Vornado Realty Trust has acquired the land and air rights necessary to proceed with its development at 220 Central Park South, the real estate investment trust announced yesterday.
The $194 million acquisition will allow Vornado to begin construction of its planned 920-foot tall luxury residential condominium and puts to rest an ongoing dispute between the REIT and Extell Development, the seller of the rights.
Masters of Real Estate
There’s “something major” happening in every submarket in the city, but will gridlock in Washington and the impending mayoral election thrust the city back into recession – or even into a backdrop of crime and bankruptcy reminiscent of the 1970’s?
Not a chance, said a group of the city’s top real estate developers at Observer Read More
With more than 52 million visitors to the Big Apple in 2012, one thing seems certain: By all accounts, the hospitality industry is thriving in New York City. Hundreds of new hotels, with nearly 20,000 rooms, have joined the inventory over the past few years. Despite this, according to some industry leaders, there is reason to feel uneasy about the outlook for continued growth in this asset class.
The auction to settle a dispute over 251 Park Avenue South, which is jointly owned by F.M. Ring Associates and Extell Development, has been postponed until October 9. The fate of the building had previously been set to be decided on August 28.
“A typical reason [for the postponement] would be that the parties are having settlement negotiations,” Joshua Stein, court appointed referee, told The Commercial Observer, adding he had no specific knowledge of the reason for the postponement, which was first reported earlier this week by the New York Post.
Seattle-based luxury retailer Nordstrom has reportedly paid $102.5 million for the site of its future Midtown flagship store at 225 West 57th Street.
The seven floor store will anchor a massive 88-story, 1,550-foot residential condo tower that Extell Development is building at the site.
The retailer said its store will encompass 285,000 square feet when it Read More
Neighbors of One57 are reportedly fuming around-the-clock after the Department of Buildings granted Extell Development a 24-hour work permit.
Residents are lashing out over a permit that allows Extell to run an exterior elevator and work on its crane through August 18, which is the latest of more than 300 such variances issued over the last year, Read More
“Sell the building.” So began my great adventure of 2013.
Earlier this year, a court ordered me to hold a public auction of 251 Park Avenue South, a 16-story office building that is almost 70 percent vacant—an incredible opportunity for someone to create a new landmark in one of the hottest neighborhoods in New York City.
Gary Barnett, founder of Extell Development, is seeking approximately $1 billion in financing from Export-Import Bank of China for the planned condominium development at 225 West 57th Street, The Wall Street Journal reported earlier today.
If the deal is closed, it would likely be the largest loan for a U.S. real estate construction project since the market downturn, according to the Journal report. The project, as designed, would be the largest residential building in the United States, rising just a block away from Extell’s soon to be completed One57 residential tower. Last year, Nordstrom agreed to anchor the development with its first New York flagship location.
Extell Development has sold a 90 percent stake in a commercial development site at 68-74 Charlton Street for $52 million to investment firm Angelo, Gordon & Co., raking in $7 million more than originally sought, according to published reports and city records.
Extell, which originally intended to build a 35-story, 181,000-square-foot luxury hotel at the site, Read More
A joint venture led by The Carlyle Group has sold two newly-developed residential towers on the Upper West Side for a reported $400 million to the California Public Employees’ Retirement System.
Completed in 2010, the The Aldyn and The Ashley, 38 and 23 stories-high, respectively, include a mix of rental and condominiums for a total of 345 units and a mixture of studio, one-, two-, three-and four-bedrooms that average roughly 1,000 square feet.
The Sacramento-based pension fund, also known as Calpers, made the purchase through Boston-based GID Investment Advisers LLC, its real estate manager for residential transactions.
“The Ashley and Aldyn provide GID an opportunity to expand our exposure in New York City in a single transaction,” said Bill Chiasson, senior vice president and director of eastern region acquisitions for GID, in a statement. “Manhattan is a market that has historically provided consistent revenue growth versus the national average and where valuations hold up better over time versus other core, U.S. markets.”
Midtown Manhattan, the biggest and most expensive U.S. office market, is still adapting to New York’s post-financial-crisis economy, as technology and new media companies flood into the more affordable areas and banks remain wary of expanding in higher-priced real estate.
With construction getting under way on millions of square feet of planned Class A offices on the West Side, much of the leasing action for the year to date has centered on neighborhoods like Murray Hill, the Penn Station area and the Garment District, which are attracting companies that have been priced—or crowded—out of the technology hub in Midtown South, brokers said. Financial companies, traditionally the biggest occupiers of Midtown real estate, remained conservative, pursuing greater efficiency in their use of real estate rather than growth.
“The days of bigger is better are gone,” said Eric Thomas, senior vice president of Cresa, a specialist in tenant representation. “Capital preservation is still key. That’s why renewals still reign in many cases.”
Last fall, a group of lenders—including debt funds, insurance companies and international banks—competed for the $80 million assignment to refinance Lehman Brothers Holdings’ On The Ave Hotel on New York City’s Upper West Side.
Ultimately, the borrower tapped Singapore-based United Overseas Bank, which in the last two years has been behind several large office loans in New York and hotel loans on the West Coast, but which was essentially a newcomer to the city’s hotel lending scene. UOB inked the deal during the same late November week when Bank of China closed a $465.9 million loan on the iconic Plaza Hotel, after having refinanced the Mandarin Oriental Hotel for $170 million earlier in 2012.
Dr. Nilesh Patel has signed for a new office at 20 East 46th Street.
The ear, nose, and throat medical specialist will be taking a 2,514-square-foot office on the eighth floor of Extell Development‘s 20 East 46th Street in Midtown. The lease, signed for 10 years, will consolidate his practices in Queens and Manhattan into Read More
Featuring an all-star line up of the city’s most formidable real estate professionals, this year’s annual Masters of Real Estate fetched a record 450 RSVPs, The Commercial Observer has learned.
Observer Media Group executives began preparing for the event, now in its third year, six months in advance with an eye toward creating an eclectic mix of speakers. Larry Silverstein of Silverstein Properties, Michael Fascitelli of Vornado, William Rudin of Rudin Management, Jeff Blau of Related Companies and Glenn Rufrano of Cushman & Wakefield are all scheduled to appear. Rob Speyer of Tishman Speyer bowed out.
Jared Kushner, the owner of The Commercial Observer and president of Kushner Companies, will lead the event with remarks.
Billionaires And Their Toys
What timing! No sooner was it revealed that a number of the world’s billionaires have bought into Extell’s One57 tower than Forbes releases its annual list of the world’s billionaires. Good luck figuring out who some of the Chinese or British money men who bought in the building are—they number in the dozens by now—but how about the Nigerians? With only two billionaires in the country, it would appear one of them has to be among Gary Barnett’s big hitter tenants.
Either Aliko Dangote (#76 on this year’s list of the World’s Billionaires), Africa’s cement king, or Mike Adenuga (#248), the “reclusive” head of Conoil Producing, an oil company, will soon be rubbing elbows with the rest of the world’s billionaires inside Barnett’s luxury tower at 157 West 57th Street.