Buildings Sold:The volume of commercial real estate deals fell to the lowest level in a decade. Deal volume totaled $11 billion, a 71% year-over-year drop. The number of deals, meanwhile, has fallen an average of 36% since January, but saw a drop of 61% between March and April.
Although some property types fared better than others, not one ended the month on a high note. Hotel sales descended to $5.1 billion, their lowest level since RCA started recording transactions. The office and industrial sectors performed the “best,” but each still notched a 60% drop in transactions.
Shulamit Prager’s Opal Holdings sold a development site at 644 East 14th Street to Madison Realty Capital. The sale price was $31.3M and RWN Management provided a loan for the site. Four years ago, Madison loaned $52M to Opal for the acquisition, and Opal had been planning a 50-unit mixed-use building on the site.
Goldman Sachs is buying 1 Flatbush Avenue building from Slate Property Group and Meadow Partners for about $100 million, a newly-completed apartment tower.
SL Green sold 49.5% of its interest in One Madison Avenue to Hines and the National Pension Service of Korea in a joint venture partnership. SL Green and Hines will co-develop the project, which will span 1.4 million square feet and cost $2.3 billion. Hines and the National Pension Service of Korea have committed at least $492.2 million in equity to the project.
Maddd Equities bought the master lease for 405 East 59th Street in Lenox Hill for $42M. Gordon Group Holdings’ Bridgemarket Associates previously held the lease title. The property is 98K SF. Trader Joe’s plans to lease space in the building, which is being renovated.
Infinity Realty sold a six-story mixed-use building at 205 Bleecker Street for $10M. The property was bought by a Florida-based LLC and contains 40 residential units.
Wm Blanchard Co. purchased a 10-unit Upper West Side multifamily building at 120 West 74th Street for $7.1M with 6,600 SF from Bryan Binder through an LLC.
No sizable leases, reaching into the six digits, have been completed in Manhattan since the onset of the crisis in February, although a 740,000 square-footer is pending for Facebook at the Farley Post Office complex.
IBM is pulling out of a lease with WeWork at 88 University in a building owned by Adam Neumann. IBM had leased 70K SF office space. The property is up for sale.
Joseph Chetrit has sold his Upper East Side townhouse at 110 East 76th Street for $25 million.
Jay Group bought 620 West 153rd Street for about $29M. The Jay Group purchased 620 West 153rd Street from Anbau for $28.75 million. The development site has a zoning floor area of 150,144 square feet. The site is currently home to a pair of commercial buildings spanning about 51,000 square feet.
A Manhattan-based LLC purchased 305-311 West 99th Street from Sharon Realty for $18.5 million. The multifamily building stands eight stories tall with 46 residential units and spans about 48,000 square feet.
An LLC with the same Manhattan address bought the nearby 317-319 West 99th Street on the Upper West Side from Dan Company for $18.5 million. This is a multifamily building that spans about 48,000 square feet and stands eight stories tall with 34 residential units.
The Doe Fund bought 510-516 Gates Avenue in Bed-Stuy from the Paul J. Cooper Center for Human Services for $11.1 million. The three-story commercial building spans about 33,000 square feet.
Condos conceived at the peak of the market are launching sales at a time defined by oversupply and uncertainty, forcing developers to cut prices, seek lender lifelines and come up with creative concessions to stay afloat.
While some developers are choosing to halt projects before they rise from the ground, others are opting for smaller boutique models over the large skyscrapers that hallmarked the boom.
High-end rentals reaped some of the rewards as buyers retreated to temporary homes to wait for prices to hit bottom.