A Selection of NYC’s Biggest Real Estate Deals of 2015
Real Estate predictions for 2015 guessed that we would see more luxury developments in Manhattan, continued activity in Queens, office space in Brooklyn, and increased interest in the Bronx. As the year comes to a close, let’s take a look at some of 2015’s highest-profile real estate deals, to see how accurate this year’s predictions were.
308 Mulberry Street
After purchasing the site (along with 298 Mulberry) for $178.5 million this year, Broad Street Development plans to build a 58-unit residential building, complete with a gym, swimming pool, and multipurpose room for tenants. The 12-story structure will also contain 11,000 square feet of retail space on the ground floor.
After Tishman Speyer and BlackRock Inc abandoned Stuyvesant Town in 2010, the lower-Manhattan enclave has faced nearly 5 years of uncertainty over the building’s ownership. In October of this year, Blackstone Group LP agreed to buy the apartment complex for $5.3 billion, with the city providing $225 million in aid in order to keep 5,000 of the apartments rent-regulated for the next 20 years. This deal will make Blackstone one of the largest residential landlords in Manhattan.
11 Madison Avenue
SL Green Realty closed on their $2.6 billion purchase of 11 Madison Avenue in August, setting the record for the second largest single-building transaction in US history. The Sapir Organization bought the property in 2003 for $675 million, bringing tenants like Sony and Credit Suisse to triple the net operating income of the building. Given that technology and media companies are flocking to the Flatiron neighborhood, SL Green will likely see returns on this investment soon.
1095 Sixth Avenue
Ivanhoé Cambridge, a Canadian property investor, partnered with Callahan Capital Properties to buy this iconic office tower for $2.2 billion from Blackstone Group. Tenants include Verizon and Dechert LLP, and Salesforce is looking to sublease 300,000 square feet of space currently occupied by MetLife. Whole Foods is set to take some retail space on the tower’s ground floor as well.
Related Companies purchased this trio of apartment complexes for $32.2 million, closing on July 1. The complex served as a refuge for Hurricane Sandy victims in 2012, after losing half its tenants during a foreclosure dispute in 2009. Though Related is known for large projects (the most notable recent project being the Hudson Yards development), the company plans to keep these buildings as “workforce housing.”
195 Montague Street
The Treeline Cos., which owns several office buildings in downtown Brooklyn, purchased the top four floors of 195 Montague Street for $30 million at the beginning of the year. The floors were previously occupied by Santander Bank, and Treeline plans to cater to tenants looking for office space in the area, asking rents from $50 – $60 per square foot.
16-22 Eckford Street
Long Island-based developer Heatherwood Communities closed on this Greenpoint property for $16 million, and plans to build a 135-unit residential building on the site. Amenities will include a game room, conference room, lounge, and 68-car parking garage.
Sky View Parc
Blackstone Group purchased this 560,000 square foot mall and 2,500-car parking garage from Onex for $400 million, and is the group’s first deal in Flushing. The population within a three-mile radius of the complex has doubled in the past 15 years, and the nearby 7 train station, Main Street, is the third-busiest in the city. This area of Flushing is expected to see continued growth as developers like Blackstone continue to move in.
Treetop Development acquired a total of 608 units across seven residential buildings in Flushing and Elmhurst for $138.8 million, more than doubling its Queens portfolio. The firm plans to spend $10 million to renovate and add amenities to the buildings, but plans to keep them affordable for middle-class families.
Two years after buying 1749 Grand Concourse, Azure Partners LLC has sold it for $49.5 million to an unnamed private investor based in Brooklyn. The 17 story building contains 274 residential units and 4 retail spaces, and has been sold three times since 2010. The new owner plans to further improvements made to the building by Azure, which included a new lobby, common areas, and façade repairs.
2401 Third Avenue
The Chetrit Group and Somerset partners have purchased this 1.5 acre waterfront site for $26 million, with plans to build a large residential development. The site offers 450,000 buildable square feet, and when combined with Chetrit and Somerset’s adjacent lot at 101 Lincoln Avenue, the purchase will allow the developers to build more than 1.2 million square feet.
As you can see, this year’s biggest deals will bring a lot of office space to Manhattan and the other boroughs, and affordable housing is almost as sought-after as luxury residences. I’m looking forward to seeing what some of the biggest deals will be in 2016.
Categories: Market Conditions