattan, adding up to a total volume of $4.1 billion. Last year’s investment volume marked a 76 percent jump, compared to 2023’s total. Among gateway markets, Manhattan kept its leading position, followed by Washington, D.C., with $3 billion in deals, and Los Angeles, with $2.1 billion.

Investor appetite in the borough increased consistently throughout last year—from the $99.2 million recorded at the end of the first quarter, to the fourth quarter’s $1.4 billion. One of Manhattan’s biggest transactions last year was Bloomberg Philanthropies’ $560 million acquisition of 980 Madison Ave. The company picked up the 118,635-square-foot asset in June after the seller, RFR Realty, defaulted on a $197.6 million loan.

Office assets in the metro traded at an average sale price of $363.62 per square foot—significantly above the national average of $171.61 per square foot, but much lower than in 2023. Manhattan registered the second-highest prices among gateway cities, with Miami emerging as the most expensive metro in the U.S., at $395.24 per square foot. San Francisco came in third, with $345.22 per square foot.

Since the start of 2025, eight properties amounting to approximately 3 million square feet traded in the metro. The sales volume added up to $1.4 billion, at an average of $462.05 per square foot. The biggest transaction so far this year was Haddad Brands’ $357 million acquisition of Two Park Avenue in NoMad. Morgan Stanley sold the 1.1 million-square-foot high-rise.

A steady pipeline with large projects

As of December, Manhattan’s under-construction pipeline included 2.7 million square feet of competitive space, representing 0.6 percent of existing stock—lower than the national average of 0.8 percent. Among gateway markets, Boston led with 3.4 percent, followed by San Francisco’s 2.3 percent.

In terms of underway stock, Manhattan placed sixth in the nation. Across similar markets, Boston led the rankings with 8.7 million square feet, followed by San Francisco (3.8 million square feet) and Dallas (2.9 million square feet), while the borough outperformed Los Angeles and Miami, with 1.9 million square feet ad 1.8 million square feet, respectively.

The list of significant office projects underway remained unchanged since our last update. The largest project under construction is the upcoming global headquarters of JPMorgan Chase, at 270 Park Ave. in the Plaza District. The company broke ground on the 2.5 million-square-foot, Class A+ office tower in 2020, with estimated completion by the end of August 2025.

Construction starts crash

At the end of 2024, developers delivered 1.4 million square feet across four properties in Manhattan, representing 0.3 percent of existing stock and reflecting a 75.7 percent year-over-year drop. Among gateway markets, Boston topped the charts with 6.7 million square feet completed, marking a 27.3 percent annual increase, while most similar markets registered notable declines, including Washington, D.C.’s 50 percent dip.

Notably, The Walt Disney Co.’s New York new headquarters dubbed 7 Hudson Square, came online last year. Totaling 1.3 million square feet, this property was completed in August 2024, with Silverstein Properties as developer.

Meanwhile, only two projects broke ground in the borough, comprising 356,000 square feet and marking a massive 594 percent year-over-year decline. When adding projects in planning stages to the relative-to-total-stock pipeline, the figure reached 3 percent—just north of to the national average of 2.9 percent and on par with Los Angeles.

Manhattan rents decreased in 2024

As of December, Manhattan’s office vacancy rate stood at 16.6 percent—below the national figure of 19.8 percent and up 20 basis points year-over-year. The borough’s rate was lower than in Boston (17 percent) and Washington, D.C. (18.5 percent). Miami posted the lowest office vacancy in the nation at 15.2 percent, while San Francisco’s 28.8 percent was on the other side of the spectrum.

Since our previous update, Manhattan fell from its leading position as the priciest metro for office leasing. As of December, asking rents averaged $68.42 per square foot—still more than double the national average of $33.11 per square foot. San Francisco’s $70.56 per square foot took the lead.

One of the largest leases of 2024 was Bloomberg’s 924,876-square-foot renewal and expansion at 919 Third Ave.

Office-to-residential policies in NYC

According to CBiz, the value of office spaces in New York City dropped by 40 percent since the pandemic, while one in five buildings vacant.

In early December 2024, the City Council adopted the City of Yes Housing Opportunity, enabling owners with underutilized office assets built between 1961 and 1991 to convert them to residential buildings with multiple types of housing, according to the city’s website.

Introduced in 2023, the Office Conversion Accelerator Program is another option, assisting landlords in conversion projects designed to generate a minimum of 50 residential units. Additionally, the state also launched two new exemption programs for the 2025 fiscal year, offering tax incentives to developers that propose conversions with at least 25 percent in affordable housing units.

CommercialEdge’s Conversion Feasibility Index, a tool launched earlier last year, helps evaluate a building’s potential for residential repurposing. At the start of this year, Manhattan had 907 buildings with a CFI score between 90 and 100, placing them in the Tier I category.

In June last year, Sunlight Development purchased an office building at 95 Madison Ave., also known as the Emmett Building, with plans to convert it into a 70-unit residential building. The developer paid $65 million for the 141,161-square-foot, Class B office asset, and secured a $20 million loan held by Bank Hapoalim. This 16-story, historic building holds a CFI score of 93, CommercialEdge shows.

Coworking constantly improves

The coworking sector expanded in Manhattan through 2024, its 285 locations totaling 11.6 million square feet remaining the largest inventory in the country. The borough's flex office supply saw a notable increase from the 9.5 million square feet recorded at the end of 2023.

Other markets with large coworking inventories included Chicago (7.1 million square feet), Los Angeles (6.5 million square feet) and Dallas (5.2 million square feet). Manhattan’s share of flex space as percentage of total leasable office space stood at 2.3 percent—above the national figure of 2 percent. Among gateway markets, Miami led the ranking with a 3.8 percent figure.

At the end of last year, WeWork remained the flex office provider with the largest footprint in Manhattan, with operations totaling 2.6 million square feet across 29 locations. Industrious (1.5 million square feet), Regus (697,950 square feet), Convene (603,800 square feet) and Spaces (567,000 square feet) also maintained a strong presences in the borough.

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Two tenants have signed leases at 55 Broadway in Lower Manhattan, totaling more than 21,500 square feet. CBRE represented landlord Harbor Group International in both transactions.

Inclusiv, a network of community development credit unions, has signed a 10,986-square-foot lease and will occupy the entire 29th floor. The tenant currently has office space at 39 Broadway, Commercial Observer reported. Avison Young Principal Tom Kaufman worked on behalf of Inclusiv in the transaction.

CSA Group NY Architects and Engineers also renewed its 10,557-square-foot office space on the property’s 14th floor for an additional 10 years. This deal was brokered directly.

READ ALSO: What’s Defining Office in 2025?

The property’s tenant roster includes RAL Cos., Syscom Global Solutions Inc. and Bond Collective, among others, CommercialEdge shows. The high-rise is currently 93 percent leased.

In 2024, renewals made up 68 percent of leases, marking a 10 percent increase from the previous year, a new CBRE report shows. Over half of the renewing tenants kept their existing space, while nearly a third expanded. Manhattan dominated the market, securing the largest share of the 100 top leases of last year.

A renovated tower in the Financial District

Located between Exchange Alley and Morris Street in the Financial District, the Class A 55 Broadway is near Interstate 478 and is less than one mile from World Trade Center. JFK International Airport is some 14 miles away.

The 358,000-square-foot building has been under the Harbor Group International ownership since 2014, when the company acquired the asset for $157.3 million from Broad Street Development, according to CommercialEdge. Later in 2017, Savanna and Paramount Group acquired a 45 percent ownership stake in the property. Last year, the office tower became subject to a $71.6 million loan, originated by AIG, the same source shows.

Completed in 1982, the 32-story high-rise underwent renovations in 2013. The building features floorplates ranging between 11,000 and 17,000 square feet, eight passenger elevators and 15,000 square feet of retail space.

The CBRE team representing the landlord included Executive Vice President Brad Gerla, Senior Vice President Jonathan Cope and Vice President Hayden Pascal.

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Lincoln Equities Group has signed a 109,450-square-foot long-term lease at its Lincoln Logistics Rockland, an industrial facility in Valley Cottage, N.Y.

The tenant is National Ramp, a residential and commercial modular ramping provider, that increased its footprint in Rockland County and will use the space to form a new corporate headquarters. JLL’s Executive Managing Director James Panczykowski represented the ownership and facilitated this transaction.

Lincoln Logistics Rockland is a recently completed, Class A distribution center that includes 220,000 square feet. The property is close to White Plains, N.Y., a suburban hub north of New York City that ended last year among the top emerging industrial markets in the U.S. for its development activity and high property values.

Located at 625 Corporate Way, the facility is close to Interstate 287, as well as to Palisades Interstate Parkway. Additionally, the Port of Newark-Elizabeth and major airports such as John F. Kennedy International Airport and Newark Liberty International Airport are within a 45-mile radius of the property.

Lincoln Logistics Rockland features 36-foot clear heights, 34 dock doors, two drive-in doors, a built-to-suit office component, 123 vehicle parking spots and 41 trailer parking spots. The property can also include expansion options of up to 55 dock doors and 53 trailer parking spots. The remaining 110,550 square feet are available for lease.

Deals and projects of two longtime partners

Lincoln Equities Group delivered the building with capital partner PCCP LLC and with construction funds totaling $37.7 million, secured in the form of a bridge loan originated by Principal Financial Group, according to CommercialEdge.

Meanwhile, the duo has a 204,407-square-foot industrial project currently underway in the area. Situated 30 miles from Lincoln Logistics Rockland and known as Belleville Logistics, the two-building industrial project is rising at 681 Main St. in Belleville, N.J. The partnership landed a $53.5 million senior construction loan for the development in April last year.

Lincoln Equities Group and PCCP LLC partnered for the first time in 2021, when they purchased a three-building industrial portfolio in the same area. Just last month, the partners sold off the 261,950-square-foot asset in a $62.8 million deal.

The post Lincoln Equities Inks New York Industrial Lease appeared first on Commercial Property Executive.

Comprised of two interconnected buildings located at 200 Elm St. and 695 E. Main St., The Link totals approximately 560,000 square feet. A.M. Property acquired the asset from Building and Land Technology for $235 million in December 2021, according to CommercialEdge. In 2024, Parkview Financial provided a $102.5 million bridge loan that was due to mature this December, the same source shows.

Built in 1984, The Link recently underwent $50 million in renovations to upgrade the complex and reposition it for the needs of today’s workforce. Improvements included a new lobby, modernized elevators and upgraded common areas.

The eight-story campus now has a 20,000-square-foot cafeteria and 9,000-square-foot fitness center. Other amenities include a conference center, outdoor courtyard with seating, fire pits and entertainment areas. The two buildings share a parking structure with 1,016 spaces.

Located in Stamford’s central business district, the transit-oriented property has direct access to Interstate 95 and a shuttle to the nearby Metro-North Commuter Railroad station.

Newmark Co-Head of Global Debt & Structured Finance Jordan Roeschlaub, together with Vice Chairmen Nick Scribani and Chris Kramer, led the team representing the borrower.

Leasing activity at The Link

The comprehensive renovations have resulted in significant leasing activity. Nearly 400,000 square feet of new commitments and renewals have been completed in the past two years at the campus that is currently 92 percent leased.

Indeed, the global job matching and hiring platform, agreed to lease 124,180 square feet at The Link later this year, when it relocates from 177 Broad St. The space will be the company’s new global co-headquarters and house primarily sales and client success teams.

Global manufacturer Henkel signed a renewal for a reconfigured 84,046 square feet. Diageo, the London-based beverage company that moved to the site in 2021, signed an early renewal for its 57,551 square feet. RSM, a tax, assurance and consulting firm, also signed a long-term renewal for 23,944 square feet to stay at The Link. Another firm that renewed its lease was Ascot Group, a global specialty insurance company that has 23,944 square feet.

Other major tenants include Deloitte, McDonald’s and Webster Bank, which extended its lease and expanded its headquarters by 23,031 square feet for a total of 45,979 square feet in March 2022.

The post AM Property JV Lands $133M for Stamford Trophy Asset appeared first on Commercial Property Executive.

The children’s apparel company, owned by Berkshire Hathaway, was already leasing the entire seventh floor at the 26-story tower. With this deal, it will also fully occupy the 31,663-square-foot sixth floor, bringing its total footprint at the property to 63,417 square feet, Commercial Observer reported.

The property is now 77 percent leased. Its anchor tenant Metropolitan Commercial Bank signed a renewal and expansion agreement back in December, bringing its total footprint to 81,979 square feet. Other notable tenants include The Ayers Group, Riveria Investment Group, New York Bankers Association, Windsor Properties, Flushing Bank and Keller Williams, CommercialEdge shows.

Global Holdings acquired the building in 1991 for $104.5 million from The Equitable Life Assurance Society of The United States, according to CommercialEdge data. The tower is currently subject to a $250 million loan held by Landesbank Baden-Wurttemberg Bank, the same source shows.

The JLL team included Vice Chairman Paul Glickman, Senior Vice President Diana Biasotti, Associate Vice President Kristen Morgan and Associate Harrison Potter.

An upcoming revamped high-rise

Originally designed by Emery Roth & Sons, the office tower dates to 1953 and underwent cosmetic renovations in 2005. The property features 12,000 square feet of first-floor retail space, a fitness center and 100 vehicle parking spots.

The owner is currently implementing a $30 million capital improvement program within the building, with renovations led by VOCON. Plans include an updated lobby, amenity center, the addition of a conference center, lounge, barber shop and salon, as well as golf simulator and bowling valley. Renovations are expected to reach completion during summer next year.

Situated within the borough’s Murray Hill neighborhood, 99 Park Ave. is close to Grand Central Terminal and to Bryant Park, while John F. Kennedy International Airport is 15 miles away.

Manhattan’s vacancy lowest among the Northeast

The national office vacancy rate reached 19.7 percent in January, up 180 basis points year-over-year, according to the latest CommercialEdge report. Every office market experienced jumps in vacancies, with five of the top 25 U.S. metros recording surges of more than 500 basis points.

Despite this, in the first month of 2025, the Northeastern markets kept their rates below the national average. Manhattan’s office real estate trends show that the metro registered the lowest vacancy rate in this region, with 16.6 percent as of January, marking only a 10-basis-point increase.

Notable leases in the borough signed since the start of the year include Newmark’s recent 15-year renewal and expansion at 125 Park Ave. The company increased its footprint to 184,239 square feet at the designated New York City landmark, owned by SL Green.

In January, that same landlord inked a 92,663-square-foot deal at another property. IBM expanded and renewed its presence at One Madison Ave., in a deal brokered by JLL.

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Historically, a visitations rate drop from December to January is standard. Excluding the month’s two holiday weeks featuring Martin Luther King Day and New Year’s Day, the January 2025 rate would have equaled December 2024’s average rate.

Weather also played a factor. New York City’s average daytime temperature was 34 degrees in January 2025, compared to 41 degrees in December and 39 in January 2024. In January 2025, New York City experienced 4.5 inches of snow, compared to 2.3 inches in January 2024.

READ ALSO: C-PACE in NYC: Will the Program Finally Take Off?

Visitation for Class A+ buildings averaged 80 percent, down from 86 percent the previous month but up from 78 percent in January 2024.

Class A/A- buildings averaged 63 percent during January, down from 70 percent during December and slightly above 62 percent in January 2024. Class B/C building visitation slid 4 percent month-over-month but was up 5 percent year-over-year.

Manhattan’s office utilization

According to Avison Young’s latest Office Busyness Index figures, Manhattan office utilization is 79.9 percent of pre-COVID levels. Across the U.S., office buildings are 66.9 percent as busy as in January 2019, ultimately showing that NYC is 13 percent ahead of national figures.

“In a world where hybrid work has become so prevalent, the weather has become a significant factor for office attendance,” Pierre Debbas, Esq., co-founder of Romer Debbas LLP, told Commercial Property Executive.

This winter has been significantly colder this year than last, along with an increase in snowfall which has definitely hurt office attendance, Debbas added.

“[NYC’s] congestion pricing likely also played a role in office attendance as post-pandemic there is an increase of the workforce who prefers to drive in than utilize public transportation, and congestion pricing is only an added burden to an already expensive commute to the city.”

Debbas said Class A continues to outpace the rest of the market, predominantly driven by return-to-office mandates that larger corporations are imposing and the allure of all of the amenities that these companies provide in comparison to smaller and mid-sized businesses, which predominantly rent in Class B buildings.

The hybrid model is here to stay

Despite the headline, comparing office visitations for the past month to a pre-pandemic baseline may not be intuitive, according to Michael Webb, partner at Farrell Fritz P.C.

“Remote, work-from-home and hybrid employment arrangements have fundamentally, and perhaps permanently, changed how many work and live,” he told CPE. “It is unlikely that in-office work during the post-pandemic era will ever rise to pre-pandemic levels.”

However, REBNY’s latest monthly analysis of office visitation data for Manhattan buildings indicates the more significant “flight-to-quality” trend the office sector has experienced post-pandemic and suggests that high-quality office assets in major markets are far from having hit rock bottom, he said. The flight-to-quality trend in office leasing is not necessarily new but is borne out by the Placer.ai data analyzed by REBNY.

As REBNY highlights, Class A+ buildings in Manhattan had an average visitation rate of 80 percent for January. The rate drops 17 percent for Class A/A- office buildings to 63 percent, and it drops yet again for Class B/C office buildings.

“The data highlights that companies continue to seek, use and occupy office space in high-quality buildings that offer modern amenities, proximity to retail, transit or areas of socio-cultural interest, as well as health, wellness and sustainability initiatives and packages,” Webb said. “The REBNY analysis highlights the growing disparity within the market between full-service, high-end spaces and lower-quality properties.”

Premium office buildings also attract top dollar financing as a result. Earlier this year, Ivanhoé Cambridge, the real estate group of CDPQ, refinanced its 42-story trophy office tower at 3 Bryant Park in Midtown Manhattan, to the tune of $1.1 billion. JLL’s Capital Markets group arranged the funding.

Strict mandates can hurt office dynamics

Earlier this year, Amazon, Disney, JP Morgan, Starbucks and X summoned workers back to the office full or part-time, Robert Martinek, director at EisnerAmper, shared.

“However, it has been reported that companies that have enacted strict return-to-office requirements have had to deal with losing talent, as some top performers have quit,” he told CPE.

Some feel strict mandates can hurt office dynamics and reduce employee satisfaction, Martinek added. Except for government employees, most companies have adopted a flexible work arrangement. Remote workers have been home since the pandemic and have gotten used to working from a home office.

Supporters indicate that ‘work from home’ helps with family duties, Martinek observed. Additionally, there is no evidence that work-from-home employees are less effective than their counterparts.

“Many companies are downsizing their space but not removing it completely. The ‘two to three days in the office’ works best for companies and employees. The hybrid model is here to stay!”

The post Manhattan Office Visits Drop appeared first on Commercial Property Executive.

Newmark has signed a 15-year renewal and lease expansion at 125 Park Ave. in Manhattan, growing its footprint at the building to 184,239 square feet. The tenant was represented in-house by Newmark’s Jason Perla, Brian Waterman, David Waterman and Matthew Schreiner. 

Newmark has been a constant presence at 125 Park since the mid-1990s, when it committed to 47,000 square feet, according to Crain’s New York. Over the years, the firm has expanded its footprint; in 2014, Newmark occupied more than 133,000 square feet at the 654,800-square-foot property, Bisnow reported.

The office tower is now more than 99 percent leased, according to landlord SL Green. The company is currently finalizing the design of a new lobby and restoration of the building’s entrance to its original design.

READ ALSO: Net Effective Office Costs Edge Up

SL Green has owned the property since 2010, when the company acquired it for $330 million from Shorenstein, which had bought it in 2004 for $225 million. Completed as the Pershing Square Building in 1923, the office tower is a designated New York City landmark for its “significant contribution to the variety and richness of Midtown East.”

Located across from Grand Central Terminal, the 26-story building features floorplates ranging from 9,556 to 26,256 square feet, as well as 17,000 square feet of retail. Tenants at the LEED Gold-certified property also include TD Bank, Pandora Music and Canon U.S.A., according to CommercialEdge information.

SL Green, Manhattan’s largest office landlord, held interests in 54 buildings totaling 30.6 million square feet at the end of 2024. So far in 2025, the REIT has signed office leases totaling 455,008 square feet, with a current pipeline of about 975,000 square feet. In one of this year’s deals, IBM expanded its footprint at One Madison Avenue.

Manhattan office market sees some strength

Office leasing has picked up recently in Manhattan, a market that had been hit fairly hard by pandemic and post-pandemic realities. In 2024, according to Newmark data, 38.1 million square feet were absorbed in the borough, up from 30 million square feet in 2023, and the most since before 2020.

New office space deliveries, which had spiked to 5.7 million square feet in 2023—the most since 2019’s total of 7.7 million square feet—shrank to practically nothing in 2024, Newmark noted. Only about 100,000 square feet came online last year in Manhattan.

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Ridgecut Road, a real estate investment firm focused on the Northeast market, will soon break ground on I-84 Orange County Logistics Center, a 146,075-square-foot industrial project in Montgomery, N.Y.

Pratt Design Studio provided architecture services, while Premier Design + Build Group will serve as general contractor. Completion is expected in the fourth quarter.  

The facility will rise on a 13.6-acre site at 14 Moosilauke Drive, along Route 208 in Lower Hudson Valley, just north of Interstate 84. New York Stewart International Airport is 8 miles away.

When complete, I-84 Orange County Logistics Center will have 36-foot clear ceiling heights, 31 dock doors and two drive-in doors. The property will also feature LED lighting and an ESFR sprinkler system, as well as 83 car and 16 trailer parking spaces. JLL Vice Chairman James Panczykowski and Vice President Zach Antonucci lead the Northeast Industrial team that has been retained as exclusive leasing agent.  

Corporate neighbors include Amazon, FedEx, UPS, Staples, Medline and XPO Logistics. The site’s location provides easy access to New York City, but also to the Port of New York and New Jersey, one of the area’s most significant industrial drivers. In line with most other ports in the country, it saw a significant rise in tonnage processed in 2024, up 11.4 percent year-over-year, according to Savills. However, potential new impending tariffs could alter activity going forward. 

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More than two years after breaking ground, L’Oréal Groupe has completed its nearly 250,000-square-foot scientific research center in Clark, N.J., and has begun full operations at the Union County property. The $160 million facility is L’Oréal’s largest outside of France and biggest investment in a R&I center.

L’Oréal started work on the project at 30 Terminal Ave. in September 2022 and began welcoming some employees in mid-2023. It replaces the company’s existing facilities in the New Jersey area.

The center features a 26,000-square-foot modular laboratory and a consumer center for product testing and co-creation that will accommodate up to 400 consumers daily. The property also has a mini-factory to scale final formulations before full-scale production.

Sustainability highlights include 10,000 solar panels, which meet 70 percent of the center’s energy needs, an eco-retention pond for stormwater management and employee-led gardening and composting initiatives that create a green workspace.

Flagship R&I center

The facility, now considered the flagship in L’Oréal’s global scientific research ecosystem, will employ more than 600 scientists, engineers and researchers. The team at the center, which complements R&I hubs in France, Brazil, South Africa, India, China and Japan, will be working across product innovation, development and testing to develop high-quality and safe beauty products, including hair, skin and makeup.

L’Oréal USA, the largest subsidiary of L’Oréal Groupe, is headquartered in New York City. It employs more than 12,000 people and operates administrative, research, manufacturing and distribution facilities across 16 states. In April 2021, L’Oréal USA opened a second company headquarters in El Segundo, Calif., in the Los Angeles area.

New Jersey growth

Revlon, another global personal care product company, is also moving its science and innovation lab within New Jersey. In November, Revlon leased 62,000 square feet at The Northeast Science and Technology Center, a 100-acre campus in Kenilworth, N.J., dedicated to research and development innovations. The firm was the first tenant there since pharma giant Merck left.

With more than 12 million square feet of space, New Jersey is one of the top 10 life science clusters in the U.S., as ranked by JLL. Of the top 20 pharma companies, 14 are located in New Jersey and eight of the top R&D companies are also in the state, according to Newmark’s third-quarter life science market report for Northern New Jersey.

In January, global oncology company BeiGene completed its $800 million manufacturing and clinical development center in Hopewell, N.J. The campus marked one of the largest recent investments in biopharmaceutical manufacturing in the U.S.

The post L’Oréal Completes $160M Research Center appeared first on Commercial Property Executive.

Shorenstein Investment Advisers has teamed up with Tritower Financial Group to acquire The Xchange, a 480,000-square-foot office and R&D complex in Bedford, Mass., for $96 million. The new ownership also secured $50 million in acquisition financing provided by Barings, according to CommercialEdge.

The seller was Jumbo Capital Management, which previously purchased the office campus for $107.8 million in 2018, according to the same source.

The XChange is 99 percent occupied by a mix of tenants including iRobot, Nyobolt, Entegris and Quanterix. JLL’s Senior Managing Director Christopher Lawrence and Executive Managing Director Matt Daniels have been tapped to lease the remaining space at the property.

An eight-building innovation campus, The XChange is at 8 Crosby Drive, within Boston’s Merrimack Valley West submarket. Situated on 22 acres, the complex provides easy access to Massachusetts Route 3 and to Interstate 95, while being 21 miles from downtown Boston and Boston Logan International Airport.

Developed in 1968 and completely upgraded in 2017, The XChange buildings range between two and three stories. The properties feature loading docks, passenger elevators and 760 vehicle parking spots.

The amenity package contains a fitness center with a yoga studio, a modern café and outdoor seating spaces. The partnership plans to further enhance the property and add 70,000 square feet of R&D space.

Boston’s office investment activity

Since the start of the year, Boston’s office transaction volume placed it among the top-performing markets in the U.S., according to a recent CommercialEdge report. The metro recorded $2.5 billion in sales and ranked fourth, with office assets trading at an average sale price of $259 per square foot as of January. The value is the seventh-highest among the top 25 markets covered by CommercialEdge.

In late 2024, Norges Bank Investment Management purchased interests in two office properties in the area, as part of a larger deal. The bank paid $976.8 million for a 50.1 percent stake in a 3.7 million-square-foot office portfolio that included assets in Boston, San Francisco and Washington, D.C.

The post Shorenstein JV Pays $96M for Boston R&D Campus appeared first on Commercial Property Executive.

• 548 W. 22nd St., Manhattan

Sale Price: $50.5 million

California-based cybersecurity company Fortinet Inc. has purchased the 38,100-square-foot retail building in Chelsea from Atlas Capital Group. The buyer, which already had a New York City location, plans to use the four-story building as its office, The Real Deal reported. It is unclear if the current tenants will continue to lease space at 548 W. 22nd St., or if Fortinet Inc. will continue to operate from both New York City locations.

The property came online in 1920 and was last upgraded in 2021. It features 11,258 unused air rights and is currently occupied by NADA New York, Shah Garg Foundation and Santa’s Secret.

• 73 Wooster Street #COM, Manhattan

Sale Price: $25.4 million

The 8,920-square-foot retail unit of the multifamily building at 73 Wooster St. was acquired by Acadia Realty Trust from EPIC, a London-based owner and developer of commercial real estate. The asset previously changed hands in 2011, when EPIC paid $15 million to Vornado Realty Trust for it.

The five-story building is in SoHo and totals 37,443 square feet. It dates back to 1929 and was last updated in 2003. The retail condo is currently leased to Italian luxury brand Moschino.

• 2134 Coyle St., Brooklyn

Sale Price: $22.4 million

Westhab Inc. has purchased the 20,411-square-foot, two-building retail asset in Brooklyn’s Sheepshead Bay from Slate Property Group. The buyer, an affordable housing provider and developer, landed $124 million loan originated by Wilmington Trust, for the development of a residential project at the property.

In July 2024, Slate Property Group acquired the pair of buildings in a $24.4 million portfolio deal, with plans to construct a seven-story residential community with 175 units. The development site has already received approvals since 2022 for a residential project.

The buildings at 2134 and 2150 Coyle St., came online in 1956 and include 55,407 square feet of unused air rights.

• 2481 Creston Ave., Bronx

Sale Price: $7.1 million

Joey’z Shopping purchased the 14,662-square-foot retail building in the borough’s Fordham neighborhood from Abro Management Co. The buyer secured a $4.3 million acquisition loan from Interaudi Bank. The single-story building originally came online in 1955 and includes 15,931 square feet of additional air rights. Tenants here include Citibank and Dresses for Less Clothing.

• 82 Beaver St. #B, Manhattan

Sale Price: $5.5 million

A private buyer picked up the 7,092-square-foot retail component of a 15-story residential building from Red Pine Capital Partners. The buyer landed a $3.7 million loan from SMS Financial through an amended and restated note. The commercial unit is within 1 Wall St. Court, also known as the Beaver Building or Cocoa Exchange. Designed by Clinton and Russell, the property was completed in 1904 as an office building and later converted into a condominiums in 2006.

—Posted on February 26, 2025

The post Top 5 NYC Retail Building Sales—January 2025 appeared first on Commercial Property Executive.

• 2 Park Ave., Manhattan

Sale Price: $357 million

Morgan Stanley sold the 852,731-square-foot office building in the borough’s NoMad neighborhood to Haddad Brands. The deal was announced in early December as what would have been the largest office sale of the year in New York City, according to The Real Deal. The 1928-built asset previously changed hands for $565 million in 2007, when Morgan Stanley picked it up from L&L Holding Co.

Fried Frank advised Haddad Brands during negotiations, with the seller planning to occupy the property. The asset was last upgraded in 2011, rises 345 feet and includes 41,465 square feet of retail space

• 470 Park Ave. S., Manhattan

Sale Price: $147.5 million

A week later, another NoMad property changed hands: Williams Equities acquired the 227,053-square-foot office asset at 470 Park Ave. S. from SJP Properties and PGIM Real Estate. The buyer secured acquisition funds in the form of an $100 million senior loan via a consolidated note that replaced a previous $56 million debt, and a $10 million second loan, both originated by MetLife Real Estate Lending.

The 17-story building previously traded in 2018 for $245 million. Originally completed in 1925 and last updated in 2012, the office property features 19,000 square feet of retail space. Its tenant roster includes M&T Bank, Kiko USA and Array Architects, among others.

• 767 Third Ave., Manhattan

Sale Price: $88 million

Nathan Berman’s Metro Loft Management picked up the Turtle Bay property from Sage Realty. Eastdil Secured negotiated on behalf of the seller.  Metro Loft Management secured a $55 million acquisition loan from Bank Hapoalim International.

The 286,212-square-foot office building rises 40 stories and dates back to 1980. Tenants here include Acacia Research Corp., Harvest Capital Credit Corp. and The Cole Group, among others.

The buyer formed a joint venture with Quantum Pacific Group to convert the half-vacant property to residential, under the City of Yes housing reform, according to The Real Deal. The 286,212-square-foot office building rises 40 stories and dates to 1980.

