April 2015 » Market Analysis » NY New Developments

April 2015: New York New Developments

New Developments

The Howard Hughes Corp. has just struck a deal with Edison Properties that allows the former to build a large mixed-use building straddling the border of the South Street Seaport Historic District.

Community Board 5 will look to decide whether or not to extend the Madison Square North Historic District. Currently, the borders of the district are 25th and 29th streets and Sixth and Madison avenues. Under a new proposal which is in front of the board now, the district would be extended north to 34th Street and from Broadway to Park Avenue South.

New renderings of Citigroup's planned headquarters at 388-390 Greenwich Street on the Hudson River show that the buildings will be getting a curtain-walled makeover. Citigroup is relocating its headquarters from 399 Park Avenue at East 53rd Street. In 2013, it signed a deal worth over $1 billion to renew its 2.7 million-square-foot lease in the building.

Planned Parenthood is letting go of its current office condominium on Manhattan's West Side and leasing a space in Lower Manhattan at 123 William Street. The reproductive health nonprofit's new lease is a 15-year deal for 65,000 square feet on the ninth through 11th floors of 123 William Street.

Offshore investors are breaking into the hotel market at a rapid rate, and despite what it may seem like from recent headlines, not all are arriving from China. Many of the buyers are from Qatar, Kuwait, Malaysia and Singapore. They were involved in 50 percent of all New York City hotel investment sales in 2014.

Transit officials rejected a $9 billion proposal for a new Port Authority bus terminal and demanded cheaper alternatives. They are either going to build a 21st-century bus terminal or abandon their bus passengers to a Fourth World commuting experience.
Trinity Real Estate is ground leasing four office buildings in Hudson Square. The 99-year lease on the properties could get $1.25 billion or more as rents have skyrocketed to the mid-$70s in the area.

MetLife provided a $190 million loan for upgrades for 685 Third Avenue. TIAA-CREF and the Australian sovereign wealth fund acquired the more than 646,000-square-foot property in 2010 from Pfizer for $190 million.

McSam Hotel Group plans to build a 38,400-square-foot hotel with 120 rooms in the Flatiron District. The 140-foot-tall structure would rise on the site of a parking lot at 111 East 24th Street, between Park South and Lexington Avenue.

Lightstone Group filed plans for a 50-story mixed-use residential and hotel building in the Financial District at 128 William Street. The new building, located between John and Fulton streets, will have about 240,000 square feet of residential space, with 188 apartments, and 101,000 square feet of commercial space. It will top out at 581 feet.

The Virgin Hotel New York will soon rise at the corner of 30th Street and Broadway.

A new 15-story hotel is being planned for 876 Sixth Avenue. The developer is Pinky Realty. The project, located two blocks south and one block west of the Empire State Building at the corner of 31st Street and Sixth Avenue, will have 37 rooms and retail on the first and second floors. It will contain a total of 17,700 square feet.

Ziel Feldman's HFZ Capital Group is near securing a $500 million loan to help with its purchase of an $870 million development site near the High Line. SL Green and JPMorgan are in talks to provide the funds. HFZ is planning to build an "architecturally significant" condo and hotel tower on the site.

Cary Tamarkin will convert St. Agnes Boys High School and owned by the Archdiocese of New York site of a former Catholic school at 553-559 West End Avenue into a residential building. The developer paid $50 million for the building and air rights.

Sharif El-Gamal, MHP Real Estate Services and Hampshire Hotels Management, the developers of the Dream Hotel near Time Square, are planning on buying 19,772 square feet of air rights for its planned 237-key hotel at 560 Seventh Avenue from the Neil Simon Theater, almost 10 blocks to the north. Price is expected to be around $300 per square foot

The Safra family is in talks to acquire a minority stake in 590 Madison Avenue, a 43-story Midtown office tower owned by Minskoff Equities and the State Teachers Retirement System of Ohio. The deal could value the 1 million-square-foot property, located on the corner of Madison Avenue and East 57th Street, at north of $1.5 billion.

When the United Charities Corporation decided to put its Park Avenue South home on the market about a year ago, a deal that eventually closed at $128 million, there was one significant catch. The 1893 landmarked building straddled two zoning districts, which left one half of the property overbuilt. 287 Park Avenue South, Chinese developer Cheerland Investments bought the building for $128 million, and plans to convert it into residential condos. Newman realized a buyer could bring the entire building into compliance, freeing the way to add bonus square footage from inclusionary housing certificates the NGKF team identified in the area. "The idea was, that by removing 4,000 square feet they were able to add 27,000 square feet onto the building.

J.D. Carlisle Development bought a site at East 30th Street and Madison Avenue where it is planning to build a 53-story residential building for $102 million.

The owner of a small Hudson Yards parking lot next to the development site owned by battling partners Kuafu Properties, Siras Development and Blackhouse Development is looking to sell the properties, with one team asking a price that works out to almost $900 per square foot.

The Howard Hughes Corp. acquired a 10-story commercial building on the outskirts of the South Street Seaport for $24 million.

In an era of skyrocketing retail costs, the residents of a West Village co-op are experiencing an unexpected windfall. Co-ops with big retail tenants on the ground floors of their buildings are using the revenue from those leases to pay for things such as doormen, property taxes and heat.

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