Articles of the week ending October 25th
Tishman Speyer Lands $3.5B To Refinance Rockefeller Center
By Sasha Jones, Bisnow
Tishman Speyer has secured a $3.5 billion CMBS loan to refinance Rockefeller Center, marking the largest issuance for a single office asset, aimed at addressing existing debt and funding leasing costs amid a revitalized lending market for prime commercial properties.
RXR, Hudson Bay Split Ownership, Recap 620 Sixth Avenue
By TRD Staff, The Real Deal
Hudson Bay Capital and RXR have partnered to acquire and recapitalize 620 Sixth Avenue in Manhattan, securing a $320 million loan to stabilize the property, which has been significantly impacted by the pandemic and shifting tenant demands.
Blackstone Profits Jump As It Bets Big on Data Centers
By Keith Larsen, The Real Deal
Blackstone is experiencing a real estate up-cycle, having invested $22 billion in real estate this year, with strong quarterly earnings and a focus on data centers driven by AI demand, while also anticipating an increase in transaction activity due to lower interest rates and a broader market recovery in real estate.
Where office-to-resi conversions are heating up in NYC
By Mariam Lobjanidze, The Real Deal
The conversion of commercial buildings into residential units is gaining traction in New York City, with notable projects led by developers like Vanbarton Group and Metro Loft amidst challenges such as tenant removal and ground lease negotiations.
This Week’s N.Y. Deal Sheet_ Flatiron Building Conversion Lands
By Ciara Long, Bisnow
The residential conversion of the Flatiron Building has commenced with the acquisition of a $357M loan, while significant financing deals include Rockefeller Center’s historic $3.5B refinancing and KKR’s $145M acquisition loan for a multifamily rental in Downtown Brooklyn.
Metropolitan College of NY to sell part of downtown campus
By Amanda Albright and Nic Querolo, Bloomberg
Metropolitan College of New York is seeking to sell part of its Manhattan campus to handle financial difficulties, including skipping a debt payment, amid plummeting enrollment and a downgraded credit rating.
Empire State Realty Trust says its older Midtown buildings are filling up
By Aaron Elstein, Crain’s New York Business
Empire State Realty Trust reported a rise in occupancy to nearly 94% across its Manhattan office portfolio, with older buildings seeing increased demand and lower average rents compared to newer properties, indicating a positive trend for landlords in Midtown.
‘Extend-And-Pretend’ Strategy On CRE Loans Poses Systemic Risk, N.Y. Fed Says
By Sasha Jones, Bisnow
The New York Fed’s research highlights systemic risks posed by regional banks delaying the recognition of distress in their commercial real estate loan portfolios, potentially leading to significant capital losses and a financial crisis.
The True Costs of Nationwide Office Vacancies
By Taylor Tomita, Connect CRE
High office vacancy rates in major U.S. cities result in billions of dollars in lost rent, driven by the shift to remote work, a preference for modern buildings, and limited options for converting older structures.
The Relationship Between Transportation Infrastructure and Industrial Growth – Connect CRE
By Ann Wolf Sorter, Connect CRE
Transportation infrastructure is vital for industrial growth, facilitating efficient logistics and increased freight capacity, with future investments expected to further enhance economic development.
If Florida Legalizes Weed On Election Day, CRE Could Feel The Effects ‘Right Away’
By Matt Wasielewski, Bisnow
The potential legalization of recreational marijuana in Florida could quickly increase demand for industrial and retail spaces, enhancing property values significantly.