Articles of the week ending October 18th
Vanbarton Sets Sights on Another Office-to-Resi Conversion
By TRD Staff, The Real Deal
Vanbarton Group is in contract to purchase the Archdiocese of New York’s office building at 1011 First Avenue for over $100 million, continuing its trend of converting office spaces into residential units.
SL Green, RXR’s Worldwide Plaza Debt to Special Servicing
By TRD Staff, The Real Deal
SL Green and RXR’s Worldwide Plaza, facing significant financial difficulties, have transferred their $940 million loan to special servicing while attempting to negotiate modifications, as they struggle with occupancy issues and looming lease expirations.
Office market woes lessen but JPMorgan, Wells Fargo say banks’ troubles far from over
By Andy Peters, CoStar News
While the number of distressed office loans has declined at JPMorgan and Wells Fargo, both banks caution that challenges in the U.S. office market will persist, particularly for older buildings facing high vacancy rates.
NYC Bird-Friendly Buildings Bill Triggers Cost Concerns
By Mariam Lobjanidze, The Real Deal
A proposed NYC bill would mandate retrofitting large existing buildings with bird-safe glass by 2030 to reduce the estimated annual bird deaths from collisions, but faces skepticism from real estate stakeholders due to potential high costs and implementation challenges.
New York industrial market sees strong leasing, rising vacancy in Q3
By Eddie Small, Crain’s New York Business
Despite an increase in vacancy rates to 5.1% in New York’s outer-borough industrial market, leasing activity remains robust, with strong demand reflected in rising rents and significant lease transactions.
Long-Dormant Tech Firms Start To Make A Stir In Office Market
By Ethan Rothstein, Bisnow
The New York City office market is experiencing a resurgence, primarily driven by private equity and hedge funds, while technology firms are beginning to reengage after a period of absence.
London and New York office vacancy gap closes
By Mark Stansfield, CoStar Analytics
London’s office vacancy rate has risen to 10.2% due to increased supply and muted demand, contrasting with a stabilizing but higher vacancy rate of 14% in New York, although demand for premium office space remains strong in both markets.
Industrious opens another New York location at former WeWork space
By Andria Cheng, CoStar News
Industrious has opened a new location in New York’s Tribeca neighborhood, expanding its presence as a flexible workspace provider amidst WeWork’s restructuring efforts.
WeWork Back In Growth Mode With New Partnership To Add Third-Party Workspaces
By Ryan Wagman, Bisnow
WeWork is expanding its reach through a new partnership with Vast Coworking Group to create a Coworking Partner Network, offering access to over 75 additional locations in North America for greater flexibility in workspaces after its recent bankruptcy restructuring.
Manhattan’s Seagram Building is nearly 100% occupied after anchor tenant grows footprint
By Andria Cheng, CoStar News
Blue Owl Capital has expanded its lease at Manhattan’s Seagram Building to 238,673 square feet, nearly filling the iconic property and reflecting the ongoing trend of demand for high-quality office spaces.
Kathy Hochul Says 421a Extension Requests Total 71,000 Homes
By Kathryn Brenzel, The Real Deal
Developers have submitted letters of intent for nearly 650 projects to qualify for the extended 421a property tax break, proposing the construction of 71,000 housing units, despite the non-binding nature of these letters.
Extell Development buys 655 Madison Ave. for $160 million
By Eddie Small, Crain’s New York Business
Extell Development has acquired the 24-story office tower at 655 Madison Avenue for approximately $160 million, with plans likely leaning towards luxury condos after its demolition.
Charles Cohen Faces Fresh Trouble On Park Avenue
By Ciara Long, Bisnow
Charles Cohen is facing significant financial difficulties with his Manhattan office building at 3 Park Avenue, following cash flow issues and a recent late mortgage payment, amid broader challenges related to his real estate portfolio and a looming UCC foreclosure.
‘You Made It Worse’_ Developers Say They Can’t Build Housing Under 485-x
By Ciara Long, Bisnow
Developers criticize New York’s new 485-x housing incentive program for increasing costs and failing to effectively address the city’s housing crisis, ultimately exacerbating the mismatch between demand and supply.
The unfinished business of 2 World Trade Center
By Eddie Small, Crain’s New York Business
Silverstein Properties continues to struggle with the redevelopment of 2 World Trade Center due to the need for an anchor tenant, challenging market conditions, and limited financial subsidies, despite the overall success of the World Trade Center site transformation.
SL Green caps a strong quarter with a Bloomberg lease at 919 Third Ave
By Aaron Elstein, Crain’s New York Business
SL Green’s strong quarterly performance was bolstered by Bloomberg LP’s expanded lease at 919 Third Ave., increasing the building’s occupancy to 93% and highlighting robust demand for Class A office space in New York City, while SL Green exceeded Wall Street’s expectations with a total of 2.8 million square feet leased this year.