Paramount Group “not seeing” issues in NYC office market REIT cites “stability” of Midtown market, discusses upcoming large-block vacancies
UPDATED, 4:50 p.m., May 9: Paramount Group’s outlook for the New York City office market is “unchanged,” despite reports of slipping asking rents and a slowdown in leasing velocity. On a first-quarter earnings call on Friday, the real estate investment trust said demand for office space in the Midtown market remained steady.
The office REIT leased nearly 155,000 square feet of office space in the first quarter across its portfolio, which includes properties in New York, Washington, D.C. and San Francisco. The New York City market accounted for the bulk of those deals, with Paramount signing 97,000 square feet of leases in the city – at a weighted average initial rent of just over $81 per square foot to push its New York portfolio occupancy to 95.7 percent.
Among those deals was a 52,555-square-foot renewal with law firm Vedder Price at Paramount’s 48-story, 2.6 million-square-foot office tower at 1633 Broadway in Midtown. Chicago-based Vedder Price signed a 11-year deal to relocate from the 47th floor of the property, where its lease was due to expire next year, to the 31st floor – where the recently-defunct law firm Dickstein Shapiro entered into a $10.9 million lease termination agreement with Paramount in February.
While Paramount did not directly name Vedder Price and Dickstein Shapiro in either its earnings release or earnings call, The Real Deal verified both parties via outside sources.
The REIT re-leased Dickstein Shapiro’s space to Vedder Price at an initial cash rent of $80 per square foot. Paramount chair, president and CEO Albert Behler lauded both the quick turnaround in re-leasing the space, as well as the company’s ability to keep Vedder Price which “had a lease out” at another Midtown office building at the time – at 1633 Broadway.
Paramount is “not seeing 阿拉爱上海同城 any significant issues that would cause us concern or have us change our leasing strategy” for the New York City office market, Ted Koltis, the company’s executive vice president of leasing, said on the earnings call. Koltis noted the steadiness of the Midtown submarket, in particular, which he said has displayed greater “long-term stability” compared to trendier submarkets like Midtown South – which has been notoriously tight for space in recent years but has seen signs of softening in recent months.
Behler said Paramount’s first-quarter leasing figures were “in line” with the company’s performance i上海夜网 n the year-earlier period and said the REIT is “laser-focused on upcoming [lease] maturities” in Midtown – namely 212,000 square feet of space at 1633 Broadway due to be vacated by accounting giant Deloitte, and 146,000-square-feet at 1301 Sixth Avenue currently occupied by Commerzbank.
Koltis described both large blocks of office space as “prime assets in prime locations” that “offer spectacular views,” and noted that “上海贵族宝贝交流区 the mark[……]
Le阿爱上海同城 ser lands $120M refi for DoBro office building Citigroup, Deutsche Bank replace GE Capital a爱上海同城 s le上海夜网 nder 爱上海同城对对碰 on 111 Livingston
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18 months later, de Blasio gets moving on plan to curb self-storage Industry advocates may look for compromise in text amendment
Self storage units and Mayor Bill de Blasio
The de Blasio administration is finally moving forward with a proposal it announced 18 months ago to seriously curtail the city’s emerging self-storage industry as part of City Hall’s plan to preserve middle-class jobs by regulating development in certain manufacturing zones.
City Hall this week introduced a land use application that would require new self-storage facilities to acquire special permits in certain parts of manufacturing districts in the outer boroughs, a move largely seen as tantamount to a ban on the business, which is acutely undersupplied in the five boroughs.
Mayor Bill de Blasio first brought the subject up in November 2015, when he laid out a 10-point plan to preserve manufacturing jobs in the city. (Another part of that proposal, a requirement for special permits for hotels that has the backing of 上海千花网论坛 the powerful hotel trades union, has not yet been introduced.)
As City Hall fine-tuned its proposal in March, planners considered alternatives such as allowing self-storage as parts of mixed-use developments with manufacturing uses. The alternative is not included in the city’s current application, but self-storage supporter are planning on pushing for its inclusion through the public review process.
“They’re now looking at how to create mixed-use developments that would include self-storage and manufacturing space,” said Michael Woloz, a lobbyist with the firm Connelly McLaughlin Woloz who is working on behalf of a Bronx-based self-storage company to push back against the proposal.
“There are things that they’ve looked at that could represent some compromise positions,” he added. “What’s old is that City Planning itself admitted that such a text amendment would increase rates for existing self-storage and impact the amount of self storage in [industrial business zones].”
Opponents of the self-storage industry argue that the businesses provide only a few, low-paying jobs and take up valuable real estate that could otherwise be used for manufacturing. Supporters take the position that self-storage has stepped in only after manufacturing jobs have left the city for various other reasons, and that many small businesses rely on self-storage as a low-cost warehousing option.