• 1370 Broadway, Manhattan

Sale Price: $75.3 million

American Exchange Group purchased the 234,846-square-foot property, also known as the Fischel Building, from Invesco Real Estate. The buyer closed the acquisition through Sentry Realty, its real estate arm, in partnership with 60 Guilders. Fortress Investment Group provided acquisition financing totaling $66 million through two loan agreements.

The deal closed at a significant discount when compared to the previous sale in 2014, when Invesco paid $186 million. Located in the borough’s Garment District, the 16-story asset was completed in 1922 and includes 5,000 square feet of retail space.

• 24 W. 57th St., Manhattan

Sale Price: $67.2 million

The Central Midtown office building changed hands from APF Properties to Soloviev Group. The seller marketed the property as a development site after it defaulted on a $48.9 million CMBS loan.

Soloviev Group owns multiple plots in the area, as well as the office tower across the street. While it remains unclear what will happen to the new asset, the buyer will likely build a luxury condominium asset, according to Commercial Observer.

Also known as The New York Gallery Building, the property is totaling 110,808 square feet and includes 88,722 square feet of office space and 13,246 square feet of retail space. Originally completed in 1928 and upgraded in 2009, the 20-story building is leased to Galerie St. Etienne, Michelle Roth Design Studios and luxury brand Riflessi, among others.

—Posted on February 25, 2025

The post Top 5 NYC Office Building Sales—January 2025 appeared first on Commercial Property Executive.

RFR has recapitalized 475 Fifth Ave., a 275,738-square-foot trophy office asset in Manhattan, securing new debt and equity and escaping foreclosure.

The deal includes a new three-year loan amounting to $160 million issued by Citibank and JPMorganChase. The same lenders had held the previous $180 million property debt due in September 2024, according to CommercialEdge information. The recapitalization also includes the infusion of new capital, although the new equity partners remain anonymous.

RFR had partnered with Penske Media Corp. to purchase the asset in 2022. Nuveen Real Estate sold 475 Fifth Ave. for $291 million, CommercialEdge shows, after having invested $60 million in capital expenditures nine years prior.

The 24-story building debuted in 1926, its floorplates ranging from 4,103 to 18,382 square feet. Amenities comprise a newly renovated lobby and a public art program, to name a few. The property achieved LEED Silver certification in 2015.

READ ALSO: 2025 Top Commercial Mortgage Banking and Brokerage Firms

The property is more than 90 percent leased, according to Commercial Observer. Its largest tenant is Penske Media, which signed a long-term lease for nearly 110,000 square feet. The roster also includes design firm Stantec and investment company Kylin Management.

New York Public Library is across the street from 475 Fifth Ave., while Grand Central and Bryant Park are within walking distance.

RFR’s road to stabilization

RFR’s New York portfolio nears stabilization through recent recapitalizations, Co-Founder & Principal Aby Rosen said in prepared remarks. This month, the company landed a $1.2 billion CMBS note to refinance 375 Park Ave., according to multiple sources. The loan retired the office tower’s previous $1.1 billion debt.

The company rounded up 2024 with another significant office deal, having obtained a three-year extension for the note encumbering 17 State St. The 571,000-square-foot property was subject to a $180 million CMBS loan originated by JPMorganChase.

Manhattan’s mixed office signals

Manhattan’s office market has seen significant changes across several key markers since the beginning of the year, according to a recent CommercialEdge report.

The borough’s vacancy rate climbed only 10 basis points year-over-year to 16.6 percent in January—well below the national average of 19.7 percent. Meanwhile, listing rates dropped 3.6 percent year-over-year and settled at $68.2 per square foot, while the national office rents were up 5.8 percent during the same interval.  

However, office lending has shown signs of revival. Earlier this month, Ivanhoé Cambridge secured a $1.12 billion loan for the refinancing of a 42-story trophy tower in Midtown Manhattan.

The post RFR Recaps Manhattan Office Tower appeared first on Commercial Property Executive.

Until a few months ago, C-PACE in NYC was limited to financing just qualifying retrofits of existing buildings. Investors found it difficult to use due to high barriers to entry and excessive qualification standards. This, combined with elevated program costs and onerous requirements—and especially during the years of low interest rates—pushed borrowers toward other, more attractive alternatives for financing, recalls Cliff Majersik, senior advisor at the Institute for Market Transformation.

READ ALSO: Why C-PACE Lenders Remain Resolute

“C-PACE was a financing option of last resort for energy upgrade projects under $10 million in NYC,” confirmed Lucas Nagy, vice president of structure finance at EcoSmart Solution, Taurus Investment Holdings’ energy platform.

Simply put, C-PACE’s improvement in borrowing rate over conventional equipment financing was not worth the additional upfront costs and administrative headaches for most property owners in NYC. Additionally, Freddie and Fannie were not providing lender consent to C-PACE, so even if a multifamily property owner wanted to use C-PACE, their lender would not allow it, Nagy pointed out.

New parameters for C-PACE in NYC

In late 2024, C-PACE in NYC was amended to include new construction projects and the maximum loan term was increased to 30 years. This lengthy procedure took note of the city’s local PACE law, and involved a NYC administrative rulemaking process and revised guidance from the New York State Energy Research and Development Authority. The passage of the NYC “gas ban bill” in 2021 also impacted the framework, noted Curtis Probst, president of New York City Energy Efficiency Corp., a nonprofit that also serves as administrator for NYC’s C-PACE program.  

Following the introduction of the new guidelines, the market appears to be in for a green surprise, as funding for new construction is the most common application for C-PACE financing around the country, according to Michael Doty, senior director of originations at Nuveen Green Capital, a company that surpassed $3 billion in C-PACE originations last year alone.

New construction projects in NYC are now PACE-eligible and automatically qualify for funding equal to 30 percent of hard costs, provided that the building is designed following a suite of energy efficiency measures considered best practice for new buildings today, including all-electric, clarified Jacob Roth, vice president of project underwriting and C-PACE Programs at PACE Loan Group.

In addition, new construction projects that comply with an electrification requirement are exempt from the cost-benefit-ratio calculation. “Since the NYC C-PACE program contains the ‘all-electric’ requirement for new construction projects, there is no CBR requirement for new construction projects,” said Probst.

Retrofit programs were also expanded last year to include an updated list of prequalified improvements, making C-PACE requirements less stringent for users. The new guidelines exempt retrofit projects of low-carbon buildings, which must not use fossil fuels for any major building system. “Buildings eligible for C-PACE will have the lowest possible carbon impact throughout their life,” noted Doty.

C-PACE in NYC projects

111 Wall Street

Just a handful of projects in NYC used C-PACE since its launch four years ago. But it started loud, with an $89 million C-PACE transaction in 2021, issued by Petros PACE Finance for 111 Wall Street, a 25-story building in Manhattan’s Financial District. At that time, it was also the largest single C-PACE transaction ever closed in the U.S.

The PACE financing was part of a $500 million acquisition and reposition financing closed by the building’s joint venture partners, Wafra Capital Partners and Nightingale Properties.

The planned PACE-eligible renovations at the 1.2 million-square-foot tower included a full upgrade to the building’s facade and a complete remake of the HVAC air conditioning and MEP systems, as well as fully redundant power systems.  

730 Third Avenue

Another prominent project that used C-PACE financing was TIAA’s 730 Third Avenue, Nuveen’s NYC headquarters in Midtown Manhattan. In the fall of 2021, Greenworks Lending (now Nuveen Green Capital) provided $28 million C-PACE financing with a 25-year financing term, backing a $120 million renovation plan.

The C-PACE amount was used for multiple energy efficiency measures, including lighting, roof insulation and replacement of all windows with smart windows that adjust to light automatically to help control the temperature inside the building.

The C-PACE financed measures also helped reduce the property’s greenhouse gas emissions, supporting the building in averting nearly $100,000 in annual fines under the city’s Local Law 97 of the Climate Mobilization Act.

Brooklyn United Methodist Church Home

The Brooklyn United Methodist Church Home in Brooklyn has been operating for 150 years. Founded as an elderly housing community, it now serves as a skilled nursing facility with 120 beds. In 2023, the property was granted a $5 million C-PACE loan for energy improvements to ensure compliance with New York’s Building Performance Standards.

In this case, the developer sought retroactive refinancing for the installation of a combined heat and power system for the facility, and financing for further improvements including a new boiler, lighting system and air-handling units. These energy improvement measures funded by PACE Equity led to a reduction in carbon emissions by 265 metric tons per year, placing the property well below the 2024 emissions limit, and ensuring the building complies with Local Law 97.

66 Main

Bayview PACE closed $3.5 million in C-PACE financing in 2024, for a mixed-use asset at 66 Main St. in Yonkers. The 10-story property encompasses 170 apartments and 19,900 square feet of retail space on the ground floor. The loan utilized a combination of retroactive C-PACE and future PACE-eligible tenant improvements. The funds were used for energy efficiency upgrades, HVAC repairs and replacements.   

Dutch Meadows

Also in 2023, PACE Equity issued a $2.7 million loan for the first new construction of a 104-unit multifamily project, in Schenectady, N.Y., dubbed Dutch Meadows. The developer leveraged low-cost and non-recourse funding from PACE Equity to improve the project’s IRR while developing an energy-efficient multifamily project.

What’s behind C-PACE deals?

The verve around sustainability, energy efficiency and green building begs the question: How much of C-PACE do investors need to fill their capital stacks, and how much is ESG-driven?

Overall, this financing tool is primarily being used to reduce reliance on more expensive sources of debt or equity, with some investors also seeing it as a tool to further ESG goals, said Roth. For developers who are undertaking the development of green buildings to fulfill ESG commitments, C-PACE acts as a built-in reward for those choices. For developers looking for creative ways to complete a capital stack, “C-PACE helps make good design, good business,” according to Doty.

The reality is that C-PACE is a valuable financing instrument that works well in certain instances depending on project characteristics, alternative sources of capital and market conditions, believes Probst. “While some investors are interested in the ESG aspects, to date, we have not seen ESG considerations driving transactions,” he added.

Another development for C-PACE is increasing bank acceptance of partnering with it. “More and more traditional lenders are warming up to C-PACE, both because it preserves their senior loan position and because their client, the owner/developer, enjoys significant benefits through a more optimized capital stack,” Anne Hill, SVP, Bayview PACE, told CPE last year. “Banks recognize that C-PACE can fill gaps in the capital stack to get deals back on track when conditions are tight,” she added. With C-PACE non-recourse financing, the bank remains in the lead position in the event of loan defaults.

2025 expectations

This financing tool saw considerable growth during the high interest rates period. So with lower interest rates now and an updated requirements list, will C-PACE in NYC show growth or soften?

While we have seen the Fed cut rates a few times last year, we haven’t seen a corresponding decline in commercial real estate rates, Roth pointed out. But should we see this decline, C-PACE will continue to be attractive as investors look to capitalize on that momentum, he believes.

C-PACE financing volumes are partially a function of the absolute level of interest rates, and of equal or greater importance, is the relative attractiveness of C-PACE versus other financing sources. “While this relationship changes over time, we believe that increasing stakeholder familiarity with C-PACE, and the changes made to the NYC C-PACE program, will support broader adoption of PACE,” expects Probst.

C-PACE is an incredibly adaptable financing tool, Doty said, as it grew quickly and consistently throughout the country during a historically low-interest rate environment. While certainly the reduction in bank liquidity and rising interest rates drove C-PACE adoption in the last couple of years, growth is expected, even in a declining interest rate environment.

Nagy believes that sophisticated asset-backed securities investors understand the low, long-term risk that C-PACE provides relative to other real estate-secured debt instruments. The financing instrument is programmatically designed to fund low-risk energy improvements that, in turn, yield increases in property operating income. Securing C-PACE financing means getting stabilization-priced debt before the property has stabilized or restabilized.

The post C-PACE in NYC: Will the Program Finally Take Off? appeared first on Commercial Property Executive.

Aaronson Rappaport Feinstein & Deutsch LLP has decided to have its headquarters remain at the Grand Central district tower through at least 2042, having signed a 15-year lease extension with L&L Holding Co.

The space totals 55,269 square feet at 600 Third Ave., the firm’s contemporary 42-story Midtown East office tower, where it has been a tenant since 2010. The law firm will maintain the 42,764 square feet it occupies on the fifth and sixth floors.

Another law firm, Bond Schoeneck & King, signed a seven-year lease extension at 600 Third Ave. It has occupied space there since 2014. It will maintain the 12,505 square feet it occupies over the whole 22nd floor through at least 2033.

The property at 600 Third Ave., built in 1970, carries 575,254 square feet over the entire western blockfront between East 39th and East 40th Streets. It was recently renovated, including lobby upgrades and building system improvements.

READ ALSO: Top 100 Office Leases of 2024 Point to Stabilization

L&L Holding was represented by an in-house team of Jonathan Tootell, Tanya Grimaldo and Giannina Brancato. Mark Weiss and David Mainthow of Cushman & Wakefield, and Larry Bank of Matador Capital Management represented Aaronson Rappaport.

Bond Schoeneck & King was represented by Jeffrey Peck and Daniel Horowitz of Savills.

Peck told Commercial Property Executive that pockets of the NYC real estate market are tightening.

“However, there are still many value opportunities available,” Peck said. Most landlords are willing to negotiate beneficial deals for tenants that include building space with no out-of-pocket costs—including furniture and wiring, he added.

“It’s still a favorable time to be a tenant, especially when partnering with a real estate advisor who knows which landlords are ready, willing and able to compete for high-credit occupiers.”

Flight to quality as the new standard

Some Midtown NYC corridors are seeing premium office rents approach pre-pandemic levels while lease activity is booming, according to Lisa Flicker, senior managing partner & head of real estate at Jackson Lucas. In these areas, availability has dropped to its lowest point since 2021, signaling a robust recovery in prime office space.

“Reflecting the momentum in executive hiring within the office asset class, the premium sector is experiencing a notable rebound,” Flicker said.

The flight to quality is no longer a trend but the new standard, driven by companies reassessing remote work and increasing demand for high-quality, centrally located office spaces, she explained.

As firms push for more in-office time from their executives and team members, they raise the bar by investing in workplaces with top-tier amenities like fitness centers, cafes, conference rooms, outdoor spaces and childcare facilities. “Beyond perks, I see in-office factors like air quality and lighting becoming factors in attracting top talent,” Flicker added.

Leasing activity in Midtown saw remarkable growth in the fourth quarter of 2024, a strong sign of a continued rebound for the sector, according to AmTrust RE President Jonathan Bennett.

“Primely located office buildings with access to numerous transportation options and quality retail and restaurant offerings continue to see strong tenant demand,” Bennett told CPE.

The upward trajectory for these assets led to AmTrust RE’s acquiring 360 Lexington Ave., a 24-story office tower steps from Grand Central, late last year. “With a positive outlook on the future of Midtown’s market, we expect modern, tenant-focused office properties to continue seeing strong leasing activity,” Bennett said.

Given the “return to office” mindset in many industries across the city and the U.S., many people want to live near work.

For example, at The Perrie condo development on 234 East 46th St., more than 50 percent of buyers and prospective buyers work just blocks away at an office ideally located like 600 Lexington, according to Nick Riback of Corcoran.

Nearby 520 Fifth Ave. is set to offer over 200,000 square feet of boutique office space and residences, with over 90 percent sold. This property, on the same street as the Empire State Building, will be the second-tallest building on Fifth Avenue and a 10-minute walk from the 600 Third Ave. property. JLL is the leasing company for the building’s commercial office space.

Two years ago, law firm Polsinelli extended and expanded its lease at L&L Holding Co.’s 600 Third Ave., signing a 10-year extension through 2036 at the 42-story skyscraper, adding 13,129 square feet on the 33rd floor.

The post L&L Holding Signs Lease Extensions in Manhattan appeared first on Commercial Property Executive.

SPARC Kips Bay will transform an entire city block at East 25th Street and First Avenue on Hunter College’s Brookdale Campus into a life science innovation, career and education hub with more than 2 million square feet of academic, public health and life science space. The project was first announced in October 2022 and is expected to create more than 3,100 permanent jobs and generate $42 billion in economic impact over the next 30 years. NYCEDC expects to start deconstruction of the campus by the end of this year.

The Innovation East development, basically around the corner at 455 First Ave., will replace the former Public Health Lab with a new life science hub. The Public Health Lab will relocate to a new, modern facility at Harlem Hospital, which is expected to be complete by the end of this year. Demolition of the existing 455 First Ave. building is expected to take place in 2026, with construction of Innovation East starting in 2027.

To dive more deeply into SPARC Kips Bay, the campus will include life science research labs for companies of various sizes; clinical classrooms and teaching labs for three City University of New York schools: Hunter College School of Nursing, CUNY Graduate School of Public Health & Health Policy and Borough of Manhattan Community College; outpatient ambulatory care services and a training simulation center for NYC Health + Hospitals (H+H); a new forensic pathology center for the Office of the Chief Medical Examiner; and community and retail spaces.

The project will also feature more than 1.5 acres of public improvements, including new publicly accessible open space, a new ADA-accessible 25th Street pedestrian bridge over the FDR Drive, streetscape improvements and flood protection measures.

READ ALSO: Life Science Trends to Watch in 2025

In February 2024, NYCEDC issued a Request of Expressions of Interest to identify a tenant to operate a life science center at SPARC Kips Bay. NYCEDC will potentially allocate up to $100 million of city capital in support and expects to announce its selection in the spring.

In the meantime, last September NYCEDC chose Skanska as the construction manager to oversee SPARC’s first phase, of more than 600,000 square feet, following deconstruction of existing buildings on the Hunter College campus. The total anticipated contract award was expected to be about $1.6 billion, and construction is scheduled to begin at the end of this year and to be completed in 2031. 

The total anticipated contract award is expected to be in excess of $1 billion, and construction is expected to begin at the end of this year and to be completed in 2031.

Currently, NYCEDC expects to release an RFP seeking developers to build 1 million square feet of life science space and modern facilities for H+H and OCME as part of SPARC’s second phase.

The 500,000-square-foot Innovation East will be more or less just across First Avenue from SPARC, at 455 1st Ave., and will have the potential to create more than 1,000 permanent jobs. New York City’s own Taconic Partners is among the major players in this project, having conceived it in response to an RFEI from the city in 2018.

NYCEDC did not reply to Commercial Property Executive’s request for additional information.

Addressing the labor shortage

To the extent that this expansion of the Kips Bay Science District is aimed at connecting the projects’ eventual tenants into New York City’s educational institutions, this could be a smart strategic move.

A mid-2024 life sciences outlook from Cushman & Wakefield remarked that even though hiring in the sector was lackluster, finding talent to fill certain positions remains challenging in today’s labor market. In some markets, employers must post job openings up to five times to fill specific roles, according to the report.

In New York City, Cushman & Wakefield reported, life sciences job postings were open for a median of 24 days.

The post NYC Projects Worth $1B Get Green Light appeared first on Commercial Property Executive.

Shaker Loudon Associates, an affiliate of Benderson Development, has sold a 120,049-square-foot Fresh Market-anchored shopping center in Latham, N.Y., just north of Albany. PCP Binghamton Associates LLC acquired the property for $26.9 million.

Institutional Property Advisors Senior Managing Director Jim Koury brokered the deal on behalf of the seller and procured the buyer.

The Fresh Market Commons in Latham is located at 664 Loudon Road, at the intersection between U.S. Route 9 and State Route 155. Interstate 87 is also close.

Completed in 2010, the three-building property is located on 10 acres. Its tenant roster also includes Petco, Crumbl Cookie, Sleep & Spas, European Wax Center and Verizon, according to CommercialEdge information. The new ownership had approximately 24,000 square feet available at the shopping center to reposition the property’s tenancy.

READ ALSO: What’s in Store for Retail in 2025?

The property is within 1 mile of several other retailers including Walmart, Home Depot, Target and Lowes. Albany International Airport is less than 4 miles west of the shopping center, while downtown Albany, N.Y., is within 8 miles. 

Fresh Market Commons serves a population of more than 182,000 within 5 miles, with annual household incomes exceeding $116,700 within a 3-mile radius, according to Institutional Property Advisors.

The post New York Retail Center Sells for $27M appeared first on Commercial Property Executive.

MLB Network is planning to move all operations to 25 Market St. in Elmwood Park, N.J. The content platform of Major League Baseball will occupy the entire 207,000-square-foot building that was developed by Crow Holdings and completed last year. CBRE negotiated the lease on behalf of the tenant, while JLL represented the owner.

MLB Network will relocate from Secaucus, N.J., where it has been since its opening in 2009. The platform will be fully operational at the new location by the 2028 baseball season.

READ ALSO: Top Destinations for Corporate Relocations

MLB Network creates about 3,000 hours of live programming each year, and it is also a production house. The platform helps produce content for MLB Local Media, Friday Night Baseball on Apple TV+, Roku’s MLB Sunday Leadoff, and MLB’s digital platforms and partners. All together, MLB Network created more than 400,000 pieces of content for all of MLB’s platforms in 2024.  

Out of the ashes

The warehouse rises on the former site of the Marcal Paper Mills factory, which had been there for about 90 years. In 2019, most of the 36 structures on the Marcal site burned down in a fire.

The developer acquired the 12-acre parcel in 2022 and built the facility on speculative basis. A brick facade and black window mullions inspired by the original industrial property pair with large, translucent light boxes in a design that is new, but also plays tribute to the former factory.

Designed by M+H Architects, the facility has 32 dock positions, two drive-in doors, a 60-foot speed bay and an interior clear height of 40 feet. The building will house all of the network’s production studios and offices, along with MLB’s video tape library.

Scott Gottlieb, Brendan Herlihy, Greg Barkan and Elliot Bok of CBRE represented MLB Network in the lease. The JLL team of Rob Kossar, David Knee, Ignatius Armenia, Chris Hile and Ryan Milanaik assisted Crow Holdings Development. 

Vacancy plateaus in New Jersey’s industrial market

Leasing volume in the New Jersey industrial market came in at 12 million square feet in the fourth quarter, which was higher than the trailing eight quarter average of 9.5 million square feet, according to JLL. Third-party logistics represented much of the demand.

That volume of leasing, along with a slowdown in new construction deliveries, means that vacancy in New Jersey industrial is plateauing, JLL reports. Vacancy was up only 28 basis points on average each quarter in 2024, a moderation from 2023, when the increase averaged 77 basis points per quarter.

Product construction is at its lowest point in two and a half years in New Jersey, JLL notes. The volume of new development is expected to remain around the 15 million-square-foot mark.

The post MLB Network to Relocate New Jersey HQ appeared first on Commercial Property Executive.

Stark Office Suites has extended its lease at Jack Resnick & Sons’ 110 E 59th St. in Manhattan by 10 years. The flexible office space provider occupies the 22nd and 23rd floors of the 612,181-square-foot building. 

In conjunction with the renewal, Resnick and Stark have agreed to partner on upgrading the 26,568 square feet the latter occupies at the property. Renovations will include improvements to the reception, common areas, meeting spaces, kitchenettes and restrooms.  

Stark Office Suites opened its first locations in 2004 and has since grown to 13 flex office spaces across New York City, Westchester, Long Island and Connecticut.

A Manhattan tower on 59th Street

Completed in 1969 by Resnick & Sons and designed by W. M. Lescaze, the high-rise on 59th Street rises 37 stories just off Park Avenue in the Plaza District.

Its tenant roster features Zelnic Media Capital, Royalty Pharma, Cantor Fitzgerald and Estee Lauder. The property was awarded the LEED-Gold certification for operation and management, according to CommercialEdge information.  

There were 273 coworking locations in Manhattan as of November, totaling 11.3 million square feet, CommercialEdge research shows. Trailing behind Manhattan, Chicago and Washington, D.C., have 6.8 million square feet and 6.7 million square feet, respectively, out of the 136.3 million square feet of flex office spaces across the U.S.

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A three-building, 261,950-square-foot light industrial portfolio in the New York metro’s Rockland County has changed hands for approximately $62.8 million after nearly four years of ownership by Lincoln Equities Group and PCCP. Invesco Real Estate acquired the I-287 Multi-Tenant Light Industrial portfolio in Valley Cottage, N.Y.

JLL Capital Markets represented the sellers, which teamed up for the first time in April 2021 to purchase the three-building industrial portfolio from Sasson Real Estate Group in a deal valued at $48.5 million. The ensemble is now 97 percent leased to 17 tenants from a variety of industries including logistics, storage, sales, showrooms, servicing and health care.

The 64,000-square-foot 711 Executive Blvd. dates back to 1999 and is located on 9.3 acres, according to CommercialEdge. Completed in 2008, 616 Corporate Way and 618 Corporate Way sit on nearly 14 acres, encompassing 85,790 and 112,160 square feet, respectively.

READ ALSO: Manufacturing Demand for Industrial Space Is Mushrooming

The buildings have suites ranging from 2,720 to 42,075 square feet. They feature a mix of traditional warehouse space with clear heights up to 30 feet and shallow-bay light industrial space with 20-foot clear heights. 711 Executive Blvd. has a total of 234 parking spaces while the buildings at 616 Corporate Way and 618 Corporate Way have 170 parking spaces.

The location offers connectivity to the affluent and densely populated markets of Bergen County, N.J., Westchester County, N.Y., and New York City. Situated just off Route 303, the portfolio is 3 miles from Interstate 287 and less than 6 miles from the Mario M. Cuomo Bridge, formerly known as the Tappan Zee Bridge, which connects Rockland and Westchester counties. The highway system in the area provides access to more than 980,000 consumers within a 30-minute drive and more than 9.8 million consumers within a one-hour drive.

More Lincoln, PCCP deals

Based in East Rutherford, N.J., Lincoln Equities Group owns, operates, develops and manages commercial and residential properties throughout the Northeastern region and Europe. In April, Lincoln closed on a $53.5 million senior construction loan provided by PCCP to develop Belleville Logistics, a two-building, 15-acre last-mile logistics campus in Belleville, N.J.

In December, PCCP and another partner, Distribution Realty Group, began construction on Middle Tennessee Industrial Center, a four-building, 703,902-square-foot speculative project in Murfreesboro, Tenn., in the Nashville, Tenn., market. The project is slated for delivery later this year. A month earlier, PCCP formed a joint venture with CRG to develop The Cubes at Alpha, a 575,900-square-foot industrial park in Alpha, N.J.

Invesco industrial activity

Invesco has been active in both developing and acquiring industrial assets across the country. In August, Invesco and IndiCap completed the first phase of Virgin Industrial Park, three facilities totaling about 1 million square feet in Glendale, Ariz. Two more buildings are planned, bringing the park’s total space to 1.5 million square feet.

The firm paid $55 million for a 216,000-square-foot building in South Brunswick Township, N.J., last February. At the time of the sale, the property was fully leased to a third-party logistics company. That same month, Invesco and four partners who own Currwood Logistics Center, a 1.5 million-square-foot Hagerstown, Md., industrial campus, inked a full-building, 1.2 million-square-foot lease with an online restaurant supply company.

The post Invesco Pays $63M for Suburban NY Industrial Portfolio appeared first on Commercial Property Executive.

Simon Property Group Inc. plans to begin a multimillion-dollar transformative project of Smith Haven Mall, a 1.2 million-square-foot shopping mall in Lake Grove, N.Y., on Long Island. The extensive redevelopment will start this summer, targeting completion in 2026.

The renovation project will improve both the exterior and interior spaces of the property. The exterior will be repainted with new signage and entryways. Inside, Smith Haven Mall will have updated flooring, modern fixtures and a revitalized Center Court. The food court will also be transformed with new seating. Outdoors, a green plaza with landscaping and seating areas will be added.

The mall revamp will also feature tenant additions. Zara will open its first location in Eastern Long Island at the property in 2026, Sur la Table will open this fall and Golf Lounge 18 is set to open in March.

READ ALSO: What’s in Store for Retail in 2025?

Smith Haven Mall—originally known as Nesconset Shopping Center—opened its doors in 1969. Since 1995, it has been managed by Simon Property Group. The property has undergone several renovations and expansions over the years, becoming a key shopping destination in the region.

The mall’s tenant roster currently includes more than 130 regional and national retailers such as Barnes & Noble, Apple, Guess, H&M, Claire’s, White House Black Market, LoveSac, Dick’s Sporting Goods, Forever21, Sephora, The LEGO Store, The Cheesecake Factory, Ruth’s Chris Steakhouse, Starbucks and Bahama Breeze.

Located at 313 Smith Haven Mall, the retail property is at the intersection of highways 25 and 347.

Simon’s recent activity

Simon currently has roughly $8 billion in assets under management across the globe and its portfolio encompasses more than 400 retail properties across 24 countries.

In September, the firm updated and extended its $3.5 billion multi-currency unsecured revolving credit facility. This amendment increased Simon’s financial flexibility, giving it a total of $8.5 billion in revolving credit capacity.

And this January, the REIT announced plans to develop Nashville Premium Outlets, a 325,000-square-foot luxury shopping and lifestyle destination, starting next year. The company agreed to purchase a large site in Thompson’s Station, Tenn., and construction expected to begin in 2026.

The post Simon Eyes Long Island Shopping Mall Revamp appeared first on Commercial Property Executive.

Hines, which serves as the 1.2 million-square-foot building’s asset manager and property manager, also participated in the deal, the funding of which was led by Wells Fargo, Bank of America and Bank of Montreal.

The building currently is 97.2 percent leased, with tenants including Salesforce, Stifel, Dechert LLP, US Bank, Lloyds Bank and Standard Chartered.

Ivanhoé Cambridge acquired 3 Bryant Park from EQ Office for $2.2 billion in early 2015, according to information provided by CommercialEdge. The building was completed in 1972.

READ ALSO: Top 100 Office Leases of 2024 Point to Stabilization

Ownership reportedly has been making ongoing capital investment since acquiring the property. Amenities include direct access to Bryant Park, on-site retail anchored by Whole Foods and Equinox, an outdoor plaza of more than 16,000 square feet, a new conference center, a sky lobby with a coffee bar and immediate access to the 42nd Street Subway station, serving the B, D, F, M and 7 lines. The property also features an array of dining options including Valbella, Shake Shack and Rosetta Bakery.

The JLL Capital Markets Debt Advisory team who represented the borrower was led by Senior Managing Directors Christopher Peck and Drew Isaacson, Managing Director Lauren Kaufman and Directors Jennifer Zelko and Christopher Pratt.

More demand for big bucks

Based on its location equidistant from multiple transit hubs, including Grand Central Terminal, Penn Station and the Port Authority Bus Terminal, the Bryant Park micro-market is one of New York City’s strongest office submarkets, JLL stated. Its current 0.8 percent vacancy for trophy assets compares favorably with other submarkets, and its rents are running about 50 percent higher than the average for Midtown Class A properties.

More broadly, with respect to the capital markets, JLL commented that current trends “indicate increasing liquidity for large office loans, buoyed by ample debt capital and increased confidence in the sector.”

To put that in numbers, since the third quarter of 2024, JLL has seen a significant surge in demand for large commercial real estate loans. That’s part of a nearly 30 percent rise in lender quotes for deals exceeding $100 million in the second half of 2024, versus the same period in 2023.

