New York City has a new most expensive apartment for sale: $130 million. And it’s not even built yet.
The 12,394-square-foot triplex topping a new luxury tower at 520 Park Avenue would be the most expensive apartment price tag New York has ever seen, surpassing the $118.5 million asking price for three separate units currently being marketed together in Battery City’s Ritz-Carlton tower.
The 54-story condominium tower at 520 Park Avenue is scheduled to begin rising by February 2015, says Arthur Zeckendorf of Zeckendorf Development. Set on 60th Street two blocks east of Central Park, 520 Park Avenue is designed to rival another, wildly successful Zeckendorf project: 15 Central Park West, now a billionaire enclave and one of New York’s most prestigious addresses.
“Clearly 520 Park is the 15 Central Park West of the Upper East Side,” Arthur Zeckendorf told Forbes. “Both buildings were designed to be sister buildings.” He described the penthouse at 520 Park as having 15-foot ceilings, with old world finishes and modern amenities.
The luxury condos at 15 Central Park West sold out in four years to buyers including Goldman Sachs CEO Lloyd Blankfein, hedge fund billionaire Daniel Loeb, Spanx billionaire Sarah Blakely, the musician Sting, and actor Denzel Washington. The tower even inspired a book:House of Outrageous Fortune, by Michael Gross, which documented a supposed war for one of its penthouses between Loeb and activist investor Carl Icahn.
The Zeckendorfs are hoping for another home run, but there is a real question of how much more luxury the New York City market can take. Several other high-rise residential luxury developments are underway just south and east of Central Park, including Extell’s One57 tower at 57th Street, Harry Macklowe’s 432 Park Avenue, and the super-skinny 111 West 57th Street, which will be just 60 feet wide. The first of the super towers, One57 quickly sold half its apartments in 2012, but now stands at only about 70% sold, sources tell Forbes.
“My gut feeling is that there’s only so much demand for this type of product,” says Ben Thypin, director of market analysis at Real Capital Analytics. “One 57 is seeing trickling demand.”
Read More: http://www.forbes.com/sites/erincarlyle/2014/09/24/manhattans-new-most-expensive-listing-a-130-million-park-avenue-penthouse/
With the stroke of a pen—and a whopping $1.1 billion payment—NorthStar Realty Finance Corp. will soon become the owner of a 7,000-room portfolio of upscale extended stay and select service hotels. The REIT has entered into a definitive agreement to buy a collection of 52 lodging properties from Inland American Real Estate Trust.
NorthStar will acquire the assets in a joint venture with Chatham Lodging Trust where NorthStar will have a 90 percent ownership stake, leaving Chatham with a 10 percent minority interest. In terms of financing the acquisition, neither company is sitting on a billion dollars; they expect to secure non-recourse financing for as much as 75 percent of the purchase price. For its part, Inland American anticipates walking away with approximately $480 million of net proceeds, which will be utilized to further the growth of its student housing and retail portfolios.
“This transaction will accomplish important goals for both parties,” Ben Carlos Thypin, director of market analysis with data and analytics firm Real Capital Analytics, told Commercial Property Executive. “Northstar will continue to gain economies of scale by growing their hospitality portfolio by over 50% while Inland will be able to provide its shareholders with a big win and focus on the spin-off of its remaining hospitality assets.”
Read More: http://www.cpexecutive.com/property-types/hospitality/northstar-to-buy-7000-room-hotel-portfolio-from-inland-american-for-1-1b/1004104051.html
Fresh off the acquisition of a 45 percent stake in Boston Properties’ 601 Lexington Avenue, the sovereign fund that manages Norway’s substantial oil wealth is making a play for Blackstone Group’s 1095 Sixth Avenue, according to a source familiar with the talks. A deal for the tower, expected to fetch up to $2.25 billion, would be the biggest office tower sale in New York since the GM Building traded hands in 2008.
Norges Bank Investment Management is gunning to buy the 42-story, 1.2 million-square-foot tower, which is located between 41st and 42nd streets and overlooks Bryant Park, a source with knowledge of its moves told The Real Deal. It’s also interested in buying into two Boston Properties’ assets in Boston: a 37-story office tower at 100 Federal Street and a 31-story office tower in the Atlantic Wharf complex.
The $5.6 trillion fund, which is associated with nearly $14 billion in total property acquisitions over the last decade, was given a mandate in 2010 to invest up to 5 percent of its assets in real estate outside Norway, according to Real Capital Analytics.
Blackstone acquired 1095 Sixth in 2007, as part of its $39 billion purchase of Sam Zell’s Equity Office Properties Trust. The building, which is 99 percent leased, is anchored by insurance giant MetLife, and Verizon Communications recently reestablished its headquarters there. Whole Foods is also taking about 32,000 square feet at the building.
Besides its investment in 601 Lexington, Norges’ recent Manhattan investments include a $684 million stake in Boston Properties’ 7 Times Square and an investment in 470 Park Avenue South, Real Capital data show. If Norges manages to acquire the tower, the move would be in line with some of these recent deals, according to Ben Thypin, Real Capital’s director of market analysis.
Read More: http://therealdeal.com/blog/2014/09/17/norwegian-fund-pushing-to-buy-blackstones-2-2b-1095-sixth-source/#sthash.ydRuXLEk.dpuf
Sales of Chicago-area commercial properties are on pace for their best year since the crash amid an improving economy and low interest rates.
Investors acquired more than $9.15 billion in local apartments, hotels, retail, office and industrial properties through August, up 28 percent from the $7.14 billion spent through the first eight months of last year, according to New York-based Real Capital Analytics Inc.
