Key Takeaways
- • Ken Griffin's firm secured $3.3 billion in construction financing for the 66-story 350 Park Avenue development, a project led alongside Vornado Realty Trust and Rudin, according to Commercial Observer's weekly Sunday Summary.
- • UDR and Apollo Global Management formed a $2 billion joint venture covering 19 multifamily communities with 7,059 units, with Apollo investing roughly $1.34 billion in equity and UDR managing the portfolio.
- • Manhattan investment sales fell 27 percent quarter over quarter, though dollar volume was 4 percent higher than a year earlier, per Commercial Observer.
- • Blackstone reported third-quarter profits down slightly more than 9 percent, and a $1.3 billion CMBS loan on Sun Belt and Seattle multifamily assets was moved into special servicing.
- • CBRE posted net income up 22 percent to $443 million and revenue up 13 percent year over year, and agreed to acquire data center equipment company Onnec Group for $610 million.
Summary
The week's largest transaction was Ken Griffin's $3.3 billion construction financing for 350 Park Avenue, a 66-story development in which Griffin is partnering with Vornado Realty Trust and Rudin. Commercial Observer also highlighted UDR's $2 billion joint venture with Apollo Global Management, which spans 19 multifamily communities totaling 7,059 units. Apollo is contributing about $1.34 billion in equity, and UDR will manage the properties.
Market indicators were mixed. Manhattan investment sales dropped 27 percent in the last quarter, and the borough recorded fewer transactions than the prior quarter's 87 sales. Dollar volume, however, was 4 percent higher than a year earlier. Brandon Polakoff of Avison Young said Manhattan remained on pace to surpass 2025 sales activity. Office leasing conditions remained tight in parts of the market, with some landlords holding back space for large tenants and lease concessions easing from their 2024 peak. Tishman Speyer and Bouwinvest Real Estate Investors formed a joint fund to buy top-tier U.S. offices, beginning with the Chrysler Building.
Third-quarter earnings showed divergence. Blackstone's profits fell slightly more than 9 percent, and a $1.3 billion CMBS loan on multifamily properties in the Sun Belt and Seattle went into special servicing. Stephen Schwarzman attributed the pressure to a historic rise in global bond yields, including U.S. Treasury yields at their highest level in decades, which he said raised the cost of capital and reduced transaction activity. CBRE reported net income of $443 million, up from $363 million a year earlier, and revenue growth of 13 percent, though its stock dipped after the call. SL Green saw a slight leasing decline but completed two sales: 10 East 53rd Street to Meadow Partners for $312.2 million and 110 Greene Street to Natora Group for $226 million. CEO Marc Holliday cited a roughly 150 basis point rise in rates over the year and said hedging had limited the impact.
South Florida activity remained strong, according to participants at Commercial Observer's South Florida Capital & Development Forum on Oct. 15. Recent deals cited included Related Ross's $64 million purchase of the North 40 office complex in Boca Raton, Grover Corlew's $69.7 million acquisition of 200 East Broward in Fort Lauderdale, and Genting Americas' $500 million refinancing of the Omni Center near downtown Miami.
Market indicators were mixed. Manhattan investment sales dropped 27 percent in the last quarter, and the borough recorded fewer transactions than the prior quarter's 87 sales. Dollar volume, however, was 4 percent higher than a year earlier. Brandon Polakoff of Avison Young said Manhattan remained on pace to surpass 2025 sales activity. Office leasing conditions remained tight in parts of the market, with some landlords holding back space for large tenants and lease concessions easing from their 2024 peak. Tishman Speyer and Bouwinvest Real Estate Investors formed a joint fund to buy top-tier U.S. offices, beginning with the Chrysler Building.
Third-quarter earnings showed divergence. Blackstone's profits fell slightly more than 9 percent, and a $1.3 billion CMBS loan on multifamily properties in the Sun Belt and Seattle went into special servicing. Stephen Schwarzman attributed the pressure to a historic rise in global bond yields, including U.S. Treasury yields at their highest level in decades, which he said raised the cost of capital and reduced transaction activity. CBRE reported net income of $443 million, up from $363 million a year earlier, and revenue growth of 13 percent, though its stock dipped after the call. SL Green saw a slight leasing decline but completed two sales: 10 East 53rd Street to Meadow Partners for $312.2 million and 110 Greene Street to Natora Group for $226 million. CEO Marc Holliday cited a roughly 150 basis point rise in rates over the year and said hedging had limited the impact.
South Florida activity remained strong, according to participants at Commercial Observer's South Florida Capital & Development Forum on Oct. 15. Recent deals cited included Related Ross's $64 million purchase of the North 40 office complex in Boca Raton, Grover Corlew's $69.7 million acquisition of 200 East Broward in Fort Lauderdale, and Genting Americas' $500 million refinancing of the Omni Center near downtown Miami.
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