New York Real Estate Market is Shrinking

NNN Lease Market News

Manhattan Luxury-Home Supply Dwindles

Jason Haber, who runs a New York real estate brokerage firm, is struggling to find apartments to show a client who’s in the market for a Manhattan home priced around $8 million. “That’s not something you would do if the market was flush with high-end inventory,” said Haber, co-founder and chief executive officer of Rubicon. “That’s a sign of the times. This is a ready, willing and able buyer and we can’t find the product for him.
There were 832 homes on the market with asking prices of at least $5 million last month, compared with 862 in October 2010, 917 in 2009 and 909 in 2008, StreetEasy data show. In October 2007, near the real estate market’s peak, there were 588 listings.
Prices haven’t returned to peak levels. The third-quarter median price in the top 10 percent of the market was $4.17 million, down 16 percent from the high of $4.99 million in the first three months of 2008, according to Miller.


http://www.bloomberg.com/news

Institutional Investors and Real Estate Investment Trusts Back in the Market in a Big Way

NNN Lease Market News

Institutional Investors and Real Estate Investment Trusts Really Back in the Market

Demand for prime properties is rising as Manhattan office leasing improves and buyers seek to put capital to work. Institutional investors and real estate investment trusts led purchases, making almost two-thirds of deals in the first six months of the year, according to Cushman.
“The institutions and pension funds are really back in the market in a big way,” Joseph Harbert, Cushman’s New York-area chief operating officer, said in a briefing for reporters.
“The smart REIT money got active in the market in ’10, and is still very active. The foreign money as a percentage now is not as active.”
Properties priced at $100 million or more are “selling at a very brisk pace” and driving the market while lower-end sales are more sluggish, according to Robert Knakal, chairman of commercial-property brokerage Massey Knakal Real Estate Services, which also issued a report today on Manhattan sales.
The average deal price for the first half of the year was $13.1 million, higher than the $12.3 million reached at the market’s peak in 2007.The high end is recovering, but otherwise the market is kind of slogging along,” Knakal said. “It is taking longer to gain the traction that we like.”

http://www.bloomberg.com/

Brownstone Tampa Partners LLC Announced it has Acquired the Former Trump Tower

NNN Lease Market News

Mr. Trump wasn't the developer of the planned 52-story Tampa project, but he licensed his name to its Florida developer, Simdag/Robel LLC. Mr. Trump did numerous of these types of deals in the years leading up the economic downturn, earning large fees. Most turned out well. But a few proved to be a headache for Mr. Trump after the market soured.
Some of the Tampa lawsuits against Mr. Trump have been settled out of court, says a person familiar with the matter.
Mr. Trump, who made his name as a Manhattan developer, said in an interview on Tuesday that most of his licensing deals have been successful and the Tampa project was one of numerous projects hurt by bad timing. He also said that his company, Trump Organization, plans to continue licensing the Trump name.
But now, he said, he plans to "look in more detail into the market where we're going, whether it's Tampa or somewhere else."
For months, Dagostino has said the property where he had intended to build a 52-story, $225 million Trump Tower Tampa is on the market but that he still held out hope of building a revised project that could include both condominium and hotel components.
Robert Owens said a partnership he is leading (Brownstone Tampa Partners LLC ) paid $5 million for the former Trump site and an adjacent six-story office building. He said he plans to build a mixed-use complex with retail, offices and a hotel or condominiums there.

http://online.wsj.com/public/page/news-real-estate-commercial.html?mod=WSJ_topnav_na_realestate

NNN Lease Investments in High Traffic Corridors of Manhattan

NNN Lease Market News

NNN Lease investments activity will speed up...

Robust job growth and an increase in tourism will encourage consumer spending in New York City this year, driving retail operations to outperform most of the nation, predicts Marcus & Millichap in a second-quarter retail research market update, released yesterday.

As the local economy improves, the report predicts, retail investment activity will speed up, most notably in single-tenant and mixed-use sectors, with easing capital markets and low interest rates encouraging REITs and institutions to acquire single- tenant assets in high-traffic corridors of Manhattan. The Financial District and Times Square on the other hand will draw keen interest from risk-weary investors seeking long-term stability.

The report estimates that developers will deliver nearly 775,000 square feet of retail space to the New York City market this year, more than 40 percent of which will come online in Manhattan. That figure is down from 2010, when approximately 1.5 million square feet was finished within in the metro area.

http://therealdeal.com/

Zara Spanish Retailer Bought NNN Lease Investment in Manhattan for $324 Million

NNN Lease Market News

Spanish retailer Inditex SA (ITX) said it bought the former NBA Store at 666 Fifth Ave. in Manhattan for $324 million and will make it into a flagship store for its Zara clothing chain.

Inditex acquired the 39,000-square-foot (3,600-square- meter) storefront between West 52nd and 53rd streets, the Arteixo, Spain-based company said today in a statement posted on its website. The site was the home of the National Basketball Association’s flagship shop, where it sold team jerseys and other memorabilia.

That deal helped the tower’s owner, Kushner Cos., cover some of the debt incurred after purchasing the building the year before for $1.8 billion, then the most ever paid for a single NNN Lease Investment  U.S. building.

Inditex is one of the worlds largest fashion distributors, with eight sales formats -Zara, Pull and Bear, Massimo Dutti, Bershka, Stradivarius, Oysho, Zara Home and Uterqüe - boasting 4.430 stores in 73 countries.

The Inditex Group is comprised of over one hundred companies associated with the business of textile design, manufacturing and distribution.

Thanks to its achievements and the uniqueness of its management model based on innovation and flexibility, Inditex is one of the largest fashion distribution groups.

Our fashion philosophy -creativity and quality design together with a rapid response to market demands- has resulted in fast international expansion and excellent response to our sales concepts.

The first Zara shop opened its doors in 1975 in A Coruña (Spain), the city that saw the Group's early beginnings and which is now home to its central offices. Its stores can now be found in the most important shopping districts of more than 400 cities in Europe, the Americas, Asia and Africa.

http://www.bolsamadrid.es/comun/fichaemp/fichavalor.asp?isin=ES0148396015&id=ing