This past August, Yeshiva University signed a 32-year lease expanding its presence at Herald Center, in Midtown, to 160,000 square feet. The Class A property is owned by JEMB Realty, which represented itself in the lease negotiations; the university was represented by Savills.

Yeshiva University intends to use the additional space at Herald Center to expand its presence in the health sciences, such as occupational therapy and speech-language pathology.

The post Ivanhoé Cambridge Lands $1.1B Refi for Manhattan Tower appeared first on Commercial Property Executive.

Rockpoint continues to grow its industrial portfolio with the acquisition of Uxbridge Distribution Center, a cross-dock facility of more than 607,000 square feet in Uxbridge, Mass.

Scannell Properties sold the asset for $120 million, according to the Worcester Business Journal. The publication stated it was the largest property sale in Central Massachusetts since 2020.

Completed in 2023, the distribution center occupies 70 acres at 40 Lackey Dam Road in the Worcester, Mass., submarket. While most of the property is in Uxbridge, some of it lies in the towns of Sutton and Douglas, Mass.

READ ALSO: Industrial Sector Transitions as Supply Shrinks

The warehouse has a 36-foot maximum clear height and 127 docks. The property also includes adjacent industrial outdoor storage space and a parking field. Rockhill Management, Rockpoint’s dedicated property services affiliate, will be the property manager.

McKesson Corp. occupies approximately 73 percent of the facility, having signed a 15-year lease in December 2023 for 444,413 square feet. A Lincoln Property Co. report for the Greater Boston market noted it was the largest industrial deal closed in Massachusetts in the fourth quarter of that year.

Rockpoint industrial growth

Rockpoint has made 13 industrial investments with more than 12 million square feet since 2020. Since 1994, Rockpoint has invested in or committed to invest in 503 transactions with a total peak capitalization of about $80 billion. The firm’s co-founders have also sponsored 19 investment vehicles and related co-investment vehicles through Rockpoint and a predecessor firm.

In January 2024, Rockpoint raised $5.1 billion in aggregate equity capital commitments, including the close of Rockpoint Real Estate Fund VII at $2.7 billion. Fund VII targets opportunities in the U.S. across real estate sectors including industrial, multifamily, single-family rental, hospitality and select office investments.

More recently, Rockpoint formed a strategic partnership with Greystar to continue the development of Gateway Logistics Center in St. Petersburg, Fla. The project is the largest industrial development in Pinellas County in more than two decades.

The firm is also developing Race Track Logistics, a trophy industrial park in Pompano Beach, Fla., that will total about 1.5 million square feet at full build-out. The first phase, comprising four buildings totaling 621,243 square feet, is slated for completion in the summer.

The post Rockpoint Pays $120M for MA Industrial Asset appeared first on Commercial Property Executive.

The redevelopment is being financed by the United Nations Development Corp., a public benefit corporation founded in 1968, which will issue as much as $380 million in bonds for the project. Goldman Sachs and Siebert Williams Shank will be the underwriters for the financing.

The plan calls for a number of top-to-bottom building renovations, overseen by architectural firm Spacesmith, whose other projects include the U.S. embassies in Mexico City, Turkey and Indonesia, a number of consulates, the Staten Island Family Justice Center and the Queens Flushing Library, just among its civic designs. The scope of the UN Plaza project will be about 900,000 square feet.

Cushman & Wakefield manages the asset and is spearheading construction management of the renovation through its Project & Development Services team.

Cosentini Associates has been tasked for the mechanical, electrical and plumbing work, with Turner Construction Co. as the overall construction manager, which inked a Project Labor Agreement with the Building and Construction Trades Council. Work is slated to begin sometime in the second quarter and conclude in about two years.

New York City Mayor Eric Adams made the announcement, asserting that the plan would create about 18,000 jobs. As an employer, the UN is already one of New York City’s major ones, employing about 20,000 people, mostly in office positions.

READ ALSO: When Office Meets Hospitality

Besides cosmetic upgrades, the buildings will receive up-to-date energy efficiency systems under the aegis of the state’s BuildSmart 2025 initiative, whose goal is to achieve 11 trillion BTU of energy savings at state facilities this year. By way of comparison, total energy production in the entire state (in 2022) was 512 million BTU, according to the U.S. Energy Information Administration.

Other renovations will be undertaken by tenants in their own space, and there will also be building-wide fire safety system upgrades, and changes to align the structures with updated disability codes and regulations. CBRE acted as advisor to UNDC in the project, and Newmark acted as advisor to the UN for the project.

A slice of history

Famed worldwide, the 1950s UN headquarters building was only the initial development in Manhattan’s Turtle Bay neighborhood. The 358,000-square-foot One UN Plaza and the 369,000-square-foot Two UN Plaza, which include office space but also a hotel on the top floors, along with Three UN Plaza, were developed to meet the needs of the UN as it grew during the 1970s and ’80s.

The redevelopment of One and Two UN Plaza, which are owned by the UNDC, will enable further consolidation of UN personnel, according to the mayor’s office. The United Nations Children’s Fund, which maintains its global headquarters at Three UN Plaza, will own the building in 2026.

NYC office market sees renewed strength

The announcement comes at a time when the New York office market is making something of a comeback from pandemic-era lows. Net absorption for 2024 came in at a negative 5.7 million square feet, though total leasing was 38.1 million square feet, a post-pandemic high, according to Newmark data.

Though still negative, the 2024 absorption represented a considerable improvement for the Manhattan office market, and closer to pre-pandemic levels, such as in 2016, when absorption was exactly the same, Newmark noted. In 2020, there was negative absorption of 20.8 million square feet of office on the island, and in 2021 that total had expanded to 23.6 million square feet.

Overall availability in the Manhattan office market was down 70 basis points quarter-over-quarter in the fourth quarter of 2024, Newmark reported, to 17.9 percent. In Midtown, which includes Turtle Bay, availability contracted much more quickly, down 350 basis points between the third and fourth quarters.

Newmark also reported that leasing activity in Midtown rose to 27.8 million square feet in 2024, the highest level since 2019, and 23 percent higher than the historical long-term average for that metric.

The post United Nations Buildings to Undergo $500M Makeover appeared first on Commercial Property Executive.

Community Healthcare Network has signed a 12,083-square-foot, long-term lease at 44 W. 28th St., a 192,000-square-foot office building in Manhattan’s Flatiron District.

Denham Wolf Real Estate Services worked on behalf of the tenant, while CBRE represented the landlord, Stellar Management.

CHN is one of the largest affordable community health care providers in New York City. The tenant will relocate its headquarters at the building’s fifth floor, with moving-in scheduled for this fall. Other tenants include J.T. Magen & Co., YellowHammer Media Group and Stellar Management, according to CommercialEdge information.

The current ownership picked up the asset in 2007, in a $51.5 million deal and in 2019, the property became subject to a $78 million refinancing package, originated by Flagstar Bank, the same source shows.

Completed in 1911, the 16-story building underwent cosmetic renovations in 2008 and features five passenger elevators, 12,000-square-foot floorplates and 9,000 square feet of first floor retail space.

The property is across from Madison Square Park and the 28th Street subway station. John F. Kennedy International Airport is some 15 miles southeast.

Director of Occupier Services Lauren Davis and Transactions Manager Cameron Tuttle with Denham Wolf Real Estate Services worked on behalf of the tenant. CBRE’s Senior Vice President Caroline Merck and Vice President Jacob Rosenthal represented Stellar Management during negotiations.

Manhattan’s low vacancy

The office sector is expected to continue to struggle in 2025 as it’s still adapting to the post-pandemic changes, a recent CommercialEdge report shows. Despite return-to-office policies from some companies, the national vacancy rate clocked in at 19.8 percent as of December last year, marking a 150-basis-point increase over a 12-month period. Office vacancies continued to grow throughout 2024, with the six of the top 25 key markets witnessing an increase by more than 500 basis points.

Nevertheless, Manhattan marked the lowest office vacancy rate in the Northeastern U.S., with 16.6 percent as of December, while also being ranked the fifth lowest on a national level. The borough’s asking rents reached $68.4 per square foot—the highest in the North region and the second-highest in the U.S., after San Francisco’s $70.6 per square foot.

One of the largest deals closed recently was the 147,543-square-foot lease signed by The Federal Deposit Insurance Corp. The government agency will fully occupy three floors, as well as a partial floor for the next 10 years at the 1.6 million-square-foot, 1166 Avenue of the Americas.

The post Stellar Management Lands HQ Lease in Manhattan appeared first on Commercial Property Executive.

FS Investments and Brandywine Realty Trust have entered a 16-year lease agreement for 117,000 square feet at 3025 JFK Blvd., a mixed-use tower within Philadelphia’s $3.5 billion Schuylkill Yards master-planned development.

The alternative asset manager is planning to relocate its global headquarters to the new space in early 2026. The company’s move from its current headquarters at Navy Yards will grow its footprint by 46 percent at 3025 JFK Blvd., where it has taken up four floors.

FS Investments has been in Philadelphia since its inception in 2007 and at Navy Yards since 2015. The company will bring its 300 local employees close to key transit connections at 30th Street Station, which is undergoing a large-scale restoration and renovation.

READ ALSO: What Defines the Best CRE Investments Today?

The 28-story mixed-use building at 3025 JFK Blvd. features 200,000 square feet of office space, a 29,000-square-foot indoor-outdoor amenity floor, 9,000 square feet of ground-floor retail and 18 floors of luxury residential. It also provides tenants and residents direct access to the newly expanded High Line Park.

Tactix Real Estate Advisors represented FS Investments in the transaction, according to The Real Deal. Last year, Goodwin Procter also signed a lease at the building, which is now 80 percent leased.

Schuylkill Yards’ progress

Last year, Brandywine Realty Trust and Drexel University topped out 3151 Market, a 435,000-square-foot 14-story life science building at Schuylkill Yards.

The tower at 3151 Market St. spans 14 acres in Philadelphia’s University City district. Offering 417,000 square feet of best-in-market lab and office space, 18,000 square feet of retail and amenity space, and 6,000 square feet of terrace space, it opened in 2024.

There are currently 65 office, life science and retail tenants at Schuylkill Yards. Upon completion at the end of the decade, the master-planned development is expected to total 6 million square feet of space across various property types.

Philadelphia’s office market performance

The prices for office space in Philadelphia decreased for the second half of 2024, according to CommercialEdge. Fundamentals did not improve over that time, with vacancy increasing by 510 basis points over the past 12-month period ending in October.

The muted supply pipeline had just 1.9 million square feet under construction. Four out of the five projects underway in October were life science assets, reinforcing the market’s emergence as a growing hub for the sector.

The post Brandywine Realty Secures Major Lease in Philadelphia appeared first on Commercial Property Executive.

Oncology practice New York Cancer & Blood Specialists has signed a 35,469-square-foot lease at Youngwoo & Associates’ Radio Tower in New York City’s Washington Heights. The tenant will occupy the entire eighth, ninth and eleventh floors at the property starting this summer.

Avison Young and Savills worked on behalf of the ownership, while Schuckman Realty represented the tenant.

NY CBS has upward of 30 locations and 35 hospital affiliations in Bronx, Manhattan, Queens, Staten Island, and Brooklyn, as well as in Nassau and Suffolk counties. The oncology practice offers services such as imaging, therapy, surgery, on-site lab, psychology and nutrition, among others.

A mixed-use high-rise

Located at 500 W 181st St., the property has access to the Washington Bridge and Interstate 95. Yeshiva University is nearby, while Columbia Presbyterian Hospital is 1 mile away.

Radio Tower came online in 2022 as the first mixed-use development in Northern Manhattan in the last 50 years. The 22-story, 305,000-square-foot building comprises a 85,000-square-foot, 221-room hotel, 167,000 square feet of office space and ground floor retail. Amenities at the high-rise include tenant lounge, bike storage, rooftop bar and conference space, as well as indoor parking with 169 spots and a 13,000-square-foot event space.

Avison Young Principals Marty Cottingham and Michael Gottlieb, together with Director Patrick Steffens, Senior Director Joel Wechsler and Senior Associate Alexis Odgers worked on behalf of the ownership in the lease transaction. Savills Vice Chair Arthur J. Mirante, II assisted Avison Young. Schuckman Realty Associate Broker Ari Malul represented NY CBS.

Manhattan holds on

The office sector will continue to face challenges this year, as the pandemic effects on the market are still unfolding. Despite return-to-office policies from some companies, the national vacancy rate increased in 2024 and climbed to 19.8 percent at the end of December, a recent CommercialEdge report shows. One initiative in New York City is the Office Conversion Acceleration program which encourages adaptive-reuse practices such as converting buildings to data centers, coworking hubs and residential projects.

Nevertheless, Manhattan is staying afloat, registering a 16.6 percent vacancy rate as of December, posting a 20-basis-point increase over a 12-month period, according to the same report.

Among the largest deals closed recently was the 10-year lease signed by The Federal Deposit Insurance Corp. to occupy 147,543 square feet at the 1.6 million-square-foot, 1166 Avenue of the Americas in Manhattan.

The post Oncology Practice Signs 35 KSF Lease in Manhattan appeared first on Commercial Property Executive.

Rudin has secured another agreement for its 3 Times Square building in Midtown Manhattan, signing Spectrum Reach to an 11-year lease. The company will take over the 26th and 27th floors of the 30-story tower.

Spectrum Reach is Charter Communications’ advertising sales business. This fall, it will relocate from its current office at 1633 Broadway into what is also called the Thomson Reuters Building.

Spectrum Reach was represented by Robert Stillman, Cara Chayet and Liz Lash of CBRE. Thomas Keating of Rudin and the Cushman & Wakefield agency team of Ron Lo Russo, John Cefaly, Paige Engeldrum, Lou D’Avanzo, Mike Burgio and Dan Organ represented the ownership.

Rudin has been filling the 925,000-square-foot tower that overlooks the Hudson River lately. Remy Cointreau, Anchin, Block & Anchin and Touro University are other recent tenants. Thomson Reuters, an original tenant, has renewed.

Last February, law firm Kilpatrick Townsend & Stockton LLP signed a 10-year lease to take over the building’s 28th floor. In June 2023, Rudin signed a five-year lease with West Publishing Corp.

Focus on wellness and sustainability

The building, designed by Fox & Fowle Architects, opened in 2001 as the North American headquarters of Reuters Group PLC and received capital improvements through FXCollaborative in 2020. The work included a new, glass-walled triple-height lobby and a decorative sculptural façade screen, in keeping with the Times Square aesthetic.

READ ALSO: Office Sector Faces Ongoing Challenges Into 2025

Other upgrades include a touchless entry system, a fully renovated destination dispatch elevator system, a conference and event center, a coffee bar, a dining area and a fitness center with locker rooms.

The building’s floorplates range from 28,000 square feet to 35,000 square feet and are column-free.

WiredScore awarded the building a Platinum certification for its connectivity. It also gained a SmartScore Gold certification for its user experience and sustainability.

Additionally, the building achieved the WELL Health-Safety Rating for its efforts to emphasize health and wellness for building occupants. Its AI-driven Nantum OS improves building operational efficiency, decreases carbon emissions and optimizes indoor comfort.

The post Rudin Lands HQ Lease at Manhattan Tower appeared first on Commercial Property Executive.

Launched in 2020, Generate is the first drug generation company using a machine learning-powered generative biology platform with the ability to more quickly create new and more effective drugs on demand. The company unveiled its cryogenic electron microscopy laboratory at IQHQ’s life science district in Andover in June 2023.

The CryoEM laboratory is one of the largest of its type in the U.S. It is equipped with four microscopes that provide detailed molecular visualization enabling scientists to see the structure of proteins too small to be seen with traditional microscopes. The lab and its data are enriching the Generate platform leading to advancements in therapeutic design and drug discovery.

READ ALSO: What’s Defining Office in 2025?

IQHQ, a life science REIT and real estate developer, acquired the approximately 201,500-square-foot campus at 4 Corporate Drive in the 495 Corridor between 2020 and 2021. The REIT paid Eisai $35.9 million in March 2020 for the two-building, 18-acre campus, according to CommercialEdge. In spring 2020, IQHQ signed two long-term leases at the multi-tenant campus with UMass Lowell and Ora Inc., an ophthalmic contract research organization and product development firm.

Located in the Merrimack Valley East submarket about 20 miles north of Boston, Innovation Park was completed in 1987 and renovated and expanded in 2006. IQHQ also updated the campus by adding a café with indoor and outdoor seating, a fitness center and common-area improvements. The office and lab property has two low-rise buildings and 671 parking spaces. With renovations, the campus is now a 340,000-square-foot life science hub for biotechnology companies and life science manufacturing companies.

Growing life science portfolio

IQHQ, which acquires, develops and operates life science districts throughout the U.S., has been growing its presence in hubs including San Francisco, San Diego and Boston. In Boston, the REIT’s properties and projects include 109 Brookline Ave., a 285,000-square-foot lab and office building near the Longwood Medical Area, which IQHQ acquired from Equity Commonwealth in February 2020. That same year, IQHQ acquired Alewife Park, a 290,000-square-foot life science campus in Cambridge, Mass., in a $125 million sale-leaseback deal.

In April 2021, IQHQ and Meredith Management broke ground on Fenway Center, a $1 billion life science campus in Boston that will include lab, office and ground-floor retail space totaling almost 1 million square feet of space.

Nearly a year ago, IQHQ has topped out Spur Phase One, a 330,000-square-foot life science building in South San Francisco, Calif. Completion of the eight-story development is anticipated early this year.

The post IQHQ Inks Biotech Firm to Lease Renewal, Extension appeared first on Commercial Property Executive.

• 133 Kent Ave., Brooklyn

Sale Price: $45.3 million

Joyland Group, in joint venture with Prospect Development, has acquired the 5,000-square-foot retail building in Williamsburg from L3 Capital. The buyer secured $85 million in construction financing through a collateral mortgage provided by S3 Capital.

The partnership plans to continue and complete the conversion project at the property, that will result in a six-story mixed-use building with 43 condominium units and 17,500 square feet of retail space, according to CityBiz. The same source reveals that JLL represented the seller, procured the buyer and arranged the financing. The one-story building at 133 Kent Ave. was completed in 1950 and has 60,000 square feet of unused air rights.

• 690 Madison Ave., Manhattan

Sale Price: $34 million

Wharton Properties picked up the 6,620-square-foot retail property in Manhattan’s Lenox Hill from SL Green. According to The Real Deal, the buyer bought a 50 percent ownership stake from SL Green. The same source shows that Eastdil Secured represented the seller.

The five-story property includes 1,324 square feet of office space and 7,674 square feet of unused air rights. In a recent deal, Van Cleef & Arpels luxury jewelry brand signed a leasing agreement for all five floors, according to the company’s website.

• 422 Fulton St., Brooklyn

Sale Price: $23 million

Macy’s has sold the 438,498-square-foot retail portion of a 14-story building in downtown Brooklyn to three entities. The buyers include a group of investors led by United American Land, Crown Acquisitions and The Jackson Group. Totaling 844,378 square feet, the building dates back to 1920 and was used as a Macy’s department store that first opened in 1995.

Macy’s sold the property’s upper floors to Tishman Speyer in 2015, where the company constructed 622,000 square feet of office space, in a portion of the building dubbed The Wheeler. The remaining four floors that sold are part of Macy’s strategy to close up to 150 stores in the U.S., in a period of three years. In 2025, the company will close up to 66 locations, in an effort to turn a profit and invest in its remaining locations and brands.

• 17-23 Avenue of the Americas, Manhattan

Sale Price: $18.1 million

Local development company Sumaida + Khurana purchased the 11,700-square-foot retail building in the borough’s TriBeCa neighborhood from affiliates of the Matera family. Cerco Funding provided $15.3 million in acquisition financing for the buyer.

The three-story building includes 4,450 square feet of office space, as well as 2,800 square feet of residential space. The property was home to Tribeca Pharmacy, that vacated the building earlier last year, according to New York Business Journal.

• 9305 5th Ave., Brooklyn

Sale Price: $17 million

Staples Inc. has sold the 12,880-square-foot retail property in the Bay Ridge neighborhood to a private buyer. The new ownership secured a $10 million loan from Castellan Capital. The one-story property dates back to 1958 and served as one of Staples Inc.’s stores. It includes 65,130 square feet of additional air rights and is close to multiple bus stops, as well as to the Bay Ridge subway station on 95th Street.

—Posted on January 28, 2025

The post Top 5 NYC Retail Building Sales—December 2024 appeared first on Commercial Property Executive.

• 1375 Broadway, Manhattan

Sale Price: $ 170.4 million

American Exchange Group has acquired the 464,951-square-foot office building at 1375 Broadway, also known as Lefcourt State Building. The Garment District asset changed hands from Savanna Fund. The buyer closed the deal with a loan sale agreement that closed in August. The note included the acquisition of the debt behind the property, a $200 million loan dating back to 2020 originated by Aareal Capital.

American Exchange Group also secured $165 million in acquisition funds through an amended and restated note with Sail Harbor Capital as lender. The seller, Savanna Funds, will continue to operate the property, according to The Real Deal. The office asset rises 27 stories, dates back to 1927, includes 35,382 square feet of retail space and is LEED Gold-certified.

• 119 W.  57th St., Manhattan

Sale Price: $27 million

Zar Property N.Y. purchased the 14-story office building in the Central Park South neighborhood of Manhattan from GFP Real Estate. JPMorgan Chase issued a $26.5 million acquisition loan. The property also became subject to a $36 million loan as part of a consolidation and extension agreement that includes an office building in the Flatiron District.

Designed by architect Emery Roth, the office asset at 199 W. 57th St. was originally completed in 1926 and totals 112,147 square feet. The property also comprises 10,000 square feet of retail space.

• 79 N. 10th St., Brooklyn

Sale Price: $26.9 million

The 4,115-square-foot office building at 79 N. 10th St., together with the 30,953-square-foot building at 97 N. 10th St. changed hands from Cayuga Capital Management to BLDG Management. The buyer landed a $22.7 million acquisition loan originated by Manufacturers and Traders Trust Co.

The first property is a single-story building, while the second one rises two stories. Both properties are part of Brooklyn’s Williamsburg neighborhood.

• 15 W. 36th St., Manhattan

Sale Price: $21.5 million

Another Garment District asset changed hands in early December: Pyrus Management picked up the 80,500-square-foot office building at 15 W. 36th St. from Walter & Samuels. Avison Young represented the seller, according to New York Business Journal. The same source shows that the property was 61 percent leased at the time of the deal, and it has potential to be converted to multifamily use. The building rises 16 stories, came online in 1917 and includes 4,000 square feet of retail space.

• 104 Montgomery St., Brooklyn

Sale Price: $9 million

Real estate developer Shalom Stahler, through two legal entities, acquired the 12,393-square-foot office property in Brooklyn’s Crown Heights from two individual sellers. The two-story property was completed in 1920 as a heavy manufacture factory and comprises two residential units totaling 4,337 square feet. It is located in an Opportunity Zone and also includes 25,083 square feet of additional air rights.

—Posted on January 27, 2025

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IBM has inked a 15-year, 92,663-square-foot lease expansion at SL Green Realty Corp.’s One Madison Avenue in Manhattan. The agreement covers the property’s entire seventh floor, for which the asking rent was $110 per square foot, the Commercial Observer reported.

JLL’s Vice Chairman Patrick Murphy and Vice President Winston Schromm arranged the deal on behalf of IBM. SL Green was represented by JLL Vice Chairmen Paul Glickman and Alex Chudnoff, together with Executive Managing Director Ben Bass and Senior Vice President Diana Biasotti.

In 2022, IBM signed a 16-year, 270,000-square-foot lease at One Madison. The five-story office space opened September of last year.

SL Green acquired One Madison from MetLife Real Estate Investment in 2005. The 1.4-million-square-foot property traded for $801.7 million, according to CommercialEdge information. Last month, SL Green and its joint venture partners finalized a $1.25 billion mortgage modification and extension for the property, extending the final maturity date through November 2027.

A major adaptive reuse project

Originally built in 1893 to designs by Napoleon Le Brun & Sons, One Madison rises 26 stories in Manhattan’s Midtown South. SL Green, in a joint venture with National Pension Service of Korea and Hines, completed the property’s $2.3 billion redevelopment in September 2023. Architect Kohn Pedersen Fox oversaw the renovation, aiming to achieve LEED Gold certification. Amenities include an HVAC system that circulates 100 percent fresh air and a 7,000-square-foot tenant-only lounge, as well as several eateries and retail spaces.

One Madison’s tenant roster features Franklin Templeton, Coinbase and Palo Alto Networks, according to CommercialEdge. With IBM’s expansion, the office building is now 72 percent leased.

The office high-rise is across the road from Madison Square Park and the 23rd Street subway station and within a half mile of the Flatiron Building and Empire State Building.

The post IBM Expands Manhattan Office appeared first on Commercial Property Executive.

BlackRock extended its obligation for all of the third and fourth floors, part of the fifth floor, and some ground floor space, while relinquishing half of the fifth floor. BlackRock has been a tenant in the building since 2010.

1 University Square Drive is a five-story, 330,000-square-foot Class A office building with a two-story atrium lobby, a full-service cafeteria with private catering, a media/conference room with seating for 48 and a fitness center with locker rooms and sauna. The 18.5-acre campus has extensive amenities that include newly revamped landscaping with a walking trail; bocce, basketball and pickleball courts; electric car charging stations; and a community garden. 

The property was completed in 2008 and is midway between Philadelphia and New York City along Princeton’s Route 1 Corridor. It’s less than 2 miles from downtown Princeton and has easy access to the Princeton Junction train station with AMTRAK/NJ Transit/Conrail serving the Northeast corridor.

READ ALSO: When Office Meets Hospitality

The JLL leasing team for 1 University Square Drive includes Executive Managing Director Tim Greiner, Managing Director Tom Romano, Senior Vice President Vinny DiMeglio, Vice President Mike Pietrowicz and Executive Vice President Jonathan Ortiz. BlackRock was represented in the transaction by JLL Chairman & President, New York Region, Peter Riguardi; Vice Chairman Matt Astrachan; Managing Director Nicole Tiger; Executive Vice President George Gemelos; and Associate Vice President Hannah Bernstein.

Other tenants in the building include engineering and environmental services firm Langan and investment consulting firm Mercer.

A JLL spokesperson stated that BlackRock’s return of 33,900 square feet (about 16 percent of the building’s total office space) to the landlord next summer will bring the building to an overall vacancy of 64 percent.

“This is a relatively small ‘post-Covid’ adjustment, compared to other companies that have right-sized their operations from leases executed before the pandemic,” Greiner told Commercial Property Executive. “Office tenants in general have embraced strategic real estate planning to streamline their operations and embrace new work models. This trend not only enhances efficiency and cost savings, but can also add much-needed high-end sublease space into the market, providing other tenants with greater access to premium office environments. The result is a more dynamic and flexible leasing landscape that supports evolving workplace needs.”

No shortage of downsizing

Speaking of downsized leases, last September Nuveen Real Estate signed Dr. Reddy’s Laboratories for 53,000 square feet at 600 College Road E. in Princeton Point, a two-building, 440,000-square-foot office campus in Princeton, N.J. The deal was arranged by Cushman & Wakefield.

The transaction was a relocation and downsize for the generic-drug maker’s North American headquarters. Princeton Point is part of Princeton University’s 2,000-acre master-planned business and research campus.

Overall vacancy in New Jersey’s office space market peaked in mid-2024 at 27.3 percent, but had slipped slightly by year’s end, “as tenants signed leases for higher-end workspaces and sublease availabilities trended lower,” according to a fourth-quarter report from JLL. Almost 500,000 square feet was absorbed in the fourth quarter, with the biggest share of that leasing coming from the legal sector.

The report foresees ongoing stabilization of New Jersey’s office sublease market, accompanied by downward pressure on overall vacancy.

The post BlackRock Signs Major Renewal, Extension in New Jersey appeared first on Commercial Property Executive.

The buyer was not identified. Paramount will retain the 55 percent controlling interest and continue to manage and lease the property located between East 54th and East 55th streets in the Plaza District submarket.

The deal strengthens the New York City-based office REIT’s balance sheet and gives the firm flexibility in its capital allocation strategy.

Paramount, which owns, operates, manages and redevelops high-quality Class A office properties in select New York City and San Francisco submarkets, acquired the tower from The Carlyle Group in November 1999 for $163.2 million, or about $274 per square foot, according to CommercialEdge data. The latest transaction values the property at about $350 per square foot.

Building highlights

The LEED Gold-certified building was designed by Cesar Pelli, Viñoly Design Architects and Emery Roth and Sons and completed in 1983. The tower has 44,000-square-foot floorplates, exceptional light and views, as well as a superior location that provides access to eight subway lines and Grand Central Terminal.

The multi-tenant building has an 83 percent occupancy rate and 237,680 square feet of office space available, according to CommercialEdge. The property also has 14,805 square feet of retail space on the first floor and the underground level.

READ ALSO: What’s Defining Office in 2025?

Current tenants include Littler law firm, White Oak Healthcare Finance, FirstKey Mortgage, Zweig-DiMenna Associates, Carl Marks Management Co., Bank of America, Virtu Financial, Bank Negara Malaysia, Amber Capital Investment Management and RE Loewenberg Capital Management, according to CommercialEdge data.

Manhattan office market moves

Paramount had planned to sell the building several years ago but a deal with Aby Rosen’s RFR Realty to buy the tower for about $400 million fell apart in early 2020 as the COVID-19 pandemic hit America, shutting down all offices across the nation. Since then, Manhattan, like many U.S. office markets, has struggled to regain its footing and property values for many office buildings have declined.

But there are signs of improvement in the Manhattan office market and Paramount believes the sale of the non-controlling interest in 900 Third Ave. underscores the underappreciated value of the asset.

Tenants continue to flock to high-quality, newly built or recently redeveloped towers. In November, SL Green Realty Corp. closed on the sale of an 11 percent interest in One Vanderbilt, the 1.7 million-square-foot skyscraper in Midtown Manhattan, to Mori Building Co. Ltd. The deal valued the tower at $4.7 billion. SL Green maintained a 60 percent stake in the skyscraper that is now fully leased. The property’s other owners include the National Pension Service of Korea and Hines.

Cushman & Wakefield reported office leasing ended 2024 on a strong note with fourth-quarter new leasing totaling 6.7 million square feet—the highest quarterly total since the third quarter of 2022 and 6.3 percent higher than the 10-year quarterly average. The fourth-quarter Manhattan office report also stated there were 23 new and expansion leases greater than 100,000 square feet, up from 16 in 2023.

In the largest lease of the fourth quarter, Bloomberg LP inked a renewal and expansion lease at SL Green’s 919 Third Ave., a 1.5 million-square-foot, 47-story office tower. The deal brings the global publisher’s footprint to 924,876 square feet at the Midtown Manhattan high-rise. Bloomberg agreed to a 749,035-square-foot, 11-year lease extension starting March 1, 2029, and a new 175,841-square-foot 15-year expansion.

