Multi-Family Properties Might Be The Way To Multi-Millions

In the current commercial real estate market, investing in multi-family homes should be on the radar. Multi-family properties don’t always have to be 20 floor sky rise apartments in a big city. They can be smaller duplexes, town homes Read more

New Real Estate View: Why The Homeless Are Big Business In New York

It's a grim scenario: In New York, there are more than 50,000 homeless. Of that number, 21,000 are children, an increase of 21 percent from last year, according to a report by the Coalition for the Homeless, a New Read more

Red Is the New Green – Chinese Investors Eye US Assets

***This blog entry is a guest post from Elton Steinberg, Marketing Associate at United Realty*** American fund managers should be aware of current and future trends that may make the Chinese account for a more significant portion of overall foreign Read more

Gimme Shelter - Foreign Investors Seek Returns and Safe Haven in US Real Estate

***This blog entry is a guest post from Elton Steinberg, Marketing Associate at United Realty*** Foreign investment has been a significant driver of the US real estate market recovery. Investors from across the globe have been responding to negative stimuli Read more

Commercial Real Estate

Real Estate Thoughts: Hotel Markets

The hotel market is one that remains in a state of flux.

Hotel Room in Hotel Real Estate

Over the last several years there has been a significant lack of new construction of hotel properties, primarily due to the financing markets, as well as a decline in tourism nationwide. As our economy begins to recover there will a need for additional hotel capacity. At the same time, while the European economy suffers, this may result in a reduced demand for US hotel rooms from European tourists who will be traveling less frequently, creating a forecast for a relatively shaky market. The best opportunities appear to be in larger central business districts of major cities where occupancies are at or exceed 75%.

New York is a unique market, given that the cost of hotel rooms has risen to be generally unaffordable, except at the very top of the market. Therefore, the opportunity in a city such as New York is to convert non-hotel properties that lie outside of the central business areas but are connected by transportation hubs, so that tourists can find affordable hotel rooms close to but not in Manhattan. A current example of this is Brooklyn, a good bet for new or converted hotel rooms, especially with the construction of The Barclay’s Center. In other markets, one might wish to consider a prime location with an older property that has fallen into disrepair or lack or high vacancy. Buying those hotels both on “the cheap” and repositioning them, or renovating them and “putting a flag on them” (i.e. Marriott, Wyndham, etc.) could be an opportunity as well.

 

 

 

Posted on by Jacob Frydman in Commercial Real Estate, Hotels Leave a comment

Top 5 Biggest Commercial Mortgage Loans In NYC From January to April 2012

***This blog entry is a guest post from PropertyShark.com and contains data developed by their analysts. PropertyShark.com aggregates real estate data and listings from hundreds of public and proprietary sources into an easy-to-use yet comprehensive property research website covering a dozen major markets.***

A recent survey done by loan officers at Federal Reserve informs us that since the beginning of February 2012, banks — domestic banks in particular — have started to ease loan standards for the commercial real estate sector. At PropertyShark.com, we searched for the biggest five commercial mortgage loans in NYC from January to the end of April 2012 and compared them to the loans secured during the same period last year to see what the changes are.

The data shows that waters remained rather still this year except for two blockbuster loans in April. The rest of the loan activity stayed within last year’s patterns, when none of the commercial loans surpassed $175,000,000.

The biggest mortgage loan this year amounted to $520,000,000, with New York State Fund Housing Agency as lender. With it, real estate developer Gotham Organization is set to bring a change in the West Side’s residential landscape, as the massive housing project at 550 West 45th Street is expected to offer more than 1,000 affordable and luxury residential units at one address.

The second was secured against the 53-story tower at 1515 Broadway. Right before media giant Viacom paid a whopping amount to renew the lease of this entire building, the landlord, SL Green, obtained a loan of more than $320,000,000 from the New York branch of Bank of China. This is not the first mortgage SL Green, the largest office landlord in NYC, receives from the Chinese lender.

Are these two loans going to set a trend? It might be too early to tell, but they sure rocked the boat a little.

As a lender, Deutsche Bank has proven quite active during this time. In March 2012, it added to its lending books a $142,148,560 mortgage secured against the 7-story office building at 10 East 52nd Street, Manhattan, after one of its subsidiaries, the German American Capital Corporation, had financed in February a $125,000,000 loan going to The Solow Building in Manhattan.

Last year during the period January-April the highest mortgage loan was the $175,000,000 associated with The Milford Plaza Hotel in Manhattan. Foreign banks competed again with the domestic ones, Deutsche Bank appearing once more as one of the main lenders, with a $125,000,000 mortgage loan going to The Sheffield at 322 West 57 Street, one of the most sought-after condo buildings in Midtown Manhattan.

Here are the rankings for the highest commercial mortgage loans for January-April 2011 and 2012:

NYC Top 5 New Mortgages in January 2012-April 2012


 

 

 

 

 

 

 

 

 

NYC Top 5 New Mortgages in January 2011-April 2011



Posted on by Jacob Frydman in Commercial Real Estate, Guest Blog Post, Hotels, News Leave a comment