March 18 (Bloomberg) -- American International Group Inc. the insurer that received a $173 billion U.S. bailout, is considering a sale of its New York headquarters and another tower in lower Manhattan to help repay the government.
AIG is evaluating the sale of 70 Pine St. and 72 Wall St., spokesman Mark Herr said in an e-mail today. Two years ago the properties were likely worth about $315 million, said Dan Fasulo, managing director of Real Capital Analytics Inc., a New York-based firm that tracks commercial real estate sales.
“This is part of AIG’s divestiture strategy and effort to maximize operating efficiency,” Herr said in a statement. “Market interest received will help determine the best course of action.”
Saturday, March 21, 2009
Tuesday, March 17, 2009
Auctions on the rise as sales tool
The property, which had languished on the market for months, was sold six weeks later to the highest bidder at an auction held at the New York Marriott in downtown Manhattan.
Chalk up another victory for Gramercy Auctions Group, one of a handful of area real estate auctioneers that are seeing demand for their services soar.
Once written off by sellers as setups for lowballing, property auctions have earned growing respect in the current economic environment as a means of breaking the ice in frozen markets. Auctions offer sellers opportunities to turn illiquid assets into cash, and they offer bidders chances for possible bargains.
Just last week, more than 375 foreclosed homes in New York, New Jersey and Pennsylvania—going for a discount of as much as 50% off their original purchase prices—were put up for auction at the Javits Convention Center by USHomeAuction.com, a firm that put more than 30,000 properties on the block in 2008.
Chalk up another victory for Gramercy Auctions Group, one of a handful of area real estate auctioneers that are seeing demand for their services soar.
Once written off by sellers as setups for lowballing, property auctions have earned growing respect in the current economic environment as a means of breaking the ice in frozen markets. Auctions offer sellers opportunities to turn illiquid assets into cash, and they offer bidders chances for possible bargains.
Just last week, more than 375 foreclosed homes in New York, New Jersey and Pennsylvania—going for a discount of as much as 50% off their original purchase prices—were put up for auction at the Javits Convention Center by USHomeAuction.com, a firm that put more than 30,000 properties on the block in 2008.
Friday, March 13, 2009
New York City Real Estate: Battered, But Not Broken
While Manhattan apartments were selling at well above $1,000 per square foot as recently as a year ago, Del Percio says these deals are now taking place in the $700 per square foot range. “Some sellers are refusing to budge off asking prices, but as more folks get laid off and/or the economy gets worse, we could see some significant discounts across the market,” he says.
Fringe real estate neighborhoods such as East Harlem, Bushwick, and the South Bronx are most likely to get hit hard during the downturn, Del Percio says. However, he sees Manhattan as a perennially good investment.
“New York is the only truly 24-hour city in the country and continues, despite the downturn, to be the most international of American cities. There is a constant influx of both foreign capital and nationals, both of which are major players in the real estate landscape. New York’s density and mass-transit system are unique among U .S. cities. Wall Street is — was — probably the driving force behind real estate prices and development over the past ten years,” he says. “New York’s economy is predicted to recover more quickly than the rest of the country, and people will always want to live and do business here.”
Fringe real estate neighborhoods such as East Harlem, Bushwick, and the South Bronx are most likely to get hit hard during the downturn, Del Percio says. However, he sees Manhattan as a perennially good investment.
“New York is the only truly 24-hour city in the country and continues, despite the downturn, to be the most international of American cities. There is a constant influx of both foreign capital and nationals, both of which are major players in the real estate landscape. New York’s density and mass-transit system are unique among U .S. cities. Wall Street is — was — probably the driving force behind real estate prices and development over the past ten years,” he says. “New York’s economy is predicted to recover more quickly than the rest of the country, and people will always want to live and do business here.”
Tuesday, March 10, 2009
New York Times Sells Building Stake for $225 Million
March 9 (Bloomberg) -- The New York Times Co. agreed to sell the space it occupies in its Manhattan headquarters for $225 million to pay debt as print advertising revenue declines.
The newspaper publisher will lease the building for 15 years from new owner W.P. Carey & Co., a New York-based real estate investment bank, and retain the option to buy back its stake in 2019 for $250 million, according to a statement today.
The transaction covers 21 floors, or about 750,000 square feet, of the 52-story building on Eighth Avenue between 40th and 41st streets. The publisher, which has cut jobs and stopped paying dividends, is trying to sell assets to cope with an accelerating decline in revenue.
The newspaper publisher will lease the building for 15 years from new owner W.P. Carey & Co., a New York-based real estate investment bank, and retain the option to buy back its stake in 2019 for $250 million, according to a statement today.
The transaction covers 21 floors, or about 750,000 square feet, of the 52-story building on Eighth Avenue between 40th and 41st streets. The publisher, which has cut jobs and stopped paying dividends, is trying to sell assets to cope with an accelerating decline in revenue.
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New York City 2010
