GLOBAL OUTLOOK
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| At NAI Global's Market Outlook event on Thursday at the New York Athletic Club, we snapped chief economist Peter Linneman (this guy moves faster than the Tasmanian Devil once he gets excited about data points). Numbers may point to a recovered market, he says, but look closer. Real GDP is 40 bps above its last peak. Great, but with a 3% rise in population, the per capita number has room to improve. Same goes for retail sales and debt. The capital markets, he says, are rigged (fueled by governments buying government bonds), so look for long-term holds. Still, Peter’s bullish on CRE, especially multifamily. Two years ago, 1.2 million of the nation’s 44 million units were vacant. 100,000 units were added last year but 160,000 destroyed. Population growth brings us to 200,000 excess units. “This sector can’t miss if you get jobs,” Peter says. After that? Well, the Baby Echoes are six years from their apartment-hunting days. | ||
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| First Financial Network founder and CEO Bliss Morris (in from Oklahoma City) pegs a sustainable recovery on the time when assets are back in private hands, regardless of the price tags on the loan sales that get them there. Not that she’s blaming banks for holding; they can’t take a loss (on a whole loan) until they get the book value down, she says. Last year, she started working with a top 10 bank that wanted to sell $1.7B (1,092 loans) by Q3. Instead, she’s guided it in (slowly and steadily) selling to local investors, family members, guarantors—the kind that can afford to hold and wait—removing $1.5B from the bank’s books. Bliss doesn’t know how much of the $25B in whole loan sales that came to market last year sold, but she anticipates $50B hitting the market this year and a lot of it to make its way into private hands. | ||
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| Sale Transactions SL Green acquired a substantial ownership interest in the 205k SF office condo at 110 E 42nd St, along with control of the asset. The price was not disclosed, but it sold the office condo to Gotham Realty for over $111M in ’07. SL Green provided a senior mezz loan as part of its sale of the condo unit, and the transaction included a consensual modification of the loan. In conjunction, SL Green restructured the in-place mortgage financing, which had previously been in default.*** SJP Properties and Northwestern Mutual Life Insurance bought back the first phase of Morris Corporate Center IV, a 350k SF Class-A office building that SJP originally built as part of its master-planned campus in Parsippany, NJ. The price was not disclosed, but SJP plans to institute a number of upgrades to Phase I. *** BCN Development signed a contract to acquire 9 E 16th St for $17M. It plans to redevelop the building into residential condos. The deal is expected to close by the end of the summer, with the conversion starting quickly afterwards. *** Hersel Torkian purchased the 6,200 SF ground-floor retail condo at The Platinum, 750 Eighth Ave, from SJP Residential Properties for $16.3M. Robert K Futterman & Associates’ Michael Worthman and Brandon Eisenman brokered the deal. *** Dock Street Holdings purchased the 86k SF One Dock Street in Stamford, Conn. from Antares One Dock for $15.8M. CBRE’s Jeffrey Dunne, Steven Bardsley, and David Gavin repped the seller. *** 137 West 25th Street LLC purchased a 30k SF office condo at 137-139 W 25th St from a Fortune 500 company for $10M. The buyer plans to lease the entire space to Micropower USA/Micropower Career Institute. Winoker Realty’s Jonata Dayan, Adam Ben-Dayan, and Jonathan Ben-Dayan repped the buyer, while Massey Knakal’s Robert Burton and Brock Emmetsberger repped the seller. *** Massey Knakal sold two properties: a 5,000 SF commercial building with additional air rights at 207 W 75th St for $5M cash (broker: Paul Smadbeck); and two mixed-use investment buildings at 531 Graham Ave and 106 Engert Ave in Greenpoint, Brooklyn for $1.8M cash (brokers: Mark Lively and Brendan Maddigan). *** Marcus & Millichap sold a 6,800 SF mixed-use property at 53 5th Ave in Brooklyn for $1.1M. The firm’s Matthew Fotis brokered the deal. Lease Transactions Oscar de la Renta is dressing up 11 W 42nd St, where it signed an office lease for over 37k SF. CBRE’s Harly Stevens and James Robbins repped the tenant. Tishman Speyer is the owner. *** Alessandro Zampedri and Sanford Kunkel signed a two-year, 17k SF lease with an option to buy at 218-220 Bowery. They plan to open The Bowery House, a hospitality concept and a coffee bar. An additional 13k SF can be added to the building. Massey Knakal’s Robert Burton brokered the deal. *** 1330 Avenue of the Americas saw two deals: Andor Capital Management’s five-year, 5,900 SF lease (tenant rep: JLL’s Lloyd Desatnick) and SAT Investments’ five-year, 5,700 SF lease. Owner RXR Realty was repped in-house for both transactions. *** Broadview Networks inked a 9,300 SF lease at Three Huntington Quadrangle in Huntington, Long Island. Lincoln Property Co/Lincoln Harris CSG’s David Dunlap, Chris Wittmann, and Campbell Walker repped the tenant, while CBRE’s Robert Seidenberg, Ralph Guiffre, and William Domsky repped owner Hines. *** The Fund for Public Health in New York inked a five-year, 6,800 SF lease at 22 Cortlandt St. CBRE’s Rob Wizenberg repped the tenant, while Grubb & Ellis’ Barrett Stern repped landlord Mayore Estates. *** GroupMe signed a 5,300 SF lease at 26 W 16th St. The Kaufman Org’s Slater Traaen repped the tenant, while The Winter Org’s Rob Fink repped the landlord. *** Disco International inked a long-term, 4,400 SF lease renewal at 15 W 44th St, also known as The Paragon Building. CBC Hunter Realty’s Thomas Sullivan repped the tenant, while Wiggin and Dana’s Andrew Pal repped the landlord. *** Buchbinder & Warren Realty Group’s