Weekly Market Report - April 14, 2026
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Building Service 32BJ Benefit Funds, linked to a major labor union, has purchased a commercial condominium unit at 620 Sixth Ave. in the Flatiron District for $22.1 million from RXR, as recorded in city registers. Peter Goldberger, the executive director, signed the transaction. This organization provides health benefits and services to its union members and their families. RXR’s vice chairman and chief legal officer, Jason Barnett, represented the seller. The sale follows an amended condo declaration that created a new unit known as the Dental Center Unit, intended for dental care services for 32BJ members.
This new condo plan, filed on January 7, involved reconfiguring existing units to establish the dental center, which spans the first floor and mezzanine of the seven-story building, also known as 25 W. 18th St. Notably, the former Unit A was divided to create this dental space. The union group now owns approximately 210,000 square feet of the property, while RXR retains about 500,000 square feet. RXR refrained from commenting, and inquiries to Building Service 32BJ Benefit Funds went unanswered.
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A Fifth Avenue office tower, 650 Fifth Ave., has been transferred to the Amir Kabir Foundation, facilitating a $435M payment to terrorism victims. The building was previously 60% owned by the Alavi Foundation, linked to the Iranian government via Assa Corp., which the U.S. Treasury noted in 2008. A court ruling in 2017 allowed the government to seize the asset, although later overturned. The New York State Attorney General approved the transfer in January after ongoing legal disputes. Alavi denies any ties to the Iranian regime.
The Amir Kabir Foundation financed the acquisition with a $189M structured mortgage from Alavi, as part of a broader $318M settlement involving private creditors of the Iranian government. The foundation now owns the building's retail portion as well. The mortgage has a 7% interest rate but allows for deferral, requiring only 4% payment for three years. Other notable real estate transactions include apartment acquisitions and major office lease agreements across New York City.
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Brooklyn's office market is facing significant challenges, with first-quarter leasing activity dropping more than one-third from the previous quarter, as reported by Colliers. Average asking rent has decreased for five consecutive quarters, falling from approximately $46 per square foot in Q4 2025 to around $44.50 in the latest quarter. The demand remains below average, posing a long-term challenge for the market, particularly as supply has consistently outstripped demand since the influx of commercial buildings began 15 years ago. During Q1 2025, companies leased about 571,500 square feet, reflecting a more than 60% decline year-over-year, with asking rents down over 10% from $49.72 per square foot in the same period last year.
Noteworthy leases included Mindspace's 49,000-square-foot expansion at 25 Kent Ave. and the Arizona College of Nursing's 39,000-square-foot acquisition at 532 Fulton St. However, these deals were smaller compared to Q4 2025's larger leases. The borough's availability rate improved slightly to 19%, while long commute times hindered companies' interest in relocating to Brooklyn. In contrast, Manhattan experienced its best first quarter in a decade, with firms leasing nearly 12 million square feet.
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Aurora Capital Associates has acquired 597 Fifth Ave., the historic site of Charles Scribner’s Sons bookstore, for $54 million. This 12-story, 52,700-square-foot building, located near East 48th Street, was purchased through shell company 597 Fifth Owner, with financing from Safra National Bank totaling $29.5 million. The deal, finalized on March 25, followed a previous foreclosure by LNR Partners, which obtained the property due to Thor Equities defaulting on a $105 million mortgage. LNR bought the property, alongside a related site, for a mere $56,000 at auction because of Thor's substantial debt. The exterior and interior of the building are landmark protected, having housed Scribner’s bookstore until 1989, followed by various retailers like Sephora and Lululemon. Currently, Club Monaco occupies the space.
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DivcoWest selling 311 West 43rd Street for around $40M
David Werner is set to acquire the Hell’s Kitchen office building at 311 West 43rd Street for just over $40 million, significantly lower than the $131 million that DivcoWest paid in 2018. This purchase continues Werner’s strategy of capitalizing on discounted office buildings, with a focus on residential conversions. His notable projects include a 1,600-unit conversion of the former Pfizer headquarters at 235 East 42nd Street. The 193,000-square-foot property, while smaller than some of his recent acquisitions, represents another opportunity for Werner, who is known for his inventive deal structures and resale strategies.
Previous ventures include securing a contract for 300 East 42nd Street for $52 million and quickly flipping it for conversion to rental apartments. DivcoWest, led by Stuart Shiff, originally bought the property from Billy Macklowe and Principal Real Estate Investors, and faced challenges after WeWork vacated and rejected its lease. Although Divco sued WeWork for $30 million, the lawsuit was later withdrawn, leaving questions about the space's current occupancy.
