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January 13, 2010 
 
 
 
Monday (1440 Broadway) -
 
515 MADISON SCORES!

PennerSonnenblick, and Portner. Three of the country’s leading figures in capital markets take on the topic at our next Bisnow Breakfast & Schmooze: the future of credit, construction financing, and the CMBS market. Jan 26, NY Bar Association, crazy low price. Sign up now!

 
The Malloy and Sheffer families announced they’ve sold a majority interest of their fee and senior leasehold positions at the 42-story 515 Madison Ave, a deal that values the building at $150M.
 
515 Madison

We snapped this yesterday of the building, where the interest was purchased by a JV of the veteran Gural and Hemmerdinger families. (They’d been the controlling party of the previously existing subordinate leaseholds.) The deal was financed with a Wells Fargo loan. The sellers were repped by Studley’s capital transaction group and Cleary Gottlieb’s Steve Horowitz; the Gurals by Goldberg Weprin’s Andy Albstein; and the Hemmerdingers by Schiff Hardin’s Christine McGuinness. Fun facts: It was the first building that JV senior partner Jeffrey Gural’s father ever operated, and will be one of their initial buildings to receive LEED certification.


4Q’S WEATHER: FALLING VACANCIES

 
Cushman & Wakefield NY metro region COO Joe Harbert

Watch out, Al Roker—Cushman & Wakefield NY metro region COO Joe Harbert is vying for your spot. But instead of falling snow, he talked falling vacancies—December was the second consecutive month of office space declines, dropping to 11.1%, he reported at his firm’s quarterly media breakfast yesterday. Thank a surge of 4Q leasing activity, where there were 10 leases greater than 100k SF signed, compared to five in ’08. Overall, ’09 saw 16.3M SF in activity—a decline of 15% year-over-year, but the second half of ’09 totaled 9.9M SF, a 56% jump in transactions from the first half.

C&W’s Dale Schlather and Don DiRenzo act as photo op stand-ins for quarterly review regular Ken McCarthy, who was moderating a REBNY panel. Also declining is the pace of job deterioration, Joe says; NYC lost 147k positions in 4Q, and overall jobs losses are in the 400ks, versus the ’09 peak of 600k. He adds that NYC is actually leading out of the recession thanks to TARP and money going to the public sector; NY has fared better than the US in office job losses. Forecast: vacancies may go up again, but don’t expect them to travel north of 12.5%, he says.


OPPORTUNITY: DISTRESS

 

New commercial development is difficult, if not impossible, but there are opportunities in distress, says Durst Org/Durst Fetner Residential president Jody Durst (right), who joined DFR CEO Hal Fetner at YMWREA’s monthly luncheon yesterday at the University Club. They’re looking for half-completed and loan note deals, in particular. On the multifamily side, people are looking to move back to NYC, but job creation is paramount to residential success, Hal notes. Jody adds that now’s not a time for reinvention, but restructuring, like focusing on current residents (DFR owns and manages over 1.6k units, including The Epic and The Helena).

The speakers with YMWREA’s new board: (standing) Time Equities’ Michael Rudder, Cushman & Wakefield’s Glenn Tolchin, Centric Real Estate Advisors’  Lindsay Ornstein, Newmark Knight Frank’s Brandl Frey, C&W’s David Berke, NKF’s Alison Coffey, (seated) Vornado’s Glen Weiss, and NKF’s Robin Fisher. The duo discussed projects such as DFR’s 1212 Fifth Ave. development with Mount Sinai, and building a school on the site Durst owns on W. 57th between 11th and 12th Avenues. Hal says DFR is looking to quadruple its portfolio of the next five years, especially expansion in the outer boroughs.


UPCOMING EVENTS
 

January 26 - Bisnow Breakfast & Schmooze - Capital Markets -Penner, Sonnenblick, and Portner talk the future of credit, construction financing, and the CMBS market, among other issues. NY Bar Association, crazy low price. Info

 

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