Weekly Market Report - November 4, 2025
- Broker Support
- Nov 7
- 11 min read
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JPMorgan Chase provided debt months after maturity default
BXP and the Moinian Group successfully refinanced their debt at 3 Hudson Boulevard after encountering a maturity default. JPMorgan Chase issued a $108 million loan for the skyscraper planned in Hudson Yards, replacing an $80 million loan from BXP that matured last August, which had a rising interest rate causing an outstanding balance of $130.7 million by third quarter’s end. BXP also revealed a $50 million mezzanine loan as part of the refinancing. BXP initially secured the $80 million loan when collaborating with Moinian in 2018, investing $46 million to acquire their stake and committing an additional $62 million if required.
Moinian previously bought the entire city block from Verizon in 2005 for $54 million, and the debt replaced a mortgage from American General Life Insurance Company. Construction on the 2 million-square-foot project began in 2017, with a design unveiled in 2020, but progress has been slow post-pandemic. While seeking financing for 3 Hudson Boulevard, BXP completed a $465 million refinancing for Hub on Causeway in Boston and is advancing a 12-story office project in D.C. Meanwhile, Moinian faced foreclosure on its Midtown properties for defaulting on a $310 million loan.
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Farallon Capital, headed by former Blackstone manager, leads recap at $200M valuation
Scott Rechler restructured the 75 Rockefeller Plaza building, enlisting Farallon Capital Management as an investor, which valued the tower at $190-$200 million. This valuation is lower than the $260 million debt incurred by RXR in 2022. The deal involved splitting the mortgage into an A note and a B "hope note." Despite being 95% leased to companies like Merrill Lynch, the property's valuation has significantly declined since RXR bought the ground lease in 2013 for an estimated $500 million, highlighting the volatility in the office market. RXR's CEO noted the company’s seventh recapitalization under its 3R strategy amid ongoing market uncertainties.
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A Manhattan office tower at 360 Park Ave. South has transformed dramatically, now 38% leased and receiving proposals for nearly all remaining space, following a $1 sale last year. Financial firms, facing scarcity of options north of Grand Central Terminal, are considering prewar buildings in Midtown South. BXP, the tower's majority owner, reports six floors occupied and interest in leasing nearly all of the remaining 14 stories. Hilary Spann, BXP’s executive VP, noted a significant increase in tour activity as financial-services firms seek space in the area, a marked improvement from the previous year when a Canadian pension fund sold its 29% stake for $1.
Midtown South’s office market is recovering, with landlords now competing for tenants in buildings that were previously nearly vacant. The 675,000 square-foot building at 225-233 Park Ave. South, which was 60% vacant after Meta’s departure, is also expected to recover. Positive developments continue with the redeveloped 1 Madison Ave., currently 91% leased. Recently signed tenants at 360 Park include Grammarly, an AI communications company. Overall, Midtown South shows positive net absorption, a decline in office vacancy rate to 25%, and an increase in average asking rents to $100 per square foot from $93, reflecting the area's vibrant rebound.
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At the end of the month, six office buildings from the 1970s and '80s in Maryland are scheduled for auction due to foreclosure, part of a twelve-building portfolio Brookfield acquired in 2016-2017 with a $223M loan in 2018. This sale highlights Brookfield's ongoing struggles in the U.S. office real estate market, worsened by the pandemic, leading to over $3B in asset losses. Brookfield's office property management has decreased from $33.5B in early 2020 to $28B now. They aim to refinance $8B in maturing debt and sell $10B in assets by 2030. Despite a potential rise in quality office interest, Brookfield’s predicament showcases persistent industry issues.
Previously, Brookfield invested over $8B in office acquisitions, securing significant properties like Houston Center, but now faces a substantial decline in office values with 46% of office buildings sold in 2023 at discounts. The pandemic severely impacted tenant demand, resulting in a 37% drop in values since spring 2022. Brookfield’s focus has shifted following many faltering deals, exemplified by foreclosures from the Forest City acquisition. As interest rates rise, Brookfield plans to sell $45B in real estate, with a significant portion coming from office holdings, striving for a $10B reduction in office exposure while refocusing on fund management.