The post Paramount Sells Stake in NYC Tower appeared first on Commercial Property Executive.

The campus is BeiGene’s U.S. flagship facility and its first U.S. manufacturing site. The other two are in Guangzhou and Suzhou, China. The company does have several U.S. offices in Cambridge, Mass.; Ridgefield, N.J.; Fulton, Md.; San Mateo, Calif.; and Emeryville, Calif.

IPS-Integrated Project Services LLC, a provider of engineering, procurement, construction management and validation services, and Meyer, a national architecture and design firm, played integral roles in the development and delivery of the three-year Hopewell project that expands BeiGene’s integrated manufacturing and research and development footprint in the U.S.

READ ALSO: Life Science Trends to Watch in 2025

Located on a 42-acre property at the 433-acre Princeton West Innovation Campus, the state-of-the-art facility provides flexibility for BeiGene to scale production of its cancer medicines. The company aims to create hundreds of new high-tech jobs at the site by the end of 2025.

The campus features the most advanced technology in the biopharmaceutical industry with the ability to expand to 1 million square feet over time. The end-to-end manufacturing capabilities create cost, speed and technology advantages as well as supply chain resiliency.

As lead architect, IPS led the design and delivery of the campus, including the biopharmaceutical manufacturing and utilities facilities as well as critical technical systems. The company also ensured the project met strict regulatory requirements.

Meyer provided ground-up architecture and interior design services along with overall campus design support for the 100,000-square-foot office and lab building, cafeteria and on-site café. The new facility combines office and lab functions. It also includes critical mechanical and utilities systems needed to support BeiGene’s clinical R&D capabilities.

Other project partners included developer Lincoln Equities Group, structural engineer Mainstay Engineering Group, civil engineer Van Note-Harvey Associates and construction manager DPR Construction.

Centrally located campus

BeiGene acquired the site from Lincoln Equities Group in November 2021 and broke ground on the project in April 2022. Lincoln Equities Group and H.I.G. purchased the Princeton West Innovation Campus in 2020 from former owner, Bristol-Myers Squibb, which had made more than $500 million in capital improvements before the sale.

The Mercer County campus is centrally located between New York City and Philadelphia less than 5 miles from Interstate 295, which provides access to Interstate 95. The campus has more than 30 buildings including biological product development and clinical manufacturing facilities, R&D assets, office buildings, a data center, a conference center, a fitness center, a child development center and parking garage.

In addition to BeiGene, other companies located at Princeton West Innovation Campus include Enzene Biosciences, Gennao, GenScript ProBio and PTC Therapeutics. The campus has space available for lease as well as development rights and build-to-suit opportunities.

New Jersey’s top life science market

One of the top 10 life science clusters in the U.S. as ranked by JLL, New Jersey’s market includes more than 12 million square feet. Of the top 20 pharma companies, 14 are located in New Jersey and eight of the top 10 R&D companies are also in the state, according to Newmark’s third-quarter life science market report for Northern New Jersey. The report noted demand for available lab space exceeded 1 million square feet as of late last year.

Several significant life science deals have been announced at other New Jersey life science campuses in recent years  In November, Revlon chose a 62,000-square-foot space at The Northeast Science and Technology Center in Kenilworth, N.J., for a science and innovation lab. NEST is a 100+acre campus dedicated to research and development innovations owned by a joint venture of Onyx Equities and Machine Investment Group. The JV acquired the campus from Merck, which moved out of all the campus buildings except one. Revlon said the facility’s existing lab infrastructure played a key role in its decision to lease space at the NEST.

Meanwhile, HELIX Health + Life Science Exchange, a 4-acre innovation district built by SJP Properties and New Brunswick Development Corp. near Rutgers University in downtown New Brunswick, N.J., is scheduled for delivery in the third quarter of 2026. The 1.2 million-square-foot project will house the New Jersey Innovation HUB and Rutgers Robert Wood Johnson Medical School.

The post IPS, Meyer Complete $800M Biopharma R&D Project appeared first on Commercial Property Executive.

Constructed between 1984 and 2000, the properties are currently 96 percent occupied. They provide easy access to the New Jersey Turnpike and downtown Philadelphia. Having a multiple-building setup and varying suite sizes, the portfolio also gives tenants significant growth flexibility.

Brennan will continue to operate the portfolio, which it bought in 2017. Since the acquisition, the company has upgraded the properties, including converting office space to industrial.

Philadelphia’s office market slowed and prices dropped in the fourth quarter, with vacancy rising 510 basis points over the past 12-month period ending in October, according to CommercialEdge.

Chris Massey, managing principal at Brennan Investment Group, said that strong demand and tight occupancies for small-bay suite sizes throughout the overall market have made the portfolio more attractive.

READ ALSO: Why Light Industrial Properties Will Continue to Shine

“Vacancy rates are low-single digits for this type of space, and there is basically no new construction due to high costs for building small footprint buildings,” he told Commercial Property Executive. “We believe our in-place rents are still significantly below where new leases are getting done.”

Brennan Investment Group’s portfolio totals approximately 56 million square feet across 29 states.

Philadelphia’s strong light-industrial demand

Marcus Partners’ Mid-Atlantic team has been acquiring portfolios of light industrial product in the suburban Philadelphia metro.

“The metro offers an expansive regional highway network and a deep labor pool and features exceptional population density and demographics,” Ryan McDonough, the company’s principal & CIO, told CPE.

The portfolios typically feature functional, Class B product needing physical repositioning and a diversified, multi-tenanted rent roll with shorter-term leases. “We are buying at a healthy discount to replacement cost with in-place rents that offer mark-to-market upside. This compelling risk-reward profile works across various economic scenarios, including a “higher-for-longer” rate environment,” McDonough added.

The post Brennan Recapitalizes 1 MSF Portfolio Near Philly appeared first on Commercial Property Executive.

BioMed Realty has topped out 585 Kendall, a 637,000-square-foot life science building in Cambridge, Mass. Development partners include CBT Architects, Suffolk Construction, Takeda and Global Arts Live.

The developer broke ground on the project in October 2022 and last year took out a $683.1 million construction loan from Sumitomo Mitsui Bank, according to CommercialEdge information. Completion is scheduled for next year.

Takeda Pharmaceuticals already preleased the development’s 600,000-square-foot office and lab space. The company will establish a dedicated research and development facility at the property. However, Takeda’s suburban campus will remain in Lexington, Mass., at 95 Hayden Ave.

READ ALSO: Boston Office Vacancy Up, Deliveries Higher

Located at 585 Kendall St., the proposed LEED Gold-certified building is taking shape less than 4 miles from downtown Boston and Boston Logan International Airport. The 16-story structure is also adjacent to Kendall Square.

When complete, the mid-rise will also include a 30,000-square-foot performing arts center with a 400-seat space, as well as flexible multipurpose rooms for workshops and meetings and an indoor garden developed in partnership with Global Arts Live.

Boston’s growing life science inventory

Boston leads nationally for life science construction activity, according to CommercialEdge research. Between 2019 and October 2024, almost 16.9 million square feet were underway in the market across 60 projects. In 2024 alone, more than 680,000 square feet of life science space broke ground, while deliveries amounted to 2.8 million square feet.

Last year, The Davis Cos. and Invesco Real Estate completed the second phase of The Quad, a 554,019-square-foot life science campus also in Cambridge. Scheduled to break ground this spring, the last phase will comprise 280,000 square feet.

The post BioMed Realty Tops Out Boston Life Science Building appeared first on Commercial Property Executive.

Jay Suites and Jay Conference have signed a 12-year lease extension for 60,000 square feet of shared space at 515 Madison Ave., a 370,000-square-foot office building in Manhattan’s Plaza District. GFP Real Estate owns the 42-story high-rise.

GFP Chair Jeffrey Gural arranged the deal spanning floors eight to 10 on behalf of both parties.

The flex provider, the largest privately held coworking company in New York City, first signed a lease at the property in 2019, when it occupied two floors. Later, the firm committed to another floor that houses Jay Conference, a conference center model catering to large-scale meetings.

READ ALSO: Elevating the Coworking Experience

The 515 Madison coworking location comprises 101 furnished executive suites ranging from single-person units to 20-people team spaces. Additionally, there are four flexible meeting spaces with a capacity of up to 24 people, multiple business lounges and phone booths.

Jay Suites currently has 13 coworking locations across the city. In August, the firm paid $35 million for 8 W. 38th St., a 142,000-square-foot office building in Midtown Manhattan, 1 mile from 515 Madison Ave. That building houses the company’s new conference rental business, located on the mid-rise’s third floor.

A historical building in the Plaza District

Also known as the DuMont Building, the office tower at 515 Madison Ave. is close to Rockefeller Center and 1 mile from the Empire State Building. Designed by John H. Carpenter, the high-rise was completed in 1932 and went through cosmetic renovations in 2010, according to CommercialEdge information.

One of the property’s most notable features is its broadcasting antenna, which was involved in the inaugural broadcasts of Allen B. DuMont’s experimental television station in 1938.

The building features nine passenger elevators and 8,000 square feet of first-floor retail space, with floorplates ranging between 3,956 and 16,346 square feet, the same source shows. Its tenant roster also includes Manhattan Five Partners and Wildes & Weinberg, among others.

Coworking sector is on the rise

The coworking sector is seeing continuous growth, providing solutions that address the evolving needs of the workforce. Nationally, there were 7,538 locations recorded at the end of the third quarter of last year, reflecting a 7 percent increase from the previous quarter, according to a CommercialEdge office report. The total square footage reached 133.5 million, representing a 450-basis-point growth.

Manhattan led nationwide for coworking inventory, with 11.2 million square feet. And the borough’s stock will soon grow, as The Malin announced plans to open a 32,700-square-foot coworking space in the Flatiron District this spring.

The post Jay Suites Extends Manhattan Shared Space Lease appeared first on Commercial Property Executive.

Private equity firm Incline Equity Partners has signed a 14,198-square-foot lease at 101 Park Ave., HJ Kalikow & Co. LLC’s Midtown Manhattan tower.

Incline Equity’s new space at the office building will be on the 47th floor, in addition to the existing 18,000-square-foot lease on the 46th floor. The company relocated to 101 Park Ave. in 2023, doubling its previous office space at 505 Fifth Ave.

JLL’s Vice Chairman Alexander Chudnoff, Senior Managing Director Nick Francic, Vice Chairman Harrison Potter and Senior Associate Kate Roush worked on behalf of the tenant, while Cushman & Wakefield’s Executive Vice Chairman John Cefaly and Managing Director Nicholas Dysenchuk represented the ownership in the transaction.

HJ Kalikow & Co. has owned and operated the property since it was built in 1982. The Manhattan tower is currently the subject of a $365 million 10-year fixed-rate loan originated by Bank of America in 2018, according to CommercialEdge information.

49 stories above Manhattan

The Class A, LEED Gold-certified property consists of 1.3 million square feet of space across 49 stories. The building features a five-story lobby entrance, as well as 30,000 square feet of retail space and a 17,000-square-foot, two-story museum. Amenities include full-time concierge services, Club 101, a dining club, a business and entertainment venue and a tech-enabled corporate event space. Federal Home Loan Bank of New York, Fox Rothschild LLP, Morgan Lewis and Hound Partners LLC are among the property’s tenants.

Located at the corner of 40th Street and Park Avenue, the office tower is less than 1 mile from the Grand Central – 42nd Street subway station, Bryant Park and Times Square.

Earlier this week, JLL and Colliers brokered a major office lease at 1166 Avenue of the Americas in Manhattan. The Federal Deposit Insurance Corp. signed a 10-year agreement to occupy 147,543 square feet at Edward J. Minskoff Equities’ property.

The post Incline Equity Expands Lease at Manhattan Tower appeared first on Commercial Property Executive.

Developer Gilbane and NJ Transit Corp. are planning to develop a 500,000-square-foot, 25-story office building in Camden, N.J. The project is part of the $250 million redevelopment of Camden’s Walter Rand Transportation Center, which has been underway since 2021.

The tower, which will be called the Beacon Building, would be partly occupied by Cooper University Health Care, which is undergoing a $3 billion expansion that will also include three new clinical towers. There is the possibility that the state of New Jersey will relocate civil courts to the Beacon Building.

READ ALSO: Why the Medical Outpatient Sector Is Poised for Growth in 2025

The Beacon Building will have five floors measuring 27,000 square feet each and 20 more measuring 18,000 square feet, according to Camden County.

Other aspects of the Walter Rand redevelopment will include updates to the site’s transportation center, originally developed in 1989, as well as a new parking structure and a public square. The PATCO Speedline subway and the River Line light rail connect to the center, along with a number of bus lines. NJ Transit owns the site, and Gilbane is the master developer.

The developers have not announced how much the structure will cost, nor its source of financing. They do note that the building will be the tallest in southern New Jersey outside of Atlantic City. The space will service the growth of “eds and meds” in this part of suburban Philadelphia, the developers assert.

Class A office demand in South Jersey

The demand for medical office space is robust in southern New Jersey, with almost 200,000 square feet of space leased in 2024 by the end of the third quarter, according to Newmark, which predicts that demand will continue to grow in 2025 as employment in the sector grows. Overall office space occupancy edged up 0.2 percent quarter-over-quarter in the third quarter of 2024.

Class A office space has the advantage in leasing. As of the third quarter of 2024, Class A office vacancy in southern New Jersey came in at 13.2 percent, or 206 basis points lower than the overall office vacancy rate, noted Newmark, with an annual average of an 117-basis point delta since 2020. That compares with a gap of only 62 points (with Class A vacancy lower) in the years between 2016 and 2019.

Health-care employment is a prime driver of office space use in the region, Newmark reported, along with leisure and hospitality and government. Health-care employment in Greater Philadelphia grew 4.8 percent year-over-year as of the third quarter of 2024, the most of any sector.

The post Gilbane JV Unveils Plans for Largest South Jersey Office Tower appeared first on Commercial Property Executive.

The company, a global data center operator with more than 30 sites worldwide, announced the acquisition of the property in Upper Burrell, Pa., for its latest project, TECfusions Keystone Connect. The price TECfusions paid Arconic Corp., a metal manufacturer that was spun out of Alcoa Corp. in 2016, for the 1,395 acres, was not disclosed.

TribLive.com reported TECfusions has already spent more than $150 million to prep Building J on the site and repurpose Buildings C and D. Arconic had announced plans to sell four of seven buildings on the site in 2022, according to the Western Pennsylvania news website. Alcoa still has a presence on the site as well.

READ ALSO: Data Center Demand Keeps Surging, Despite Challenges

By using an adaptive reuse strategy, TECfusions will be able to rapidly deliver infrastructure to meet the growing demand for artificial intelligence and high-performance computing. The company said the campus has 12 MW of immediate capacity. A brochure for the site, located within New Kensington in Upper Burrell Township, notes 1 GW has already been leased. Among the site advantages listed in the brochure are contract to deployment in less than six months and the availability of tax abatements and incentives.

The project has received a $2 million grant from Pennsylvania’s Redevelopment Assistance Capital Program, a program to incentivize design, acquisition and construction of improvement projects. Information released about the funding noted three buildings will be reserve powered by a dual fuel energy-efficient, low-emission on-site microgrid. The number of microgrids is growing throughout the U.S., particularly  for use at energy-intensive properties like data centers, industrial, advanced manufacturing, health-care, retail and critical infrastructure developments.

TECfusions states the facility will feature on-site power generation using natural gas, enabling dual utility and microgrid capabilities that will ensure reliability, efficiency and reduced dependency on increasingly costly utility power. The firm may also export excess power to support the local electrical grid.

The first phase of TECfusions Keystone Connect will include equipment, emergency generation, UPS systems, electric switchgear, transformers, breakers, cabling and building materials, according to the RACP. To be eligible for RACP funding, projects must have a regional or multi-jurisdictional impact and generate substantial increases or maintain current levels of employment, tax revenues, or other measures of economic activity.

Expanding in Virginia

The news about TECfusions’ plans for the Western Pennsylvania data center campus comes just two months after the firm obtained a 15-year loan of approximately $300 million to fund the development and expansion of its Clarksville, Va., data center property. The loan will fund the Phase 1 buildout and other company key initiatives including providing AI-ready infrastructure and sustainable power generation solutions.

The Clarksville site will have four data halls with a combined capacity of 37.5 MW. C-Hall already came online in September and construction of D-Hall is expected to be completed next month.

The expansion was needed to serve the needs of one of its key tenants—TensorWave—which leased 1 GW of AI infrastructure capacity at the facility, marking one of the largest commitments in the sector.

TECfusions acquired the original 22.5-acre site and 196,000-square-foot facility with 500 kilowatts already live and immediately began upgrading it. The company recently acquired 66 acres for a planned expansion.

The post TECfusions Unveils Massive Data Center Campus Near Pittsburgh appeared first on Commercial Property Executive.

Ares Management Real Estate has acquired a 198,720-square-foot Class A distribution center in Taunton, Mass. The property changed hands for nearly $44.3 million, according to Bristol County public records.

The buyer made the acquisition through one of its real estate funds and will manage the property through Ares Industrial Management.

JLL represented the seller, a fund managed by Brookfield Asset Management.

READ ALSO: Top 5 Emerging Industrial Markets in 2024

The property is at 151 Charles F. Colton Road and came online in 2014. The single-story industrial facility features 28-foot clear heights, ESFR sprinklers, 30 loading docks and 23 trailer parking spots. It is fully leased by Sullivan Tire, according to CommercialEdge. The same data provider shows that the property previously changed hands in 2021, when Brookfield Asset Management paid $29 million to seller The Maggiore Cos.

The 15-acre property offers access to major transportation corridors such as interstates 495 and 95, as well as to U.S. Route 24 and U.S. Highway 44, allowing easy connectivity to the Providence, R.I., area and to the Greater Boston region.

Boston is within a 42-mile drive, while Norwood Memorial Airport is 24 miles away and Providence is 28 miles from the property. Additionally, the distribution center is within Myles Standish Industrial Park, the largest master-planned industrial campus in the state.

Managing Director Michael Restivo and Director David Coffman with JLL worked on behalf of the seller.

Boston posts high industrial sales prices

Industrial investment activity remained stable throughout 2024, with $54.6 billion in deals at a national level recorded year-to-date through November, a recent CommercialEdge report shows. The amount will likely match 2023 deals.

Across Northeastern markets, Boston recorded $639 million in industrial sales, surpassing only Bridgeport in the region. Meanwhile, Boston sale prices averaged $161 per square foot, surpassed only by New Jersey’s $218 per square foot in the region.

A recent deal in the area is B&D Holdings’ $18.5 million acquisition in Avon, Mass. The company purchased a 109,300-square-foot industrial property from a joint venture between Oliver Street Capital and Bain Capital Real Estate.

The post Ares Management Pays $44M for Boston-Area Asset appeared first on Commercial Property Executive.

The Federal Deposit Insurance Corp. has signed a 10-year office lease to occupy 147,543 square feet at the 1.6 million-square-foot, 1166 Avenue of the Americas in Manhattan. Edward J. Minskoff Equities owns condominium interests comprising floors two through 21—where FDIC will relocate—while Marsh & McLennan Cos. owns and occupies the remaining condominium interests.

JLL together with an EJME in-house team represented the owner, while Colliers led the negotiations on behalf of the tenant. Asking rents for the tower start at $80 per square foot.

The government agency agreed to fully occupy floors eight through 10, as well as partially occupy the seventh floor of the 44-story skyscraper. FDIC will relocate from the Empire State Building, where it occupies roughly 120,000 square feet.

Wells Fargo recently modified the debt on 1166 Avenue of the Americas, extending the maturity dates and altering interest rates on three loans totaling $235 million, according to The Real Deal.

READ ALSO: Office Report: Office Sector Decline Continues Amid Flexibility Shift

The tower debuted in 1975 with design services provided by Skidmore, Owings and Merrill. A partnership of Tishman Organization—the predecessor to Tishman Speyer—Stanley Stahl and Arlen Realty developed the building.

1166 Avenue of the Americas is roughly 3 miles northeast of downtown Manhattan, within walking distance of Bryant Park, Grand Central and the Rockefeller Center. Central Park is more than 1 mile from the property.

The WiredScore Gold-certified skyscraper features 39,075 rentable-square-foot floorplates and recently underwent a revamp that introduced a new conference center and destination-dispatch elevators, among other features. Also in the works are a new gym and lounge.

The tenant roster includes CNA Insurance, which recently inked a 40,240-square-foot deal to occupy the space for 15 years, and Axis Insurance, which occupies 40,240 square feet on the tower’s 17th floor.

The JLL team that represented EJME included Vice Chairmen Paul Glickman and Cynthia Wasserberger, as well as Senior Vice President Diana Biasotti, while the in-house EJME crew comprised Executive Vice President Jeffrey Sussman and Vice President Matt Pynn. Colliers Executive Vice President Connor Faught and Vice Chair Sheena Gohil negotiated on behalf of FDIC.

Manhattan’s office leasing activity takes off

Manhattan’s office market closed 2024 with a bang as new leasing activity in the fourth quarter reached 6.7 million square feet, the highest quarterly total since September 2022, according to a report by Cushman & Wakefield.

The strong quarterly activity rounded up the year with an annual total of new leases clocking in at 23.4 million square feet—outperforming 2023 by 30.2 percent—the same source shows. By adding renewals to the mix, Manhattan’s office leasing activity registered 32.4 million square feet, the highest figure since 2019.

Following four quarters marked by office vacancy increases, Manhattan’s rate inched lower by 20 basis points and stood at 23.3 percent in December, the report reveals. Although the market’s absorption rate wrapped up the year at a negative 6.2 million square feet, the prime office space of Class A assets was in high demand, posting a positive absorption of 372,589 square feet during the fourth quarter.

One of the market’s significant office deals recorded last year was New York University’s agreement to master lease Vornado Realty’s entire 1.1 million-square-foot building at 770 Broadway. The lease was possible as Meta Platforms announced plans to exit the building early this year.

The post Minskoff Secures 148 KSF Manhattan Office Lease appeared first on Commercial Property Executive.

BXP has signed an approximately 246,000-square-foot, 20-year lease renewal and expansion with KnitWell Group at 7 Times Square in New York City. The lease covers the existing roughly 191,000 square feet, plus two additional full floors that total a further 55,000 square feet.

KnitWell COO Patrick Walsh referenced the advantages of bringing all of the company’s New York–based associates into one building, given the need to collaborate across functions and brands. KnitWell’s fashion brands include Ann Taylor, Chico’s, Lane Bryant, Soma and Talbots. Chico’s, Soma and White House Black Market were added only in the past few weeks.

7 Times Square was developed by BXP in the heart of Manhattan’s Midtown and recently underwent an amenities enhancement with conferencing, client lounge and café services added. Its location puts the building in the middle of numerous transportation and dining options, as well as near Bryant Park.

READ ALSO: What’s Defining Office in 2025?

The 47-story, 1.3 million-square-foot, Class A+ property, also known as Times Square Tower, was completed in 2004, according to information provided by CommercialEdge.

A CBRE team led by Vice Chairmen Eric Deutsch and Ken Meyerson, Executive Vice President Jared Freede, Senior Vice President Ariel Ball and First Vice President Elliot Bok represented KnitWell in the lease negotiations.

Forward strides

The Manhattan office market has seen a recent surge of leasing activity, hitting nearly 7 million square feet in the year’s final quarter, which was 41 percent ahead of the five-year quarterly average, according to a fourth-quarter report from CBRE. Full-year leasing for 2024 hit 23.5 million square feet, which was a 24 percent increase over 2023.

And those figures didn’t reflect a situation of “musical buildings,” either. Net absorption for 2024 was nearly 7 million square feet, which in turn helped push the average availability down by 150 basis points from a year prior.

In October, Blue Owl Capital expanded its lease at Manhattan’s Seagram Building, from 168,597 to 238,673 square feet. Cushman & Wakefield represented the tenant, and owner RFR Realty had in-house representation.

The post BXP Lands Major NYC Lease Renewal, Expansion appeared first on Commercial Property Executive.

RXR has bought a 49 percent interest in 1211 Avenue of the Americas, a nearly 2 million-square-foot office tower in New York City. The share was acquired from Ivanhoé Cambridge, the global real estate group of CDPQ.

The 44-story Manhattan skyscraper previously changed hands in 2013, in a deal evaluating the property at $1.7 billion. At that point, Ivanhoé bought a 51 percent stake from Beacon Capital Partners for $850 million. Three years later, Beacon sold its remaining 49 percent to Ivanhoé and Callahan Capital for a slightly higher $895 million.

Ivanhoé Cambridge and RXR, now co-owners, will invest $300 million together to reposition 1211 Avenue of the Americas. The project will feature a revitalized plaza and a redesigned multitenant lobby. The plan includes a new amenity center, conference rooms, a wellness center and other updates.

READ ALSO: What’s Defining Office in 2025?

“There is a prolific impending shortage of high-quality office space in Manhattan,” Lindsay Ornstein, co-founder of OPEN Impact Real Estate, told Commercial Property Executive. “RXR/Ivanhoé Cambridge’s proposed modernization of 1211 Avenue of the Americas will create a welcome addition to the Class A+ marketplace.”

Fox and News Corp. signed lease extensions in 2023 to secure roughly 55 percent of the building through 2042. A law firm is departing in 2028, leaving more than 600,000 square feet of contiguous premium space in a “building within a building” in the Rockefeller Center/Midtown submarket, where the rate of unoccupied space is well below the average of Midtown Manhattan.

The tenant roster also includes the likes of Dow Jones and publications Wall Street Journal and Barron’s, as well as CDPQ and several law firms and financial services companies.

Strategic Capital Alliance and Newmark advised RXR on the transaction.

In October, in a somewhat similar move, RXR’s Office Recovery Fund partnered with Hudson Bay Capital to share ownership of and reposition a historic 500,000-square-foot office and retail building in Manhattan’s Chelsea neighborhood: 620 Avenue of the Americas.

The post RXR Acquires 49% Stake in NYC Skyscraper appeared first on Commercial Property Executive.

Ralph Zucker, the mind behind the transformation of the iconic Bell Labs facility in New Jersey, talked to Commercial Property Executive about his metroburb model and how it changed the Holmdel community.

Under his leadership, Inspired by Somerset Development brought back to life an underutilized research facility and turned it into a blend of office, retail, dining and recreation spaces that serves the entire local community—known as Bell Works.

Now, he’s replicating this “self-contained metropolis in suburbia” concept in the Chicago area, and other municipalities are already following suit. Here’s a glimpse into the future of the metroburb model.

READ ALSO: Return-to-Office Traffic Reaches Record Level

Looking back, how would you describe Bell Works’ journey?

Zucker: I was immediately captivated when I first toured the iconic Eero Saarinen-designed Bell Labs property in Holmdel, N.J., in 2008. With a background in human-scale environments, I saw immense potential in the 2 million-square-foot building, once the birthplace of groundbreaking innovations like the transistor and modern-day cell phone technology. Rather than simply serving as an office campus, I envisioned it as a vibrant hub. The central pedestrian street, slicing through the heart of the building, could be transformed into a dynamic space filled with shops, offices and public areas for community gatherings and meaningful connections.

What did it take to turn a historic property like Bell Labs into the modern place Bell Works is today?

Zucker: We spent five years obtaining the necessary approvals and entitlements to bring our concept to life. This process involved attending dozens of town hall meetings, running outreach campaigns and engaging with residents and stakeholders to demonstrate that the project was not only viable but also capable of energizing the community. To offer a glimpse of how we could transform the building into the vibrant hub it is today, we hosted a ‘block party’ in the main atrium, reimagining the space to showcase our vision of a metroburb—a place where people can shop, work, play, dine, connect, innovate and find inspiration. 

What role did historic preservation play in the transformation of Bell Labs?

Zucker: The transformation that followed was meticulous. We crafted a master plan to convert the building’s interior from a single-tenant research facility into a dynamic, mixed-use space. We successfully secured historic tax credits from the National Park Service, which helped fund the renovation. As a result, the property was added to the National Register of Historic Places.

Over time, businesses began moving into the reimagined property and foot traffic increased, bringing to life the metroburb model we had envisioned years earlier. Today, Bell Works is recognized as one of the great downtowns, not just in Holmdel, but throughout Monmouth County, drawing visitors from across the state. It stands as a model for how to revitalize a sprawling, underutilized asset into a thriving hub for business and community. 

Bell Works is now almost fully leased. Tell us more about the existing tenant mix and the type of spaces that are still available.

Zucker: Bell Works is home to a diverse mix of tenants, which are a large part of its unique identity as a metroburb. Today, the building houses Fortune 500 companies, startups, restaurants, retailers, fitness studios, health-care practitioners, a public library, a Montessori School and an entire indoor pedestrian street called The Block.

Most recently, we expanded our dining options with the opening of our first full-service restaurant, Mabel, just shortly after opening Miznon Kosher, a fast-causal Mediterranean eatery from celebrity chef Eyal Shani. Other recent additions to The Block include Exclusive Cuts, an upscale barbershop; ARMR Studio, a modern martial arts and self-defense training studio, and Peticures, a luxury pet spa offering premium grooming services.

While Bell Works is currently 98 percent leased, there’s still room for more businesses to join this thriving community. We offer flexible solutions for tenants of all sizes and types, enabling any company to benefit from being here. We also offer Ready-To-Wear office suites, providing turnkey solutions ranging from 500 square feet to 5,000 square feet, which feature unique, custom designs that balance function and style.

Did you make any changes to your leasing strategy after the pandemic to reflect tenants’ evolving preferences?

Zucker: Truthfully, not much needed to change when the pandemic hit in terms of leasing strategies, design and amenities—Bell Works was ahead of its time from the start. When we created the metroburb, our vision was to design a mixed-use office environment that offered everything people needed within one ecosystem. This concept is exactly what the post-pandemic world has come to embrace.

How did you specifically adapt to tenants’ need for more flexibility in the workplace?

Zucker: We did add new layers to the ecosystem to reflect the changing tenant preferences, especially in an era where work models are constantly evolving. We’ve prioritized flexibility by offering customizable spaces and flexible leasing options that accommodate smaller teams and a wide range of needs. In 2020, we introduced coLab, our membership-based coworking space, which provides flexible workspaces for smaller teams and startups, including shared and dedicated desks, as well as private executive suites. With skyrocketing demand, plans for coLab 2.0 are already underway.

In 2021, we launched Campus, a fully furnished, flexible leasing option for medium-size companies transitioning back to the office postpandemic, which remains fully leased today.

What do you think makes Bell Works resilient in the face of market shifts?

Zucker: It’s worth noting that there will never be a perfect, one-size-fits-all model for leasing strategies, as the market is shaped by changing business demands and workforce behaviors. We developed Bell Works with adaptability at its core, ensuring it was designed not only to meet today’s needs but also to thrive amid future market shifts.