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A Class B office tower by Adams & Co. has reached full occupancy, suggesting a positive shift for older office buildings in the city. The final tenant, Schlage Lock Company, will occupy around 7,000 square feet on the 13th floor at 42 W. 39th St. The seven-year lease has an asking rent of $49 per square foot, facilitated by David Levy of Adams & Co. This lease highlights the appeal of the Bryant Park neighborhood for companies seeking efficient office space. Adams & Co. now has nine fully leased properties and notes increased demand for Class B spaces. Average asking rent for Class B has also risen by 1.9% to a record high of $69.91 per square foot, indicating market improvement.
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The board of trustees for Cooper Union college is set to negotiate exclusively with developer Tishman Speyer for a ground lease of the Chrysler Building, which it owns the land for. Approval from the New York State Attorney General’s Office is necessary for any agreement. The building's value has decreased in recent years due to aging interiors and competition from modern skyscrapers. Tishman Speyer originally acquired the Chrysler Building in 1998 and sold a majority stake in 2008 at a valuation exceeding $800 million. By 2019, RFR Holding and Signa Group took control, valuing it at about $150 million. Increased expenses linked to the ground lease negatively impacted the property’s worth, ultimately leading to RFR losing control to Cooper Union in 2024. Designed by William Van Alen, the Chrysler Building, completed in 1930 for Chrysler Corp., was briefly the world's tallest building and includes around 1 million square feet of office space.
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Poverty-relief nonprofit takes 53K sf at 841 Broadway
Manhattan’s office market received a boost from the nonprofit Robin Hood, which signed a 30-year lease for 53,000 square feet at 841 Broadway in Union Square, expanding from its previous 37,000-square-foot location. The asking rent is about $80 per square foot. The move fills the building, which houses tenants like Perplexity and Movable Ink. Meanwhile, Feil Organization faces challenges with its portfolio, including a special servicing situation at 261 Fifth Avenue after a $180 million mortgage default. Despite this, leasing momentum continues, exemplified by MiQ Digital's recent 12-year, 42,000-square-foot expansion. Overall, Manhattan's office leasing in Q1 was strong, with an availability rate of 13.7 percent and significant contributions from finance and AI sectors.
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Artifact, a developer from Hamilton Heights, has acquired the former hospital at 75 Essex St. for $17.8 million. The building, with a history dating back to 1890, was previously home to Eisner Bros. T-shirt warehouse and Eastern Dispensary. The previous owners, Nechemia Weinberger and Eisner Bros., opted to sell to avoid auction after facing foreclosure on a $9 million loan. In 2024, Weinberger filed plans to transform the site into a 16-story residential complex, but construction never commenced. Artifact's existing portfolio includes several redeveloped properties in Harlem and plans for a 9-story hotel nearby on Allen St. No new construction permits related to 75 Essex St. have been filed yet, and both Artifact and Soft Stone Development have not commented on the future plans.
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RJ Capital Holdings and Top Rock Holdings have contracted to purchase the Forest Hills Jewish Center (FHJC) property for $39 million, as recorded by the New York State Attorney General. An April 6 document signed by assistant attorney general Anthe Maria Bova authorized the sale of the 55,000-square-foot site to 106QB Development, associated with RJ's Rudolf and Iosif Abramov and Top Rock's Uri Mermelstein and Joseph Yushuvayev. FHJC has sought to sell the synagogue since at least 2019, with a stalled 2022 deal causing delays.
The April authorization amends a prior approval for the same price but with a different buyer linked to RJ and Top Rock. The FHJC will also obtain a loan for a new facility. Under the amended deal, FHJC will get a $10 million credit for a condominium unit at 70-35 113th Street, its future location. The closing of the sale is planned for one year after FHJC’s new space is ready, and proceeds will enhance FHJC's endowment.
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Fintech company Adyen leads charge with 90K sf at 111-115 Fifth Ave
The Winter Organization has signed two leases at its Flatiron District properties. Adyen, a fintech company, secured a 90,000-square-foot lease for 111-115 Fifth Avenue, occupying the fourth floors of both buildings and fifth floor at 111, with a 10-year lease at $89 per square foot.. Additionally, Galvanize Climate Solutions leased 20,000 square feet at 111 Fifth Avenue under the same terms. Other tenants include Radar Labs and Prophet. Previously, the organization sold a 208-unit building at 800 Fifth Avenue for over $800 million. In Q1, Manhattan firms leased approximately 11.8 million square feet of office space, a slight decline from last year but a 3.4 percent increase year-over-year, with average asking rent rising to $77.55 per square foot.
