Angelo, Gordon & Co. is reportedly planning a 13-story condo development at 68 Charlton Street in Hudson Square, where Gary Barnett once intended to build a 35-story luxury hotel.
The investment firm paid Mr. Barnett’s Extell Development $52 million for the site in June and has filed plans with the Department of Building for the 79-unit condo building designed by Read More
Despite strong community opposition, including that of the local community board, this afternoon the Landmarks Preservation Commission approved Extell’s request to cantilever its 1,424-foot skyscraper over the Art Students League.
The vote was six to one in favor of the application, which will allow Extell to cantilever its Smith + Gorden Gill-designed tower at 217 West 57th Street over the comparatively diminutive French Renaissance building next door. In their discussion before the vote, the LPC cited the minimal impact of the cantilever—which is some 290 feet high and not visible from all vantage points—on the experience of the landmark, as well as the building’s contextually-sensitive cladding.
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
Masters of Real Estate
The Commercial Observer will host its annual Masters of Real Estate conference on October 16 at The Metropolitan Club, located at 1 East 60th Street. Beginning at 8am, the event will feature three panel discussions on the State of New York City Real Estate, the State of Opportunistic Investments and the State of the Capital Markets.
Morrison & Foerster Partner in the Real Estate Department
How is the current market for construction financing?
It started with Gary Barnett’s Gem Tower and Bruce Ratner’s Atlantic Yards. When credit tightened in 2009, some of the most respected New York developers had begun turning to foreign money to finance their construction projects via the U.S. Citizenship and Immigration Services’ EB-5 program. The federal program is designed to provide permanent residency to foreigners who invest at least $500,000 in job-creating projects. Of late, with the banking sector increasingly willing to finance projects but with the loan-to-cost of their loans languishing in the 60 percent to 65 percent range, EB-5 funding—for which interest rates are usually in the one-digit range—is becoming an increasingly popular alternative to costlier mezzanine financing, sources told Mortgage Observer.
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.
An ownership feud over management of a largely vacant Midtown South property will be decided at auction in August. The 16-story prewar office building at 251 Park Avenue South, which sits nearly 70 percent vacant in the heart of the red hot submarket, is to be sold at public auction on August 28, by order of the Supreme Court of the State of New York.
The building is owned “tenancy in common”–a form of simultaneous ownership in a single property by two parties—by F.M. Ring Associates and an investor, reportedly Gary Barnett’s Extell Development.
From a Taconic Investment Partners project in Hunts Point to the World Trade Center site in Lower Manhattan, power in New York real estate circles has increasingly expanded from the comfortable confines of Midtown Manhattan to the fringes of all five boroughs. While large developments such as the Related Company’s Hudson Yards often dominate the conversation, Brooklyn, Queens and even the Bronx continue to grow in stature.
Long Island City is fast becoming a focal point for the real estate industry as Rockrose and other residential developers tap into the growing Queens neighborhood. In the Bronx, Taconic Investment Partners, formerly the owners of 111 Eighth Avenue, is in the process of a significant capital improvement plan at the BankNote Building on Lafayette Avenue in Hunt’s Point.
Below, a sampling of where power thrives in New York City in 2013.
Steve Wiktoff paced back and forth in a conference room at his partnership’s New York City office, eager to talk about his latest endeavors, but just as eager to tackle the other 10 commitments that had come his way over the course of the first of several interviews with The Mortgage Observer.
BSJ SoHo let go of 72-76 Greene Street last week for a reported sum of $41.5 million. The buyer—a partnership of Chicago-based L3 Capital and Washington, D.C.’s ASB Capital Management—paid $1,186 per square foot for the building known as “The King of Greene Street” because of its French renaissance-Second Empire architectural styling. It contains two 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.
Built by the Rockefeller family in the 1930s, Rockefeller Center is one of the largest commercial real estate developments to be built in the past century. Initially spanning approximately two dozen buildings, 22 acres and over 8,000,000 square feet, the district has further expanded in recent years to include a few dozen additional buildings along the Sixth Avenue corridor.
“There has also been a significant slowdown of leasing along the Sixth Avenue corridor, particularly Class A leasing, where leasing in the first half of 2012 was about half the long-term average,” said Melissa Bazar, an executive director at Cushman & Wakefield. “Since the Sixth Avenue corridor is dominated by large corporate users and financial firms, we expect leasing to remain sluggish through the balance of 2012, below the long-term average.”
Inventory has increased from 9.3 percent to 10.5 percent this past year, according to Cushman & Wakefield’s third-quarter report.
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.
Developer Gale International has agreed to buy a Flatiron District development site that is currently owned by Gary Barnett’s Extell Development Co.
The site, located on 19-25 W. 20th Street, is a 9,200 square foot vacant lot that sits next to a parking garage. The asking price was reportedly $300 a buildable foot. If it closes the deal, Gale International will be able to add three stories on top of the parking lot, which is leased out by Icon Parking.
The deal was first reported by Crain’s New York.
The site “is under contract, and we are expecting a closing in a couple of months,” said Robert Knakal, chairman of Massey Knakal, which was marketing the property and was involved in the sale.