By doubling down on what we had already been doing, we set ourselves up for success postpandemic. We were able to get people excited to return to the office because they have everything they need in one place. Want to get a workout in before work? No need to rush. Need a haircut during lunch? No problem. We’ve created a dynamic environment where people can thrive both inside and outside the office and that’s a big part of our continued success.

What role does Bell Works play in the broader Holmdel community, and how do you ensure it continues to be a welcoming space for both tenants and the public?

Zucker: At Bell Works, we’ve always aimed to create more than just a workplace. By opening the facility to the public daily from 6 a.m. to midnight, we’ve transformed it into a dynamic destination where visitors can shop, dine and engage in a variety of activities. Whether on the basketball court or the rooftop, the common theme is connection.

We also host a wide range of events and public activations, including rooftop fitness classes, a weekly Bell Works Fresh farmers market, industry conferences, community fundraisers, networking events, 5k runs around the campus and more. On any given day, Bell Works attracts up to 6,000 visitors and the best part is that not all of them are here to come to work.

READ ALSO: What’s Defining Office in 2025?

What impact has Bell Works had on the local economy and surrounding area so far?

Zucker: The redevelopment of Bell Works has significantly impacted the local economy by creating countless jobs, attracting businesses and raising awareness of the area. Transforming the former Bell Labs site—once closed to the public and exclusively for employees—into a vibrant, mixed-use development has drawn an expansive range of tenants and visitors.

This surge in foot traffic has not only bolstered local businesses but also spurred growth in the surrounding community. In fact, we’ve been able to lower taxes for Holmdel citizens thanks to our significant tax contributions to the township. We’ve also become a hub for arts and culture, hosting events like our annual Fourth of July fireworks, theatrical performances at Bell Theater and exhibitions such as the recent “The Landscape Architecture Legacy of Dan Kiley.” 

How has the success of Bell Works influenced your approach to similar projects, like the Bell Works site in Illinois?

Zucker: The success of Bell Works has proven the scalability of the metroburb model, which we’ve successfully applied to Bell Works Chicagoland. The flexible office spaces at Bell Works New Jersey have been integral in shaping our approach to Chicagoland. There, we replicated the mix of office, retail, dining and amenities, while tailoring each part to fit the local market.

This careful market attention has led to a 92 percent occupancy rate on the east side, having leased the entire marketplace and more than 400,000 square feet postpandemic, with plans for a residential component.  

What started as a redevelopment of an underutilized space in Holmdel has now become a model that other municipalities are eager to replicate. Our success has sparked interest from communities across the country, showcasing Bell Works as a blueprint for revitalizing former commercial properties into vibrant, mixed-use environments.

What does the future of the metroburb concept look like, and how do you see it evolving over the next five years?

Zucker: The metroburb model is certainly here to stay, but over the next five years, we expect it to evolve with a greater focus on attracting diverse tenants and enhancing lifestyle offerings. At Bell Works New Jersey, for example, we’re adding five all-season pickleball courts and planning to further develop our lower level to accommodate a potential bowling alley or spa. These additions reflect a comprehensive, 360-degree approach to lifestyle amenities that we believe will resonate strongly with our community. Building on our successes, we’re committed to delivering more of the same—but even better.

Additionally, we anticipate a stronger integration of residential components, such as the townhomes and apartments we’re adding at Chicagoland, to meet the growing demand for live-work-play environments.

What’s next for Inspired by Somerset Development?

Zucker: We’re excited to begin phase two of Bell Works Chicagoland as the east side of the building approaches full capacity. This next phase will focus on redeveloping the western portion, creating additional space for retailers, businesses and office tenants. We’re also moving forward with the residential component of the metroburb, introducing 164 townhomes and 300 apartments to provide much-needed housing for the growing community. 

We’re eager to expand upon the success of our metroburb model, with plans to bring it to additional properties in the region.

The post Why the Metroburb Model Works: An NJ Success Story appeared first on Commercial Property Executive.

Williams Equities has purchased a 300,000-square-foot pre-war office building located at 470 Park Ave. South in Manhattan for $147.5 million, the company announced Monday. The deal continues Williams’ strategy of acquiring what the company describes as “high quality, tastefully restored office buildings with modern amenities,” with a focus on Midtown South.

Among Williams’ other properties in that submarket is 28-40 West 23rd St., which was refinanced for $155 million last April.

Global real estate firm Jamestown is a limited partner on 470 Park Ave. South.

470 Park Avenue South is also known as the Silk Building, for its famous cast-iron clock depicting a wizard calling upon the “Queen of Silk.”

The property consists of two interconnected office building, a 12-story North Tower and an 18-story South Tower Additionally, the property has ground-floor retail and an amenity space with outdoor workspaces, dining and recreational areas. The loft-style asset was recently renovated and rebranded with Energy Star certification, modern finishes and expansive open floor plans.

READ ALSO: What’s Defining Office in 2025?

The location, between 31st and 32nd streets, provides easy access to the Metro-North Railroad, Amtrak, PATH, LIRR and NJ Transit, as well as nearly a dozen subway lines.

Williams Equities Principals Michael Cohen, Andrew Roos and Robert Getreu and General Counsel William Stempel, along with Colliers Vice presidents Jessica Verdi and Mac Roos, assisted with negotiations and underwriting. The sale was brokered by Will Silverman of Eastdil Secured on behalf of the sellers, which were not disclosed.

The acquisition of 470 Park Avenue South completes a strategic portfolio exchange by Williams Equities. The company recently sold 653-655 Madison Ave. and used those proceeds to acquire 470 Park Ave. South.

Slow improvement

Midtown South has an overall availability of 18.0 percent on an inventory of 191.8 million square feet, according to a third-quarter report from Colliers. Net absorption in the submarket was about 1.6 million square feet for the quarter.

Borough-wide, Manhattan is seeing modest quarter-to-quarter increases in leasing volume, with generally positive absorption, albeit at lower pricing. Asking rents are an average of 6.8 percent below those in March 2020, Colliers reported.

The post Williams Equities Buys Pre-War Manhattan Office Building appeared first on Commercial Property Executive.

• 592 7th Ave., Manhattan

Sale Price: $360 million

Apollo Global Management has acquired a $360 million ownership and equity stake in the 1.1 million-square-foot office building, from RXR Realty. The seller will continue to hold the property as majority owner, in partnership with SL Green. The LEED-certified Times Square asset originally came online in 2000. It rises 38 stories, and features 40,000 square feet of space.

The property last traded in 2016 when RXR Realty paid $1.6 billion for it. At the same time as the sale, the asset became subject to a $1.3 billion loan originated with Corebridge as senior lender. Apollo Global Management became the property’s mezzanine lender in 2022 and decided to convert its position into equity with this deal, becoming part of the ownership.

• 292 Madison Ave., Manhattan

Sale Price: $90.5 million

American Exchange Group acquired the 170,230-square-foot office mid-rise in Murray Hill from Vanbarton Group. The buyer also secured $77.2 million in acquisition financing provided by Deutsche Bank, through a consolidated and restated mortgage agreement. The acquisition follows Vanbarton Group’s default on a $90 million loan secured by the Midtown property. The Art Deco building dates back to 1923, rises 24 stories and features 5,810 square feet of retail space.

• 72-76 Greene St., Manhattan

Sale Price: $90 million

ShopCore Properties has acquired the 45,000-square-foot office building in SoHo from ASB Real Estate. The buyer is one of Blackstone Group’s divisions and the deal was part of a $197 million portfolio transaction, according to PincusCo. The office building last changed hands for $41 million in 2012, when ABS Real Estate picked it up from a private seller. The five-story asset includes three residential units totaling 11,250 square feet and 18,500 square feet of retail space.

• 360 Lexington Ave., Manhattan

Sale Price: $65.5 million

AmTrust Realty Corp. purchased the 238,294-square-foot, 24-story office property from Savanna Fund. The buyer landed a $52.4 million acquisition loan from Allstate Funding Corp. and acquired the property in joint venture with Capstone Equities, TheRealDeal reported. The Murray Hill building features 12,234 square feet of retail space and last changed hands in 2019 for $180 million, with AEW Capital Management as seller.

• 61-63 Crosby St., Manhattan

Sale Price: $54.5 million

The 27,930-square-foot office building was part of Blackstone Group’s portfolio deal in SoHo, made through the company’s ShopCore Properties division. The same ASB Real Estate sold the asset, which dates to 1900. The seller owned the two office properties in partnership with L3 Capital, according to TheRealDeal.

—Posted on December 27, 2024

The post Top 5 NYC Office Building Sales—November 2024 appeared first on Commercial Property Executive.

• 102 Greene St., Manhattan

Sale Price: $46 million

RFR Holding has sold the 10,139-square-foot retail building in Manhattan’s SoHo neighborhood to Japan-based Arkray Inc. The four-story building dates to 1910 and is currently occupied by the luxury brand Cartier, which upgraded the interiors in collaboration with Paris-based architectural firm Studioparisien. The property last changed hands in 2022, when RFR Holding paid $31.5 million. The seller was TA Realty.

• 111 N. 6th St., Brooklyn

Sale Price: $35 million

Empire State Realty Trust purchased the 7,684-square-foot retail building in the borough’s Williamsburg neighborhood from L3 Capital. The property is a three-building, single-story complex that dates back to 1945 and is now part of the new ownership’s collection of prime retail buildings on N. 6th Street. The building also includes a second-floor terrace and will be the future home of Hermès, according to Empire State Realty Trust’s website.

• 72 W. 36th St., Manhattan

Sale Price: $30 million

A private individual working on behalf of George Schwartz estate sold the 16,000-square-foot, three-building retail complex in Koreatown to Houston-based Landry’s Inc. The property originally came online in 1915 and includes a five-story building and a total of 2,760 square feet of office space. It is occupied by Keens Steakhouse, which used it as a longtime location in Midtown Manhattan. The new ownership, Landry’s Inc., is a hospitality brand owned by Tilman Fertitta, the Texas billionaire who owns the Houston Rockets.

• 19-23 St. Marks Place, Manhattan

Sale Price: $27.5 million

UBS Realty Investors has sold the retail property in Manhattan’s East Village neighborhood to Lawrence Movtady’s MOVCAP. The 15,851-square-foot building dates back to 1920 and was the former home of Andy Warhol’s Electric Circus nightclub, that operated between 1967 and 1971. The seven-story structure previously changed hands in 2020 for $35 million, when UBS picked it up from Cape Advisors. The new ownership plans to touch up the asset and to continue to operate the multifamily component of the property, comprising 41 rental units, according to Crain’s New York Business.

• 109 N. 6th St., Brooklyn

Sale Price: $18.9 million

Acadia Realty Trust has purchased the 8,322-square-foot retail property in Williamsburg from MARK Capital. The two-story building came online in 1910 and was last upgraded in 2018. The asset includes 5,522 square feet of retail space, 2,800 square feet of storage area and is currently fully occupied by the apparel company Madewell.

—Posted on December 27, 2024

The post Top 5 NYC Retail Building Sales—November 2024 appeared first on Commercial Property Executive.

BXP has inked a 413,000-square-foot office lease renewal with Ropes & Gray at the Prudential Tower, a 1.2 million-square-foot building in Boston. The law firm will occupy the space through 2041.

Ropes & Gray moved into the upper floors of the high-rise in the fall of 2010. BXP’s headquarters is within its own tower, occupying 25,000 square feet, according to CommercialEdge data.

Additional tenants include Federal Home Loan Bank of Boston (39,185 square feet) and Big Pine Capital (17,000 square feet). The tower was 97.9 percent leased as of September, according to BXP’s supplement for 2024’s third quarter.

The 52-story tower at 800 Boylston St. debuted in 1965, featuring 28,500-square-foot floorplates. At 749 feet, it is the second-tallest office building in Boston after the 790-foot-tall tower at 200 Clarendon St., which is also owned by BXP, the same source shows. BXP, formerly Boston Properties, acquired Prudential Tower in 1998 for $388 million.

READ ALSO: Office Report: Office Sector Decline Continues Amid Flexibility Shift

The office high-rise is the largest property within the Prudential Center, a five-building, 3.6 million-square-foot office campus including 653,000 square feet of retail and about 3 million square feet of office space. The Center is within walking distance of the Charles River and about 2 miles from downtown Boston.

Prudential Center includes amenities such as a post office, car wash, direct connection with the Green Line MBTA station, as well as a 3,000-space parking garage, among others.

Greater Boston’s office leasing activity picks up the pace

Metro Boston witnessed a growth in aggregate office leasing activity for the third quarter in a row, with the figure clocking in at 1.9 million square feet from June to September and besting the previous quarter by 31 percent, according to a report by Avison Young.

The City on a Hill’s office availability rate stood at 28 percent in September, unmoved from June, the same source reveals. This marked the first time the index didn’t rise since 2022’s third quarter. Trophy buildings fared significantly better, with a rate of 17.3 percent.

The prime office space of trophy buildings was in high demand, accounting for 22 percent of all leasing activity during the third quarter, Avison Young shows. The figure was just 6 percent the previous quarter.

As return-to-office policies continue to evolve, Greater Boston’s Friday office visitations spiked 35 percent year-over-year through August, the report points out. The overall office visitation rate remained resilient, improving by 1.5 percent during the same period and reaching 57.3 percent of prepandemic levels in August.

BXP landed another lease renewal this summer when Bain Capital doubled down on its 378,000-square-foot agreement at 200 Clarendon St., formerly John Hancock Tower. The asset was 99 percent leased in September, BXP’s supplement shows.

The post BXP Lands 400 KSF Lease Renewal at Boston Tower appeared first on Commercial Property Executive.

Brookfield Properties has signed a full-building industrial lease with PrimeSource Building Products in Montgomery, N.Y. The tenant will occupy the entire 312,567-square-foot Maybrook Logistics Center. Newmark and Resource Realty of Northern New Jersey represented the tenant and the owner, respectively.

PrimeSource will utilize the space to facilitate the delivery of residential and commercial construction materials throughout New York, New Jersey, Connecticut and Pennsylvania.

Brookfield developed Maybrook Logistics Center with the help of a $31.4 million construction loan issued by Customers Bank in 2023, according to CommercialEdge data. The warehouse debuted this year on 40 acres at 134 Neelytown Road.

READ ALSO: You’ve Survived Till 2025. Now What?

Aiming for LEED certification, the industrial building features 36-foot clear heights, 60-foot speed bays, two drive-in doors and 74 loading doors. The property has 98 car and 129 trailer parking spaces.

The facility is less than 1 mile away from Interstate 84 and about 9 miles from New York Stewart International Airport. The location is also 3 miles from Medline’s 1.3 million-square-foot distribution center.

Another industrial tenant in the area is Amazon, which fully leased a 1 million-square-foot facility owned by Affinius Capital. That property is roughly 6 miles from Maybrook Logistics Center.

Newmark Executive Managing Directors Frank Puskarich and Art Ross represented PrimeSource Building Products. Resource Realty of Northern New Jersey Principals Tom Consiglio and Scott Peck negotiated on behalf of Brookfield Properties.

Brookfield Properties’ industrial footprint

Brookfield owns more than 45 million square feet of logistics space across North America. The company has an additional 24 million square feet of industrial space in its development pipeline.

One of the underway projects is Liberty Commerce Center, a 414,368-square-foot distribution facility in Jersey City, N.J. Brookfield acquired the development site in 2023 and completion is expected next year.

The post Brookfield Inks New York Full-Building Lease appeared first on Commercial Property Executive.

The property at 700 Haddonfield-Berlin Road in New Jersey’s Voorhees Township was built in 1976 and features nearly 40 retailers and restaurants, including Acme Markets, Ross Dress for Less, Five Below, Chipotle and Ace Pickleball Club.

Eagle Plaza is surrounded by a population of about 240,000 residents within a five-mile radius, including some 95,000 households with an average income nearing $145,000.

Brad Nathanson and JP Colussi of Institutional Property Advisors represented the buyer and the seller in this transaction.

KPR’s expanding portfolio

With a portfolio of approximately 10 million square feet of retail space across 18 states, KPR has been on the acquisition trail this year.

In the fall, the company entered the Colorado area with the $56.5 million purchase of Denver’s University Hills, a 210,000-square-foot grocery-anchored center.

In March, KPR Centers purchased a 1.5 million-square-foot retail portfolio in Florida and the Midwest for $180 million. Kimco Realty Corp. was the eight assets’ previous owner, according to CommercialEdge data.

Located in Wisconsin, Florida, and Missouri, the retail centers feature national and regional retailers including Michael’s, Marshalls, Dick’s Sporting Goods, The Fresh Market and Ross Dress for Less.

Other firms are looking to invest in New Jersey properties as well. In October, a fund managed by DRA Advisors, in conjunction with Soundwater Properties, acquired a three-property, 376,462-square-foot shopping center portfolio in Ocean County, N.J. A ShopRite store anchors each center. Pasbjerg Development Co., the properties’ developer and manager, sold them in a transaction arranged by CBRE.

The portfolio comprises Lacey Mall at 344 US-9 in Lacey Township, Jackson Plaza at 260 N. County Line Road in Jackson Township and Bay Plaza at 860 Fischer Blvd. in Toms River.

The post KPR Centers Pays $42M for Philadelphia-Area Mall appeared first on Commercial Property Executive.

Life sciences assets continue to be among the most sought-after projects for developers in the area, driven by increasing demand for cutting-edge research facilities and innovation hubs. The subsector accounted for 8.6 million square feet of the 10.8 million square feet of office space under construction.

Boston’s investment volume is also holding steady, with total sales amounting to $1.1 billion. Additionally, the city remained one of the most expensive office markets nationwide in terms of rents, averaging $53.35 per square foot, a 17.0 percent growth year-over-year.

Office developments continue to reshape the city’s skyline

Boston’s office under-construction pipeline at the end of October stood at almost 10.8 million square feet, continuing to lead nationally, based on CommercialEdge data. This accounts for 4.3 percent of its existing inventory, almost five times larger than the 0.9 percent national rate. San Francisco (3.8 million square feet), Austin (3.5 million square feet) and San Diego (3.1 million square feet) trailed behind the metro.

Earlier this summer, Tishman Speyer topped out the first phase of its Harvard Enterprise Research Campus in Allston, Mass. The 440,000-square-foot lab component broke ground last November and is a collaboration of the company with Harvard University and The Harvard Allston Land Co. The master plan is one of the biggest construction projects in Boston and is expected to total about 900,000 square feet of residential, office and retail space.

In terms of completions, the metro saw 5.7 million square feet coming online as of October. The 19 delivered properties account for 1.9 percent of Boston’s inventory, considerably above the 0.6 percent national figure. It also marks an 11.4 percent year-over-year improvement.

Among gateway markets, Boston ranked first in terms of completions as well. Chicago (4.8 million square feet), Seattle (3.9 million square feet) and Manhattan (3.1 million square feet) also ranked high nationwide, while Miami (1.1 million square feet) and Washington, D.C. (1.9 million square feet) saw less space coming online.

In October, a joint venture of CBRE Investment Management, Leggat McCall Properties and Granite Properties completed the conversion of 40 Thorndike, a 475,000-square-foot mixed-use building in Cambridge, Mass. The property, previously a courthouse and jail from the 1940s, includes 422,000 square feet of office space and 48 affordable units.

Government agencies grant more funds for conversions

This year, CommercialEdge has developed the Conversion Feasibility Index, a Yardi-powered tool meant to assess an office property’s suitability to multifamily conversion. As the office-to-residential adaptive reuse topic continues to gain momentum, the CFI provides valuable insights for investors.

State and national agencies are also actively supporting this trend. Recently, the City of Boston announced the extension and additional funding for its Office to Residential Conversion Program. The state is contributing $15 million to encourage the adaptive reuse of larger office buildings into housing.

One of the projects that received approvals from the Boston Planning & Development Agency earlier this year is 85 Devonshire St., which involves the conversion of three adjacent office buildings into one community totaling 95 residential apartments. KS Partners is developing the project, which is set to also include 19 affordable units and retail space, CommercialEdge data shows. The property’s CFI score stands at 79, meaning that while a solid candidate for conversion, some roadblocks will be present in the process. .

Metro Boston is one of the top markets suitable for office adaptive reuse. About 5.9 million square feet of its office space has strong potential for conversion, accounting for 1.9 percent of the city’s total stock.

Boston pricey deals remain extant

Sales in the metro in the first 10 months of the year accounted for $1.1 billion. Boston’s office assets traded for $187 per square foot on average, slightly above the $177 national average.

The market ranked sixth nationally in terms of office investment volume. Manhattan ($3.3 billion) remained in the spotlight, followed by Washington, D.C. ($2.5 billion). San Francisco ($722 million) and Seattle ($668 million) were some of the gateway metros that were at the opposite end of the spectrum.

In one of the most expensive deals per square foot, Azora Group acquired 149 Newbury Street, a 45,495-square-foot office and retail building for $101 million. The mixed-used asset came online last year and traded for about $2,220 per square foot.

Vacancy rate rises sharply, still below the national average

Boston’s office vacancy rate at the end of October clocked in at 16.8 percent, 650 basis points higher year-over-year, the second-highest increase among the top markets. Despite the worrisome increase in vacant space, the metro’s metrics were below the 19.4 national average and large leasing deals still happened.

For example, back in August Bain Capital signed a 378,000-square-foot lease renewal and expansion at BXP’s 200 Clarendon St., a 1.7 million-square-foot office tower in Boston. The company initially signed a 208,000-square-foot, 15-year agreement at the building in 2010.

Additionally, Commonwealth of Massachusetts’ Division of Capital Asset Management and Maintenance signed a 106,000-square-foot leasing agreement at Tishman Speyer’s One Federal Street. Six government agencies are expected to occupy two full floors at the more than 1.1 million-square-foot building for at least 10 years.

The metro also fared better than most of the other gateway markets, except for Manhattan (16.7 percent), Miami (14.4 percent) and Los Angeles (15.7 percent). However, San Francisco (27.7 percent) and Seattle (25.8 percent) had more space left vacant.

Boston coworking’s space trails behind gateway markets

Boston’s office sector comprised more than 4.8 million square feet of shared office space across 207 properties. This represents 1.8 percent of the metro’s total inventory. Among gateway markets, only Washington, D.C. (1.7 percent) had a lower share of coworking space, while Miami (3.8 percent), Manhattan (2.2 percent) and San Francisco (2.1 percent) were at the opposite end.

Additionally, the metro saw a $24 increase in the average monthly rate as of the third quarter of this year, reaching $399 per month, according to CoworkingCafe. The national average during the same time was $300.

Regus was the company with the largest shared space inventory in the market as of October, owning 588,565 square feet across 32 locations. The firm was followed by WeWork (448,716 square feet) and Industrious (223,830 square feet).

Earlier this month, WeWork entered into a revenue-sharing agreement under which it will continue to operate on a three-floor coworking space in Boston. The 64,323-square-foot space is within Fortis Property Group’s State Street Financial Center, a 1.1 million-square-foot, 36-story tower.

The post Boston Office Vacancy Up, Deliveries Higher appeared first on Commercial Property Executive.

Longpoint Partners has acquired The Hills Village Center, a 110,453-square-foot retail center in Bedminster, N.J. The shopping center will be managed under the firm’s Lena Centers brand.

Longpoint paid nearly $50 million for the asset, according to Commercial Real Estate Direct. JLL represented the seller and procured the buyer.

Completed in 1988 on a 13-acre site, The Hills Village Center was 89.3 percent leased at the time of sale. The property is anchored by Kings Food Market and its tenant roster includes CVS, Cold Stone Creamery, PNC Bank, Starbucks, Great Clips and Orange Theory.

The retail center is at 550 Hills Drive within The Hills, a townhouse community of 5,548 households. Major transportation routes in the area include interstates 287 and 78, as well as highways 202 and 206. The retail center has more than 380,000 annual visits.

JLL Senior Managing Directors Jose Cruz and Kevin O’Hearn, together with Director J.B. Bruno, led the Capital Market Investment and Sales Advisory team representing the seller.

As for the buyer, Longpoint purchased another retail asset, in Phoenix, earlier this month. The 101,269-square-foot shopping center also operates under the Lena Centers brand.

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SL Green Realty Corp. has signed a purchase option agreement to acquire its partner’s 49.9 percent interest in 100 Park Ave., an 834,000-square-foot Manhattan high-rise. PGIM Real Estate acquired the asset in a venture with SL Green in 2000.

Additionally, the company also modified the building’s existing $360 million mortgage, extending the final maturity date to December 2027 and maintaining the 2.25 percent interest rate. The lenders also provided a new $70.0 million future funding facility to support leasing costs at the property. Newmark advised the borrower, while CBRE worked on behalf of the loan providers.

Although the lenders were not mentioned, a syndicate led by German commercial bank Helaba provided a $360 million loan in February 2014, according to The Real Deal, and a $215 million refinancing in 2009.

READ ALSO: Manhattan Office Shows Strength in a Still Lackluster Market

The company previously closed on the modification of the loan in April. At the time, the deal extended the note’s maturity date to December 2025, while the interest rate was maintained at 2.36 percent.

The 36-story property came online in 1949 and was redeveloped in 2009. The high-rise holds LEED Gold certification and features floorplates ranging between 10,336 and 45,245 square feet, as well as 21,600 square feet of first-floor retail space.

Amenities at the Midtown Manhattan tower include a game room, a cafe bar and lounges, as well as conference and meeting rooms. The property also has an amenity center on the second floor, providing a golf simulator and personal training studio.

Newmark Co-Heads Adam Spies and Doug Harmon advised SL Green in the deal. CBRE Vice Chairman Doug Middleton worked on behalf of the lenders.

Busy period for SL Green

At the beginning of this month, SL Green and its joint venture partners closed on a $1.3 billion mortgage modification and extension for One Madison Avenue, a fully renovated 27-story office building in Manhattan. The note’s maturity date was extended through November 2027.

In November, the firm sold an 11 percent ownership interest in One Vanderbilt, a 1.7 million-square-foot high-rise also in Manhattan. Mori Building Co. purchased the stake in a deal that valued the asset at $4.7 billion.

The post SL Green to Buy Out PGIM at Manhattan High-Rise appeared first on Commercial Property Executive.

This transaction reportedly bumps SL Green’s office leases executed so far this year to more than 3.5 million square feet, with a pipeline of more than 900,000 square feet.

485 Lexington Ave., also known as Grand Central Square, totals 904,165 rentable square feet of office space across 32 stories and dates to 1957, though it’s nonetheless still a Class A building, according to CommercialEdge. It has an overall vacancy of about 13 percent.

Travelers Insurance was represented by Robert Ageloff, Matt Astrachan and Kate Roush of JLL, and SL Green was represented by Paul Glickman, Alex Chudnoff, Diana Biasotti, Christine Colley and Kristen Morgan, also of JLL.

SL Green is the largest office landlord in Manhattan and holds ownership interests in more than 28 million square feet of Manhattan buildings.

Big money on the hunt

The lease announcement closely followed the news that a major Canadian pension fund, reportedly Caisse de Dépôt et Placement du Québec, has committed $250 million for a new SL Green opportunistic debt vehicle.

The fund, for which SL Green hopes to raise a further $250 million by year’s end, is said to focus on distressed credit opportunities in New York office and retail real estate, including existing loans, loan portfolios and controlling CMBS securities. The fund will also originate loans.

Manhattan’s office market saw 5.47 million square feet of leasing activity in the third quarter, which was 8 percent above the five-year quarterly average, according to a report from CBRE. In turn, overall availability declined by 50 basis points year-over-year, to 19.3 percent.

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B&D Holdings has acquired a 109,300-square-foot industrial building in Avon, Mass., for $18.5 million. JLL Capital Markets worked on behalf of the seller, a joint venture between Oliver Street Capital and Bain Capital Real Estate.

The company also assisted the new ownership in securing acquisition financing, in the form of a three-year, fixed-rate loan originated by Provident Bank. The mortgage totals $13.9 million, according to CommercialEdge. The property previously traded in 2021, when the joint venture acquired it for approximately $12 million from Parker Property Management, the same source shows.

The industrial facility is at 21 Parker Drive and is fully leased to Taylor Communications, FreshPoint and HelloFresh. Originally built in 1972, the infill industrial warehouse includes 17- to 32-foot clear heights, 33 dock high doors, five grade-level doors, a 135-foot depth truck court and ample vehicle parking space. Additionally, the property also features a more than 1 acre space for outdoor storage, while tenant suite options range between 5,600 square feet and 49,080 square feet. 21 Parker Drive is also situated within Avon Industrial Park, a master-planned industrial campus that hosts 127 companies.

The approximately 11-acre asset allows easy accessibility to the Greater Boston area, being close to Massachusetts Route 24 and U.S. Route 3, while also providing easy connectivity to interstates 93, 95 and 495. Boston is 20 miles from the property, Boston Logan International Airport is 28 miles away and Providence, R.I., is within 46 miles from the property.

Managing Director Michael Restivo and Director David Coffman with JLL’s Investment Sales and Advisory team represented the seller, while Managing Director Thomas Didio, Managing Director Amy Lousararian and Director Max Cust with JLL’s Debt Advisory team assisted B&D Holdings in securing the acquisition financing.

Sale prices and rents high in Boston

The industrial investment volume in Boston reached $512 million as of October, according to a recent CommercialEdge industrial report. Across the Northeastern region, Boston remained one of the priciest markets, with properties changing hands at an average sale price of $158 per square foot. Only New Jersey outperformed the metro, with an average sale price of $223 per square foot. In-place rents in Boston averaged $10.92 per square foot average in October, making it one of the most expensive industrial markets in the U.S.

JLL became the exclusive leasing broker of a recently completed Class A logistics facility in West Bridgewater, Mass. The 210,600-square-foot industrial property developed by National Development came online last month, with construction financed by a $28 million loan.

The post B&D Holdings Buys Boston-Area Industrial Facility appeared first on Commercial Property Executive.

The fund will focus on distressed credit opportunities in New York’s office and retail real estate sectors, including existing loans, loan portfolios and controlling CMBS securities. It will also originate loans.

The $250 million commitment is just the beginning, since SL Green plans to raise roughly another $250 million by the end of this year. New York offers a robust pipeline of investment opportunities, according to a company statement.

“After nearly a four-year hiatus, we are now… lending on and investing in mortgage and mezz loans and debt securities,” SL Green Chairman & CEO Marc Holliday said during the company’s most recent earnings call in October. 

“This quarter, we invested nearly $110 million in various debt and debt-like investments, and that’s on top of the other DPE investment activity we did earlier this year,” Holliday said. “This marks the return to an extremely profitable business.”

The debt investments closed thus far combined with the pipeline that the company has been building throughout 2024 will serve to seed the debt fund, Holliday said.

“The fund will provide additional capital resources enabling us to reestablish ourselves as the dominant provider of subordinate capital for New York City commercial assets,” he predicted.

READ ALSO: Why Aren’t Mortgage Rates Dropping After the Fed Rate Cut?

A major commercial landlord in New York, SL Green holds an interest in 55 buildings totaling 31.8 million square feet. That includes interests in 28.1 million square feet of Manhattan buildings and 2.8 million square feet securing debt and preferred equity investments.

