Articles of the week ending December 13th
SL Green Refinances 100 Park, Set to Buy Partner’s Interest
By, Holden Walter-Warner The Real Deal
SL Green has refinanced its debt at 100 Park Avenue, extending the mortgage maturity to December 2027 with an additional $70 million, while also securing a significant 220,000-square-foot lease with Alvarez & Marsal, boosting the building’s occupancy to 96%.
SL Green Realty inks two major office deals by Grand Central Terminal
By, C.J Hughes, Crain’s New York Business
SL Green Realty Corp. has secured two significant office leases in Midtown, with Travelers Insurance renewing at 485 Lexington Ave. and Alvarez & Marsal signing a long-term lease at 100 Park Ave., although both properties face mixed occupancy challenges.
SL Green may acquire and redevelop Roosevelt Hotel, JPMorgan predicts
By Aaron Elstein, Crain’s New York Business
JPMorgan analysts predict that SL Green may acquire and redevelop the Roosevelt Hotel site into a new office tower, leveraging its prime location and potential air rights.
News _ SL Green doubles last year’s Manhattan office leasing
By Andria Cheng, CoStar News
SL Green Realty has significantly increased its Manhattan office leasing activity in 2024, nearly doubling its volume from the previous year, signaling a recovery in demand for office spaces post-pandemic.
News _ Dissident investors call for Macy’s to create new real estate arm
By Linda Moss, CoStar News
Activist investors Barington Capital and Thor Equities are urging Macy’s to establish a real estate subsidiary to optimize the value of its properties and explore strategic options for its upscale Bloomingdale’s and Bluemercury brands, amid ongoing challenges in the retail sector.
Barnes & Noble CEO On The Race For Space As Store Demand Heats Up
By Mark Faithfull, Bisnow
Barnes & Noble CEO James Daunt emphasizes a strategic and flexible approach to store openings and sizes, adapting to market demands while focusing on enhancing the retail experience and expanding the company’s footprint in both urban and suburban locations.
52% Of Federal Office Leases Can Be Terminated By End Of Trump’s Term
By Jon Banister, Bisnow
The Trump administration has significant opportunities to reduce the federal government’s office footprint, with 52% of federal leases expiring or having termination options by 2028, which could impact commercial property owners and the overall office market amid ongoing trends toward remote work and consolidation.
The 10 biggest project filings of 2024
By TRD Staff, The Real Deal
In 2024, office-to-residential conversions dominated the top project filings in New York, driven by a surplus of office space and a housing shortage, with significant projects like Metro Loft’s conversion of the Pfizer Building leading the way.
SL Green Says Converting 750 Third Ave. Will Cost $805M
By Ciara Long, Bisnow
SL Green’s plan to convert the 750 Third Ave. office building into a 639-unit apartment complex will cost $805 million, highlighting the significant financial challenges of office-to-residential conversions in New York City.
Office towers at 225-233 Park Ave. South lose 71% of their value, S&P says _ Crain’s New York Business
By Aaron Elstein, Crain’s New York Business
The office buildings at 225-233 Park Avenue South have lost 71% of their value, now worth $217 million, due to high vacancy rates and tenant departures, prompting discussions about mortgage modifications.
Macy’s Expects $275M In Real Estate Sales This Year, Doubling Previous Prediction
By Noah Zucker, Bisnow
Macy’s plans to generate $275 million from real estate sales this year, nearly doubling its previous estimate, while closing 65 stores to capitalize on favorable market conditions and enhance shareholder value.
Exxon Planning Low-Carbon Power Plant For Data Centers
By Bianca Barragan, Bisnow
Exxon Mobil is planning to construct a natural gas-fired power plant with advanced carbon-capture technology to supply low-carbon energy directly to data centers, reflecting the growing demand for reliable power driven by artificial intelligence and data processing needs.
DuMont Building owner GFP Real Estate doubles down on struggling tower
By Aaron Elstein, Crain’s New York Business
Despite the DuMont Building’s financial struggles and a high vacancy rate, owner Jeff Gural remains optimistic about its future, having secured loan extensions and plans for significant upgrades.
Big Pharma Tweaks Real Estate Strategy As $200B Patent Cliff Approaches
By Mike Phillips, Bisnow
Pharmaceutical companies like GSK are adapting their real estate strategies in response to a looming $200 billion patent cliff by investing in collaborative life sciences campuses and fostering partnerships with developers to enhance research and development capabilities.
‘Survive ‘Till ’25’ Was About Weathering The Storm. Here Are 20 Things That Didn’t Make It
By Molly Armbrister, Bisnow
The mantra “survive ’til ’25” in commercial real estate highlighted the struggles of various companies and projects in 2023 and 2024, leading to significant closures and setbacks due to high interest rates, construction costs, and market uncertainty.