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New York’s Historical Real Estate on Boom!

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New York's Historical Real Estate on Boom!

Sure, we all know that it is expensive to live in New York, and real estate is big business. That is just one of the cities where Donald Trump has made significant moves. Manhattan’s real estate managed some huge sales recently.

Over the last two years, major commercial property purchases have been made, with some traditional buildings changing hands. Here we take a look at some of the significant properties sold and quickly bought in Manhattan.

Interesting Points

There are some interesting points about all of these real estate deals that went down in Manhattan. Here are some of them.

  • All the deals listed here occurred within one year, from November of 2014 through November 2015.
  • 11 Madison Avenue’s sale at $2.29 billion was the largest deal ever done for New York City real estate.
  • 3 of the ten properties purchased in the list below were by Asian investors. Two were Chinese, and one was South Korea.
  • Only one of these ten deals went for less than $500 million.
  • The Crown Building’s availability was extremely short, being on the market for only one day.

Top Seller

SL Green Realty Corp. made history when they purchased the building at 11 Madison Avenue. $2.29 billion was the handsome sum paid to Sapir Organization, who also had CIM Group as a minor owner. The profit was quite nice, given that the previous owner paid less than $700 million for the property back in 2003.

Legendary Hotel Changes Hands

Of all the famed hotels in New York (or the world, for that matter), none has that certain ring when you say the name like the Waldorf Astoria. The Blackstone Group’s Hilton Worldwide Holdings remained the operator, only giving up the ownership of the Manhattan icon. It was China’s Anbang Insurance Group that bought it, paying almost $2 billion for the Park Avenue fixture.

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Here Comes Canada

Montreal’s Ivanhoe Cambridge and Callahan Capital Properties went down to New York to pick up 3 Bryant Park from Blackstone Group. $2.2 billion was what it took to acquire the home of MetLife.

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Helmsley Building Up For Sale

The Park Avenue’s Helmsley Building sold for a small profit. The building was bought in 2007 for $1.15 billion by Invesco, Monday Properties, and South Korea’s National Pension Service. The buyer was RXR Realty, who came together with Blackstone Group to make the purchase.

Super-Quick Seller

$4,551 was the price per square foot for the Crown Building. $1.78 billion was the total price tag for this building, formerly owned by Spitzer Enterprises and Winter Organization. The buyer just took a day to step up. Jeff Sutton and General Growth Properties teamed up to make the buy.

Slight Name Change

The New York Palace Hotel, which sits on East 50th Street, was sold for just over $800 million. The name has now changed to Lotte Hotels and Resorts. The Lotte Group was the buyer, taking over the building from Northwood Investors. The New York Palace hotel purchase was by far the biggest South Korean purchase of U.S. property ever made.

The Lone Exceptions

$870 million was the price tag which saw HFZ Capital Group pick up the property at 501 West 17th Street, which is on the High Line. Although the maximum allowable height of a building in this area is 220 feet, HFZ got to go higher with its proposed buildings, which will be 300 and 400 feet high. Edison Properties, the seller, is building a new park next to High Line, which made the permit for the taller buildings possible.

Home of Victoria’s Secret

On 1740 Broadway one can find the corporate offices of Victoria’s Secret. The building was sold by Vornado Realty Trust to Blackstone Group for just over $600 million.

Park Completion Almost Ready

Bryant Park is nearly complete, according to Tommy Craig, the managing director for Hines Development. Along with J.P. Morgan Chase, 7 Bryant Park was sold to Bank of China for just under $600 million. Hines switched roles, going from owner to property manager, with a tower 30 stories high close to being finished.

Last but Not Least

Coming in as the only entry that went for less than $500 million, Clarion Partners signed for CalSTRS and MHP Real Estate Services, buying 180 Maiden Lane from The Moinian Group and SL Green Realty Corp. The Holborn Corporation was the first to move in after Goldman Sachs moved out.

Other Items of Note

There are a few things to make note of about this list of sales.

  • These are only the top 10 real estate deals regarding value
  • In the 11/2014-11/2015 period, only deals that are on property records were listed
  • The properties listed were single property sales only
  • Blackstone Group was the most common name among this list, occurring in 4 of the ten deals, twice as the buyer and twice as the seller.
  • At least 3 of the buildings constructed in the early 1900’s. In 1931, the Waldorf Astoria was built.

 

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