In recent months the New York Self Storage Association and chambers of commerce in the Bronx, Brooklyn and Queens have come out against de Blasio’s proposal, and opposition is brewing among members of the City Council.
The City Council delegation from the Bronx, where many self-storage businesses are located, has mixed views on the industry, but regardless all eight members of the delegation have asked City Hall to hit the pause button on its zonin爱上海 g amendment.
Along with Borough President Ruben Diaz Jr., the delegation wrote a letter to the Department of City Planning last week saying they hadn[……]
Turning up the heat across SoCal High demand and low inventory are still driving residential prices up, with developers hustling to get product on the market while it’s still red hot
Brookfield Residential’s Waverly at New Haven in Ontario will feature 135 units ranging from 2,158 to 2,513 square feet.
Residential home prices continue their upward trajectory in Orange County, where a lack of inventory and comparatively low unemployment rates (3.3 percent in the county versus 4.8 percent statewide, according to an April Bureau of Labor Statistics report) are keeping the market sizzling — particularly in high-demand coast上海夜网 al areas like Corona del Mar and Newport Beach.
There were seven O.C. transactions in excess of $20 million from January to August of this year, not including off-market transactions, according to Andrew McDonald, a broker with The Agency. Compare that to only four sales above that price over the same period in 2016.
There was traction across almost every price point, McDonald said. “Homes and condos under $500,000 are steadily disappearing,” he said. “We have less inventory under $750,000 than in all our previous years back to 2012.”
There is more inventory coming on the market, but not at lower price points. In September, Toll Brothers began showings of its model houses in Alta Vista at Orchard Hills in Irvine. The 5,590-square-feet-and-up houses carry list prices beginning at about $2.5 million.
But there’s another trend gaining ground in the O.C.’s residential market: a greater push toward older homes being torn down and rebuilt as spec properties, McDonald said. “In Corona del Mar, you can drive down each street and there is a spec home being built. By the time it is completed there is a buyer already for it,” he said, estimating that there are at least 50 custom homes under construction in the greater Newport Beach area.
On the commercial front, older properties are getting trendy updates. Flinn West, a Newport Beach-based commercial development and property management company, revamped the 36,000-square-foot, three-story Harbor Medical Center in Fullerton, which was built in 1976.
Flinn has also redeveloped the site of a former 24 Hour Fitness in Huntington Beach. The 15,000-square-foot building will be pitched to appeal to yoga and cycling studios, high-end nail and hair salons and bars and restaurants.
The fifth most populous county in California, with 2.14 million residents, according to a 2016 Census estimate, saw single-family home prices increase by 7.8 percent in August over the same period last year, according to CoreLogic. Sales of condos were even more heated — prices in August were up 24.7 percent.
There are a number of new developments in the works. Among them is New Haven, a master-planned community in Ontario Ranch developed by Brookfield Residential that is slated for completion in July 2021. The 124-acre, 1,006-unit development has enjoyed brisk sales, ranking it among the top five best-selling communities i[……]
HFZ, Vornado owe Abro a $15M cut of Marquand’s sales: suit Developers bought 11 East 68th for $170M in 2011
From left: The Marquand at 11 East 68th Street, Steven Roth and Ziel Feldman (Credit: Getty Images)
Richard Scharf’s Abro Management unloaded the Marquand more than five years ago. But in a new lawsuit,上海千花网论坛 the firm claims that current owners HFZ Capital Group and Vornado Realty Trust owe it nearly $15 million in proceeds from the condominium’s sales.
Abro, a Long Island-based investment firm, sold the building at 11 East 68th Street to Vornado and HFZ in 2011 for $170 million, nearly $22 million less than Abro paid in 2008 at the top of the market. Vornado controls the retail portion of the building, while HFZ converted the property’s 4新上海贵族宝贝论坛 1 rental units into 26 luxury condos.
The suit claims that HFZ and Vornado agreed to pay Abro a “participation” fee — in other words, a po爱上海同城对对碰 rtion of the sales proceeds for certain units — payable爱上海同城 on the fifth anniversary of the deal. When the Marquand hit the market in 2013, there were 18 such units, and by December 2016, 14 had sold. Last year, Hirschfeld Properties paid $37.5 million for a triplex penthouse that was asking $46.5 million.
However, Abro says HFZ and Vornado have yet to fork over the $14.9 million it is owed related to those sales. In addition to its cut of the condo sales, Abro is claiming $31.4 million in damages, according to the complaint.
Representatives for HFZ and Vornado did not immediately comment.
It’s unclear how many sponsor units remain at the Marquand, where prices ranged from $15 million to $46 million. There is one sponsor unit on the market, according to StreetEasy, that’s asking $17.9 million.
