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Monthly Archives: February 2013

RXR Sees Opportunity After Hurricane Sandy

In the aftermath of Hurricane Sandy, Scott Rechler, Chairman of RXR Realty is doing double (maybe triple) duty–acting as an adviser to Governor Cuomo, repairing his own flood-ravaged home and turning disaster into opportunity.

RXR Realty was the No. 2 buyer of Manhattan commercial property since 2009, according to global commercial property and data firm Real Capital Analytics Inc. Including the latest deals, the company has either paid or plans to pay $4.3 billion for New York properties. The biggest acquirer was SL Green Realty Corp. (SLG), New York’s largest office landlord, with $5 billion, Real Capital data show.

RXR plans to target office buildings in need of renovation and buildings impacted by the flood zone.

RXR Sees Opportunity After Hurricane Sandy

In the aftermath of Hurricane Sandy, Scott Rechler, Chairman of RXR Realty is doing double (maybe triple) duty–acting as an adviser to Governor Cuomo, repairing his own flood-ravaged home and turning disaster into opportunity.

RXR Realty was the No. 2 buyer of Manhattan commercial property since 2009, according to global commercial property and data firm Real Capital Analytics Inc. Including the latest deals, the company has either paid or plans to pay $4.3 billion for New York properties. The biggest acquirer was SL Green Realty Corp. (SLG), New York’s largest office landlord, with $5 billion, Real Capital data show.

RXR plans to target office buildings in need of renovation and buildings impacted by the flood zone.

Slowdown in Distressed Assets Investments

Real Capital Analytics reports that 58% of distressed properties that were reported on banks’ books has been sold or otherwise mitigated and the introduction of new distressed properties into the market continue to decrease. Bargain hunters hoping to pick up deals among distressed assets should move quickly.

“At this point, it’s fair to say that we are moving into the later innings of the distressed cycle,” says Dan Fasulo, managing director at According to global commercial real estate data and trends provider Real Capital Analytics.

Of the $394 billion of mortgages that became troubled since the 2007 market peak, 58 percent have now been resolved and $165 billion worth remains to be worked out, according to RCA. In addition, new instances of distress fell substantially in fourth quarter to $4 billion, which is the lowest level this cycle.

“It still might be a bad situation if you are an owner and your equity is wiped out, but that doesn’t necessarily mean there is going to be a fire sale on the street for all of these assets,” says Fasulo.

Slowdown in Distressed Assets Investments

Real Capital Analytics reports that 58% of distressed properties that were reported on banks’ books has been sold or otherwise mitigated and the introduction of new distressed properties into the market continue to decrease. Bargain hunters hoping to pick up deals among distressed assets should move quickly.

“At this point, it’s fair to say that we are moving into the later innings of the distressed cycle,” says Dan Fasulo, managing director at According to global commercial real estate data and trends provider Real Capital Analytics.

Of the $394 billion of mortgages that became troubled since the 2007 market peak, 58 percent have now been resolved and $165 billion worth remains to be worked out, according to RCA. In addition, new instances of distress fell substantially in fourth quarter to $4 billion, which is the lowest level this cycle.

“It still might be a bad situation if you are an owner and your equity is wiped out, but that doesn’t necessarily mean there is going to be a fire sale on the street for all of these assets,” says Fasulo.

Are Investors Seeking London?

London had a reputation as a safe place to park money during global market turmoil. Office prices were up 52 percent between mid-2009 and the end of 2012. Prices in the smaller luxury residential market grew at a similar pace.

According to global commercial real state data and trends firm Real Capital Analytics, commercial property deals reached nearly £21 billion ($33 billion) last year. That was double the amount for Paris and four times Berlin.

Over 64 percent of money coming into the market was from abroad – up from 61 percent in 2011 and 55 percent in 2010.

Are Investors Seeking London?

London had a reputation as a safe place to park money during global market turmoil. Office prices were up 52 percent between mid-2009 and the end of 2012. Prices in the smaller luxury residential market grew at a similar pace.

According to global commercial real state data and trends firm Real Capital Analytics, commercial property deals reached nearly £21 billion ($33 billion) last year. That was double the amount for Paris and four times Berlin.

Over 64 percent of money coming into the market was from abroad – up from 61 percent in 2011 and 55 percent in 2010.