Weekly Market Report - November 25, 2025
- Broker Support
- Dec 2, 2025
- 6 min read
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Mori Trust, a Tokyo-based real estate investment firm, has acquired Floors 1 through 38 of 35 Hudson Yards, including the Equinox Hotel New York, in a $541M deal announced Monday. Related Companies and Oxford Properties sold the 490K SF portion of the 1.1M SF tower as part of the $25B Hudson Yards project. The building's office space is fully leased, while retail occupancy stands at 73%, featuring tenants such as SoulCycle and Starbucks. Mori Trust's President and CEO, Miwako Date, emphasized that this acquisition enhances the company's asset portfolio and aims to improve the property’s appeal.
The iconic 92-story tower, developed in 2019, had upper floors sold as luxury condominiums, which were not part of the transaction. Initially listed for roughly $600M, the deal and Mori Trust's entry into the New York market reflect significant investment activity in Manhattan, which includes RXR’s nearly $1.1B purchase of 590 Madison Ave. and SL Green’s $730M acquisition of Park Avenue Tower. Mori Trust also purchased a 49% stake in 245 Park Ave. earlier in 2023, aiming to expand its U.S. assets to 1.2 trillion yen ($7.7B) by 2030.
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Major cities are still reeling from high vacancy rates and anemic rents, failing to keep up with turnarounds in New York and San Francisco
The U.S. office market recovery is uneven, with certain districts like New York's Park Avenue thriving, while many others face high vacancies and stagnant rents. The national office vacancy rate stands at 14.1%, with five of the twelve largest markets at their highest rates in 25 years. This downturn differs from past cycles, being structurally driven by remote and hybrid work, reducing demand for office space despite economic growth. Job cuts at firms like Amazon and Meta signal a challenging future, potentially worsening conditions by 2026. Distressed properties are affecting urban economies, with high delinquency rates on office mortgages, though banks are slow to acknowledge losses. Office tenants are reducing space needs, exemplified by Mutual of Omaha's move to a smaller HQ designed for hybrid work. Cities are suffering from declining office-related tax revenues, leading to potential increases in residential property taxes. Investor confidence remains shaky, with office purchases significantly below pre-pandemic levels.
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Billionaire Eyal Ofer's Global Holdings Management Group secured a $190 million refinancing for Anagram Columbus Circle, a luxury residential tower at 1 W. 60th St., Manhattan, developed in partnership with JPMorgan Chase and Sumitomo Mitsui Trust Bank. The 26-story building houses 123 luxury rental apartments. Global Holdings' real estate portfolio encompasses 10 million square feet, including hotels and luxury residential properties across Manhattan and Brooklyn. Ofer stated the refinancing reflects confidence in Anagram Columbus Circle's value highlighting lenders' trust in Manhattan's multifamily market.
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Mitsui Fudosan America, Inc. (MFA) has completed over 198,000 square feet of office leasing at 1251 Avenue of the Americas in Midtown Manhattan following a strategic investment exceeding $100 million. CEO John Kessler highlighted the project’s focus on enhanced amenities, premier dining options, and communal outdoor spaces, aiming to attract top-tier tenants. Key leasing activity includes Trust Company of the West with an 80,200-square-foot renewal and expansion, McGuireWoods securing 75,000 square feet, and RBC leasing 42,900 square feet. Senior Director Slater Traaen emphasized the commitment to creating a timeless office experience, fostering community and innovation.
The building now features modern amenities, including an executive lounge, conference center, and a tenant-only terrace lounge. Notable dining options have been introduced, such as the U.S. flagship of Rome’s Ginger restaurant and Duke Café, enhancing the building's appeal. Located in a prime area, 1251 Avenue of the Americas offers excellent access and a captivating work environment, attracting leading global firms. MFA, the U.S. subsidiary of Japan's largest real estate company, has actively invested in North America for decades, with diverse real estate assets encompassing residential, commercial, and hospitality sectors.
