Articles of the week ending June 14th
Nonprofits Pounce on Discounted Properties in Down Market
By TRD Staff, The Real Deal
Nonprofits are taking advantage of low commercial property prices to build their portfolios and create a legacy, with many well-funded organizations acquiring properties at a discount.
Moody’s Could Downgrade 6 U.S. Banks Over CRE Exposure
By Ryan Wangman, Bisnow
Moody’s is considering downgrading six U.S. regional banks due to their substantial exposure to commercial real estate loans, which are facing profitability pressures and declining asset quality.
May’s Largest Office Leases in New York City
By Lucas McGill, The Real Deal
Bloomberg’s lease at 731 Lexington Avenue was the largest office lease in NYC last month, exceeding the next nine largest leases combined.
Brookfield’s Private REIT Goes Back On Offense
By Jon Banister, Bisnow
Brookfield’s private REIT is making a comeback by focusing on acquisitions in the current market conditions to attract new investors.
Times Square office owned by Related affiliate sells at 67% discount _ Crain’s New York Business
By Natalie Wong, Bloomberg
An office building in Times Square was sold at a 67% discount in a short sale due to falling valuations in the office sector.
One Key to Attracting Office Tenants_ Less Debt
By Amy Wolff Sorter, Connect CRE
One key to attracting office tenants is having less debt as tenants prioritize landlords’ financial stability and ability to perform.
Landlords Cash In On Concert Demand As Live Nation Squeezes Small Venues
By Matt Wasielewski, Bisnow
Landlords are cashing in on the concert demand created by large entertainment companies like Live Nation while independent venues struggle to compete.
How New York Is Supporting Commercial Real Estate’s Decarbonization Journey
By John Krukowski, Bisnow
New York is supporting commercial real estate’s decarbonization journey through regulations, resources, technical assistance, and financial incentives provided by NYSERDA to help building owners achieve carbon neutrality.
Fortress’ $548M Foreclosure Against Charles Cohen Halted
By Suzannah Cavanaugh, The Real Deal
Charles Cohen’s foreclosure auction has been postponed, giving him more time to potentially avoid losing his commercial real estate assets to Fortress Investment Group.
Fitch_ Office Loan Delinquencies Will Surpass Global Financial Crisis Levels
By Maddy MsCarty, Bisnow
Fitch predicts that office loan delinquencies will surpass Global Financial Crisis levels, with the U.S. CMBS office delinquency forecast increasing to 8.4% for 2024 and 11% for 2025 due to factors like higher interest rates and a tighter lending environment.
Congestion pricing delay puts MTA’s credit rating at risk
By Aaron Elstein, Bloomberg
The delay in implementing congestion pricing puts the MTA’s credit rating at risk, leading to potential higher borrowing costs for critical improvements.
Vornado completes 640 Fifth Ave. refinancing
By Eddie Small, Crain’s New York Business
Vornado completed a $400 million refinancing of its property at 640 Fifth Ave. with a smaller loan at a higher interest rate, indicating a challenging borrowing environment for office landlords.
Blackstone Close to Expanding Midtown HQ to Over 1M SF
By Emily Fu, ConnectCRE
Blackstone is expanding its office space in Midtown Manhattan, while George Rupp has joined G4 Capital Partners, LeFrak has launched a new rental offering in Jersey City, and Choice Hotels is expanding its Everhome Suites brand.