In order to get a better concept on what’s going on the market, we took a closer look at all commercial real estate transactions to close in NYC throughout the first quarter of 2019.
Using data provided by the Department of Finance Rolling Sales and New York City Department of Finance ACRIS, we managed to extract the top 20 commercial real estate sales of Q1 2019 in the Big Apple. As it turns out, it was quite a fruitful quarter.
While the Chrysler Building is among the best known in the city, even to people who have never been to New York, it was sold for what may seem like a bargain, becoming only the 13th largest sale on the list. RFR Holding and SIGNA Holding GmbH bought the iconic landmark for only $150 million. Abu Dhabi Investment agreed to sell at an 80% loss due to the soaring rent they pay to Cooper Union school (more than $32 million this year), which owns the land beneath the tower.
Aside from the big fuss on this one, the list is quite balanced, featuring office, retail, residential, hotel and industrial sales, and a diversified list of buyers. While the Bronx makes only one appearance and Brooklyn three, 16 of the top real estate sales belong to Manhattan.
Top 3 Largest Sales
It appears that WeWork is now the largest office tenant in New York, hard to compete with. Alongside global private equity firm Rhone, WeWork purchased the former Lord & Taylor’s Department Store from Hudson’s Bay, for no less than $850 million.
The second largest deal consists of an office sale. The Rockpoint Group closed on their purchase of One Dag Hammarskjöld Plaza, a 49-story, glass office tower located at 885 Second Ave. Ruben Companies sold the building at the beginning of January for approximately $566 million.
Investor and real estate developer, Jacob Chetrit and his sons, Michael and Simon, bought the Midtown office tower 850 Third Ave. in a $422 million transaction. The sale resulted in a loss for HNA Group, but earned Chetrit the third place on New York’s largest sales in the first quarter.
Other Highlights
The biggest industrial deal of Q1 was made in Brooklyn, for the price of $214 million. With plans to create more than 1 million square feet of industrial space, DH Property Holdings and Bridge Development Partners acquired the Sunset Industrial Park from 601W Companies.
Regarding hotel sales, Elliott Management Corporation and GFI Capital acquired the Parker New York Hotel (aka Le Parker Meridien) from the Jack Parker Corporation for $420 million, in a deal closed on January 24 – marking the biggest hotel sale of Q1.
The Jack Parker Corporation also sold Truffles Tribeca, a 291-unit luxury apartment building. Related companies paid some $260 million for it.
Last but not least, the Bronx made it to our list with its largest single-asset sale in six years. Fruchthandler’s FBE Limited bought the 10-story, 1970s-era buildings at 2001-2045 Story Avenue for $88 million.
Needless to say that NYC’s largest commercial sales of Q1 is pretty well balanced, consisting of one retail sale, five office and four hotel deals, five residential sales, two student housing sales, two industrial deals and one mixed-use transaction.
Guest author: Flavia Medrut
