SL Green, the largest commercial office landlord in New York City, said it agreed to buy 304 Park Avenue South for $135 million, or $628 a square foot, from a partnership led by David Berley, chairman of Walter & Samuels Inc.
SL Green said the 215,000 square foot office and retail complex, located on the corner of 23rd Street across from the landlord’s One Madison Avenue tower, will be acquired with 50 percent cash and 50 percent “operating partnership units.”
IMG Models, the world’s largest modeling agency, is the lead tenant, occupying 95 percent of the building, while the retail space is occupied by H&R Block, Time Warner Entertainment and Bed & Body Works.
Andrew Mathias, president of SL Green, said that the company has been monitoring the Midtown South submarket carefully for deals, but noted that the tightening vacancy rates and substantial leasing activity in the area have generally driven cap rates “below our target investment thresholds,” in the announcement released Thursday.
“The transaction reinforces what everybody knows, Midtown South is the hottest market in the country,” said Ben Thypin, director of market analysis from Real Capital Analytics. “By being able to offer the seller a tax-efficient transaction, SL Green was able to source an off-market deal that met their investment criteria, which is rarity in a market as hot [as this].”
Read More: http://therealdeal.com/blog/2012/05/31/sl-green-grabs-midtown-south-office-building-for-135m/
Will the industry’s momentum build to a point where conduits are again giving the GSEs a run for their money?
“I’m not even sure if that’s the right way to look at it, because the rates being offered by the GSEs right now are so good,” says Ben Thypin, a senior market analyst for New York–based Real Capital Analytics. “CMBS is lending on product the GSEs wouldn’t lend on—it may be prestabilized properties, or deals in secondary or tertiary markets.”
Read More: http://www.housingfinance.com/aft/articles/2012/may-june/0512-frontlines-CMBS-Heats-Up-But-Is-It-Back-to-Stay.htm
Berkadia Commercial Mortgage LLC, the joint venture of Warren Buffett’s Berkshire Hathaway Inc. (BRK/A) and Leucadia National Corp. (LUK), is expanding in Florida as it prepares for an end to the state’s real estate slump.
“Florida in general is on the rebound, albeit slowly,” Hugh Frater, chief executive officer of Horsham, Pennsylvania- based Berkadia, said in a telephone interview today. “We expect Florida to be a place that people will continue to migrate to for some time.”
Frater, 56, said he expects the revival particularly in multifamily housing, pointing to Miami where new apartments and condominiums are already being built. Berkadia announced in September that it agreed to buy banking assets from Tavernier Capital Partners LLC to expand in Florida.
Sales of commercial properties totaled $50.3 billion in the first quarter of this year, up 40 percent from a year earlier, according to Real Capital Analytics Inc. The improving availability and cost of mortgage capital has helped fuel deals, especially in apartments, said Ben Thypin, director of market analysis at the New York-based researcher.
Florida sales in the first three months were $4.57 billion and are on pace to surpass last year’s $15 billion total “by a significant margin,” Thypin said today in an e-mail.
Read More: http://www.bloomberg.com/news/2012-05-04/berkshire-mortgage-venture-bets-on-florida-s-rebound.html
Ben Carlos Thypin
I am currently the co-founder of Quantierra, the world's first data driven real estate brokerage and investment manager. In my former life as Director of Market Analysis at Real Capital Analytics, I worked with press outlets large and small to provide them with great data and insightful commentary. Here are some of the results of this collaboration. For the rest, please check out the News Archive.