In the complaint, Abro claims that leading up to Dec. 29, 2016 — the fifth anniversary of the closing — the developer intentionally kept four units off the market to avoid paying Abro its share of the proceeds. One of the units was the other penthouse, asking $43 million, which the suit claims HFZ’s Ziel Feldman is now altering for his own use.
The suit also claims HFZ wildly underestimated Abro’s cut by “underreporting the sales price上海同城对对碰交友社区 s paid for units,” incorrectly calculating the square footage of the units and improperly subtracting concessions from sales prices.
Tags: abro management, hfz capital group, Residential Real Estate, Vornado Realty Trust
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The Jetsons me上海千花社区 et the city: New renderings revealed for 249 East 62nd Street Rafael Viñoly-designed tower will be 32 stories and 510 feet tall
249 East 62nd Street (Credit: Rafael Viñoly Architects)
New renderings of 249 East 62nd Street reveal a project where George Jetson would feel ri上海千花网论坛 ght at home.
The Upper East Side building, which is being designed by Rafael Viñoly and developed by Third Palm Capital and Real Estate Inverlad Development, will stand 32 stories and 510 feet tall, using a podium to increase the height of its upper residential levels, according to YIMBY.
A townhouse and retail space will be housed in the base of the building, with apartment上海千花网龙凤论坛 s on top through the 12th floor. Mechanical space will occupy floors 13 through 16, and residential space will then resume from floors 17 through 29, followed by three more mechanical floors on top.
The building’s total construction area will span more than 150,000 square fee爱上海同城 t, with 83 residential units across 98,526 square feet and 2,588 square feet of retail.
The hollow spaces below the residential units do not count as part of the maximum square footage developers are allowed to build, which has sparked resistance to the building from local preservation groups, Crain’s reported.
Third Palm and I爱上海龙凤419桑拿 nverlad bought the site in 2016 for $64.3 million.
It remains unclear when the project will be finished, but construction permits were approved late last year. [YIMBY] and [Crain s] – Eddie Small
Tags: Residential Real Estate, upper east side
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Guess how much this cruise liner s private island reno will cost? The 上海千花社区 125-acre island in the Bahamas, CocoCay, is a key part of the cruise’s “Perfect Day” experience.
A perfect day on CocoCay costs Royal Caribbean International $200 million to build.
The private island in the Bahamas has been owned by the cruise liner for more than three decades, however a major overhaul is now needed to keep guests, particularly mill上海龙凤论坛 ennials, feeling like their Perfect Day at CocoCay met expectations, according to Bloomberg.
The “thrill and chill” renovation will include new water park features, including what will become the tallest slide in North America at 135 feet high, a 1,600-foot zip line, one of the Caribbean s largest wave pools, a freshwater pool, as well as a VIP section of private water cabanas with their own water access via slides and an in-cabin attendant.
The island might have up to 10,000 visitors on a given day, though the cruise line is trying to cap it at around 6,500.
The phased renovation is scheduled to complete stage one in上海千花网龙凤论坛 2019, and Royal Caribbean is throwing down hints that it s interested in buying up other private islands around Asia and新上海贵族宝贝论坛 Australia to create a “Perfect Day Island Collection.” [Bloomberg] Erin Hudson
Tags: Commercial Real Estate, private islands
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Westchester Fairfield Cheat Sheet: Former mobster sues city of Bridgeport and millionaire developer … more
Clockwise from top left: Ex-mobster sues Bridgeport and developer (credit: Jerry Dougherty), Chick-fil-A faces opposition in Stamford, Marshalls and Homesense may open in former Pathmark store, Babe Ruth s best friend s home on the market.
