Articles of the week ending January 31st
Stefan Soloviev Pays $67M for 24 West 57th Street
By Rich Bockmann, The Real Deal
Stefan Soloviev’s $67M purchase of 24 West 57th Street expands his Billionaire’s Row assemblage, with potential plans for a luxury condo, boutique hotel, or commercial tower.
Meta Expected to Spend Billions on Data Centers in 2025
By TRD Staff, The Real Deal
Mark Zuckerberg plans to spend $65B on Meta’s AI-focused data centers to compete with tech giants.
Extend-and-pretend trend Will Continue Into 2025
By Suzannah Cavanaugh, The Real Deal
Extend-and-pretend loan modifications hit record highs in 2024 and are expected to rise further in 2025, as lenders delay losses hoping for lower interest rates.
AT&T Secures $850M In 13M SF Sale-Leaseback With Reign Capital
By Matt Wasielewski, Bosnow
AT&T sold 74 properties for $850M in a sale-leaseback with Reign Capital to streamline operations and modernize networks.
Plan to convert landmark Manhattan office to housing lands key funding boost
By Katie Burke, CoStar News
A joint venture between Sunlight Development and NuVerse Advisors has secured nearly $100 million in financing to convert the historic Emmet Building on Madison Avenue into 65 luxury residential units and commercial space, amid a trend of office-to-residential conversions in New York due to high housing demand and low vacancy rates.
BCN ’s Craig Nassi Eyes Office-To-Resi Conversion
By Elizabeth Cryan, The Real Deal
BCN’s Craig Nassi plans a $40M office-to-residential conversion in Midtown, leveraging tax incentives and zoning changes for affordable housing.
What to do with a vacant office building_ The views are split
By Victor Rodriguez, CoStar Analytics
Opinions are split on handling vacant office buildings, with no clear strategy prevailing.
Owners Of Not-Quite-Trophy Buildings Getting More Malleable To Compete For Tenants
By Sasha Jones, Bisnow
Landlords of near-trophy office buildings are becoming more flexible with lease terms and incentives to compete for tenants amid high vacancies and shifting market dynamics.
On Real Estate_ Battles over NYC building heights are here to stay
By Eddie Small, Crain’s New York Business
Debates over building heights remain persistent in NYC, but despite opposition, projects like the Meatpacking District development are still likely to move forward.
JPMorgan Punch Card building at 25 Water St. welcomes renters
By Nacha Cattan, Bloomberg
The nation’s largest office-to-residential conversion at 25 Water St. transforms an outdated bank building into 1,320 luxury apartments, reflecting NYC’s shift toward adaptive reuse amid declining office demand.
Investors Smell Opportunity in US Office Market
By TRD Staff, The Real Deal
Investors are seizing opportunities in the U.S. office market as sales surge, driven by bargain prices, return-to-office trends, and renewed interest from major funds.
Interest In NYC Office Space Is Back To Prepandemic Levels
By Sasha Jone, Bisnow
Interest in office space in New York City has surpassed prepandemic levels, with demand driven by the tech and finance sectors, while other cities continue to lag behind in recovery.
Congestion pricing report card_ Traffic, safety, revenue
By Caroline Spivack and Amanda Glodowski, Crain’s New York Business
Congestion pricing in Manhattan has led to fewer cars, speedier commutes, cleaner air, and a slight increase in mass transit usage, though its full impact on transit revenue and air quality remains uncertain.
Blackstone’s Gray Says ‘Office Has Bottomed,’ Eyes 1.5M SF Manhattan Tower
By Matt Wasielewski, Bisnow
Blackstone believes the office market has bottomed out, with the firm looking to capitalize on underpriced assets, including a potential acquisition of a 1.9M SF office building in New York.
Average age of Manhattan office buildings approaches 100 years
By Jared Koeck, CoStar Analytics
Manhattan’s office market, with 75% of buildings pre-1980, faces challenges due to aging properties, though recent renovations have attracted tenants.
Aby Rosen Loses Battle for Chrysler Building
By Rich Bockmann, The Real Deal
A judge ruled against Aby Rosen, terminating RFR’s lease for the Chrysler Building due to unpaid rent, marking a significant loss in his portfolio.