Investment Sales 2012
The investment sales market, most brokers agree, has been heating up over the past 12 months. Approximately $25.8 billion in commercial properties changed hands last year, a turnaround that represented an 88 percent increase over 2010. But while the positive uptick is easily verifiable, what happens next for Manhattan’s investment sales market is still up in the air.
Accordingly, The Commercial Observer set out to speak with the real estate industry’s most accomplished capital markets and sales practitioners to learn what’s in store for 2012. Over the next several days, we’ll post interviews with heavy hitters like Richard Baxter of Jones Lang LaSalle, J.D. Parker of Marcus & Millichap, Woody Heller of Studley and Peter Hausperg of Eastern Consolidated. But, first, after the jump, none other than Darcy Stacom and William Shanahan of CBRE.
The Lease Beat
It was lunchtime at Casa Lever, the high-end restaurant in the iconic Lever House, and Richard Baxter was on his BlackBerry negotiating.
It was a busy year for Mr. Baxter and his colleagues at Jones Lang LaSalle. His four-man team comprised some of the city’s most prominent brokers of large-scale commercial office buildings, and as the Manhattan sales market’s post-recessionary thaw continues, Mr. Baxter estimated that the group had tallied an impressive $1.3 billion in deals this year.
Three days before Christmas, however, it wasn’t one particular skyscraper Mr. Baxter was bargaining over from his plum seat at Casa Lever. In a year-end rush, his group had loose ends to tie up, deals to close and transactions still in the works. And so, on this particular Thursday amid a bustling lunch crowd, Mr. Baxter was not negotiating with a buyer or a building owner, but rather one of his own assistants, whom he was asking to stay late to receive critical documents and to help get the team through the rest of the day.
The owners of 10 East 53rd Street have tapped CB Richard Ellis‘ “Queen of the Skyscrapers” to find a buyer for the “hidden gem” of a midtown office building, which already counts HarperCollins Publishers as a tenant.
Owner New Millenium Estates will rely on Darcy Stacom, a vice chairman at CBRE, to sell the building.
Ms. Stacom thinks she can find a new owner who will transform the 37-story, 388,000-square-foot asset into “the jewel box it can be.”
Big Real Estate
The Friars Club, once a den of Borscht Belt comedians, is more than the site of legendary comedy roasts—it’s home to the National Realty Club’s fortnightly real estate industry events. But now the club, at 57 East 55th Street, could be tied to the proverbial train tracks thanks to the Long Island Rail Road’s Eastside access project.
Hines Interests is in contract to sell the imposing hexagon-topped former Morgan Stanley hub at 750 Seventh Avenue, multiple sources told The Observer.
Interest from bidders was “through the roof,” according to one person involved in the process, with 20 to 30 prospective buyers, including a number foreigners from the Middle East and Asia. An offshore investor was Read More
SL Green’s flight to quality continues, now that one of its middle-market midtown office buildings is in contract for $161 million.
The building at 28 West 44th Street (on “Club Row,” says the press release) will go to APF Properties and a Prudential Real Estate Investors managed fund for $448 per square foot, according to Read More
CB Richard Ellis vice chairman Darcy Stacom has set records for her commercial real estate closings, but, according to city records, the winsome blonde and her husband, Chris Kraus, a managing director at rival brokerage Jones Lang LaSalle, recently closed a deal of their own: a $4.775 million four-bedroom at 447 East 57th Street. Ms. Read More
And the winner is… SL Green! For almost 180 million smackeroos!
SL Green, the city’s largest office landlord, has won the bidding war for Hines’ 600 Lexington Avenue, the glass-clad, 36-story tower between 52nd and 53rd streets, according to Crain’s. Rumblings of the deal were first reported at Observer.com late last week.
According toRead More
To flip through the pages of the 2006 offering book for potential buyers of the 11,200-apartment Stuyvesant Town and Peter Cooper Village-a deal that has devolved into the largest individual property default in modern history-is to immerse oneself in an historical delusion, one that, from today’s privileged vantage point, appears as likely as Read More
Developer Stanley Chera, whose Crown Acquisitions has been shopping for real estate since at least June, when it lost out to Vornado and Syms in a bid to buy Filene’s Basement (and all of its attendant real estate), is now in contract to buy the St. Regis retail condo at the corner of Read More