New York

New York City’s Pandemic-Related Property Tax Problems Persist

by Taylor Williams June 29, 2021

By Joel Marcus, partner, Marcus & Pollack LLP What happens when an irresistible force meets an immovable object? The longstanding physics conundrum encapsulates the situation in which New York City property owners currently find themselves, and for better or worse, they’re about to discover the answer to the age-old question. City government has squeezed increasing sums of property taxes from its real estate stock in each of the past 25 years, but the pandemic is changing everything. The basic fact is that 53 percent of New York City revenues come from real estate taxes. Fueled by rising rents that are tied to high costs of new construction, the city property tax base has grown and enjoyed record tax revenues in recent years. Total real property tax revenue was almost $30 billion in 2020, according to the city’s annual property tax report. Historically speaking, no major event in recent memory has been responsible for a pause in the year-over-year tax increases — not the Financial Crisis of 2018, nor Hurricane Sandy, nor even the events of September 11. It seems as though only a global pandemic has this particular power. COVID-19 has affected every element of New York City’s economy, but …

June 29, 2021

Loans Multifamily New York Northeast

Ariel Property Advisors Arranges $12.4M Loan for Refinancing of Multifamily Asset in The Bronx

by Taylor Williams June 28, 2021

NEW YORK CITY — Ariel Property Advisors has arranged a $12.4 million loan for the refinancing of a 36-unit multifamily building in The Bronx. Eli Weisblum of Ariel Property Advisors led the debt placement for the newly constructed building. The borrower and direct lender were not disclosed.

June 28, 2021

Acquisitions Company News Illinois Midwest New York Northeast Seniors Housing Top Stories

Ventas Agrees to Acquire Independent Living Owner New Senior Investment Group in $2.3B Deal, Including 103 Properties

by John Nelson June 28, 2021

CHICAGO AND NEW YORK CITY — Ventas Inc. (NYSE: VTR) has entered into a definitive merger agreement to acquire New Senior Investment Group (NYSE: SNR), a New York City-based owner of independent living communities across the country. The deal between these two seniors housing real estate investment trusts (REITs) is valued at $2.3 billion, including $1.5 billion of debt. The transaction will bolster the number of independent living communities for Ventas, which as of March 31 owned (fully or partially) 1,200 properties. As of first-quarter 2021, 48 percent of Ventas’ portfolio was classified as independent living. Post acquisition, Ventas expects independent living will comprise 58 percent of its portfolio. New Senior currently owns 103 properties across 36 states, with a large concentration clustered in California, North Carolina, Florida and Oregon. The portfolio was a little more than 80 percent occupied as of May 31, and the average age of residents was 81. The only New Senior property that isn’t independent living is Watermark at Logan Square, a continuing care retirement community located in Philadelphia. The acquisition will deepen Ventas’ relationship with seniors housing operators such as Atria Senior Living and Holiday Retirement, which announced last week their plans to merge …

June 28, 2021

Acquisitions Industrial New York Northeast

W. P. Carey Acquires New York Distribution Center for $45M in Sale-Leaseback Transaction

by Taylor Williams June 25, 2021

ROME, N.Y. — In a sale-leaseback transaction, W. P. Carey has acquired a 779,000-square-foot distribution center in Rome, about 40 miles northeast of Syracuse. The purchase price was $45 million. Orgill, an independent hardware distributor, occupies the newly constructed property, which is located near Interstate 90. Orgill uses the facility as its primary regional distribution center. W. P. Carey now owns four of Orgill’s seven U.S. distribution centers. The property is triple-net leased for a period of 26 years with fixed rent escalations.

June 25, 2021

Loans Multifamily New York Northeast Retail

Columbia Pacific Provides $39.1M Bridge Loan for SoHo Multifamily, Retail Building

by Taylor Williams June 24, 2021

NEW YORK CITY — Columbia Pacific Advisors has provided a $39.1 million bridge loan for an eight-story multifamily and retail building located at 68-70 Spring St. in Manhattan’s SoHo neighborhood. The 24,357-square-foot property totals 10 residential units in two- and three-bedroom formats. The undisclosed borrower will use the proceeds from the 36-month loan to fund capital improvements and lease-up costs.

