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AIG seeks $275M for HQ; RFR selling NYC property for $345M

Commercial real estate

* American International Group Inc. plans to sell its headquarters in Manhattan, N.Y.'s Financial District for roughly $275 million, The Real Deal reported, citing unnamed sources. The insurance company plans to lease back the 31-story property at 175 Water St. through the end of 2021 while it is transferring to its new location at the Rockefeller Group-owned development at 1271 Sixth Ave. in Manhattan's Midtown neighborhood, according to the publication.

* Deerfield Management Co. LP will buy the 12-story building at 345 Park Ave. in New York City from RFR Realty LLC for $345 million, The Real Deal reported. The buyer plans to convert most of the space in the building into laboratory space and aims to gain about $97.4 million in city tax breaks for the transaction, the publication noted, citing a cost/benefit analysis from the city's Industrial Development Agency.

Deerfield also sought a five-year, $525 million loan from CBRE to fund its purchase of the vacant building.

* Law firm Cravath Swaine & Moore has signed a lease for roughly 350,000 square feet at Brookfield Property Partners LP's Two Manhattan West in Manhattan, the New York Post reported, citing unnamed sources. The law firm is downsizing and moving from 617,000 square feet at Worldwide Plaza, which is owned by SL Green Realty Corp., New York REIT Inc. and RXR Realty LLC.

* Citing public records, The Real Deal reported Brookfield Property is seeking almost $78.9 million in real estate tax exemptions for the planned Two Manhattan West project, which is estimated to have an all-in development cost of $2.4 billion. The developer has filed an application with the New York City Industrial Development Agency seeking a 25-year real estate tax exemption. The property has also drawn leasing interest from Inc., according to a recent report.

* Dentsu Americas is considering leasing the full 292,692-square-foot fourth floor of Vornado Realty Trust's Farley Building redevelopment project in Manhattan, the New York Post reported, citing unnamed sources. The U.S. arm of the Japan-based ad firm would move from Rudin's 32 Sixth Ave., where its lease expires around 2022, the publication reported, citing the sources. The Farley Building is expected to be ready in 2020.

* Stock investors warned that property values in the Manhattan office market have been pushed too high by yearslong global investments, The Wall Street Journal reported. BMO Capital Markets estimates that the share prices of New York office real estate investment trusts are roughly 23% lower on average than the estimated private-market value of the REITs' owned buildings.

* Five of the biggest publicly traded hotel operators in the world have launched a total of 16 new brands since 2013, with five brands launched in the past 18 months alone, The Journal reported. The trend reflects the operators' push to add new products that they can market to hotel owners and collect fees for.

The publication pointed out, citing industry analysts, travel experts and hotel owners, that a proliferation of brands can end up eating into existing brands' territory and loyalty points and lead to tensions with property owners.

* Security Properties is planning a 29-story mixed-use residential tower in Seattle on a site in Belltown, the Puget Sound Business Journal reported. Citing a company spokesperson, the report added that Security Properties has not finalized whether it will build the units as rentals or condominiums.


* The New Home Co. Inc. acquired land in the Layton Lakes community in Gilbert, Ariz., and commenced work on a community of 222 townhomes and flats. The Mosaic community is expected to open in spring 2020.

The day ahead

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

In Asia, the Hang Seng lost 0.57% to 27,235.71, while the Nikkei 225 dropped 1.21% to 21,003.37.

In Europe, around midday, the FTSE 100 shed 1.29% to 7,174.82, and the Euronext 100 declined 1.34% to 1,024.96.

On the macro front

The U.S. Redbook, U.S. Richmond Fed manufacturing index and U.S. State Street investor confidence index 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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