Sales volume is on track for its highest annual level since its peak in 2007, when $22.5 billion in commercial property sold.
Investor demand for real estate continues to rise amid the slowly growing economy, which is pushing up occupancies and rents, and low interest rates, which has kept borrowing costs low and made it harder to find good returns on other investment types. At the same time, many landlords are capitalizing on soaring prices by putting their properties up for sale. And even higher prices in hot coastal markets are drawing more investors to Chicago.
“Nationally there's more being invested in commercial real estate, but I imagine Chicago is benefiting from the compression in yields and increase in prices in places like New York, San Francisco and Los Angeles,” said Ben Carlos Thypin, director of market analysis at Real Capital.
Read More: http://www.chicagobusiness.com/realestate/20140915/CRED02/140919917/commercial-property-sales-on-pace-for-best-year-since-2007
Charles Schwab Investment Management Inc., of San Francisco, will expand its index mutual fund lineup with the launch of the Schwab Fundamental Global Real Estate Index Fund (SFREX), Schwab announced yesterday. The new fund reportedly is the only U.S.-based real estate fund to apply the Russell Fundamental Index Series to a broad-based, global portfolio of real estate securities.
The new fund will track the Russell Fundamental Global Select Real Estate Index. The index comprises more than 200 real estate companies in 20 countries and measures the performance of residential and commercial real estate companies and REITs in U.S. and non-U.S. markets, including developed and emerging markets, using a fundamentally weighted methodology.
Products using fundamentally weighted strategies weight securities based not on market capitalization, but instead on economic factors such as adjusted sales, retained operating cash flow and dividends plus buybacks. (More detailed information on top holdings, performers and countries relative to the Russell Fundamental Global Select Real Estate Index can be found here.)
“This new addition to Schwab’s index mutual fund family marries the diversification and dividend potential of global real estate with the intelligence of the Fundamental Index methodology, which we believe is a powerful combination,” said John Sturiale, senior vice president of product management at Charles Schwab & Co. Inc., said in a release.
Agnes Hong, managing director and head of passive equity strategies for Charles Schwab Investment Management, leads the portfolio management teams of Schwab’s ETFs and passive equity funds, which include the Schwab Fundamental Index Funds.
Ferian Juwono, managing director and senior portfolio manager for CSIM, is responsible for the day-to-day co-management of these funds.
“The Schwab Fundamental Global Real Estate Index Fund will help meet investor demand for passive yet liquid real estate exposure,” Ben Carlos Thypin, director of market analysis at Real Capital Analytics, commented to Commercial Property Executive. “Investors have had access to such opportunities for decades via the REIT market, and funds like this represent an evolution in the publicly traded real estate investment market.”
Read More: http://www.cpexecutive.com/headlines/schwab-to-launch-first-global-re-mutual-fund-to-track-a-fundamentally-weighted-index/1004103469.html
It’s been a good year so far for the real estate business in Queens. In fact, the borough is on track to break a record in 2014, according to Adrian Mercado, Massey Knakal’s head of research. “Queens is on pace for $3 billion of sales activity,” Mercado said, which would be the borough’s biggest dollar amount ever. The previous record was set in 2006, when transactions topped $2.6 billion. In 2013, the total dollar amount traded in the borough was $2.4 billion. Ben Thypin, director of market analysis at Real Capital Analytics, which provided the information for the attached map of the top 15 largest transactions, said that the “seemingly unstoppable run-up in pricing in Manhattan and Brooklyn” is fueling investment activity in the borough. -
Read More: http://therealdeal.com/blog/2014/09/04/the-top-15-commercial-sales-in-queens-this-year/#sthash.I7bF4GeG.dpuf
Chinese nationals have been buying U.S. residential real estate at a fast clip for the last few years. Now they are building it, setting their sights on some of the priciest parcels of land in the hopes of attracting U.S. and Chinese buyers alike.
"The Chinese real estate market is very competitive, and the U.S. housing market is recovering and expanding rapidly, so for us as a company to invest a certain amount in the U.S. makes a lot of sense for us," said Tian Ming, chairman of Landsea, a China-based developer, through an interpreter.
Landsea, which bills itself as China's "pre-eminent green builder," is investing $1 billion in the U.S. housing market, beginning with three new developments. It will build condominiums in the New York City market, townhomes in San Francisco and single-family homes in the Los Angeles area.
"Our primary customer is still here domestically in the U.S., but because of our background and who we are and our brand in China, we will get Chinese customers who will want to buy our homes," said Tian, standing on an empty parking lot in Weehawken, New Jersey.
Two hundred condominium units are planned for the site, which boasts spectacular views of the Manhattan skyline. Landsea purchased the property from U.S. home builder Lennar, which will design and build the project in much the same fashion as its own new condo building, which neighbors the property.
"We have enjoyed our association with Landsea and expect to see great things from them as they continue their journey in the U.S.," said Bruce Gross, Lennar's chief financial officer.
Lennar has already enjoyed great business from Chinese buyers in its Southern California housing developments. Chinese parents are flocking to California especially, buying homes there so that their children can attend American high schools and universities. Lennar, and other U.S. builders, have even implemented Feng Shui design in some of their homes to accommodate the Asian buyer.
"China's investment is spiking now because there is a fear by many Chinese nationals that their capital is not secure in China itself, and so they are looking for other places to invest," said Ben Thypin, director of market analysis at Real Capital Analytics.
Read More: http://www.cnbc.com/id/101967257#.
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.