Annie Yao brokered two deals:The Advance Group’s 10-year, 2,600 SF lease at 39 Broadway and People Insurance Company of China’s seven-year, 1,200 SF lease at 1251 Avenue of the Americas. *** Verizon Wireless dialed a 10-year, 3,000 SF lease at The Fairfax,201 E 69th St. Cushman & Wakefield’s Robert Gibson repped the tenant. TF Cornerstone is the landlord. *** HealthSource Pharmacy renewed its 1,350 SF lease at 1302 Second Ave. Winick Realty’s Hal Shapiro brokered the deal. *** Island Burgers & Shakes cooked up a 1,200 SF lease for its second Manhattan location at 422 Amsterdam Ave. Winick Realty’s Alex Hill brokered the 10-year deal, and the owner is 420-428 Amsterdam LLC. Financing GCP Capital Group arranged over $56M in mortgage financing, including: $40M for a four-story Class-A office building on Marcus Ave in New Hyde Park, Long Island (arranged by Alan Perlmutter);$9.2M for a six-story, walk-up mixed-use building containing 25 apartments, four stores, and one professional space on Delancey St(arranged by Paul Greenbaum); $3M for a two-story retail strip at 161st St in the Bronx (arranged by Louis Perlmutter); and $2.3M for a six-story elevatored apartment building on Audubon Ave (arranged by Adam Brostovski). *** Meridian Capital group arranged over $47M in mortgage financing, including: $20M for a 12-story office building on W 35th St (arranged by David Hayum); $10.1M for a 76-unit, 10-story multifamily building on Lafayette Ave in Brooklyn (arranged by Scott Assouline); $5.3M for a 20-unit, six-story mixed-use building on E 2nd St (arranged by Assouline); and $5.2M for a six-building multifamily portfolio totaling 360 units in the Bronx and Manhattan (arranged by David Zlotnick and Chaim Tessler). Construction & Development Tishman Construction Corp was chosen as construction manager for the $100M Promise Academy Charter School in Harlem, a 135k SF, five-story facility that will accommodate 1,300 K-12 students and offer student and adult services. It will be open in time for the ’12-’13 school year. It was designed by John Ciardullo Associates. *** Chelsea Piers Management began construction on Chelsea Piers Connecticut, a 400k SF sports and entertainment complex in Stamford. CPCT, which is scheduled to open in June ’12. It’s part of the 33-acre The Campus, which is owned by Stamford Exit 9, a partnership of Spinnaker Real Estate Partners, Seven Wise Associates, and the Connecticut Film Center. *** Mark Yeager and Normandy Real Estate Partners commenced construction on the redevelopment of Summit Executive Center in Summit, NJ, a former medical center building being turned into a 65k SF Class-A, LEED-certified office building. The project team includes Rotwein & Blake, AMA Consulting Engineers, Structure Studio,T&M Associates, and S&S Consulting. It will be completed by summer ’12. *** The 119-room Clinton Inn Hotel at 145 Dean Dr in Tenafly, NJ completed its $6M, three-phase renovation program, including renovation of the guest rooms and the addition of full-service restaurant Palmer’s Crossing. The hotel is managed by Concord Hospitality. *** Interstate Hotels & Resorts opened the 88-room Four Points by Sheraton Long Island City/Queensboro Bridge at 27-05 39th Ave in LIC. The newly built hotel was developed and owned by 39th Avenue Holding LLC. Amenities include a Michael’s Café and Bar, and a rooftop dining facility is planned for the coming months. Business Ventas completed the previously announced $3.1B acquisition of 118 private-pay seniors housing communities of privately owned Atria Senior Living Group. Prior to the closing, Atria spun off its management biz to Atria Senior Living, a new company that will continue to manage the acquired properties. *** Cushman & Wakefield and Walker & Dunlop formed a strategic alliance to focus on multifamily agency financing and investment sales, giving clients access to C&W’s investment sales platform and Walker & Dunlop’s agency finance programs. Cushman & Wakefield Sonnenblick Goldman will be responsible for directing these transactions within C&W. *** Prudential Douglas Elliman entered into an exclusive strategic partnership with Knight Frank Residential for residential business in NYC, Long Island, and Westchester, bolstering PDE’s global reach and allowing Knight Frank Residential to expand its services into the US. *** PDE also formed Elliman Equity Design, a new group created to maximize the marketability and value of properties through a service that focuses on volumetric values, space, light and spatial dynamics in order to craft spaces. It will be headed by Michael Bolla and Carl Black. Executive Moves Paul Williams rejoined PricewaterhouseCoopers as managing director in the firm’s RE business advisory services practice, responsible for building the RE capital markets practice. He also held positions at Bank of America Securities and CNL Hotels and Resorts. He’s a University of Florida grad. *** Michael Schneider joined Massey Knakal as first VP of sales, focusing on Staten Island. He previously founded Best Homes Real Estate in Staten Island, and also founded Clifton State Plumbing and Heating Supply. He is a former Marine and a Pratt grad. *** Stephen Sullivan joined Onyx Equities as SVP of investments, responsible for sourcing acquisitions and capital markets work, as well as the firm’s expansion within the Mid-Atlantic market. He was previously with Urdang Capital Management, and held positions at Liberty Property Trust and Cushman & Wakefield. *** Carole Bloom joined Manhattan Skyline as VP of leasing and marketing, overseeing the firm’s portfolio of luxury residences. She was previously a consultant for Gotham Development, and started her career at The Related Cos. She’s a University of Hartford grad. *** Stalco Construction promoted Malcolm Wade to assistant director of marketing and sales. He’s been with the firm since ’09, and is a SUNY Suffolk grad. |