CDPQ, based in Montreal, has about $452 billion in assets under management, including $45.6 billion in real estate in more than 1,500 properties.

Manhattan office market still struggles

The Manhattan office market continues to suffer from weak demand. The number of office-using jobs in the market dropped 0.53 percent year-over-year in September, according to CommercialEdge, losing positions in all major categories: financial services, information and professional and business services.

Asking rents in Manhattan decreased by 3.2 percent year-over-year in November, averaging $68.48 per square foot, CommercialEdge reports. For the first time in years, Manhattan wasn’t the most expensive office market in the country. San Francisco now has that distinction, besting Manhattan by 66 cents per square foot.

Investors are still interested, however. Manhattan continues to lead the nation in office asset sales volume, reaching almost $3.3 billion year-to-date through October, CommercialEdge noted.

This is nearly double Manhattan’s $1.7 billion recorded during the same period last year, though average sale prices in the market have dropped in recent months, to $344 per square foot, putting Manhattan fourth for sale prices among U.S. office markets.

The post SL Green Bags $250M for Opportunistic Debt Fund appeared first on Commercial Property Executive.

Totaling 195,421 square feet, the assets will be minutes from I-95, U.S. Route 1 and Route 28. The rear-loaded facilities will feature 36-foot clear height with 32 total loading positions. The project has been designed to meet the submarket’s growing demand for industrial spaces under 100,000 square feet.

Deugen Development, a fourth-generation New Jersey developer with an extensive market presence, is a project partner.

READ ALSO: Top 5 Markets for Industrial Deliveries

The Joyce Kilmer development is part of Faropoint’s Industrial Value Fund III, which closed at $915 million in June, exceeding its $750 million target.

In September, Faropoint launched a $300 million target industrial sale-leaseback fund that will capitalize on the debt gap of local and regional U.S. banks as they strive to reduce their commercial real estate exposure.

A strong track record

Since 2018, Faropoint has successfully acquired more than 80 sale-leaseback buildings, totaling approximately 5 million square feet, all without any defaults.

In August, Faropoint acquired a 16-building portfolio in key logistics markets Jacksonville, Fla., and Memphis, Tenn., for $105 million. Eastdil Secured brokered the deal in less than 45 days. This off-market acquisition totals 1.7 million square feet and features four buildings in Jacksonville and 12 in Memphis.

Since its inception in 2012, Faropoint has acquired over 400 warehouses, representing more than $3 billion in industrial real estate assets.

More industrial developments

Last month, CRG formed a joint venture with PCCP to develop The Cubes at Alpha, a 575,900-square-foot industrial park in Alpha, N.J. Its completion is expected in the third quarter of next year. PCCP paid $24.8 million for the 37-acre site in August and Simmons Bank issued a $55.8 million construction loan last month, Warren County public records show.

The post Faropoint Launches New Jersey Project appeared first on Commercial Property Executive.

Jones Day is the first office tenant announced for the 690-foot-tall tower dubbed one of Boston’s top projects that will redefine the city’s skyline. 

The 15-year lease will begin following the completion of the building, estimated to be in June 2025. Jones Day, which currently occupies the 21st floor at 100 High St. in the Financial District, will be located on the tower’s 23rd and 24th floors. It marks the firm’s first move within Boston since entering the market in 2011. The new office will provide a Class A+ workspace for employees with flexibility for future growth. Jones Day has more than 2,400 lawyers in 40 offices across five continents, including 1,700 in the U.S.

Mixed-use skyscraper

The tower at 680 Atlantic Ave. is being built above South Station, Boston’s most connected and active transit hub. The project, a partnership between Hines, the Boston Planning & Development Agency and the Massachusetts Bay Transportation Authority, includes the redevelopment and extension of the South Station Transportation Center as well as the construction of the approximately 1.2 million-square-foot tower above the 1899-built South Station building. The redevelopment will increase the transportation hub’s capacity by approximately 50 percent and provide more convenient connections to the train and subway.

READ ALSO: The Long-Term Pull of Smaller Markets

Hines began work on the mixed-use project in January 2020, after it secured air rights along with an $870 million construction loan originated by The Children’s Investment Fund, according to CommercialEdge data. Designed by Pelli Clark & Partners, the building will have 680,000 square feet of office space. The upper 16 floors will feature 166 residential units branded and managed by The Ritz-Carlton. Residential sales are underway.

The project will also include a 1-acre private park 120 feet above the city, for tenants and residents, among its amenities. The developers are also building a parking garage over the outdoor areas and adding an indoor bike storage room. Additional amenities will include a conference center, private tenant lounge, fitness and wellness center, dining area and terrace with a swimming pool. The project will also improve the streetscapes with new sidewalks, granite curbs, streetlights and greenery.

The developers are aiming to achieve LEED Gold and WELL Gold certifications, as well as a BREEAM Very Good rating.

The post Hines Lands 1st Tenant at Boston Tower appeared first on Commercial Property Executive.

Princeton University has acquired Princeton Overlook, a 158,180-square-foot Class A office building in West Windsor Township, N.J. Cali Futures sold the asset for $33.4 million. JLL Capital Markets negotiated on behalf of the seller and procured the buyer.

Princeton University occupies the largest space at the property. Other tenants include Regus and UBS Financial Services.

The property previously traded in 2021 for $38 million, when Cali Futures picked it up from Veris Residential, according to CommercialEdge.

Initially designed to include two buildings, Princeton Overlook came online in 1988 and was renovated in 2012. The four-story office asset features two passenger elevators, 37,400-square-foot floorplates and 524 covered parking spots, according to the same source.

Located on a nearly 21-acre lot at 100 Overlook Center, the property is across U.S. Highway 1 and 17 miles from Central Jersey Airport. Philadelphia is 47 miles southwest.

The JLL Capital Markets team working on behalf of the seller included Senior Managing Directors Jose Cruz and Jeremy Neuer, together with Senior Analyst Bradley Wachenfeld.

New Jersey’s low office prices

New Jersey’s office investment volume reached $538 million year-to-date as of October, with assets changing hands at $98 per square foot, well below the $177 national average, according to the latest CommercialEdge report. The metro outperformed Philadelphia, where deals amounted to $316 million.

New Jersey’s office vacancy rate reached 20.1 percent in October, up 260 basis points over a 12-month period and was the only one in the Northeastern markets above the 19.4 percent national average.

Recent office deals in the metro included RWJBarnabas Health Foundation’s acquisition of a 154,777-square-foot property in Hanover Township, N.J. The asset traded for $14 million in an off-market transaction.

The post Princeton University Pays $33M for New Jersey Office Asset appeared first on Commercial Property Executive.

Metropolitan Commercial Bank has renewed and expanded its office space at 99 Park Ave., a 600,000-square-foot Manhattan office tower. The company will bring its footprint at the Global Holdings-owned property to some 81,979 square feet.

The anchor tenant signed a six-year lease extension on its current 52,677-square-foot office space covering the building’s 12th and 13th floors. In addition, the bank leased the entire 11th floor with a new 15-year commitment for 26,802 square feet.

JLL Vice Chairman Paul Glickman and Senior Vice President Diana Biasotti worked on behalf of the tenant, while JLL Associate Vice President Kristen Morgan and Associate Harrison Potter represented the landlord.

Manhattan tower slated for renovation

Global Holdings acquired the office tower in 1990 for $104.5 million, according to CommercialEdge information. The property came online in 1953 and underwent cosmetic renovations in 2005.

Designed by Emery Roth & Sons with Art Deco interiors, the 26-story building has floorplates averaging 30,000 square feet, 12,000 square feet of retail space and a tenant-exclusive fitness center. Its roster includes Calypso Technology, Windsor Properties, Bosley, Gould Paper Corp., New York Bankers Association, AKAM, Lubert-Adler and Steward Partners, among others.

READ ALSO: Return-to-Office Traffic Reaches Record Level

The owner plans to invest $30 million to renovate the Class A tower. Designed by VOCON, the improvements will focus on the lobby, facade and amenity spaces. Plans call for a new conference center, entertainment lounge and tenant barber shop and salon. Completion is expected in the first quarter of 2026.

The property is in Midtown Manhattan, half-a-mile from the Empire State Building, Grand Central Terminal and Bryant Park.

Manhattan’s office market had a 16.7 percent vacancy rate in October, down 80 basis points over the year, according to a recent CommercialEdge report. The index was also 270 basis points below the national average of 19.4 percent.

The post Metropolitan Commercial Bank Renews, Expands Manhattan Lease appeared first on Commercial Property Executive.

SL Green Realty Corp., Manhattan’s largest office landlord, is expanding its Park Avenue portfolio with the purchase of the office portion of 500 Park Ave. Morgan Stanley sold the 11-story, 201,000-square-foot Class A mid-rise for $130 million.

The REIT bought the office component of the building that also has 19,911 square feet of retail. However, the retail portion of the property at the corner of 59th Street in the Plaza District was not part of the deal, nor were its 56 residential condominium units.

Newmark’s Adam Spies, Doug Harmon, Adam Doneger, Joshua King and Marcella Fasulo advised on the transaction.

Building, market highlights

SL Green plans to reposition the lobby, add building amenities and make substantial improvements to the public plaza.

Morgan Stanley has owned the building since April 1980, having acquired it from HJ Kalikow Co., according to CommercialEdge data. The property is subject to a 99-year unsubordinated net ground lease, which is held by Kalikow Holdings and expires in March 2079.

Completed in 1959, it has been institutionally owned and maintained since its construction as the former PepsiCo Inc. headquarters. The historic, landmarked property was designed by Skidmore, Owings & Merrill. Floorplates in the glass and masonry building range from 14,800 to 19,684 square feet, according to CommercialEdge.

The building had a cosmetic renovation in 1984. Its last renovation was in 2019, The Real Deal reported.

READ ALSO: Manhattan Office Shows Strength in a Still Lackluster Market

SL Green’s other Park Avenue properties include 100 Park Ave., 125 Park Ave., 245 Park Ave., 280 Park Ave. and 450 Park Ave. The REIT also owns 215 Park Ave. South and 304 Park Ave. South. Last year, an affiliate of Mori Trust Co. purchased a 49.9 percent stake in 245 Park Ave., a 1.8 million-square-foot tower.

Park Avenue is the best office market in New York City with historic low vacancy, according to SL Green, and 500 Park Ave. is set to benefit from opportunities in the fortress corner that attracts top tier tenants and triple-digit rents.

Building tenants include Vera Wang leasing 26,708 square feet for office space and a showroom; The Georgetown Co., 18,795 square feet; CI Capital Partners, 19,158 square feet; PPC Enterprises, 18,683 square feet, and Friedland Properties, CommercialEdge data indicates. The property’s retail space features high-end furniture store FRATO’s flagship New York City showroom.

SL Green moves

The acquisition announcement comes days after SL Green sold an 11 percent ownership stake in One Vanderbilt, its 1.7 million-square-foot skyscraper in Midtown Manhattan, to Mori Building Co. in a deal that valued the tower at $4.7 billion. SL Green will continue to own a 60 percent stake in the 59-story tower that was fully leased at the time of closing. The National Pension Service of Korea owns a 27.6 percent stake and Hines owns 1.4 percent. The LEED Platinum-certified building came online in 2020.

Last month, Bloomberg LP signed a renewal and expansion lease at another SL Green Midtown Manhattan tower—919 Third Ave. Bloomberg’s latest deal brings its footprint at the 1.5 million-square-foot, 47-story office high-rise to 924,976 square feet.

The post SL Green, Morgan Stanley Strike $130M Deal appeared first on Commercial Property Executive.

Brookfield Properties has tapped JLL as the exclusive leasing agent for Manhattan West’s office component, which spans 6 million square feet.

Chairman & President Peter Riguardi, Vice Chairs Paul Glickman and Matt Astrachan, Executive Managing Director Christine Colley and Senior Vice President Kristen Morgan, along with Vice President Seth Godnick, will lead the JLL team. The brokers will work alongside the property operator’s in-house team.

Manhattan West is a 7 million-square-foot, mixed-use campus comprising four office towers and an 844-luxury residential high-rise dubbed The Eugene, as well as a 164-key boutique hotel. Additionally, the live-work-play property has more than 240,000 square feet of retail space and is anchored by a 2.4-acre landscaped public plaza.

Manhattan West’s office component, up close

One of the buildings within the campus is One Manhattan West, totaling about 2.1 million square feet and rising 67 stories. Completed in 2019, the LEED Silver-certified skyscraper has tenants such as Skadden, NHL, Ernst & Young and Accenture on its roster.

Two Manhattan West came online last year and spans 1.9 million square feet across 58 stories. The tenant roster includes Cravath, KPMG, D. E. Shaw & Co. and Clifford Chance.

READ ALSO: Manhattan Office Shows Strength in a Still Lackluster Market

The 201,695-square-foot Lofts at Manhattan West is a 1913-completed building that rises 14 stories. Initially, the property was designed for industrial use, but was converted to office in 2002, according to CommercialEdge information. Brookfield acquired it in two interest-stake deals from Planned Parenthood for a combined $135.5 million.

Completing the mixed-use campus is Five Manhattan West, a 1.8 million-square-foot mid-rise that came online in 1969. The 16-story building was completely renovated in 2016 and 2024, the same source shows. The owner purchased it in September 2011 from Lone Star Fund.

All buildings are powered by renewable electricity sourced from run-of-river hydropower dams, contributing to a more than 80 percent reduction in direct carbon emissions.

Located at 401 & 389 Ninth Ave. and 424 & 450 West 33rd St., the properties have direct connectivity to Moynihan Train Hall and Penn Station. Numerous subway and train stations are also nearby.

Manhattan’s office vacancy rate drops

Manhattan’s office vacancy rate at the end of October clocked in at 16.7 percent, registering an 80-basis-point decrease year-over-year, according to a recent CommercialEdge office report. The borough’s figure was well below the 19.4 percent national average, with return-to-office policies helping the sector. Despite a shrinkage in lease sizes, leasing activity was on par with pre-pandemic levels.

At the beginning of the year, Vornado Realty Trust appointed Cushman & Wakefield as exclusive leasing agent for PENN 2, a Class A, 1.8 million-square-foot high-rise in Midtown Manhattan. That office building was completely redeveloped last year.

The post Brookfield Taps JLL for Big NYC Office Leasing Job appeared first on Commercial Property Executive.

Steiner NYC has landed $148.5 million for the refinancing of Admirals Row, a 696,000-square-foot, mixed-use property part of Brooklyn Navy Yard. Deutsche Bank provided the note in a transaction arranged by Walker & Dunlop.

Previous debt included a $228 million construction loan issued by M&T Bank and BNY Mellon in 2018, as well as a $50 million loan originated by the New York City Regional Center.

Admiral Row encompasses more than 350,000 square feet of light industrial and creative manufacturing space leased by the Brooklyn Navy Yard Development Corp., as well as 160,000 square feet of retail including the 75,000-square-foot space leased by Wegmans—the company’s first supermarket in New York City.

In addition, the 8-acre property comprises a 5,000-square-foot community facility and a parking structure and lot with 701 spaces combined.

READ ALSO: Why Aren’t Mortgage Rates Dropping After the Fed Rate Cut

Located at 399 Sands St., Admiral Row is within 1 mile from Interstate 278—also known as the Brooklyn-Queens Expressway—as well as the Manhattan and Brooklyn bridges. Steiner Studios, a film and television production facility encompassing 900,000 square feet of soundstages and support space, is likewise 1 mile away.

The Walker & Dunlop team that represented and advised Steiner NYC in securing the financing included Senior Managing Directors Jonathan Schwartz, Aaron Appel, Keith Kurland and Adam Schwartz, together with Managing Director Michael Diaz and Capital Markets Specialist William Herring.

Overhauling New York City’s largest industrial campus

Admirals Row is part of the $2.5 billion Brooklyn Navy Yard redevelopment project. Plans call for the creation of 5.1 million square feet of manufacturing space, as well as the improvement of the Yard’s connectivity with the surrounding neighborhoods. More than 450 businesses operate within the Yard, generating upward of $2 billion annually for the city.

The Admirals Row site formerly housed the officers of the Navy Yard throughout buildings constructed before the 1900s. However, the Yard closed in 1966, and the residences were abandoned in the 1970s. Decades later, the site changed hands and the Brooklyn Navy Yard Development Corp. took ownership.

Financing development in the Big Apple

Several entities support development throughout the five boroughs. One of them is The New York City Regional Center. 

The NYCRC has provided nearly $1.6 billion in financing over the past 15 years for real estate and infrastructure projects throughout Brooklyn, Queens, Manhattan and the Bronx. Beside financing Steiner’s Admirals Row, the company also funded the Navy Yard redevelopment’s first phase with a $60 million loan.

New York City outer boroughs’ new industrial leasing activity clocked in at 2.2 million square feet during the first three quarters, representing an 18.7 percent spike year-over-year, according to a report by Cushman & Wakefield.

Despite the heightened activity, the industrial vacancy rate stood at 5.1 percent in September—marking an 80-basis-point increase compared to June—the report shows. The index hasn’t been over the 5 percent mark since 2020.  

The post Steiner Lands $149M for Brooklyn Navy Yard Property appeared first on Commercial Property Executive.

• 92 Greene St., Manhattan

Sale Price: $43.4 million

Acadia Realty Trust picked up three retail condominium units totaling 7,906 square feet in Soho from Continental Ventures. The deal includes two units at 92 Greene St. of 2,936 square feet and 2,569 square feet, respectively, along with a 2,401-square-foot unit at 109 Mercer St . The retail assets are part of a 2005-built mixed-use building rising seven stories and spanning 51,065 square feet.

• 141 Berry St., Brooklyn

Sale Price: $35 million

One day later, the same firm acquired 11,250 square feet of retail space spread across three buildings in Brooklyn’s Williamsburg area from M&V Provisions Co. Located at 141 Berry St. and between 123 and 125 N. 6th St., the deal includes two properties occupied by Partners Coffee Café & Roastery and Lululemon, in addition to a vacant building. The three-story structures were originally completed in 1985 and include two residential units.

• 102 N. 6th St., Brooklyn

Sale Price: $28.6 million

In the same Williamsburg area, Empire State Realty Trust bought a 16,924-square-foot, two-story building from L3 Capital. The retail property originally came online in 1962, was renovated in 2001 and features 5,990 square feet of office space alongside 4,502 square feet of storage space. The properties last traded for $49 million in 2013 when RedSky Capital sold them to L3 Capital.

• 134 N 6th St., Brooklyn

Sale Price: $28.3 million

Two days earlier, Empire State Realty Trust acquired another retail property on the same street in the borough’s Williamsburg area, from the same seller, L3 Capital. The 6,232-square-foot single-story building came online in 1950 and is home to a fragrance, beauty and eyewear boutique by Chanel.

• 124 N. 6th St., Brooklyn

Sale Price: $18.1 million

The same entities made another deal on the same street, involving a 1910-built, 2,510-square-foot retail property. The acquisition is part of Empire State Realty Trusts’s $195 million portfolio deal on the borough’s North 6th Street, according to The Real Deal. The one-story retail asset was renovated in 2019 and is now available for lease, as it is included in the REIT’s North Sixth Street Collection, a portfolio of prime retail buildings, according to the company’s website.

The post Top 5 NYC Retail Building Sales—October 2024 appeared first on Commercial Property Executive.

The Malin is planning to open a 32,700-square-foot coworking space in Manhattan’s Flatiron District in the spring of 2025.

The new coworking venue will be within the Equinox building at 895 Broadway, occupying the fourth and fifth floors. The five-story property features a total of 57,050 square feet, according to CommercialEdge information. The Equinox Flatiron fitness club occupies the building’s first three levels.

The Malin Flatiron will feature a 2,700-square-foot mezzanine floor, 20 private offices, 36 dedicated desks, five meeting rooms, 23 phone booths, one library and two kitchens.

Originally completed in 1915, with cosmetic renovations in 1983 and 1993, the historic building last traded in 1996 for $5.8 million. Since 2014, it has been the subject of a 15-year, $65 million loan originated by Sammons Financial Group.

With street exposure on Broadway, the property is within minutes of Madison Square Park, the Flatiron Building and the subway station on 23rd Street. Areas with dense concentration of office buildings, such as Grand Central District, Times Square and Rockefeller Center, are within 3 miles of the property.

The Flatiron District lease marks the company’s fifth coworking location in New York City. The company’s other four venues are in Soho at 32 Mercer St., in West Village at 134 Charles St., in Williamsburg at 109 N. 12th St., while its latest venue The Malin NoMad, opened in partnership with TF Cornerstone, is at 387 Park Ave. S.

The Williamsburg and West Village locations opened simultaneously in 2022, each with 10,000 square feet of flex office spaces. The NoMad space, which opened in March this year, occupies 20,000 square feet across an entire floor.

The post The Malin to Open Midtown Manhattan Coworking Space appeared first on Commercial Property Executive.

The seller was AXA Real Estate, which acquired the property in 2021 for about $114.2 million from Dermody Properties, according to CommercialEdge data.

The asset is a manufacturing facility leased to National Tree Co., a specialist in artificial Christmas trees, wreaths, garlands, holiday decorations and fiber optics products. GRE plans to make a number of sustainable modifications to the building with the goal of optimizing energy efficiency, generating renewable power and increasing the asset’s value.

Specifically, GRE will take advantage of the more than 600,000 square feet of rooftop space at the building to provide the tenant with onsite renewable power, and to generate revenue through the local community solar program.

READ ALSO: Which Green Building Trends Will Shape 2025?

Also, the buyer will electrify the property where possible with the conversion of fossil fuel fired systems to air-sourced heat pumps for heating and cooling. The upgrades will help National Tree Co. reduce its scope 3 emissions and otherwise meeting sustainability goals.

Value enhancement via decarbonization

The modifications are part of the GRE’s larger strategy of finding properties suitable for value enhancement via decarbonization. 150 Milford Road is the company’s third acquisition along these lines, with other recent deals for industrial properties inked in Maryland and New Jersey.

“We’re selective about the regions in which we invest, and for a multitude of reasons,” Nadine Anderson, vice president, acquisitions at GRE, told Commercial Property Executive.

“New Jersey is an attractive market for our approach of traditional value-add investing complemented by decarbonization and resiliency improvements,” Anderson said. “We look forward to continuing to evaluate other investment opportunities in the area.”

GRE is the sustainable real estate investment arm of Galvanize Climate Solutions, which focuses on returns from the transition to sustainable energy. Founded in 2021, Galvanize investments include venture capital and growth equity, public equities, and real estate.

Sustainable buildings are more cost effective

Buildings with higher energy performance are, on average, expected to save $1.64 per square foot in total annual expenses compared to legacy buildings, according to a General Services Administration study in 2018. 

The GSA, which has long been making efforts toward sustainability, made that determination by examining 200 buildings with over 13,000 data points over a three-year period, combining an internal analysis of GSA buildings with comparisons to industry-accepted benchmarks.

The agency’s experience from integrating and optimizing high-performance building attributes—including energy efficiency and healthy workplaces—shows that high-performance buildings function more efficiently than their legacy counterparts, and operate better than industry benchmarks.

GSA is the single largest owner/operator of office space in the U.S., controlling over 370 million square feet. Its portfolio includes office buildings, courthouses, land ports of entry and warehouses. Within that owned portfolio, high-performance buildings comprise 27 percent of buildings, and 40 percent of total gross square footage, as of the publication of the study.

The post Galvanize Real Estate Expands With New Jersey Acquisition appeared first on Commercial Property Executive.

TF Cornerstone has signed a 21,000-square-foot, 10-year extension and renewal with Criteo at 387 Park Ave. S. in Manhattan’s Flatiron District. Cushman & Wakefield worked on behalf of the landlord.

The commerce media company has been a tenant at the 232,000-square-foot office building since 2015, CommercialEdge data shows. Criteo occupies the top floor and the penthouse of the property, using this space as its North American headquarters. The renewed commitment occurred when the 13-story property reaching full occupancy.

Other tenants at 387 Park Ave. S. includes eRealty Advisors, The Corcoran Group, Optimus Marketing Inc., Coachieve and Third Republic, according to the same source. Last month, The Malin opened its new flex office location at the property, with a 20,000-square-foot commitment on the fifth floor. Additionally, the landlord has also expanded its own footprint here with an additional 7,000 square feet of space, now occupying a total of 59,000 square feet.

TF Cornerstone’s ownership of 387 Park Ave. S.

TF Cornerstone picked up the property in 2005 for nearly $68 million, according to CommercialEdge, later becoming subject to a $100 million loan held by Equitable Insurance Co., with a maturity date set for 2030. The 1910-built office mid-rise features 19,372-square-foot floorplates, 14,899 square feet of first-floor retail space, six passenger elevators and an on-site conference center.

The company renovated 387 Park Ave. S. between 2015 and 2017, with a more than $20 million investment. The property now includes an upgraded lobby, a glass façade on the lower three floors, new elevators and a roof deck amenity space wit a 1,700-square-foot conference room.

Situated between Union Square and Grand Central Terminal, 387 Park Ave. S. is 4 miles from the Upper West Side, 5 miles from the Financial District and within 18 miles of John F. Kennedy International Airport.

The landlord was represented by Chairman of Global Brokerage Bruce Mosler, Managing Director John Fitzsimons and Executive Vice Chairmen Ethan Silverstein and Mark Mandell with Cushman & Wakefield.

Notable deals in pricy Manhattan

As of September, Manhattan’s office vacancy reached 16.8 percent, marking a 90-basis-point year-over-year drop, while also being below the national rate 19.5 percent, a recent office market update shows. The borough remains the priciest market for office leasing, with asking rents averaging $67.93 per square foot, more than double the national listing rate of $32.89 per square foot.

Recent deals in the metro include SL Green Realty Corp.’s 72,515-square-foot lease at 245 Park Ave. Cushman & Wakefield represented the landlord in the 10-year lease signing with tenant Verition Group NY Inc.

Another significant commitment was a 53,779-square-foot expansion at the Empire State Building. Savills represented the tenant, law firm Hecker Fink LLP, that expanded its footprint at the 102-story skyscraper.

The post TF Cornerstone Inks Long-Term Renewal in Manhattan appeared first on Commercial Property Executive.

SL Green Realty Corp. has sold an 11 percent ownership interest in One Vanderbilt, its 1.7 million-square-foot skyscraper in Manhattan. Mori Building Co. acquired the stake in a deal that valued the property at $4.7 billion.

SL Green will continue to own a 60 percent stake in the 59-story tower that was fully leased at the time of closing. The National Pension Service of Korea owns a 27.6 percent interest in the property, while Hines owns 1.4 percent, according to The Real Deal.

Last year, an affiliate of Mori Trust Co. purchased a 49.9 percent stake in SL Green’s 245 Park Ave., a 1.8 million-square-foot tower less than a mile from One Vanderbilt. That transaction valued the asset at $2 billion.

READ ALSO: Manhattan Office Shows Strength in a Still Lackluster Market

Designed by Kohn Pedersen Fox Associates, the high-rise came online in 2020 in Midtown Manhattan. In June 2021, the developer took out a $3 billion permanent CMBS loan from Wilmington Trust and originated by Wells Fargo Bank, according to CommercialEdge information.

The LEED Platinum-certified building features 35,846-square-foot floorplates, 187,000 square feet of retail space, the SUMMIT One Vanderbilt observation deck, a 30,000-square-foot amenity floor with a 140-seat auditorium and a 30-seat boardroom, social spaces and an expansive outdoor terrace. The skyscraper also has multiple dining options.

The transit-oriented tower rising at 1 Vanderbilt Ave. is also close to the Rockefeller Center and less than a mile from the Empire State Building.

Manhattan’s office sector shows signs of improvement

Manhattan’s office investment volume in the first 10 months of the year totaled nearly $3.3 billion, leading nationally, according to a recent CommercialEdge office report. The price per square foot averaged $344, almost twice the national average of $177. Additionally, the borough’s vacancy rate in October clocked in at 16.7 percent, below the 19.4 percent national index.

The market is showing metric improvements, especially in vacancy rate drops and steady investment volume. Earlier this week, Savanna bought 799 Broadway, a 176,588-square-foot office building for $255 million. Columbia Property Trust and Cannon Hill Capital Partners sold the asset for about $1,444 per square foot.

In September, Bushburg entered the market with the purchase of 110 Maiden Lane, a 38-story, 1.1 million-square-foot tower in the borough’s Financial District. Rudin sold the property for $160 million.

The post SL Green Sells Stake in Manhattan Skyscraper appeared first on Commercial Property Executive.

The in-state move brings it to 2000 Galloping Hill Road, about 9 miles southwest of Newark, N.J. It will be in a 62,000-square-foot space within the 1.2 million-square-foot building known as 15 NEST.

It is replacing the previous tenant, Merck, and is the first tenant there since Merck left. In October, Merck opened its new $317.2 million biosafety testing facility in Rockville, Md.

Revlon said the facility’s existing lab infrastructure was a key attraction.

JLL represented the ownership group of Onyx Equities, Machine Investment Group and Pivot Real Estate Partners, and Newmark represented Revlon.

READ ALSO: Will CRE Market Conditions Improve?

AI data center hyperscaler CoreWeave recently announced it plans to lease 280,000 square feet of space on the NEST campus.

New Jersey’s lab space demand

Newmark’s third-quarter life science market report for Northern New Jersey shows that 14 of the top 20 pharma companies and eight of the top 10 R&D companies are in the state. The market comprises 12.4 million square feet.

“Available lab space is limited despite new vacancies, and current demand for space exceeds 1 million square feet,” according to the report.

After a 10-year run of positive net absorption, the lab/R&D market is destined to break that streak in 2024, according to Avison Young’s life science report for the first half of 2024.

Meanwhile, JLL’s 2024 life sciences property report showed the cycle of softening lab demand has moderated. Most of this uptick in demand is concentrated in the top three markets, including Greater Boston.

Nonetheless, the HELIX project is New Jersey’s largest investment in life sciences and medical education. It is scheduled for delivery in the third quarter of 2026. The 570,000-square-foot property is in New Brunswick.

Construction is also underway at the 400,000-square-foot BeiGene manufacturing campus in Pennington. It is set to deliver in the first quarter of 2025.

The post Revlon Relocates New Jersey HQ appeared first on Commercial Property Executive.

National Development has completed 586 Manley St., a 210,600-square-foot Class A logistics facility in West Bridgewater, Mass., within Boston’s Plymouth County submarket. The general contractor in charge was Cranshaw Construction, while JLL is the exclusive leasing broker of the property.

The development was financed by a $28 million construction loan originated by Cambridge Savings Bank, according to CommercialEdge. The facility can accommodate multiple uses, including warehousing, logistics and last-mile distribution.

The industrial building features 36-foot clear heights, a 10,000-square-foot office component, two drive-in doors, ESFR sprinklers, LED lighting, 37 loading docks, 168 vehicle parking spots and 45 trailer parking spots. -Additionally, the property includes expansion options for vehicle parking and an approximately 1-acre outdoor storage area.