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Owner requested transfer of $515M CMBS mortgage
Brookfield Asset Management's $515 million debt tied to the New York Times Building is moving to special servicing ahead of its upcoming maturity, as reported by Morningstar Credit. This transfer was initiated by Brookfield, which owns the upper half of the 52-story office tower at 620 Eighth Avenue. Brookfield aims to engage with lenders to find a suitable resolution, noting that the non-recourse loan exposure is “immaterial” to its real estate platform. Fitch Ratings recently downgraded its outlook on this property segment to “negative.” Brookfield had previously refinanced the building with a $635 million mortgage in 2018, involving several financial institutions, while the structure also includes a $120 million junior mortgage and $115 million mezzanine loan. The building has faced tenant departures, though recent vacancies have been filled. Last year, cash flow decreased to $42.3 million, approximately 14 percent lower than projections from five years ago.
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Mezzanine lenders schedule UCC foreclosure auction of Midtown office
SL Green, RXR, and New York REIT Liquidating are close to losing Worldwide Plaza, with a UCC foreclosure auction scheduled for January 15. The entity controlling the 1.8-million-square-foot property received a default notice last September due to $190 million in mezzanine debt. This ownership is reportedly in default of both senior and mezzanine debt since July. Goldman Sachs and Deutsche Bank originated $260 million in mezzanine debt, backed by $940 million in CMBS debt. Proceeds from the auction are intended to cover the mezzanine debt and unpaid interest. As of now, Worldwide Plaza is 40 percent vacant following the departure of law firm Cravath, Swaine & Moore, with overall occupancy dropping from 91 percent in 2023 to 63 percent. Nomura Holdings plans to reduce its space by 75,000 square feet by 2027. The property’s value plummeted to $345 million in April from $1.7 billion in 2017, resulting in significant losses for CMBS bondholders.
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OpenAI rival targets sites in Texas and New York
Anthropic is embarking on a significant expansion with a $50 billion plan to develop AI campuses in the U.S., as revealed by Bloomberg. This strategic move highlights the rapid acquisition of land and resources among tech giants to enhance computational power. The company, a competitor of OpenAI, revealed that the first AI campus sites will begin operations next year, marking a shift from dependence on cloud providers like Amazon and Google towards autonomous infrastructure development by partnering with U.K.-based Fluidstack for significant power capacity. This investment aligns with the Trump administration's advocacy for U.S. leadership in AI and promises around 2,400 construction jobs and 800 permanent roles in states like Texas and New York.
CEO Dario Amodei emphasizes the importance of this expansion for fostering scientific advancements and developing more advanced AI systems. While competitors like OpenAI, Meta, Google, Microsoft, and Nvidia are also aggressively building infrastructure, investor concerns arise regarding the scalability of revenue models. Despite apprehensions, Anthropic has successfully raised $13 billion in funding this year at a $183 billion valuation, expanding its user base significantly, and recently secured substantial office space in San Francisco.
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EducationRE picks up site anchored by a charter school
Starwood Capital Group sold a building in the South Bronx for approximately $100 million, specifically two commercial condominium units at 425 Westchester Avenue for $93.9 million to EducationRE, a Florida-based non-profit aiding under-resourced schools. The 10-story, 150,000-square-foot property is anchored by Zeta Charter School and the Jewish Child Care Association. EducationRE intends to assist in developing a facility for the charter school, as indicated in an application to the NYC Economic Development Corporation. In 2019, Starwood partnered with AB Capstone for this mixed-use development, marking Starwood’s first announced Opportunity Zone investment.
The vacant land was acquired by AB Capstone for $7 million in 2017. Recently, Starwood has also been active in financing projects in New York, including a $161 million loan to Arden Living for a Manhattan multifamily property and a $64 million loan to refinance a 162-unit multifamily building in Brooklyn. Furthermore, Starwood provided a substantial $500 million loan for refinancing a 42-asset industrial portfolio in Westchester County. Meanwhile, the Olnick Organization aims to sell a large, vacant development site in Highbridge for around $60 million.
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Luxury hotel owners in New York City are selling properties at significant losses amid high operational costs and regulatory pressures. Recent high-profile sales include The New York Edition at $235M, down 30% from its purchase price, and NoMo SoHo, expected to fetch $125M in bankruptcy. A surge in transactions since July has seen $1.1B in hotel trades, with distressed sellers looking to cut losses. Despite these challenges, Manhattan's luxury hotel market has shown resilience, with revenues per available room surpassing 2019 levels post-inflation. The market dynamics have improved due to regulatory changes like the Airbnb ban, limiting competition. Industry insiders note that while sellers may not be satisfied with sale prices, buyers recognize the potential in luxury accommodations as operational fundamentals strengthen.
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