New York Market Overview

The bondholders on a $219 million loan tied to 285 Madison Avenue filed to foreclose, less than six weeks after RFR Holding defaulted.

The Korea International Trade Association’s Center is going to upgrade the building at 460 Park Avenue by adding amenities to the building with a budget of $200 million.

Thor Equities quit making payments on the $51 million loan tied to 135 East 125th and 126 East 126th Streets, driving the debt into imminent monetary default and special servicing. 135 East 125th and 126 East 126th comprise about 95,000 square feet of leasable space.

Primark’s new 79,000 square-foot store in Herald Square. Hobby Lobby’s new 71,000-square-foot lease in Tribeca. More large retail spaces have also come on the market in recent years, opening the door for chain stores to grab them at a good price.

Amazon is delaying its return-to-office mandate for workers in some cities across the country due to office space shortages.

Restaurant chains posted a 1.6% increase this year to more than 4,000 locations, paced by fast-food and fast-casual operations. Metro by T-Mobile shed 30 stores in New York City. Duane Reade, reduced its store count by 22. Subway, Rite Aid, 7-Eleven, AT&T and Baskin-Robbins were also closed retail locations.

Real Estate Partners and TF Cornerstone are joining forces for a vast investment venture. The creation of a $1 billion venture to advance office-to-residential conversions across the country. The firms will source and analyze conversion opportunities on behalf of the venture, Alta Residential.

City of Yes frees Gowanus from parking minimums, which will eliminate parking minimums in parts of the city. Gowanus, where 80 blocks were rezoned in 2021 to pave the way for thousands of new housing units, is one such area. As long as a project has not been granted a temporary or permanent certificate of occupancy, a developer can use the new parking rules. Its 827-unit project at 175 Third Street in Gowanus will optimize parking strategy to meet demand.

The Council nonetheless retained parking mandates in much of the city.

The ownership of 175 Water Street is attempting to draw in office tenants on discounted, short-term deals. 99c purchased the former AIG headquarters two years ago for $252 million. The limited liability company was founded by Carlo Bellini, who also bought 180 Maiden Lane for $297 million in a short sale. Bushwack Capital, is also involved in 99c. 175 Water Street is also connected to Ken Dart, a plastics billionaire based in the Cayman Islands.

Alchemy-ABR’s proposal calls for 86 residential units. 1482-1486 First Avenue filed plans for a 28-story project at 1484 First Avenue and envisions a 161,000-square-foot mixed-use property that will stand 366 feet tall. Alchemy-ABR also owns the adjacent site and filed demolition permits for both parcels. The developer’s filing stated the full lot would include 137 units; presumably, that means 1482 First Avenue could house a 51-unit building.

Dune, TF Cornerstone launched a $1 billion office-to-resi venture in projects across the country.

Lender files to foreclose on Aby Rosen’s 17 State Street. RFR allegedly defaulted on a $180 million loan. Lender Wilmington Trust and special servicer Rialto Capital Advisors filed a lawsuit against RFR pertaining to 17 State Street. The plaintiffs allege RFR owes $183.5 million as of the beginning of November. The plaintiffs ask to foreclose upon the 42-story property, seizing it and turning around to sell it.

Lenders initiate foreclosure of RXR’s iconic Helmsley Building. The firm defaulted on $670 million last year. Lenders, including Morgan Stanley, at 230 Park Avenue. The loan was transferred to special servicing ahead of the maturity default. RXR says it’s still having “constructive conversations” with the lenders. Outside of the $670 million mortgage, there’s another $125 million in mezzanine debt owned by Morgan Stanley and Brookfield, The firm took out a $785 million acquisition loan from American International Group, and invested $190 million in improvements. Taxpayers help Blackstone refinance a luxury tower at 8 Spruce Street.

A limited liability company filed a lawsuit against Sitt alleging default on a loan of more than $2 million at 195 Bowery.

Extended Management plans to build a 77-unit, 212,000-square-foot, mixed-use building at 32 Thompson and a 21-unit, 47,000-square-foot residential building at 30 Thompson. The buildings will be 26 and 23 stories, respectively.