The nearly 21-acre facility provides easy access to Massachusetts Route 24 and to interstates 495, 95 and 93. Downtown Boston is 25 miles away, while Boston Logan International Airport is 27 miles from the property.

JLL Senior Managing Directors Michael Ciummei, Joe Fabiano, Rachel Marks, together with Senior Vice President Chelsea Andre and Associate Dane Caracin are the leasing agents for 586 Manley St.

Slow industrial activity

Development activity in the industrial sector has slowed across the country, also impacting the Northeastern markets, where the under-construction pipeline in key markets experienced significant decreases, a recent CommercialEdge report shows. Year-to-date through September, Boston had 1.9 million square feet of space underway, down from the 2.3 million square feet space recorded last year.

Ongoing industrial projects in the metro include Tishman Speyer and Mitsui Fudosan America’s upcoming redevelopment of a 515,000-square-foot office and manufacturing facility into a four-building industrial campus in Peabody, Mass. In early 2024, another joint venture secured $57 million in financing for the development of a 237,800-square-foot facility in Wilmington, Mass.

The post National Development Delivers Boston-Area Facility appeared first on Commercial Property Executive.

Savanna has purchased 799 Broadway, a 176,588-square-foot office property in Manhattan, for $255 million—about $1,444 per square foot. Columbia Property Trust and Cannon Hill Capital Partners sold the asset. Eastdil Secured brokered the deal.

The buyer acquired the distressed office property at a discounted price through a lender-controlled sale process administered by Blackstone. In 2022, Blackstone provided $270 million to refinance the mid-rise, according to The Real Deal.

The 12-story building came online in 2022 on the former site of an 1873-completed hotel that was converted to office space in 1940.

A partnership between Ares Management and Normandy Real Estate Partners bought the building in 2016 for $101 million, New York YIMBY reported. In January 2020, Columbia Property Trust acquired Normandy Real Estate Partners, assuming the ownership of the company’s assets, CommercialEdge data shows.

READ ALSO: Manhattan Office Shows Strength in a Still Lackluster Market

At the time of sale, the LEED Gold-certified property was 71 percent leased with an 11-year weighted average lease term. The tenant roster includes Bain Capital Ventures, NewRez and Wellington Management, according to the same source.

Designed by Perkins + Will, the building features private terraces, tenant lounge and ample outdoor space. Located within the Greenwich Village neighborhood of Lower Manhattan, the mid-rise also has more than 23,000 square feet of retail space and a fitness center.

Eastdil Secured Managing Directors Will Silverman and Gary Phillips led the team that brokered the transaction on behalf of the buyer and seller.

Manhattan office sales volume still leads nationally

Manhattan’s office investment volume year-to-date through October reached almost $3.3 billion, according to the latest CommercialEdge office report. Assets in the market traded for $344 per square foot on average, almost double the $177 national figure.

Following a significant period of a depressed market, some of Manhattan’s office metrics are showing improvement, such as a drop in vacancy and steady transaction activity. Still, buildings are trading at significantly lower prices.

In one of the largest transactions this year so far, RFR Realty sold 980 Madison Ave., a 118,635-square-foot asset, for $560 million after defaulting on its $197.6 million CMBS loan. The property changed hands for roughly $4,717 per square foot.

The post Savanna Pays $255M for Manhattan Office Asset appeared first on Commercial Property Executive.

The Manhattan office market is still struggling with new development activity, with only one project breaking ground year-to-date through September, while five other projects were delivered. Still, Manhattan’s investment activity put the metro in the leading spot for total sales volume and average sale price per square foot, according to CommercialEdge data, despite the rise of discount purchases and all-cash deals.

Manhattan’s office sector showed a slight improvement in vacancy, with a number of significant leases inked as of September and the average rate down 90 basis points year-over-year indicating some signs of health.

Large completions and a steady pipeline

In September, Manhattan had 2.6 million square feet of office space under construction, accounting for 0.6 percent of existing stock—below the 1.0 percent national figure. The metro outperformed Washington, D.C. (0.5 percent) and Chicago (0.3 percent), while Boston led the rankings with 4.6 percent. When adding projects in planning stages to that figure, the borough’s share reached 2.4 percent of existing stock.

The largest development currently underway remains 270 Park Ave., the 2.5 million-square-foot Class A+ high-rise developed by JPMorgan Chase. Reaching 1,388 feet, the company’s new global headquarters is expected to come online in 2025.

Another notable project is L&L Holding Co., Columbia Property Trust and Cannon Hill’s Terminal Warehouse Redevelopment. The 1891-built industrial facility is being converted into a 1.3 million-square-foot office and retail space scheduled to be delivered in 2025.

Development continued in line with the current national trends, with a single 51,530-square-foot office building breaking ground in the borough, while developers delivered 3.1 million square feet of office space across five properties.

Office-to-residential conversions are a boost

Office-to-residential conversions remain a focal point for investors in the sector. According to CommercialEdge’s Conversion Feasibility Index, Manhattan’s office stock has 53.1 percent of its office stock in Tiers I and II by conversion potential. This makes the borough the leading market for office-to-residential repurposing potential in the country.

Developers are already working on such projects, with Silverstein Properties’ 55 Broad redevelopment now open. The company teamed up with Metro Lofts on the conversion of a 36-story office building, which resulted in the addition of 571 high-end residential units to the borough’s rental stock. The property had a CFI score of 92, indicating high conversion potential, CommercialEdge data shows.

Elsewhere, a major office-to-residential project is lined up for the building that housed the Archdiocese of New York. The Vanbarton Group is the new owner of 1011 First Ave., in Midtown Manhattan, that is slated to become a rental property, pending approval. The office asset has a CFI score of 95, indicating an even more elevated conversion potential.

Manhattan office investments accelerate

Year-to-date through September, investors in Manhattan traded a total of $2.7 billion across 32 office properties. The sales volume marks a 103.3 percent increase compared to the same interval in 2023. The borough kept its leading spot among the best-performing markets in the U.S. for investment volume, with Washington, D.C., and the Bay Area following, with $2.3 billion and $1.7 billion, respectively.

The average sale price per square foot reached $379 in September, more than double the national average of $167 per square foot. When compared to other gateway markets, Manhattan was the priciest, followed by Los Angeles ($320 per square foot), the Bay Area ($279), San Francisco ($267) and Washington, D.C. ($235).

One major deal was the $560 million sale of 980 Madison Ave. Bloomberg Philanthropies purchased the five-story, 118,635-square-foot office building on the Upper East Side. RFR Realty sold the asset after having defaulted on its $197.6 million CMBS loan.

Another notable transaction was the $320.2 million sale of 250 Park Ave., a 543,292-square-foot office property in Manhattan’s Plaza District. JPMorgan Asset Management bought the 21-story building from AEW Capital Management, which had owned the property since 1998.

Vacancy sees some improvement

As of September, Manhattan’s office vacancy rate reached 16.8 percent, down 90 basis points over a 12-month period and below the national rate of 19.5 percent. Only Boston (16.4 percent) and Los Angeles (16.3 percent) performed better than Manhattan, while even larger office vacancies were recorded in Washington, D.C. (17.7 percent), the Bay Area (25.3 percent) and San Francisco (27.6 percent).

Manhattan also maintained its position as the priciest market for office leasing, with asking rents averaging $67.93 per square foot—more than double the national average of $32.89 per square foot. Across gateway metros, only San Francisco hit a similar figure at $67.32 per square foot, trailed by Boston ($57.98 per square foot) and the Bay Area ($54.74 per square foot).

In August, Christie’s signed a 25-year renewal at the Rockefeller Center, a 770,282-square-foot office midrise owned by Tishman Speyer. The London-based auction house has been a tenant here since 1997 and will continue to occupy 400,000 square feet at the property where its U.S. headquarters is located.

Bloomberg LP also signed a significant deal earlier this year: The company inked an 11-year extension at 731 Lexington Ave. to fully occupy the 946,815-square-foot building. Bloomberg moved to the tower in 2005, initially taking 679,000 square feet.

Manhattan is still a flex office hotspot

The coworking sector in Manhattan reached approximately 11.2 million square feet—the largest flex office inventory in the U.S. The borough’s share of coworking space as percentage of total leasable office space stood at 2.2 percent, on par with Los Angeles’ and surpassing Chicago’s (2.0 percent), Boston’s (1.8 percent) and Washington, D.C.’s (1.6 percent).

The flex office provider with the largest footprint in Manhattan remained WeWork, with its locations totaling 2.4 million square feet. The company was followed by Industrious (1.3 million square feet), Regus (727,600 square feet), Convene (567,550 square feet) and Spaces (555,000 square feet).

Earlier this year, Industrious signed a lease extension and expansion totaling 27,630 square feet at 860 Broadway. During the same period, Convene also expanded its footprint at 360 Madison Ave. with 22,519 square feet, bringing its total commitment at the 25-story building to 68,000 square feet. The company is occupying three full floors at Stawski Partners’ nearly 360,000-square-foot property.

The post Manhattan Office Shows Strength in a Still Lackluster Market appeared first on Commercial Property Executive.

BXP has chosen CBRE as its exclusive leasing agent for 343 Madison Avenue, the developer’s 950,000-square-foot office project that’s underway less than a block from Grand Central Terminal in Manhattan.

In fact, the 46-story tower will have direct access to Grand Central’s Madison Concourse between 44th and 45th streets.

The building was designed by Kohn Pedersen Fox as a fully electric, zero-carbon workplace and will feature a hospitality-inspired amenity package. For starters, a double-height lounge and conference space on the 45th and 46th floors will include indoor and outdoor dining and collaboration spaces, with biophilic terraces overlooking Midtown Manhattan. Other amenities include a lobby café and bicycle storage with cabanas and showers.

CBRE’s brokerage team of Howard Fiddle, Peter Turchin, John Maher, Evan Haskell and Caroline Merck will lead the building’s leasing campaign.

READ ALSO: Sage’s CEO on the New Realities of Manhattan’s Office Market

343 Madison Avenue’s 40 workplace floors range from 27,500 square feet in the podium to 22,000 square feet in the high-rise. Among those are specialty floors with private terraces and increased ceiling heights that will let clients design a multi-functional workplace to accommodate a variety of work styles and space needs.

In addition to a fully electric building design, the tower will feature zero on-site combustion and a high-efficiency direct outside air system. Its targeted sustainability certifications include LEED Platinum, Well Core, Energy Star 85+, Fitwel and WiredScore Platinum.

In the first phase of the 343 Madison Avenue development, construction recently began on a new accessible street entrance to the Long Island Rail Road’s Grand Central Madison Concourse at 45th Street and Madison Avenue.

Manhattan’s robust leasing activity

In July, CBRE, which had already been a decades-long tenant at 200 Park Ave., also known as the MetLife Building, extended its 180,000-square-foot lease into 2037. Further, the company assumed the responsibilities of exclusive leasing agent and property and asset manager for the owner, Irvine Co. 

Manhattan’s Midtown submarket has the majority of the top office leases in the third quarter, according to a report from CBRE. These include Christie’s renewing 373,000 square feet at 20 Rockefeller Plaza, Willkie Farr & Gallagher LLP renewing and expanding for 316,000 square feet at 787 Seventh Ave., Ares Capital Corp. renewing and expanding for 307,000 square feet at 245 Park Ave. and Balyasny Asset Management renewing and expanding for 164,000 square feet at 767 Fifth Ave.

Overall, Midtown had seen 11.1 million square feet of leasing activity by the end of September, versus 7.9 million over the same period last year. The average availability was 17.4 percent.

The post BXP Unveils NYC Skyscraper Design, Taps Leasing Agent appeared first on Commercial Property Executive.

The Connell Co. has broken ground on a 60,000-square-foot retail center in Berkeley Heights, N.J. The property is part of the developer’s master-planned neighborhood, The Park.  

The new development will be within The District, the 60-acre retail domain at The Park, formerly known as Connell Corporate Center. This project is part of The Park’s $500 million redevelopment.  

The tenant roster in the entertainment building will include Emberside Brewery, Rosa Azul and BASH. The project is slated for completion in 2026. 

Bringing the city to the suburbs

The vision for The Park as a 185-acre mixed-use campus includes up to 1.5 million square feet of office, 300,000 square feet of retail and entertainment and 44,000 square feet of coworking space, as well as parks and trails. The office spaces host companies such as L’Oreal, Fiserv and HP. The site also includes a 176-room Embassy Suites hotel. The developers plan to add 328 luxury units to the neighborhood.  

The Park encloses The District, which comprises the retail and entertainment centers, and The Grove, which is the sum of all parks and green spaces in the neighborhood. 

The Park is on Connell Drive, just off Interstate 78 and near U.S. Highway 22. There are several supermarkets and shopping centers within 5 miles, along the highway. The community is within 5 miles of Passaic River County Park, Nomahegan Park and Ponderosa Farm Park, which surround the property. Manhattan is some 30 miles east.  

The project started in the 1980s, with office. In an interview with Commercial Property Executive, the owner’s Executive Vice President Shane Connell talks about the Round Table Studios, the 44,000-square-foot coworking component of The Park.

The post Connell Co. Kicks Off Retail Component at $500M Project appeared first on Commercial Property Executive.

A joint venture between Woodmont Industrial Partners and Sagard Real Estate has secured a 104,451-square-foot industrial lease at its 210,000-square-foot facility in Monmouth Junction, N.J. Federation Distribution Services Inc. agreed to occupy the space for 65 months. JLL and Lee & Associates represented the owner and tenant, respectively.

Federation joined recycling provider GDB International on facility’s tenant roster. The new tenant is a 3PL provider that, with this lease, now has more than 500,000 square feet of space in New Jersey alone.

Woodmont and Sagard wrapped up an extensive, two-phase overhaul on the property this June. Prior to the renovation, the 1973-completed facility spanned 144,451 square feet. As part of the facelift, the owners constructed a new, 65,000-square-foot expansion, along with new dock doors, as well as lighting and fire-safety systems, among other improvements.

READ ALSO: Industrial Demand Slips, But Avoids a Slump

The 12-acre property is at 461 Ridge Road, a little more than 5 miles away from U.S. Route 1 and Interstate 95, which connect Florida and Maine, as well as less than 2 miles from New Jersey’s U.S. Route 130.

Woodmont Industrial Partners resulted through the joint venture between Woodmont Properties and the 3PL provider Romark Logistics. The company focuses on acquiring and developing industrial assets in port and transportation corridor markets.

Last month, Woodmont inked a 30,046-square-foot industrial lease at another recently renovated warehousing facility in Lyndhurst, N.J. Nemo Tile occupied the space, according to Real Estate NJ.

JLL Senior Managing Director Gary Politi and Senior Associate Michael Viera represented Woodmont and Sagard in the leasing negotiations. Lee & Associates Senior Vice President Monica Franco led the proceedings on behalf of Federation Distribution Services.

New Jersey vacancy climbs amid strong leasing activity

New Jersey industrial leasing volume grew 19.4 percent quarter-over-quarter, clocking in at 8.0 million square feet in the third quarter, according to a report by Cushman & Wakefield. No higher quarterly figure was registered since the first three months of 2022.

Despite robust activity, The Garden State’s industrial vacancy rate stood at 7.7 percent in September, a 60-basis point increase compared to June. One of the driving factors behind the rise in availability was the fact that 84 percent of the new industrial space delivered during the quarter came online unoccupied.

RK Pharma’s deal to occupy 406,669 square feet at 148 Princeton Hightstown Road was another industrial lease that closed during the third quarter, the same source shows. Ares Management owns the 574,169-square-foot industrial park, according to CommercialEdge data.

The post Woodmont and Sagard Ink 104 KSF New Jersey Industrial Lease appeared first on Commercial Property Executive.

When RFR bought 102 Greene, they expected a 6.5 percent return on their investment based on the property’s income, but the property was later sold at a higher price, resulting in a lower 4.25 percent return for the new buyer.

The company purchased 102 Greene two years ago for $43.5 million, in a period when Soho vacancies were at historic highs. Investment firm TA Realty and SL Green Realty sold the asset.

Cartier occupies the four-story flagship retail property at 102 Greene. The Paris-based architectural firm Studioparisien renovated the building, blending Cartier’s design with SoHo’s industrial and artistic heritage. The property includes luxury goods sales and product care services, a green marble bar with lounge seating, a loft with living and dining areas, and a rooftop garden.

READ ALSO: Shopping Changed Dramatically. Retail Design Is One Step Ahead.

102 Greene Street, designed by architect Henry Fernbach alongside its sister building at 96 Greene Street, was completed in 1881 as a five-story building. It has housed notable tenants, including S. Epstein & Sons and sculptor William Tarr, who created the iconic cast iron door and panel at the entrance.

Demand for the luxury retail industry in the city’s top neighborhoods is expected to rebound strongly, according to RFR’s Principal Gaby Rosen. Adirondack’s Managing Partner Michael Hunter Coghill highlighted that this transaction emphasizes SoHo’s lasting appeal as a prime destination for retail investment.

Manhattan’s increased retail activity

Manhattan’s retail market-driven by strong consumer confidence, increased office occupancy, a tourism boom and New York Fashion Week- experienced continued growth in the third quarter of this year.

Limited availability and strong demand in prime Manhattan retail areas pushed asking rents higher for the eighth consecutive quarter, up 3.1 percent, according to a recent Cushman & Wakefield report. Pricing recovery varied by neighborhood, with SoHo seeing a 19.0 percent year-over-year increase in average asking rent to $388 per square foot.

The post RFR Sells SoHo Retail ‘Jewel’ for $46M appeared first on Commercial Property Executive.

CRG has formed a joint venture with PCCP to develop The Cubes at Alpha, a 575,900-square-foot industrial park in Alpha, N.J. The team expects completion in the third quarter of next year.

PCCP paid $24.8 million for the 37-acre site in August and Simmons Bank issued a $55.8 million construction loan last month, Warren County public records show.

Clayco, CRG’s parent company, will provide design-build services while Lamar Johnson Collaborative served as the project’s architect. The owners are aiming to accommodate e-commerce, distribution, 3PL and manufacturing uses.

READ ALSO: How Infrastructure Investment Drives Industrial Space Growth

The park is slated to include two buildings measuring 270,900 square feet and 305,000 square feet. Each facility will feature 56- by 49-foot column spacing, 60-foot speed bay, 36-foot clear heights and truck court depths of 185 feet.

The Cubes at Alpha will have a combined 105 dock doors, 50 of which will be equipped with mechanical levelers and seals, as well as four drive-in doors. Parking will consist of 500 car and 99 trailer spots.

The development is at 0 Standard St., which will allow for immediate access to Interstate 78. Downtown Allentown, Pa., is roughly 24 miles southwest, while The Port Authority of New York & New Jersey is some 60 miles east.

Including The Cubes at Alpha, CRG has planned, broken ground on, or delivered more than 53 million square feet of industrial developments across the U.S. The developer wrapped up construction on another Cubes-branded project earlier this year. Dubbed The Cubes at French Lake, the 1 million-square-foot Class A facility debuted in Dayton, Minn.

New Jersey’s industrial pipeline dwindles

New Jersey’s industrial pipeline is not what it used to be, with just 7.7 million square feet underway as of September, according to a report by Cushman & Wakefield. This was down from 9.8 million square feet last year and 13.7 million square feet in 2022.

Industrial deliveries, on the other hand, were robust. Developers brought online 1.9 million square feet in New Jersey during the third quarter, bringing the year-to-date through September total to 9.6 million square feet, the report shows. An additional 3 million square feet are expected to hit the market by year’s end.

Since 1.6 million square feet of the newly constructed space remained unoccupied, the market’s industrial vacancy rate grew by 60 basis points quarter-over-quarter and clocked in at 7.7 percent in September, the same source reveals.

The post CRG, PCCP to Develop 576 KSF Industrial Park in New Jersey appeared first on Commercial Property Executive.

The 137,470-square-foot building at 2100 Smithtown Ave. will be a purpose-built cold storage asset with insulated metal panel construction and feature a fully convertible freezer/cooler with temperature ranges of –10 degrees Fahrenheit to +35 degrees Fahrenheit.

The warehouse is set to feature a 40-foot clear height with a 28-foot cold dock and an insulated glycol floor slab. The property will also include 18 loading docks expandable to 25, one drive-in door and parking for 194 cars.

Thomas DeLuca, Frank Frizalone, Nick Gallipoli and John Giannuzzi of Cushman & Wakefield will market the property.

READ ALSO: Why Cold Storage Is Getting Hotter

The facility has been designed to accommodate either a single user or a multi-tenant scenario, Venture One Senior Vice President Brian McDonagh told Commercial Property Executive. He added that an office building previously on the site had to be demolished before this project could proceed.

The site is adjacent to the Long Island MacArthur Airport, just north of Veterans Memorial Highway. The location is also close to Long Island Expressway, which provides access to Hunts Point Cooperative Market, the world’s largest food distribution center.

Cold stays hot

The strength of the cold storage sector is clear not just in acquisitions, but even more so in recent development projects, despite construction costs two to four times higher than those for dry industrial buildings.

Last month, Saxum Real Estate broke ground on a 322,600-square-foot build-to-suit cold storage facility in Crown Point, Ind., for Arcadia Cold. Delivery is expected in the second quarter of 2026.

In September, BGO and Yukon Real Estate Partners started construction on a 291,000-square-foot cold storage property near Kansas City, Mo. This project too is already spoken for, with CJ Logistics America having committed to taking the entire facility.

And in August, RL Cold and BGO broke ground on a 215,766-square-foot spec cold storage warehouse in Mount Laurel, N.J. That development is rising on the site of a former office building as well.

The post Venture One, BGO Get Underway on Long Island Cold Storage Facility appeared first on Commercial Property Executive.

With Meta Platforms set to leave 770 Broadway in Manhattan’s East Village early next year, New York University has agreed to master lease the entire 1.1 million square feet of office space at Vornado Realty Trust’s 14-story mixed-use building.

Under a letter of intent, NYU has an option to buy the office space in the 30th year and the 70th year of the lease.

“Both parties have signed a detailed letter of intent and expect to execute final binding papers shortly. I expect the closing and rent commencement would occur in January,” Vornado Chairman & CEO Steven Roth said during Tuesday’s third-quarter earnings call with analysts. “The master lease will provide for an upfront payment of prepaid rent sufficient to pay off our $700 million loan on the property, as well as an annual net rent over the lease term.”

Further details about NYU’s plans for the office space were not disclosed but the private university is one of the city’s largest and wealthiest landlords with more than 100 properties in Manhattan and Brooklyn.

“770 Broadway is an exciting and important development, critical to fulfilling NYU’s bold aspirations in science and tech, and important because of its proximity to our campus core’s science facilities. We look forward to finalizing this transaction and then sharing more about our plans,” John Beckman, NYU spokesperson, told Commercial Property Executive.

READ ALSO: What’s In, What’s Out in Office Design?

Roth first hinted at a major upcoming deal during the firm’s August second-quarter earnings call. At that time, he said they had a “handshake deal” with an unnamed tenant to master lease all the office space.

Building spotlight

Meta, parent company of Facebook, Instagram and other social media apps and a tenant at the building since 2018, had at one point leased about 775,000 square feet but currently leases 500,000. Earlier this year, Meta announced it was cutting 225,000 square feet of space there as of June. In July 2022, the social technology giant halted plans to expand space at 770 Broadway and in the Hudson Yards development on Manhattan’s Far West Side as it reduced office space at numerous sites around the country amid layoffs.

Vornado has owned the building since acquiring it in 1998 for $149 million. Completed in 1906, the building takes up an entire block between Ninth Street on the north, Fourth Avenue to the east, Eighth Street to the south and Broadway to the west. Vornado completely renovated the LEED Gold-certified property, located on 1.4 acres, in 2000.

The property’s most current debt, a five-year $700 million loan from a private lender, was originated in July 2022 and is set to mature on July 1, 2027, according to CommercialEdge data.

The building has more than 166,000 square feet of retail including a Bank of America on the street level. Wegmans Food Markets occupies two levels—a lower level and street level—totaling about 87,500 square feet.

Vornado’s leasing activity

In late September, Vornado announced accounting firm Weaver and Tidwell LLP had significantly expanded its space at PENN 1, the recently redeveloped 2.5 million-square-foot office tower in the Penn District. The firm had been occupying 8,000 square feet on a portion of the 32nd floor but will now lease the entire 28th floor, with a long-term agreement for 36,500 square feet.

Vornado has leased 2.1 million square feet of office space year-to-date in Manhattan, Roth said during Tuesday’s earnings call. He added he was confident the REIT would sign between 3.5 million square feet and 3.8 million square feet of Manhattan leases this year.

Current office occupancy across Vornado’s portfolio was 87.5 percent in the third quarter, down from 89.3 percent in the second quarter, primarily due to the previously announced Meta expiration at 770 Broadway, Michael Franco, Vornado’s president & CFO, said during the earnings call.

“As occupancy rises, our earnings will go up. With a pending full building master lease at 770, our office occupancy increases by 330 basis points to 90.8 percent,” Franco told the analysts.

The post NYU to Lease 1.1 MSF at Vornado Property appeared first on Commercial Property Executive.

WeWork has entered into a revenue-sharing agreement under which it will continue to operate on a three-floor coworking space in Boston. The deal is solidifying the company’s long-term stay at State Street Financial Center, a Class A+ office tower in downtown Boston’s Financial District, owned by Fortis Property Group.

WeWork has been incorporating more revenue-sharing deals as alternative leasing agreements in its portfolio. With this strategy, both operators and landlords can share the on-going demand for this type of space, in line with coworking trends.

The company’s total footprint at the property amounts to 64,323 square feet, according to CommercialEdge. Other tenants include CFGI, Stanton Chase, Taylor Hopkinson and Sherin and Lodgen LLP.

READ ALSO: Are Coworking Networks the Future of Office?

The 36-story Street Financial Center came online in 2003 and encompasses 1.1 million square feet of office space and 900 parking spots. The current ownership picked up the property in 2006 for $889 million from American Financial Realty Trust, the same source shows.

Since then, the building became subject to a $1 billion-plus refinancing deal closed in 2022. The proceeds were used for existing debts and provided more than $200 million for capital upgrades such as complete renovations of the lobby, amenity center, food services and reconfigured floorplates, with a focus on wellness and lifestyle spaces.

The skyscraper at 1 Lincoln St. is close to Interstate 93 and South Station. Boston Logan International Airport is 3 miles away, while Cambridge, Mass., is 6 miles northwest.

A surge in coworking spaces

Coworking spaces continue to gain momentum in the U.S., with the total number of locations reaching 7,538 in the third quarter of 2024, a recent CoworkingCafe report shows. Across the 25 leading markets in the country, Boston recorded 4.8 million square feet of shared space in 208 coworking locations, remaining one of the top 10 metros.

With more companies looking into hybrid- and remote-work solutions, WeWork launched Coworking Partner Network, an affiliate program with third-party operators that will allow existing members to access new flex office space in markets across the U.S. and Canada. The network launched last month and secured its first affiliate, Vast Coworking Group, a franchiser which operates more than 190 locations in 31 U.S. states and 10 Canada cities.

The post WeWork Renews Flex Office Space at Boston High-Rise appeared first on Commercial Property Executive.

Rosen Equities has signed a 10,035-square-foot lease at The Bricken Arcade, its 149,000-square-foot office building in Manhattan’s Garment District.

Junior Achievement of New York, a local affiliate of Junior Achievement USA, will occupy the entire second floor of the 18-story property.

CBRE represented the tenant while Olmstead Properties worked on behalf of the landlord as exclusive leasing agent.

The non-profit organization will use the space as a learning center. BKSK Architects, Michael Stuart Design and C&C Button Inc. are also among the property’s tenants, according to CommercialEdge.

Located at 230 W. 38th St., The Bricken Arcade was completed in 1928. The mid-rise office building includes five passenger elevators, floorplates ranging from 6,500 square feet to 11,000 square feet, as well as 17,557 square feet of retail space, the same source indicates.

Completed in 2016, the property’s last renovation featured upgraded elevators and restrooms, a redesigned common-area lobby, new windows and a new heating plant. New services were also added, including an on-site building manager and cardkey after-hours access.

The Bricken Arcade is close to the Penn Station and to multiple subway stops while being 3 miles from Lower Manhattan, 6 miles from Financial District and within 16 miles of John F. Kennedy International Airport. CBRE’s Paul Walker worked on behalf of Junior Achievement of New York, while Olmstead Properties’ Daniel Breiman represented the ownership.

Manhattan’s office vacancy sees slight improvement

Office vacancy rates continue to climb in the country, with the national rate clocking in at 19.5 percent in September, representing a year-over-year increase of 170 basis points, according to a recent CommercialEdge office report. Manhattan remained the most expensive office market in the U.S., with asking rents averaging $67.93 per square foot, while office vacancy, despite national trends, saw a 90 basis points year-over-year decrease.

Recent deals in Manhattan include SL Green Realty Corp.’s 72,515-square-foot long-term lease at 245 Park Ave. The tenant is Verition Group NY, which almost doubled its footprint at the 1.7 million-square-foot office tower. Another recent deal is law firm Hecker Fink LLP’s 26,782-square-foot commitment at the Empire State Building. The transaction expanded the firm’s footprint at the iconic Midtown Manhattan skyscraper to a total of 53,779 square feet.

The post Rosen Equities Lands New Tenant in Manhattan appeared first on Commercial Property Executive.

The Glorious Sun Group has signed a 42,226-square-foot deal at 1 Blue Hill Plaza, its 605,000-square-foot office building in Pearl River, N.Y., within the White Plains market.

The tenant is Nice-Pak Products Inc., a global health and wellness manufacturer that will occupy the entire 21st floor and part of the 20th floor of the property.

CBRE negotiated on behalf of the landlord as the exclusive leasing agent in charge of the building. Cushman & Wakefield worked on behalf of the tenant. The deal marks the largest office lease closed in the past five years in Rockland County.

The Glorious Sun Group is the owner of 1 Blue Hill Plaza and its neighboring structure at 2 Blue Hill Plaza since 1996, when it picked them up in an approximately $43.9 million portfolio deal from Clifford Properties. Other tenants at the two-building office campus include Active International, Kemark Financial Services, Ronak Group of Companies, Strategic Packaging Inc. and others, according to the same source.

A two-building office campus

1 Blue Hill Plaza is a 23-story Class A office building that includes 27,000-square-foot floorplates, six passenger elevators, 5,000 square feet of retail space and 2,400 parking spots shared with the 525,000-square-foot, seven-story 2 Blue Plaza Hill, according to CommercialEdge.

Originally completed in 1970, both office buildings were fully renovated in 2008 and 2011. Amenities include an on-site cafeteria, a hair salon, day care and dry-cleaning services, as well as access to a fitness center at 2 Blue Hill Plaza, according to the same source. Additional amenities at the two-building campus include an atrium café, a data recovery center, a post office, car wash and maintenance services and EV charging stations.

CBRE’s team of Executive Vice President James Tully, Senior Vice President Jon Meisel and First Vice President Brian Godau represented the landlord and are the leasing brokers.

