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NYC tower lands $780M of new equity; Blackstone building fetches $282M

Commercial real estate

* The 46-story TSX Broadway tower planned at 1568 Broadway in New York City's Times Square secured over $780 million in new equity, including roughly $400 million from UBS Group AG's ultra-high-net-worth and family office clients, Bloomberg News reported. Fortress Investment Group LLC, L&L Holding Co. and Maefield Development Corp. are set to develop the property, with construction expected to commence in January 2019.

Fortress owner SoftBank Group Corp. is injecting about $200 million into the project, while L&L co-founders David Levinson and Rob Lapidus and Fortress executives Peter Briger and Dean Dakolias are also investing, the news outlet said, citing sources familiar with the matter. Additionally, Goldman Sachs Group Inc. is extending a $1.13 billion construction loan for the development, which will include the restoration of the Palace Theater, 75,000 square feet of retail space and a 669-room luxury hotel, among other features.

* Blackstone Group LP unit EQ Office sold an almost 350,000-square-foot office and retail building at 114 W. 41st St. in Manhattan, N.Y., to Clarion Partners LLC for $282 million, The Real Deal reported, citing Newmark Knight Frank, which marketed the asset.

The buyer obtained a $141 million loan from MetLife to fund the acquisition, which translates to a per-square-foot price of upward of $800. The Blackstone subsidiary made capital improvements worth $30 million to reposition the property, after acquiring it for $165.7 million from L.H. Charney & Associates in 2014.

* JPMorgan Chase & Co. acquired 666,766 square feet of development rights for its planned tower at 270 Park Ave. in Midtown Manhattan for $208 million, The Real Deal reported, citing documents filed with the city's Department of Finance. The bank bought the air rights from TF Cornerstone and MSD Capital, the owners of the Grand Central Terminal, according to the report.

The transaction will aid JPMorgan's plan to develop a new headquarters that will span 2.5 million square feet in the neighborhood.

* Maverick Real Estate Partners LLC's fifth fund, the Maverick Lien Fund V LP and Maverick Lien Fund V Co-Investors LP, reached its hard fundraising cap with commitments of over $200 million from pension fund, endowment, foundation and family office investors upon its final close.

The fund targets defaulted commercial mortgages in New York City.

* It may be roughly two years before Inc. starts construction on its campus in the Long Island City neighborhood of Queens, N.Y., The Wall Street Journal reported, citing people familiar with the matter. It reported that the e-commerce giant may be able to break ground on its other headquarters in Arlington, Va.'s Crystal City neighborhood a little earlier, owing to various site approvals and other preconstruction work. The publication added that Amazon will need several months to remodel temporary offices it is leasing in both locations, before workers can relocate.

Amazon plans to gradually hire workers, with the addition of 400 employees in Crystal City and 700 employees in Long Island City by the end of 2019. By 2028, the company expects to reach only half of its target to bring 25,000 new jobs in Crystal City, while in Long Island City, it aims to have employed 25,000 workers during the period.

* Big Rock Partners LLC's Big Rock Partners Senior Housing unit is planning to develop a $150 million luxury elderly housing community on a 15-acre plot near Delray Beach, Fla., which it purchased for $9 million, The Real Deal reported, citing a company spokesperson.

The site was purchased from Theodore and Gertrude Winsberg at a price of approximately $600,000 per acre, and partially funded with a $4.5 million loan from Vancouver, Canada's Trez Capital Group. The senior living development will contain 185 independent living residences, 50 assisted living residences and 44 memory-care residences. Big Rock expects to wrap up the project in 2021, according to the report.

* Greystar Real Estate Partners LLC purchased a residential development in Palm Beach Gardens, Fla., for $83.6 million from a partnership between UBS Realty Investors LLC and a real estate investment trust operating under private equity firm TPG Capital Corp., The Real Deal reported, citing real estate records.

The Mira Flores Apartments estate at the 22-acre 11900 Valencia Gardens Ave. site contains 352 units, which transacted for approximately $237,500 each. The joint venture had picked up the apartment complex in 2011 for $48.5 million.

The day ahead

Early morning futures indicators pointed to a lower opening for the U.S. market.

In Asia, the Hang Seng decreased 1.62% to 26,094.79, while the Nikkei 225 was down 2.02% to 21,374.83.

In Europe as of midday, the FTSE 100 fell 0.80% to 6,822.14, and the Euronext 100 was down 0.97% to 941.36.

On the macro front

The U.S. Retail Sales report, Industrial Production report, PMI Composite FLASH, Business Inventories report and Baker-Hughes Rig Count report are due out today.

Click here to read about today's financial markets, setting out the factors driving stocks, bonds and currencies around the world ahead of the New York open.

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Data Dispatch: US equity REITs raise $2.14B through at-the-market offerings in Q3: Office-focused REITs raised the most capital through at-the-market offerings in the third quarter, followed by the single-tenant retail and data center sectors.

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