Articles of the week ending June 21st
Real Estate Funds Shift Allocations to Telecom REITs
By Paul Bubny, Connect CRE
Active real estate funds increased their allocations to telecommunications REITs in Q1 2024, overweighting the sector which now represents the second largest share in the funds behind residential.
Office buildings 148 and 89 Madison Ave. change hands
By Julianne Cuba, Crain’s New York Business
Two Madison Avenue office buildings have changed ownership, with one being converted to residential space and the other facing increased vacancy rates.
NYC starts implementing 485-x housing tax break, 421-a extension
By Nick Garber, Crain’s New York Business
New York City has implemented a new 485-x housing tax break and extended the 421-a program, with registration now available online for developers.
News _ Alexander’s Pays $10 Million for Four-Month Loan Extension on New York’s Bloomberg Tower
By Mark Heschmeyer, CoStar News
Alexander’s secures four-month loan extension on Bloomberg Tower in New York by paying $10 million of the principal balance, providing reassurance to the market and paving the way for a successful refinancing before October.
New York City Council Mulls Local Law 97 Reprieve
By Kathryn Brenzel, The Daily Dirt
NYC officials are considering ways to provide relief from the emissions caps and fees of Local Law 97, with proposals including using renewable energy credits from outside the city and granting tax breaks to condo and co-op owners.
New Public REIT Sila Realty’s Shares Soar Following NYSE Debut
By Ciara Long, Bisnow
Sila Realty Trust’s healthcare-focused net lease REIT debuted on the New York Stock Exchange with a direct listing, seeing a 19% increase on its first day of trading, and is positioned for growth in the commercial property market.
Feds’ congestion pricing approval disagrees with Hochul
By Caroline Spivack, Crains New York Business
The federal government’s final approval for congestion pricing contradicts Governor Hochul’s concerns about the program’s impact on the economy and post-pandemic recovery.
Two Bed-Stuy residential projects with affordable housing being planned
By Eddie Small, Crain’s New York Business
Developers Moshe Wasserman and David Litchtman plan to turn industrial sites in Bed-Stuy into residential properties with affordable housing.
News _ New York’s Industrial Pipeline Recedes for Fifth Straight Quarter
By Victor Rodriguez, CoStar Analytics
Industrial development construction starts in New York have been declining due to higher interest rates and moderating absorption rates, leading to an increase in availability levels for industrial space in the state.
This Week’s N.Y. Deal Sheet_ Stripe Subleases 147K SF At 28 Liberty
By Ciara Long, Bisnow
Stripe has signed a sublease for 147K SF at 28 Liberty in Lower Manhattan, marking the biggest office deal in the area this year.
Office Landlords Prefer These Types of Tenants
By Katie Burke, CoStar News
Office landlords prefer tenants in the legal, banking, finance, and insurance industries for their willingness to sign longer lease terms and pay higher rents compared to other office users.
By Andria Cheng, CoStar News
New York City approved a 2.75% increase on one-year leases for roughly 1 million rent-stabilized apartments, pleasing neither landlord nor tenant advocates.
Real Estate Readies For An August Rate Cut
By Mike Phillips, Bisnow
The Bank of England kept rates on hold but indicated a rate cut is near, which would be warmly welcomed by the real estate industry as bond markets are now pricing in a more than 50% probability of an August rate cut.
NYC transit updates prioritize aging subway, rails, buses _ Crain’s New York Business
By Valerie Block, Crain’s New York Business
New York City’s aging infrastructure needs a full-scale makeover to accommodate the projected population growth by 2050, with a focus on expanding public transit, maintaining current systems, and implementing new transportation technologies.
New York City Passes Law to Ramp Up Building Inspections
By Kathryn Brenzel, The Real Deal
The City Council approved a bill requiring the Department of Buildings to create a proactive inspection program to identify and address dangerous buildings before disasters occur.
Madison Capital, Vornado Seek $100M For Boutique SoHo Office
By Sasha Jones, Bisnow
Madison Capital and Vornado Realty Trust are seeking $100 million for a boutique SoHo office and retail building that was developed in a joint venture and is now on the market.
Conversion Projects Will Pick Back Up Next Year — As Long As Virtually Everything Changes
By Maddy McCarty, Bisnow
The future of conversion projects for defunct or underperforming malls and office buildings depends on a favorable financial environment, creative solutions, and investor interest.