Fannie Mae blacklists Sevenstone Capital and Eastern Union are temporarily halted from doing business with Fannie Mae. The agencies are investigating Jeff Seidenfeld, a founding partner of Sevenstone Capital.

Council passes City of Yes to create 80,000 homes, coincides with $5 billion commitment for housing and infrastructure. The Council voted 31-20 in favor of the City of Yes for Housing Opportunity, an expansive zoning text amendment that is projected to add 80,000 housing units, beyond what would otherwise be built, over the next 15 years. The Council shaved nearly 30,000 homes off the measure’s projected total and secured a promise from Mayor Eric Adams for billions of dollars in housing-related spending. Parking minimums were also preserved in most of Staten Island, southern Brooklyn and eastern Queens. The Council also added affordability requirements to provisions that allow developers to build larger residential projects than previously permitted.

Office:

There are 2.4 million square feet of commercial space planned in Manhattan to be completed by the end of 2026 at projects like Vornado and Rudin’s 350 Park Avenue. However, 79% of that space is already leased. Expect the balance to be spoken for by the time the buildings open. At that point, the city will be desperate for new supply.

The overall availability rate is north of 17%, well above the 10% threshold that traditionally marks the difference between a market that favors either landlords or tenants.

1. Ropes & Gray, a law firm, leased 535,000 sf at 1285 Sixth Avenue in Midtown West, where it will move in three years, after its lease at 1211 Sixth Avenue expires. The landlord is RXR.
2. TPG leased a new lease at 66 Hudson Boulevard for 301,000 sf. The building is owned by Tishman Speyer.
3. Verizon signed a deal to renew its lease at 60 Hudson Street for 172,000 sf in the Tribeca building, which is owned by the U.K.-based Cordiant Digital Infrastructure.
4. Balyasny Asset Management, a hedge fund, leased a big expansion in the General Motors Building at 767 Fifth Avenue, more than doubling its footprint to 164,000 sf. The building is owned by BXP, formerly known as Boston Properties.
5. Gen II Fund Services, a private equity fund administrator, signed a new lease at 1675 Broadway in the Midtown West building for 98,000 sf. The landlord is Publicis Groupe.
6. Churchill Asset Management, an asset management firm, signed a new 10-year lease at 375 Park Avenue in the Plaza District for 78,000 sf.
7. Apple has expanded its offices at 11 Penn Plaza by subleasing 61,000 sf from Macy’s.
8. Federative Republic of Brazil leased a 10-year expansion at 220 East 42nd Street for 53,000 sf.
9. The New York State Executive Chamber leased a new lease at 919 Third Avenue in Midtown East for 53,000 sf.
10. Guidehouse leased a new 10-year lease at 75 Rockefeller Plaza for 45,000 sf.

Retail:

1. Vibe Fitness leased 55,000 sf at 10-04 Borden Avenue in Long Island City with a 10-year lease.
2. The National Museum of Mathematics leased 34,400 sf at 635 Sixth Avenue in Chelsea. The museum is moving from 11 East 26th Street.
3. Lincoln Market signed a 20-year lease for 36,000 square feet at River Place. The asking rent for the retail at 660 West 42nd Street was $60.00 per square foot.
4. Equinox leased 30,200 sf at 75 Varick Street in Soho with a 20-year lease.
5. Kitchen + Kocktails signed a lease at 147 West 46th Street for 20,000 sf for a 15-year lease.
6. Goodland Pickleball signed a lease for 12,000 sf at 67 West Street in Greenpoint.
7. Michael Kors signed a lease at 667 Madison Avenue for 11,000 sf. They signed a lease for more space at the same effective rent.
8. Bronx Sky Child Care Center signed a 10-year lease at 1951 Park Avenue in Central Harlem for 10,300 sf.
9. Brooks Brothers signed a lease at 195 Broadway for 10,000-square-foot. The 10-year lease covers a portion of the ground floor and the cellar.
10. Princess Polly signed a lease at 514 Broadway in Soho for 8,000 sf.
11. Calvin Klein leased 7,000 sf at 530 Broadway.
12. Urbn signed a lease at 166 Atlantic Avenue in Cobble Hill for 4,600 sf.
13. Buck Mason signed a lease at 486 Broadway in Soho for 3,300 sf.