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Empire State Realty Trust has made significant real estate acquisitions in Williamsburg, further establishing its presence in the retail market. Recently, the trust purchased the entirety of the retail space at 127 Kent Ave. for $46 million, encompassing 20,000 square feet divided into eight storefronts alongside storage areas. This space is part of a newly constructed six-story residential condo complex called the Sixth, developed by Joyland Group. Empire State Realty Trust, under CEO Tony Malkin, began intensively targeting North Sixth Street in 2023, currently holding at least six retail properties on that street, including No. 92 and No. 102, purchased for $17 million and $28.6 million in 2024, respectively.
Notably, the trust also owns No. 77, home to Glossier, which will close in two years as part of downsizing actions. The Sixth’s residential units began selling in January, with 56% sold but not yet closed. Prices range from $1.2 to $6.8 million. Joyland anticipates total sales of $115.7 million from these condo units, while the retail spaces vary from 800 to 2,700 square feet.
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Gindi Capital is heavily investing in Downtown Brooklyn, acquiring a 6-story office building at 25 Elm Place for $40 million and a ground-floor condo at 486-496 Fulton St. for $15 million. Previously, Gindi sold 25 Elm Place to Pimco in 2013 for $10.8 million before repurchasing it for significantly more. The Fulton Street property was also sold in the same year for approximately $135 million but was bought back for much less, though it remains unclear if a portion was acquired. Gindi Capital is also active in other Brooklyn areas, having sold the last piece of the Century 21 site in Bay Ridge for $28 million and a different section to MCB Real Estate for $47.5 million. Recently, they developed a 193-unit building at 655 Union St. in Gowanus, securing a $136 million refinancing.
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Deep-pocketed artificial intelligence firms are rapidly expanding their office spaces in New York, marking a significant phase in the market's recovery. A total of 8.5 million square feet of Manhattan office space has been leased this year, with AI firms accounting for 415,000 square feet. Vacancy rates have dropped to 13.5%, prompting landlords to raise rents by over $1 per square foot. Although many AI firms prefer flexible, short-term leases, demand is outpacing supply. The average deal size for AI leasing has more than doubled to 34,500 square feet, with 55% of activity aimed at future growth. Past leasing trends caution landlords, balancing the high risk of tenant viability against potential high returns. Some landlords cater to short-term needs, filling gaps left by longer-term tenants. Companies like LayerZero and Flora have notably expanded office spaces, highlighting the active nature of AI startups.
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A Catskill-based limited liability company has acquired four Chinatown properties for a total of $24 million. Three adjacent mixed-use buildings at 91-99 Canal St. were purchased for $21.1 million, while a fourth building was bought for $2.2 million by a separate entity from the same location. Nicholas Donovan signed for the first purchase on March 23, and Peter Moore represented the second acquisition. The intended project for the site remains unspecified, with no construction permits currently filed. The four buildings, covering approximately 8,700 square feet, are mostly occupied by businesses like an e-bikeshop and a deli, alongside upper-floor residential apartments that are not available. All properties were sold by a joint partnership including Canal Property Inc. and JB1031 Realty Inc., with Jay Lau as the seller's signatory.
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Landlord says lenders purchased debt with the intent to create defaults
Steve Croman is embroiled in another foreclosure lawsuit in Midtown East, initiated by a Dalan Real Estate-related entity that acquired a portfolio of his loans in 2024. Croman is already facing foreclosure actions over $300 million in loans and has a history of mortgage fraud, having previously served time in prison. He claims the lenders are attempting to engineer a default, stating he plans to settle and refinance with more credible lenders. Croman bought the 340 East 58th Street property in 2019 for $12.3 million through an affiliate while incarcerated.
Dalan now seeks to collect on limited guaranty agreements he signed, having also filed suits related to 16 other properties and is involved in ongoing commercial litigation concerning Croman’s businesses and personal residence. In addition to Dalan’s actions, Croman faces 26 foreclosure suits from Bellwether Asset Management, with his mostly rent-stabilized properties being targets due to their prime Manhattan locations.
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An Upper East Side development site with a movie theater is on the market for around $50 million. The property at 1001 Third Ave., owned by Reading International, sits between East 59th and East 60th streets, opposite Bloomingdale's. Currently housing Cinema 123 by Angelika, the site can allow for almost 100,000 square feet of new development. Newmark's Adam Doneger, Adam Spies, and Avery Silverstein are marketing it. The site is suitable for a mixed-use luxury tower, potentially including residential, commercial, or hotel space, with a projected 79,000-95,000 square feet depending on affordable housing inclusion. Reading International, which acquired the site for about $12.2 million in 2005, cites market improvements and liquidity needs for the sale.
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