Office leasing in White Plains

Sitting on 93 acres, the 1.1 million-square-foot office campus allows easy access to train and bus stations, as well as to retail and dining options. The properties are 21 miles from Upper Manhattan, 32 miles from Midtown Manhattan and within 37 miles of Newark Liberty International Airport.

CBRE also assisted in another office deal closed in the White Plains area. In March, Simone Development Co. signed a 16,750-square-foot office lease at 1 Zeiss Drive, an office and R&D building in Thornwood, N.Y. CBRE represented the tenant, Healy Electric Contracting.

The post The Glorious Sun Group Inks 42 KSF New York Lease appeared first on Commercial Property Executive.

Law firm Hecker Fink LLP has signed a full-floor, 26,782-square-foot lease expansion at the Empire State Building in Midtown Manhattan. The tenant will occupy a total of 53,779 square feet of space across two floors.

Savills negotiated on behalf of the tenant, while the landlord, Empire State Realty Trust, was represented in-house, with the assistance of Newmark.

Hecker Fink LLP has been a tenant at the 102-story iconic skyscraper for the past seven years and the expansion reflects the company’s continuous growth, said Founding Partners Sean Hecker and Julie Fink, in prepared remarks.

Notable tenants at Empire State Building include LinkedIn, Capco, Shutterstock Inc., Turkish Airlines, The Alberleen Group, Skanska and First American Equities, according to CommercialEdge.

Upgrades and cosmetic renovations

Empire State Realty Trust picked up the 2.8 million-square-foot iconic office building in 2013 as part of a $711 million portfolio deal with seller Helmsley Enterprises, according to the same source. Completed in 1931, Empire State Building features floorplates between 12,905 square feet and 100,512 square feet, 64 passenger elevators, an on-site conference center, a fitness center and 127,256 square feet of first-floor and mezzanine-level retail space.

The property’s upgrade and cosmic renovations started back in 2008 and total more than $650 million, with the latest improvements happening in 2011 and 2019. Earlier this month, ESRT opened the Empire Lounge, a 10,000-square-foot new amenity space that can host up to 400 people and that includes pickleball and basketball courts, as well as two golf simulators.

Additionally, amenities at the property include more than 65,000 square feet of space and feature on-site dining options, a 23,000-square-foot Starbucks Reserve and access to The Campus, an amenity center connected to ESRT’s 1333 and 1400 Broadway.

A leasing momentum

Savills’ Vice Chairman, Director & Co-Branch Manager Ira Schuman represented Hecker Fink LLP. The ownership was represented in-house by Vice President of Leasing Shanae Ursini and Newmark’s Vice Chairman Scott Klau, Executive Managing Director Erik Harris and Managing Director Neil Rubin.

The deal follows multiple recent commitments at the property. In early 2024, Greater New York Mutual Insurance Co., a 109-year old insurance company, signed a full-floor, 52,116-square-foot deal. In July, consulting firm Kearney signed a 27,866-square-foot lease at the office building’s top two floors, relocating its New York team. A few months prior, fintech company Pontera Solutions Inc. relocated from another Manhattan office property owned by the same landlord to a 40,679-square-foot space at the Empire State Building.

The post ESRT Inks 54 KSF Expansion at the Empire State Building appeared first on Commercial Property Executive.

• 110 Maiden Lane, Manhattan

Sale price: $160 million

Bushburg Properties purchased the 38-story, 1.1 million-square-foot office building in Manhattan’s Financial District from Rudin. The office asset known as Cocoa Exchange came online in 1961 and was renovated in 2007. The new ownership also took out a $134.4 million loan in the form of a consolidated mortgage originated by Cayman Management. This was Bushburg’s first investment in the Manhattan market, according to The Real Deal.

• 321 W.  44th St., Manhattan

Sale price: $40.5 million

Related Cos. sold the 181,021-square-foot office building in Manhattan’s Hell’s Kitchen. Namdar Realty Group acquired a 97 percent ownership stake in the asset, while Empire Capital Holdings acquired the remainder. The 10-story office asset also became subject to a $24.3 million acquisition loan originated by Symetra Financial. The buyers purchased this asset at a considerable discount, in comparison with the $152.5 million that Related Cos. paid back in 2018.

• 37 E. 18th St., Manhattan

Sale price: $27 million

Zar Property NY has purchased the 67,051-square-foot office building in the borough’s Flatiron District from multiple private sellers that owned the asset since 1995. The 10-story building includes 12,783 square feet of retail space. Completed in 1900, the property had four of its five top floors unoccupied, while the fifth floor includes a lease set to expire in 2028, according to MarketersMEDIA Newswire.

• 152 W. 36th St., Manhattan

Sale price: $23.8 million

The 51,853-square-foot office property in Manhattan’s Garment District changed hands from Falcon Properties to Atlanta-based Mequity Cos. The new ownership secured $50.2 million in acquisition and construction financing through three loans from Elsee Partners. The eight-story building dates back to 1900 and will be converted into a 16-story self-storage property, according to Yahoo!Finance.

• 1114 1st Ave., Manhattan

Sale price: $19.9 million

A private buyer acquired the 41,300-square-foot office building in the borough’s Lenox Hill neighborhood from Himmel + Meringoff Properties. The new ownership secured $17.6 million though three loans from a private lender. The eight-story structure, completed in 1947, includes 4,750 square feet of retail space.

The post Top 5 NYC Office Building Sales—September 2024 appeared first on Commercial Property Executive.

Macerich has refinanced Queens Center, a 968,000-square-foot shopping mall in Elmhurst, N.Y. The owner obtained a new $525 million loan that features a fixed interest rate of 5.37 percent and interest-only payments.

This marks the lowest refinancing rate the company has achieved since 2019, Macerich President & CEO Jack Hsieh said in prepared remarks. In addition, the deal is more favorable than what Macerich anticipated in its spring 2024 five-year forecast.

The property’s previous debt included a $600 million CMBS loan originated by Wells Fargo Bank in 2013, having U.S. Bank as trustee, according to CommercialEdge data. The note was due to mature next January.

A top-performing shopping mall

Queens Center consistently has been one of the top-performing assets in Macerich’s portfolio, according to Hsieh, being one of the most productive malls in the nation during its 50-year history.

The mall came online in 1972 on a 10-acre site formerly occupied by an amusement park, a supermarket and a parking place. Between 2002 and 2004, the property underwent a major redevelopment project, completed in two phases, which also expanded its original 605,000-square-foot size.

READ ALSO: Inside the Retail Stores of the Future

The tenant roster includes a diverse mix of retailers such as JCPenney, Macy’s, Abercrombie Kids, Timberland, Chick-fil-A, The Cheesecake Factory, Apple, Adidas, Applebee’s, Burlington, Chipotle, Claire’s, Dunkin’ Donuts, Game Stop, Foot Locker, KFC, MAC Cosmetics, Sephora, Shake Shack and Starbucks, among many others.

Primark, H&M, Warby Parker, Gap and Kiko Milano will soon open their doors in the Macerich-owned section of Queens Center, filling all available retail space. Ashkenazy Acquisition Corp.—which owns the JCPenney building at the mall—also recently announced that a Burlington store will open on its first floor just in time for the holiday season.

Located at 90-15 Queens Blvd., the shopping mall is at the junction of Queens Boulevard, the Long Island Expressway and Woodhaven Boulevard, featuring high visibility and accessibility. As the only super-regional mall in Queens, the property serves approximately 415.000 individuals within a 2-mile radius, according to Macerich. Its total trade area amounts to more than 2.4 million people.

The post Macerich Lands $525M for Queens Mall appeared first on Commercial Property Executive.

• 636 Ave. of the Americas, Manhattan

Sale Price: $37.5 million

The New York Hotel Trades Council and Hotel Association of New York City Health Center Inc. has purchased the 17,563-square-foot retail space at 636 Ave. of the Americas, from Nuveen Real Estate. The Flatiron District retail space is part of a 69,875-square-foot building originally completed in 1902. Nuveen Real Estate owned the retail part since 2014, when it acquired it for $42 million. The new ownership also purchased the remaining office space of the seven-story property’s upper floors from Clarion Partners, intending to use both spaces, according to TheRealDeal.

• 2435 Frederick Douglass Blvd., Manhattan

Sale Price: $16.5 million

Services for the UnderServed has purchased a 11,838-square-foot retail building in Manhattan’s Harlem area from James Equities. The two-story building also became subject to a $15.4 million acquisition loan and a $5.9 million construction loan initially originated by Enterprise Community Loan Fund and assigned to Citigroup Inc.

• 170 E.  80th St., Manhattan

Sale Price: $14 million

Vinik Family Foundation has acquired the 11,012-square-foot retail building in Manhattan’s Carnegie Hill, from ACRES Capital. Dating back to 1899, the five-story building traded for $34.4 million earlier this year from Kate Shin’s Waterfall Gallery through a foreclosure deal to ACRES Capital, according to TheRealDeal.

• 847 Flatbush Ave., Brooklyn

Sale Price: $12.5 million

Platinum Realty Associates purchased the 2,640-square-foot retail property together with its 29,070-square-foot twin building at 833 Flatbush Ave.  The seller was Harbor Group International, that owned the assets since 2015. Built between 1931 and 1939, the properties became subject to a $8.9 million loan secured through a consolidated and extension agreement with Customers Bank.

• 205 E. 59th St., Manhattan

Sale Price: $11.7 million

A private individual sold the 13,430-square-foot retail component of a 25-story multifamily building in Manhattan’s Lenox Hill to Indianapolis-based Sandor Development. The retail space is part of a 133,851-square-foot multifamily building that was completed in 2003 and includes 107 units. This acquisition marks Sandor Development’s first purchase in New York City, according to Traded.

The post Top 5 NYC Retail Building Sales—September 2024 appeared first on Commercial Property Executive.

SL Green Realty Corp. has signed a 72,515-square-foot, 10-year lease with Verition Group NY Inc. at 245 Park Ave. in Manhattan. Cushman & Wakefield negotiated on behalf of the landlord, while Newmark represented the tenant.

The hedge fund is expanding its footprint in the Class A building by 34,413 square feet, relocating from the 35th floor to take all of the 14th and 15th floors. The move hikes the building’s occupancy to 92.5 percent and also increases SL Green’s office leases signed year-to-date to a tad north of 3 million square feet.

The REIT paid nearly $1.8 billion for 245 Park in 2022, according to CommercialEdge information. One year later, SL Green sold a 49.9 percent interest in the property to a U.S. affiliate of Mori Trust Co., a Tokyo-based developer and investor.

The 45-floor, 1.7 million-square-foot office tower came online in 1966. The high-rise features floorplates averaging 79,508 square feet and 68,000 square feet of retail space.

The building is currently undergoing a renovation that includes a new lobby and plazas, new storefronts, new windows and a terra cotta overclad of the Park Avenue podium facade. New amenities will include a tenant-only wellness center with a large fitness center, country club-style golf lounge and upscale cafe operated by Michelin star chef Daniel Boulud’s team.

READ ALSO: Office Design Trends: What’s In, What’s Out?

Other major tenants at the property include Chase, Societe Generale, Ares Commercial Real Estate and Houlihan Lakey, according to CommercialEdge. Ares recently expanded its presence in the building to roughly 307,000 square feet.

Newmark’s Bill Levitsky and John Cilmi Jr. represented Verition Group. SL Green was represented by Cushman & Wakefield’s Bruce Mosler, Harry Blair, Tara Stacom, Ron LoRusso, Justin Royce, Pierce Hance and Will Yeatman.

Quality still sells

Manhattan’s office market saw 5.3 million square feet of new leasing demand in the third quarter, which was a 15.9 percent decrease from the previous quarter, but nonetheless the second-highest quarter in the past two years, according to a report from Cushman & Wakefield.

Asking rents in Midtown amounted to $78.21, and up to $96.28 for Class A space. “Limited quality space options will likely place continued upward pressure on Class A rents,” Cushman & Wakefield reported.

In one of the quarter’s larger leasing deals, Christie’s signed a 25-year lease renewal at Tishman Speyer’s Rockefeller Center. The auction house occupies about 400,000 square feet at 20 Rockefeller Plaza.

More recently, another SL Green property was the scene of a significant office lease, as Bloomberg renewed and expanded its commitment at 919 Third Ave. The 1.5 million-square-foot tower is also in Midtown.

The post SL Green Signs 73 KSF Manhattan Tenant appeared first on Commercial Property Executive.

The 120,000-square-foot, 22-floor office building at 360 Bowery is set to open in the fourth quarter of 2025 and will be about much more than just running the business, according to a company statement.

Chobani House is set to bring a new model for urban development to the city’s NoHo neighborhood, by blending business, community investment and impact. Chobani said it’s embracing a new vision for how businesses can invest in and deliver sustained impact for their home community.

Peter Michailidis and Dan Posy of JLL represented the tenant in the building lease, while David Kleiner and Carlee Palmer, also of JLL, represented the landlord, CBSK Ironstate, according to The Real Deal.

Chobani’s employees will have a four-day-per-week in-office schedule. The building will also include a community kitchen preparing meals for those in need, experiential retail space and an incubator lab for emerging NGOs and non-profits focused on social impact.

READ ALSO: How Neurodivergent-Friendly Office Design Can Benefit Everyone

Located in the Hudson Waterfront South area, the project signals Chobani’s commitment to NYC for the next 30 years. Chobani said it appreciates New York City’s location, with its rich tapestry of people, energy, grit and determination.

Community invetsment, impact

Chobani House will also host the Tent Partnership for Refugees, an organization founded by Turkish billionaire and Chobani founder, Hamdi Ulukaya.

This network of over 400 major companies is committed to helping refugees from countries in the Americas and Europe access local labor markets by assisting them to become job-ready and connecting them to work.

NoHo is considered a trendy neighborhood where creative meets chic. About 2 miles south of the Empire State Building, the area has architectural features ranging from 19th-century behemoths like the Great Hall of Cooper Union to sleek, modern high-rises.

Once home to artists like Andy Warhol and the legendary CBGB music club, the area stays true to its heritage with trendy galleries and live performances at Joe’s Pub. A place where well-heeled locals mingle in upscale bars and stylish restaurants.

The post Yogurt Company Unveils NYC Headquarters appeared first on Commercial Property Executive.

Empire State Realty Trust Inc. has landed a new tenant at 1359 Broadway, a 481,167-square-foot office asset in Manhattan, N.Y. Bloomsbury Publishing Inc. signed a lease for 24,209 square feet with assistance from Cushman & Wakefield. An in-house representative alongside CBRE negotiated on behalf of the landlord.

Rising 22 stories, the building—designed by George & Edward Blum—debuted a century ago. Floorplates range between 8,690 and 24,495 square feet, while the ceiling height clocks in at 11 feet and 2 inches slab to slab.

The property’s upgrade program included lobby ceiling restorations, as well as an overhaul of the building’s systems including electrical, plumbing, HVAC and security. Being fully powered by renewable wind energy, 1359 Broadway attained WELL, Fitwel and Energy Star Certifications.

Other building tenants include New York State Energy Research and Development Authority, Crown Castle and Inmar Intelligence, among others. The retail tenant roster comprises Starbucks, Wolfgang’s Steakhouse and Panera.

READ ALSO: Sizing Up the Prime Office Building Landscape

The property is within walking distance of Bryant Park and the Empire State Building, as well as Penn Station. In its vicinity, numerous quick-service restaurants, retail facilities and transit stops operate.

Cushman & Wakefield Executive Managing Director Stephen Bellwood alongside Associate Rachel Rosenfeld represented Bloomsbury in the negotiations. Empire State Realty Trust Vice President Jordan Berger together with a CBRE team including Vice Chairmen Paul Amrich and Neil V. King III, as well as Executive Vice President Emily Chabrier and First Vice President Meghan Allen, represented the landlord.  

Publishers on Broadway

The independent publishing house—whose works include Harry Potter and Crescent City—had previously occupied the entire fifth floor at 1385 Broadway, just one block away from its new office space. Culbro owns the 533,500-square-foot asset, according to CommercialEdge data.

Bloomsbury U.S. President Sabrina McCarthy, who joined the firm this February from Ingram Publisher Services, commented in prepared remarks that her previous employer leased office space at 1400 Broadway, also one of ESRT’s properties.

Manhattan’s office leasing activity bucks national trends

Compared to June, Manhattan’s office vacancy rate dropped by 20 basis points during the third quarter, reaching 23.5 percent in September, according to a report by Cushman & Wakefield. Several of the factors leading to the decline in availability were the removal of five office buildings slated for residential conversion and the lack of new office developments for two consecutive quarters.

Combined, new office leases and renewals in Manhattan totaled 22.7 million square feet year-to-date through September—a 33.1 percent increase year-over-year compared to the 17.1 million square feet registered last year—Cushman & Wakefield revealed.

During the third quarter, new office leases totaled 5.3 million square feet, the same source shows. Although down 15.9 percent quarter-over-quarter, the figure ranked as the second-highest three-month period in two years.

Another new Manhattan lease closed earlier this month. Fintech company Maybern agreed to occupy 11,000 square feet at GFP Real Estate’s 10 Astor Place, a 156,000-square-foot office property.

The post Harry Potter Publisher Signs Manhattan Office Lease appeared first on Commercial Property Executive.

Goodman Industrial Center Carlstadt II offers customers a last-mile supply chain solution to reach more than 15 million residents in Central New Jersey and New York City.

According to Anthony Rozic, CEO of Goodman North America, the property’s location benefits from a robust labor force and convenient access to New York City via the Lincoln Tunnel, George Washington Bridge and public transportation.

With a 40-foot ceiling clearance and a 130-foot truck loading depth, the facility offers up to 50 percent more capacity than Class B properties, which typically feature 18- to 24-foot clear heights and limited loading capabilities.

Goodman Industrial Center Carlstadt II also includes eco-friendly design elements that comply to LEED Silver standards to meet expanding customer sustainability requirements.

“Companies in the digital economy view LEED certification as crucial, as they increasingly prioritize building resilience in their logistics and supply chain operations,” Rozic told Commercial Property Executive.

Building resilience hinges on developing eco-friendly properties, he observed. According to Rozic, developing sustainable properties means incorporating design features that optimize efficiency and reduce environmental impact across site selection, design, development, operation and redevelopment.

READ ALSO: Will CRE Market Conditions Improve?

Goodman North America’s strategy is to develop properties near consumers, prioritizing efficiency and climate resilience. “We’ve been measuring upfront embodied emissions of our developments since 2021 and engaging with our supply chains, either directly or through industry groups, on low-carbon solutions and building materials,” Rozic added.

The property experienced a 4.5 percent year-over-year rent increase in the third quarter and is generating significant inquiries, according to Jeff Volpi, director of Cushman & Wakefield Supply Chain and Logistics.

He told CPE that the average asking rent for warehouse space in Northern New Jersey continues to improve, propelled by the delivery of new construction that established a higher benchmark for pricing.

Looking at the second quarter, the Avison Young report for New Jersey found that the market is experiencing a return to normalcy after a prolonged period of increased activity.

Asking rents declined, and total industrial leasing activity slowed. Asking rents fell by 3 percent, with a projected 4.3 percent decrease by year-end. Leasing activity decreased by 32.5 percent year-over-year. Of the buildings currently under construction, 76.4 percent of the total square footage was forecast to be delivered empty.

Last month, MCB Real Estate acquired Howell 1, a 368,000-square-foot industrial facility in Howell Township, N.J., for $69.9 million. Active Acquisitions sold the asset, according to CommercialEdge data.

The post Goodman Delivers Northern New Jersey Logistics Center appeared first on Commercial Property Executive.

An affiliate of Velocity Venture Partners, Bala Cynwyd, Pa., has sold a 450,000-square-foot industrial building in Yeadon, Pa., near Philadelphia, for $59 million. Newmark arranged both the sale to an undisclosed buyer and the acquisition financing.

The Class C property at 6250 Baltimore Ave., known as Yeadon Industrial Center, was completed in 1955, according to CommercialEdge data. Nonetheless, the recently renovated property is 96 percent occupied, Newmark reported. A recent addition to the tenant roster, CommercialEdge indicates, was Peak Supply Chain Solutions, for about 80,000 square feet.

READ ALSO: E-Commerce Growth Revives Industrial Market

6250 Baltimore Ave. is a small-bay infill industrial property in Delaware County, which Newmark reported is an in-demand Philadelphia submarket with high barriers to entry and close proximity to Philadelphia and southern New Jersey.

The property has a 24-foot clear ceiling height, more than 80 loading docks, and a truck court depth of 125 feet with secure outdoor storage space and trailer parking on the 26.6-acre site.

Newmark Managing Director Ryan Guittare led the sales team’s efforts, and Executive Managing Director Jim Badolato and Associate Adam Rudman, of Newmark’s Philadelphia-based Debt & Structured Finance group, secured acquisition financing on behalf of the buyer. Newmark Analyst John Cook provided support on the transaction.

Velocity focuses strictly on owning, acquiring and developing industrial properties, as well as conversions to industrial uses. The company currently owns and manages more than 8 million square feet of industrial space in the Greater Northeast.

Balancing out

The Greater Philadelphia industrial space market has seen a substantial recent decline in deliveries, to less than half of the quarterly average over the past two years, according to a Newmark report. Fortunately, this has coincided with a lull in demand, while sublease availability has begun to decrease, after rising for six straight quarters.

According to Newmark Research, the industrial vacancy in Delaware County is just 5.6 percent, a good bit lower than the Greater Philadelphia average of 7.6 percent.

In July, DH Property Holdings LLC, of New York, received a $53.8 million construction loan for its PhilaPort Logistics Center from ACORE Capital, in a deal arranged by Walker & Dunlop. The 282,250-square-foot last-mile warehouse and distribution center is under construction on a 15-acre site at 3060 S. 61st St. in Philadelphia. The project is scheduled to deliver in the third quarter of 2025.

The post Venture Velocity Sells Vintage Property for $59M appeared first on Commercial Property Executive.

Bethel Shopping Center—along with 32 other grocery-anchored retail properties—was acquired by DRA and KPR from Cedar Realty Trust in 2022, in a portfolio transaction totaling approximately $879 million, including assumed debt. CBRE acted as the real estate advisor for the seller back then as well.

Cedar had purchased the asset in 2013 from Ceruzzi Properties for $34.5 million, according to CommercialEdge data.

Bethel Shopping Center came online in 2007. Anchored by Big Y Supermarket, Starbucks and Dollar Tree, the retail center has a diverse mix of national and regional tenants such as Great Clips, Athlete’s Source, Quest Diagnostics, Casa Tequila and Weight Watchers. At the time of the deal, the property was 91 percent leased.

READ ALSO: Shopping Changed Dramatically. Retail Design Is One Step Ahead.

Situated on some 11 acres at 83 Stony Hill Road, Bethel Shopping Center serves around 32,000 individuals within a 3-mile radius, with the average household income of approximately $140,000, according to CBRE. The property is near U.S. Route 6, which provides direct access to several residential neighborhoods and Interstate 84.

Executive Vice President Nat Heald, Vice Chair Jeffrey Dunne and Senior Vice President David Gavin of CBRE’s National Retail Partners worked on behalf of the seller. CBRE also procured the buyer.

Interest in retail portfolios

Recent retail trends indicate that investors have been actively purchasing portfolios. Earlier this year, KPR acquired a 1.5 million-square-foot retail collection in Florida and the Midwest for $180 million. Kimco Realty Corp. sold the eight assets.

In another deal brokered by CBRE, a joint venture between a fund managed by DRA Advisors and Soundwater Properties recently purchased a three-property, 376,462-square-foot shopping center portfolio in Ocean County, N.J. Each center is anchored by a ShopRite store.

The post DRA Advisors JV Sells Connecticut Shopping Center appeared first on Commercial Property Executive.

As part of the transaction, the joint venture secured a five-year, $320 million loan facility. Lenders include Goldman Sachs and Blackstone, according to a report by The Real Deal.

The owners are touting the mixed-use building’s location, high ceilings, 100,000-square-foot-plus floorplates and vintage architectural elements as attractive to varied retail and office tenants.

The seven-floor building came online in 1896, according to CommercialEdge information. RXR acquired a 45 percent interest in the property for $225 million from The Chetrit Group in January 2012 and the remaining 55 percent in November 2012 for $255.6 million.

READ ALSO: Why the Office-to-Lab Conversion Trend Will Last

However, it was a $425.1 million refinance by Goldman Sachs in October 2019—just months before the World Health Organization officially declared the COVID-19 outbreak a pandemic—that put the building on a tricky course. Two prominent tenants, WeWork and Bed Bath & Beyond, went bankrupt, pushing the building to more than 50 percent in total vacancy.

Over the past two years, however, RXR nailed down more than 300,000 square feet of new and renewal leases to office tenants and induced long-time tenant 32BJ, an affiliate of the Service Employees International Union and the nation’s largest union of property service workers, to expand its lease by 21,000 square feet.

As a result, the building’s office component is fully occupied, and RXR reported that it’s in negotiations with multiple potential tenants for the remaining vacant retail space.

Leases vs. sales

Clearly, not all of 620 Ave. of the Americas’ neighbors are doing as well, because Manhattan’s Chelsea submarket currently has a total availability of 27.5 percent, according to a third-quarter report from Avison Young. That’s somewhat higher than the average for all of Midtown South, which is 21.2 percent, and higher still than the overall Manhattan average of 18.7 percent.

Transactions nonetheless seem to be ticking along. Three times so far this year, Chelsea properties have landed on Commercial Property Executive’s monthly tally of the top five NYC office building sales:

•  In January, it was Argentic Investment Management’s $21.5 million sale of 115 Seventh Ave., a 42,380-square-foot, 1924-vintage building, to Raymond Chan Architect PC.

•  In April, we reported the $31 million sale of 129 W. 29th St. by Samson Management to The Epoch Times, part of The Epoch Media Group. The 85,869-square-foot building was completed in 1911.

•  And in May, a private investor acquired the 7,410-square-foot 156 W. 29th St. for $6.3 million from a private seller, in a deal brokered by Cushman & Wakefield.

The post RXR Partners JV Secures $320M Recap for NYC Building appeared first on Commercial Property Executive.

In the largest CMBS loan deal for a single office asset to date, the joint venture of Tishman Speyer and Henry Crown & Co. has obtained $3.5 billion in refinancing for Rockefeller Center in Manhattan.

Bank of America and Wells Fargo served as co-lead managers on the five-year loan carrying a fixed interest rate of 6.23 percent.

Proceeds will repay the existing 20-year, $1.7 billion CMBS debt, along with mezzanine financing, scheduled to mature in May 2025. The note will also establish reserves for lease-related contractual obligations.

READ ALSO: Office Finance Freeze Begins Slow Thaw

Rockefeller Center came online almost a century ago and features 13 buildings totaling 7.3 million square feet. The joint venture became the sole owner of the 22-acre Midtown complex in April 2001, after purchasing the remaining 95 percent stake in the property for $1.85 billion, according to CommercialEdge.

The Class A campus comprises about 6 million square feet of office space, multiple retail destinations, event venues, dining options and tourist attractions. Recently, the ownership opened the 24,000-square-foot park atop Radio City Music Hall.

Rockefeller Center was 93 percent leased at the time of closing. The tenant roster includes Deloitte, Simon & Schuster, JP Morgan Chase and Lazard. Additionally, Christie’s signed a 25-year renewal for 400,000 square feet at 20 Rockefeller Plaza this August.

Over the years, the campus went through multiple capital improvements. Tishman Speyer renovated the Top of The Rock observation deck to provide new attractions and opened Skylift, a revolving glass-enclosed platform that elevates visitors nearly 900 feet in the air.

Inspired by the campus’ original plans, the ownership also restored the Channel Gardens and Rink areas as entrance points for tourists. In early 2020, the company obtained approval from the Landmarks Preservation Commission to open the underground passageways encircling the iconic Rink.

Manhattan’s largest office financing deals this year

Despite the economic constraints experienced during the last couple of years, significant office loans and refinancing transactions continued to close in Manhattan. In addition to strong fundamentals, the market recently saw an increase in year-over-year office attendance.

In June, Vornado Realty Trust obtained a $400 million refinancing loan for 640 Fifth Ave. The note has a fixed rate of 7.47 percent and is set to mature in July 2029.

And, two months prior, L&L Holdings Co. landed $911 million to refinance the 47-story 425 Park Ave. Sumitomo Mitsui Trust Bank originated the five-year note for the 670,000-square-foot tower.

The post Tishman Speyer JV Lands $3.5B for Rockefeller Center appeared first on Commercial Property Executive.

A fund managed by DRA Advisors, in conjunction with Soundwater Properties, has acquired a three-property, 376,462-square-foot shopping center portfolio in Ocean County, N.J. Each center is anchored by a ShopRite store. Pasbjerg Development Co., which had developed and managed the properties, sold them in a transaction arranged by CBRE.

The portfolio comprises Bay Plaza at 860 Fischer Blvd. in Toms River, Jackson Plaza at 260 N. County Line Road in Jackson Township, and Lacey Mall at 344 US-9 in Lacey Township. The properties were 94 percent leased at the time of sale.

READ ALSO: Shopping Changed Dramatically. Retail Design Is One Step Ahead.

At 173,988 square feet, Lacey Mall is the largest center of the three assets. In addition to ShopRite, it has national tenants such as T.J. Maxx, Mattress Firm, Firestone, Hand & Stone, UPS, Dollar Tree, Dunkin’, Popeyes and Verizon Wireless.

The 114,753-square-foot Jackson Plaza was completed in 2002 and features national retail tenants AT&T, Advance Auto Parts and McDonald’s. Bay Plaza was built in 1994 and totals 87,721 square feet.

Eastman Cos. will lead property management, accounting and construction functions for the portfolio. The three locations see more than 5 million annual visits combined and the median family incomes in their respective trade areas are more than $130,000.

The CBRE National Retail Partners Mid-Atlantic team of Chris Munley, Colin Behr, Ryan Sciullo, Casey Smith, RJ Mirabile and Michael Pascavis marketed the properties and represented the seller. Behr said, in prepared remarks, that the tenant tenure averages 25-plus years and 80 percent of the portfolio’s income derives from national and credit tenants.

Undeniable progress

At the ICSC Las Vegas conference this past May, multiple attendees told Commercial Property Executive that the retail sector is in better shape than it has been in years.

“This is the first time people are saying ‘optimistic’ without putting ‘cautious’ in front of it,” Kristin Mueller, president of JLL’s Retail Property Business, told CPE.

Daniel Taub, national director of Marcus & Millichap’s Retail Division and Net Lease Division, said, “You have now been experiencing 10-plus years of very little to no net new development; therefore, existing retail real estate has become more valuable, because there’s less new product.”

That upbeat tone was reinforced in August, with the release of JLL’s second-quarter U.S. retail outlook. The report tallied a surge in retail net absorption of 75.4 percent quarter-over-quarter to 7.7 million square feet, most notably in community centers, lifestyle centers and Class C malls.

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