June 24, 2021

Leasing Activity New York Northeast Office

Dattner Architects Signs 30,000 SF Office Lease at 498 Seventh Avenue in Manhattan

by Taylor Williams June 23, 2021

NEW YORK CITY — Dattner Architects has signed a 30,000-square-foot office lease at 498 Seventh Avenue, a 25-story building in Midtown Manhattan. Recent capital improvements at 498 Seventh Avenue include new lobbies and entrances, new retail storefronts, upgraded destination dispatch elevators, new turnstiles with facial recognition software, a grab-and-go coffee kiosk by Ground Central Coffee and a dedicated lounge area for tenants. Robert Frost and Andy Weiss of Signature Partners LLC represented the tenant in the lease negotiations. Andrew Conrad and Matt Coudert represented the landlord, George Comfort & Sons, on an internal basis.

June 23, 2021

Acquisitions Industrial New York Northeast

TerraCRG Negotiates $3.7M Sale of Industrial Building in Brooklyn

by Taylor Williams June 23, 2021

NEW YORK CITY — Brokerage firm TerraCRG has negotiated the $3.7 million sale of a 6,684-square-foot industrial building in the Gowanus area of Brooklyn. ABC Collision, an auto repair shop that has operated in the area for more than 20 years, purchased the property from Advanced JAF Holding LLC. Brokers involved in the deal included Dan Marks, Daniel Lebor and Adam Tannenbaum of TerraCRG, as well as Jakub Nowak and Jake Torre of Marcus & Millichap and Thomas Cordasco.

June 23, 2021

Acquisitions Multifamily New York Northeast

Harbor Group International Buys Henry Apartments in Pomona, New York, for $54M

by Taylor Williams June 22, 2021

POMONA, N.Y. — An affiliate of Harbor Group International LLC (HGI) has purchased The Henry, a 169-unit luxury apartment community in Pomona, about 40 miles north of New York City, for $54 million. Built in 2001 and recently renovated, the property’s units feature stainless steel appliances, tile backsplashes and granite countertops. Amenities include a resident clubroom, pool and sundeck, billiards room, fitness center and basketball courts. Jeffrey Dunne, Gene Pride, Jeremy Neuer, Steve Bardsley, David Gavin and Travis Langer of CBRE represented the seller, a joint venture between Spirit Investment Partners and The Bascom Group, in the transaction, and procured the affiliate of HGI as the buyer.

June 22, 2021

Market Reports Multifamily New York Northeast Northeast Market Reports

Opportunities Abound for Buyers and Sellers in New York City’s Multifamily Market

by Taylor Williams June 22, 2021

By Lev Mavashev, founder and principal, Alpha Realty Last year in 2020 and even now well into 2021, the COVID-19 pandemic has many New York City property owners feeling like deer in headlights. Should I push forward? Take a step back? Or should I just freeze and brace for impact from the worst disaster to strike the world in living memory? While little is certain in these uncertain times, for New York’s multifamily owners considering their future beyond 2021, values might drastically be impacted by the following factors. Rising Property Taxes New York will never move forward unless its real estate industry moves forward. Next to finance and, increasingly, big tech, the industry is the biggest driver of the state economy, and its 12-month enforced hiatus has cost the state $1.6 billion in lost tax revenue. The state can’t just print money to make up that shortfall, so it is doing one of the only things that is certain in life: issuing taxes. From hikes in property taxes to capital gains, personal income to corporate tax, both the city and state are creating a clear roadmap to recouping what’s been lost. Property taxes will definitely be going up for the …

June 22, 2021

Healthcare Loans New York Northeast

CIT Group Provides $33.2M Acquisition Loan for Medical Office Building in Brooklyn

by Taylor Williams June 21, 2021

NEW YORK CITY — CIT Group Inc. has provided a $33.2 million acquisition loan for an eight-story medical office building located at 902 Quentin Road in Brooklyn. The property was built in 2013 and also features academic space. Tenants include NYU Langone Health and Touro College School of Health Sciences. Occupancy was 100 percent at the time of sale. The borrower was an affiliate of New York-based Seavest Healthcare Properties.

June 21, 2021

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