Sales of downtown Chicago office properties have risen 48 percent to $1.12 billion this year as investors purchase buildings outside the prime markets of New York, San Francisco and Washington, according to real estate research company Real Capital Analytics Inc.
“As those coastal markets have become really competitive in many cases, and in some people’s views overpriced, more people are moving to Chicago,” Ben Thypin, director of market analysis for New York-based Real Capital, said in a telephone interview. “There’s so much capital chasing high-quality properties in primary markets.”
Read More: http://www.bloomberg.com/news/2011-09-28/tishman-speyer-venture-sells-chicago-tower-for-217-5-million.html
Gramercy Capital Corp., the real estate investment trust whose stock has more than doubled in the past year, may consider a sale of the company after it completes a debt restructuring, said two people familiar with the plan. The shares surged almost 10 percent.
Gramercy, which is working with Wells Fargo & Co. (WFC) and the bank’s Eastdil Secured LLC unit, plans to contact private-equity firms if it pursues a sale, said the people, who declined to be identified because the process is private. TPG and Angelo Gordon & Co. are among the firms that have previously expressed an interest in the New York-based REIT, one of the people said.
“Private-equity firms looking for a publicly traded real estate platform would likely have an interest in Gramercy,” said Ben Thypin, director of market analysis for New York-based Real Capital Analytics Inc. “With the company’s restructuring in place, Eastdil should be able to shop it as an opportunity to create or grow such a platform.”
....Apollo Global Management LLC, Colony Capital LLC and Starwood Capital Group LLC are among private-equity firms that have backed publicly traded REITs. The companies are valuable to buyout firms because they invest in property and loans and have access to low-cost capital through the bond market, Thypin said.
“Publicly traded shares give the firm and its investors more liquidity than they have with their private partnership interests,” Thypin said.
Read More: http://www.bloomberg.com/news/2011-09-14/gramercy-capital-said-to-consider-sale-after-debt-restructuring.html
While construction is not expected to begin at 1045 Avenue of the Americas until early next year, it remains one of a small handful of city projects able to qualify for coveted construction loans. Even so, approximately 1.5 million square feet of office construction was completed last year across New York City’s five boroughs, up from just 350,000 feet in 2009, according to data provided by Cushman & Wakefield. As of January, an estimated 5.6 million square feet of construction was under way.
Besides 1 World Trade Center and 4 World Trade Center — probably the best known of the pending projects — construction has begun or is expected to begin at 250 West 55th Street; 51 Astor Place; Hudson Yards; Brookfield’s Manhattan West; and 20 Times Square, among several others.
“It’s primarily been a financing issue,” said Ben Thypin, the director of market analysis at the research company Real Capital Analytics. “There could have been developers who wanted to build, but they couldn’t find a bank or lender to write them a large enough construction loan at the time. A lot of it also has to do with whether they have a tenant or not.”
Read More: http://www.nytimes.com/2011/09/07/realestate/commercial/new-york-construction-rebounding-despite-tight-financing.html
Gramercy Capital Corp. rose as much as 14 percent after the New York-based real estate investment trust said it agreed to settle $549.7 million in mortgage debt by transferring hundreds of U.S. buildings to lenders.
“What remains of Gramercy may be an attractive acquisition target both for buyers of discounted financial assets and someone looking to acquire a public real estate platform,” Ben Thypin, director of market analysis for New York-based Real Capital, said in a telephone interview. “The company may be an appealing target for private-equity firms with dry powder committed to real estate that they need to deploy.”
It's possible that "they're still affiliated as a separate group, within an umbrella organization," according to Ben Thypin of Real Capital Analytics, who said he had no direct knowledge of the Chetrits' internal structure. "That wouldn't be unprecedented among New York real estate families."
Still, the Chetrits are in some ways better off than other real estate developers.
"They were involved in some pretty profitable transactions during the boom," Real Capital's Thypin said.
He cited the combined $715 million sales of 200 Fifth Avenue and 1107 Broadway in 2007, which a Chetrit-led group had purchased two years earlier for $355 million. Also, the Chetrits sold 1450 Broadway for $204 million in May, after buying it in 2004 with Moinian and other partners for $122.5 million.
"They had a few very good years, so losing a few million here or there in the crash isn't a big deal," Thypin said. "A lot of people have lost much more."
Read More: http://therealdeal.com/newyork/articles/chetrits-deny-split
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.