Only buildings with main tenants come in this unicorn market

The tariff conversation, interest rates and multi -family mortgage executions weigh sales of commercial real estate. But not everything is the headache and the gloom. A strong office leasing and in detail increases the select values ​​of the Manhattan building, creating a unicorn market for unique properties.

In fact, Avison Young had 84 sales transactions in Manhattan south of 96th Street with a value of $ 5 million and more (retail sales above $ 1 million) in the first quarter of the year. The total value of these was $ 2.7 billion and included 28 residential sales worth $ 440 million.

“Rent peaks around Grand Central [Terminal] It helped us trade 320 Park AVE in December, “said Andrew Scandalios, from JLL, about a sale of offices.

It was when the investor Munich Re bought the remaining 75% participation in the Park Avenue de Mutual of America building for $ 506.25 million, thus revaluing the tower at $ 675 million.

The boom of the large central area is now ready to Savills to help Cooper Union cut a new contract with a new operator for the Chrysler building.

At 590 Madison Ave., LVMH and Apollo Global Management leases increased Eastdil’s efforts to sell the trophy tower bought by Scott Recchler’s RxR for a expected price to reach $ 1.1 billion.

“People understand what a good idea is to own, and not only the best, but the best of the rest,” said Will Silverman, by Eastdil, who marketed 590 Madison. The sale of the StRS Ohio Tower also includes the adjoining land less than 8 and 9 E. 56th St., which is long -term leased by the Trump organization and currently subilized in LVMH.

And determined not to lose his detailed space in Soho to a competitor, Ralph Lauren has just paid $ 132 million to buy a space of 9,909 square feet at various levels of 109 Prince St. which had been rented since 1999. It was represented by Newmark.

There is even an interest in the buyer in lower employment office buildings, which are being heard for residential conversion. Real estate investor David Werner, for example, is buying 5 Hanover squares in the financial district for a residential transformation. The building was marketed by Doug Middleton CBRE for CIM vendors, but at prices, it is about half of the $ 104 million paid.

These offices of office at residence have a floating effect on offices lease, as they eliminate square feet from vacancy statistics as they force tenants to fill other buildings.

Another office building at 300 E. 42nd St. From the Second Avenue will end up hosting 132 rental apartments. Werner picked up $ 52 million per mortgage execution, keeping retail spaces and turning higher than CSC real estate property for $ 52 million. CSC, a Mexican company with other New York investments, will now use one of the new affordable programs in the city to jump real estate taxes while performing the conversion (and preserve a few office tenants).

“This market will have your legs and we have seen how the rating will be appreciated when we will be distressing outside the pipeline.”

Adelaida powder of the compass

“We start slowly to see that foreign groups climb,” said the Middleton investment runner, pointing to the Canadians, the Japanese and even the Australian groups. They attract them the relative security of United States real estate.

“People are very afraid of the [stock] The market and real estate ownership have a softer and more long -term view and are more stable, “said Woody Heller de Branton Real Estate.

There are also large existing residential towers, such as the rivers of Stefan Soloviev Bend at 501 E. 87th St., which has 179 apartments. Sold to real estate property A & E for $ 116.5 million in March.

Meanwhile, the luxury rental apartment building at 800 Fifth Ave has a contract for about $ 800 million. It is sold by Eliot Spitzer and Winter Properties through Newmark to the Naphtali group.

At the western end of the city at 560 W. 43rd St., the 418 units of the entire markets rental unit, Riverbank West is sold through JLL for approximately $ 250 million. Another 225 -units apartment building in 515 W. 38th St., known as Henry Hall, is also on the market with JLL.

But hunters who cannot find unicorn have another goal: mortgage executions. There is a lot. Rxr picked up the office building at 340 Madison AVE in 2010 for $ 570 million. But only $ 161.3 million was foreseen in their $ 315 million mortgage mortgage, which likes to maintain and operate. The building is in a land lease, which can be extended to 2186.

And to 135 E. 57th St. – The old office building of Charles Cohen – negotiations on behalf of land owners are now underway through JLL with a local operator for a luxury residential rent.

The milestone scribe building at 597 Fifth Ave along with the adjoining address, 3 E. 48th St., was returned by the lender for his $ 140.4 million guarantee.

Both were purchased for $ 108.5 million in 2011 when there was a strong retail lease and offices.

Nearby, the Club Friars building at 57 E. 55th St. He is sold by his lender through Bob Knakal’s Bkre, while his memory is auctioned separately.

“This market will have its legs and we have seen how the rating will be appreciated when we will hunt for the pipeline,” said Adelaide Poliinelli de Compass.