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Monthly Archives: April 2012

Investors Seek Trophy Office Properties in Secondary Markets

Investors priced out of trophy office properties in major metros like New York and Washington, D.C. are now often looking for top-tier buildings in secondary markets like Seattle and Houston.

“If we continue to get good news on the economic front and the commercial mortgage-backed securities keep coming back you could see us going to the next notch (of cities) as well,” says Dan Fasulo, managing director of global commercial real estate research firm Real Capital Analytics. The return of liquidity to cities is important for a broader recovery of the commercial real estate market.

Investors Seek Trophy Office Properties in Secondary Markets

Investors priced out of trophy office properties in major metros like New York and Washington, D.C. are now often looking for top-tier buildings in secondary markets like Seattle and Houston.

“If we continue to get good news on the economic front and the commercial mortgage-backed securities keep coming back you could see us going to the next notch (of cities) as well,” says Dan Fasulo, managing director of global commercial real estate research firm Real Capital Analytics. The return of liquidity to cities is important for a broader recovery of the commercial real estate market.

Foreign Developers Enter NYC Market

After a two-year stall, sales have picked up at the Tempo, a 20-story glass condominium, near the Kips Bay and Gramercy neighborhoods. The building was scheduled for completion in 2009, but a series of problems from the market downturn to legal battles with contractors put the project on hold. However, Irish developers Menolly Group never lost sight of the end goal.

Not that many foreign developers have tested the Manhattan market, said Dan Fasulo, managing director at global commercial research firm Real Capital Analytics.

“Recently, we’re seeing more international capital sources in the New York market,” Mr. Fasulo said, “but projects done by developers based abroad are rarer than you’d think.”

Foreign Developers Enter NYC Market

After a two-year stall, sales have picked up at the Tempo, a 20-story glass condominium, near the Kips Bay and Gramercy neighborhoods. The building was scheduled for completion in 2009, but a series of problems from the market downturn to legal battles with contractors put the project on hold. However, Irish developers Menolly Group never lost sight of the end goal.

Not that many foreign developers have tested the Manhattan market, said Dan Fasulo, managing director at global commercial research firm Real Capital Analytics.

“Recently, we’re seeing more international capital sources in the New York market,” Mr. Fasulo said, “but projects done by developers based abroad are rarer than you’d think.”

Bank of America Sells Manhattan Office Tower

Bank of America Corp. agreed to sell a 31-story office tower at 222 Broadway to Beacon Capital Partners LLC and L&L Holding Co.

The building is selling for $230 million, or $300 per square foot, and 590,000 square feet will be leased by Bank of America after the sale.

Buildings in lower Manhattan sold for an average of $249 a square foot in the 12 months through March, said Ben Thypin, director of market analysis for global commercial property research firm Real Capital Analytics Inc. He also noted that prices in the area have been driven down amid expectations that the World Trade Center, which is under construction, will pull tenants away from other buildings.

Bank of America Sells Manhattan Office Tower

Bank of America Corp. agreed to sell a 31-story office tower at 222 Broadway to Beacon Capital Partners LLC and L&L Holding Co.

The building is selling for $230 million, or $300 per square foot, and 590,000 square feet will be leased by Bank of America after the sale.

Buildings in lower Manhattan sold for an average of $249 a square foot in the 12 months through March, said Ben Thypin, director of market analysis for global commercial property research firm Real Capital Analytics Inc. He also noted that prices in the area have been driven down amid expectations that the World Trade Center, which is under construction, will pull tenants away from other buildings.

Israeli Holding Company to Sell Stake in Plaza Hotel for $1.7M Per Room

Indian conglomerate Sahara India Pariwar Ltd has made an unsolicited $600 million offer to acquire the Plaza Hotel in New York. The offer was made to joint owner, El Ad. El Ad owns the Plaza and it’s retail shops with Kingdom Holding Co, controlled by Saudi Arabian Price Al-waleed bin Talal.

It is reported that Kingdom Holding is not interested in selling at this time, but that does not prevent El Ad from selling although they will need approval.

Sahara’s offer values the hotel portion of the Plaza—spanning 230 rooms—at $400 million. That amounts to $1.7 million a room, a lofty sum even for Manhattan. In recent years, that potential price has been matched only by the per-room price that New World Development Co. paid for the Carlyle Hotel last year, according to global commercial real estate research firm Real Capital Analytics.

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