NEW YORK CITY — Sigma Computing Inc. has signed an 11-year, 28,286-square-foot office lease expansion in Midtown Manhattan. The AI-driven software company now occupies 92,363 square feet, including the entire third floor, at One Madison Avenue. Brent Ozarowski, Jeffrey Rodgers and Stephen Cisarik of Newmark represented the tenant in the lease negotiations. Paul Glickman, Alexander Chudnoff, Ben Bass and Diana Biasotti of JLL represented the landlord, SL Green.
By Joel Marcus, senior partner, Marcus & Pollack LLP COVID-19 and the government-ordered shutdown had immediate negative consequences for all types of real estate, and New York City’s tax valuations took this into account. Damage from the pandemic still weighs down property values today, compounded by cultural shifts that sapped demand for commercial properties. Fair market values have evolved to reflect pervasive vacancy, building obsolescence and the heightened cost of serving tenants that have abundant alternatives to choose from. At the same time, work-from-home practices reduce space requirements. Retailers, restaurants and hotels see half the foot traffic they once had from nearby office buildings, adding to ongoing pressure from e-commerce and other challenges to create excess vacancy, constrained rental streams and declining market values. Valuation for property taxation has not evolved, however, judging by the revaluation tax assessments the city’s Department of Finance is issuing. Revaluations ostensibly update taxable property values to current fair market value. Yet New York’s assessors habitually inflate valuations by applying pre-pandemic rental rates and vacancy assumptions, ignoring the rents landlords are actually collecting today and turning a blind eye to fundamental changes in demand for commercial space. Old thinking persists among these assessors, and it …
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Webinar: From Hype to Readiness — How Commercial Real Estate Firms Are Preparing for AI
The November 18 France Media webinar “From Hype to Readiness — How Commercial Real Estate Firms Are Preparing for AI,” hosted by France Media and sponsored by Defease With Ease | Thirty Capital, offered a look at the realities of artificial intelligence (AI) within the industry. What can a year of AI use in commercial real estate tell us about implementation and tactics? Panelists touched on the limitations of general-purpose tools, as well as trending topics including safeguards, data privacy, accuracy and institutional control. For professionals engaged in commercial real estate, the session highlighted practical ways AI can elevate both day-to-day efficiency and organizational sophistication (especially if efforts are backed up by a unified library of proprietary portfolio data). Panelists discussed how purpose-built platforms can support underwriting, refinancing, internal reporting and ongoing asset optimization by using secure, updated data. The expert presenters gave concrete examples on how AI can act as an effort multiplier: it can strengthen accuracy, surface risks earlier and broaden the capabilities of team members. The included case study underscored real-world advantages, including improved reporting integrity, stronger oversight and better workflow automation. Register here to watch this brief webinar to gain helpful insights on integrating new technology …
NEW YORK CITY — A partnership between locally based investment firm Olmstead Properties and Vertex, a newly launched platform, has purchased two office buildings in Manhattan’s Flatiron District for $104 million. The buildings are located at 373 and 381 Park Avenue S., which rise 12 and 17 stories and total 112,000 and 244,000 square feet, respectively. The seller was ATCO Properties & Management. Adam Spies, Adam Doneger, Josh King, Marcella Fasulo and Meaghan Philbin of Newmark brokered the transaction. The new ownership plans to implement capital improvements and has tapped COOKFOX Architects to lead the design.
NEW YORK CITY — JLL has brokered the $58.8 million sale of a multifamily development site in the Gowanus area of Brooklyn. The 38,500-square-foot site at 563 Sackett St. lies within a Qualified Opportunity Zone and can support approximately 258,600 buildable square feet. A 12-story, 350-unit development with other commercial uses is planned for the site. Michael Mazzara, Ethan Stanton and Brendan Maddigan of JLL represented the seller, the Mazzei Family, in the transaction and procured the buyer, Brooklyn developer Fulltime Management.
NEW YORK CITY — Locally based brokerage and advisory firm GFI Realty Services has arranged a $40 million acquisition loan for 1501 Voorhies Avenue, a multifamily building in Brooklyn’s Sheepshead Bay area. The loan is collateralized by the rental portion of the building, spanning floors two through 19, as well as a 105-space parking garage. Floors 20 through 28 house condos. Daniel Lerer of GFI Realty arranged the loan through OceanFirst Bank. The undisclosed borrower has rebranded the building as Aqualina New York.
BOSTON — WilmerHale has renewed its 201,018-square-foot office lease in downtown Boston. The international law firm will continue to occupy floors 25 through 32 at 60 State Street, a 600,000-square-foot building in which the company has been a tenant since 1977. Roy Hirshland, Thomas Fulcher, Arthur Greenberg, Ron Perry and Matthew Perry of Savills represented WilmerHale in the lease negotiations. Dan Cavanaugh, Ryan Enright and Patrick Nugen of JLL represented the landlord, Starwood REIT.
DOVER, N.J. — A joint venture between local investment firm Legacy Real Estate Developers, Saddleback Real Estate Developers and Commerce Park Investors has acquired a 126,108-square-foot office and industrial building in Dover, about 40 miles west of New York City. The building formerly housed the U.S. headquarters of Japanese electronics giant Casio. Elli Klapper of CBRE brokered the deal. The seller and sales price were not disclosed. The new ownership plans to implement a capital improvement program.
NEW YORK CITY — Dwight Mortgage Trust, the affiliate REIT of New York City-based Dwight Capital, has provided a $70 million construction loan for a proposed 180-unit multifamily project that will be located at 33-35 W. 125th St. in Harlem. The property will offer a mix of studio, one- and two-bedroom units, 30 percent of which will be reserved as affordable housing. Amenities will include a fitness center, rooftop terrace, lounge and a library, and the property will also house 17,440 square feet of commercial space. Keith Hoffman led the transaction for Dwight. The borrower is Irgang Group.
MONTICELLO, N.Y. — Locally based brokerage firm The Kislak Co. Inc. has arranged the $3.2 million sale of Jefferson Garden Apartments, a 76-unit multifamily complex in Monticello, about 100 miles north of New York City. Completed in 1969 and last renovated in 2023, the garden-style property consists of seven buildings that house two studios, 47 one-bedroom apartments, 18 two-bedroom residences and nine three-bedroom units. Janet Bortz of Kislak represented the buyer and seller in the transaction.