| The past three years have taught a younger generation that owning a home isn't necessarily the American Dream anymore (it's to have a reality show)—that's why we're seeing a new trend toward renting versus buying something that may or may not hold its value, says Metro Loft Management CEO Nathan Berman, who's speaking at Friday's Bisnow New York Multifamily Summit. (Sign up here!) |
| One particular submarket that's seeing a very robust rental demand is FiDi. “It had the stigma, for so many years, of being only a 9am to 5pm area,” Nathan says. “But now it has developed into a neighborhood with every convenience you'd find in other communities in Manhattan and more.” Some people predicted it wouldn't recover quickly post-9/11, but now it's thriving with 28,000 units below Chambers Street. Metro Loft and longtime partner Eastbridge NA recently purchased the former AIG HQ at 70 Pine St and plan to convert it into 900 to 1,000 apartments. Nathan will soon be delivering another 418 units at 116 John St, another office-to-residential conversion. He tells us he's looking at new deals in the submarket. |
| Apartment interest has also extended to the investment sales side. Over 2011, there was substantial pent-up supply that came to market through high-profile on- and off-market deals, says CBRE EVP Paul Leibowitz, who will also be speaking. There were 10 apartment building sales over $100M—significant compared to historical averages. What fueled buyers’ interest: a majority of the leases in those buildings were signed in ‘09 or early ‘10, before the rental spike occurred, and therefore the new owners would realize a real pop in top-line revenue through 2012. Although there are some large-scale rental projects in the pipeline, the next five-year period should be below historical averages for new luxury rentals to enter the market. |
| Here's 70 Pine, which Metro Loft purchased for over $200M last year. As fundamentals remain healthy and capital continues to stockpile, demand should remain exceptionally strong for core to value-add deals, Paul continues. 2012 should be a year in which many development sites trade and/or structure their partnerships and move forward. Want to learn more? Join Nathan, Paul, Massey Knakal’s Paul Massey, Skyline Developers’ Orin Wilf, The Praedium Group’s Mason Sleeper, Stonehenge’s Richard Dansereau, Meridian Capital Group’s Ralph Herzka, TF Cornerstone’s Jeremy Shell, Rockwood’s David Streicher, Silverstein Properties’ Jeffrey Deitrich, WeiserMazars’ Ron Lagnado, and Arent Fox’s David Dubrow at The Roosevelt. Great schmoozing, too! Register here. |
RENTALS GET LOVE; THE DEAL SHEET
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Related Topics:
AIG HQ
, Chambers Street
, David Dubrow
, David Streicher
, Jeffrey Deitrich
, Jeremy Shell
, Mason Sleeper
, Meridian Capital
, Metro Loft
, Ralph Herzka
, Richard Dansereau
, Ron Lagnado
, Silverstein Properties
, Skyline Developers
, TF Cornerstone
, The Praedium Group
, The Roosevelt
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