Buyer's Appetite Outpaces Sales Pipeline, in Manhattan at Least
Crain's New York Business reports: Waterman Interests, in a joint venture with other institutional investors, purchased a 21-story office tower at 400 Park Ave and 54th Street in Manhattan for an undisclosed price on Wednesday, August 26. According to Philip Waterman, a managing member of the company, the property at 400 Park “is located on a corner that is among the best in the country, if not the world, for business and retail.” Making the sale even more remarkable, the property could be classified as value-add as it is currently 30% vacant, with the lease on its 70,000 square feet of retail space, occupied by Syms, set to expire in 2011.
Regarding the sale of 400 Park, Dan Fasulo, Real Capital’s managing director, chimed in on the spate of large one-off sales that have been occurring in Manhattan over the past few months. Fasulo states that “the market has definitely opened up again…” and that the renewed avidness of buyers has not been matched by an increase in opportunities to purchase. Buyers have also been more willing to take “more risk”, according to Mr. Fasulo, similar to the value-add situation at 400 Park. Investors willing to pay prices well above estimates, even for lesser-quality properties, have pushed up pricing for property, particularly in primary markets as of late (see Real Capital’s US Capital Trends article for more info on market tier disparities).
View the full article on Crain's New York Business: Buyer's Appetite Outpaces Sales Pipeline, in Manhattan at Least
Articles related to this topic:
As Apartment Cap Rates Fall, Market Heats Up
Chicago Office Tower Deal Sets Pricing Record
Is it Time to Buy Commercial Real Estate? (Video)
Buy Commercial Property as US Bonds Reach Record Lows
Return of the Billion-Dollar Asset in NYC Tests Buyer Confidence, Capital
Notable Apartment Deals Portray a Sector in Recovery
Commercial Real Estate Buyers Bumped from "Major" Markets Looking to North Carolina
New Par for the Course? Two Sixth Avenue Properties Could Fetch Impressive Pricing
Risk-Averse Investors Driving Up Prices on "Trophy" Assets in Top Six US Markets
For Manhattan Apartment Investors: Go Long to Go Big
Posted by: Nina Turner