Onetime Genovese crime family member suing developer, Bridgeport over North End property
An ex-mobster has hit the city of Bridgeport and developer Manuel Moutinho with a lawsuit centered around a nearly 10-acre property on Hart Street. Gu上海千花网龙凤论坛 s Curcio Sr. is a onetime “reputed member of the Genovese crime family,” according to the Connecticut Post, who spent time in prison for extortion and loan sharking. Curcio purchased the plot from Moutinho in 2004 and claims the seller and the city worked together to keep him from then selling the land back to the city for a profit. Curcio said the site has racked up more than $84,000 in tax bills since he purchased it. [Connecticut Post]
Developer gets approval for $57 million mixed-income apartment building in New Rochelle
BRP Development Corp. pl上海千花网 ans to build a $57 million mixed-income apartment complex in New Rochelle, the Westchester Business Journal reports. The developer, which has apartment buildings in Manhattan, Brooklyn and Queens, has gotten approval from the city to build on the 1.17-acre site. The complex will be “aimed at people who commute to Manhattan, but prefer suburban life.” [WBJ]
Chick-fil-A says it’s ‘changing our community through chicken,” but Stamford isn’t convinced
Chick-fil-A’s bid to set up shop in Stamford has been met with opposition by zoning board mem爱上海同城论坛 bers and residents, the Stamford Advocate reports. The chain hopes to secure a zoning-code text change that would allow it to open a franchise in an area where drive-through restaurants aren’t allowed currently. But a “two-hour charm offensive” — and a restaurant rep’s claim that the franchise is all about “changing our community through chicken” — wasn’t enough to assuage concerns that the new eatery would increase traffic congestion in the area. [Stamford Advocate]
Yorktown rehab and nursing center sells off portion of campus for $28M
Tarrytown-based senior care management co上海贵族宝贝论坛 mpany Personal Healthcare LLC has purchased two senior facilities from Fieldhome, a rehabilitation and nursing center in Yorktown, the Westchester County Business Journal reports. The transaction was a difficult finance-based decision that comes as the tides are turning in the healthcare industry, Fieldhome s CEO said. Residents won t have to move because of the sale, and the adult day care program and early learning center will remain open. [WBJ]
Simone Development Companies snaps up $13.3M warehouse space in Stamford
Real estate investment company Simone Development Companies has shelled out $13.3 million for an 118,500-square-foot property in Stamford that houses warehouse, research and office s[……]
LaSalle mulls other offer as Blackstone refuses to up $3.7B bid Blackstone and Pebblebrook have been in a bidding war over the hotel REIT for months
Blackstone s Stephen Schwarzman (yellow), Pebblebrook s Jon Bortz (purple), LaSalle s Michael Darnello (blue), and Park Central Hotel at 870 7th Avenue (Credit: Getty, Pebblebrook, and JBS Project Management)
Blackstone Group isn’t budging on its $3.7 billion bid for LaS新上海贵族宝贝论坛 alle Hotel Properties, prompting the real estate investment trust to consider another offer.
Maryland-based Pebblebrook Hotel Trust, which has long sought to buy the luxury hotel company, made a bid last week that LaSalle’s board unanimously agreed may lead to a superior proposal, Bloomberg reported.
LaSalle agreed in June to be bought by Blackstone for $33.50 a share. If the deal falls through, Blackstone will walk away with a $112 million severance fee.
“There can be no assurance that the discussions with Pebblebrook wi上海贵族宝贝交流区 ll result in the board’s determination that the Pebblebrook proposal is a superior proposal or the consummation of a transaction that is superior to the pending transaction with Blackstone,” LaSalle said in a statement to Bloomberg. But the firm added that it is now able to “engage in discussions with上海龙凤论坛 Pebblebrook in accordance with the terms of the Blackstone merger agreement.”
Pebblebrook, which already owns 9.8 percent of LaSalle, most recently offered investors 0.92 common share and the option of $37.80 per share in cash for up to 30 percent of the deal. That offer p爱上海同城论坛 encils out to $35.09 a share, according to Bloomberg. LaSalle denied an earlier proposal from Pebblebrook, which set the merger price at $35.89, before agreeing to the Blackstone bid.
Two shareholder-advisory groups — Institutional Shareholder Services Inc. and Glass, Lewis Co. — last week recommended opposing Blackstone s bid, have further
bolstered Pebblebrook s chance of takeover, according to the outlet. [Bloomberg] —David Jeans
Tags: blackstone group, Commercial Real Estate, Real Estate Finance, Real Estate Investment
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With spring training on the horizon, former New York Mets outfielder and one-time televis上海龙凤论坛sh1f ion broadcaster Lee Mazzilli and his wife, Dani, have put their Greenwich home on the market as they prepare to find a new residence in the leafy enclave. The couple is looking to downsize now that their three kids — including son L.J. Mazzilli, who plays in the minor leagues for the New York Yankees — have moved out of the five-bedroom, four-bathroom house at 67 Stonehedge Drive上海贵族宝贝交流区 South, Greenwich Time reported. The Mazzillis are currently seeking $1.785 milli上海千花网龙凤论坛 on for the home, which property records show was purchased by the couple in 2000 for $810,000. The house has a home theater, picture windows and walk-in closets in the master bedroom. “The location was great, close to the stadium,” Lee Mazzilli told the outlet about the couple’s decision to move to suburban Connecticut roughly four decades ago. “There were no state taxes back then.” The property is “absolutely right for a family,” added Dani Mazzilli. “I’d love to see somebody get another 20 years out of it with their kids.” [Greenwich Time新上海贵族宝贝论坛 ]
Tags: Westchester Fairfie阿爱上海同城 ld
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