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AmTrustRE in contract to buy 260 Madison Ave
Alex Sapir is selling the 22-story building at 260 Madison Avenue for over $200 million, specifically $217 million to Jonathan Bennett’s AmTrustRE. AmTrust announced the acquisition on the Tel Aviv Stock Exchange and plans to stabilize the property, which is currently only 68 percent leased, with an annual net operating income of $10 million. They intend to invest $60 to $70 million to boost occupancy and aim for an NOI increase to $20 million. The deal is expected to close by year-end, with AmTrust seeking financing for 60 to 65 percent of the purchase price.
The Sapir family, owners since 1997, faced internal disputes that included a suit against Sapir's brother-in-law, Rotem Rosen, over alleged financial misconduct. This dispute was settled in 2022. The properties struggled during this family feud, leading to a $126 million CMBS loan being sent to special servicing; however, Sapir later refinanced the buildings for $326 million. In related activity, AmTrust also bought Savanna's 360 Lexington Avenue for $65 million, significantly lower than the $180 million price paid by Savanna in 2019.
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Board of Alex Sapir-owned real estate arm resigns
Alex Sapir's Sapir Corp has filed for insolvency, unable to meet bond payments or operational costs. The company, owning the Nomo Soho hotel in Manhattan, petitioned the Tel Aviv-Jaffa District Court for insolvency proceedings and a trustee's appointment. All directors have resigned, and Sapir, the controlling shareholder, indicated a buyer for the hotel—Israeli chain Dan Hotels—contracted for $125 million, pending court and bondholder approval. Factors influencing the decision to exit the Israeli market included negative hotel market conditions, high-interest rates, and a stronger shekel. Dan Hotels intends to renovate the 264-room hotel post-purchase. Sapir Corp's financial troubles have persisted despite previous refinancing efforts, with a $34 million debt due in 2024. COVID-19 severely impacted the hotel's occupancy, leading to a management change and efforts to cut costs. The Nomo Soho and a Miami site are Sapir Corp's last assets, with the latter also for sale.
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TRD reports top transactions for Monday, Oct. 27, 2025
The most expensive commercial deal involved ATCO Properties selling a stake in a Midtown office tower for about $66.2 million. Additionally, a hotel in Long Island City traded for $14.9 million, while two vacant plots in Park Slope fetched $6.7 million.
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The developer CSC Real Estate has withdrawn from a stalled hotel conversion project at Columbus Circle, prompting the lender Parkview Financial to file for Chapter 11 bankruptcy protection for the site. The project aimed to transform the Hudson Hotel into a 24-story mixed-use development with over 400 residential units but faced legal issues between CSC and Parkview. The bankruptcy filing by the Parkview-controlled Hudson 1701/1706 LLC in Delaware aims to allow Parkview to recapitalize and manage existing tenant services without impacting current residents. CSC confirmed that Parkview is now solely handling the project but declined to explain its departure.
The historic property, which has served various purposes since its 1920s inception, became a hotel in 2000 but closed in 2020 due to the pandemic's impact on hospitality. Parkview, having previously loaned CSC $207 million, filed a lawsuit against the Smekes, alleging "gross mismanagement" leading to tenant harassment issues and a stop-work order. CSC countered with claims against Parkview for underfunding. The bankruptcy documents reveal liabilities and assets ranging from $100 million to $500 million, with the Smeke brothers listed as creditors. Meanwhile, CSC continues to pursue other projects in New York City.
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Green Street Advisors, a prominent research and consulting firm for real estate investors, is expanding its presence at 10 Grand Central, a historic Art Deco tower in Midtown East. The firm is moving from 5,000 square feet on the second floor to 12,000 square feet on the thirteenth floor, with lease terms near the asking rent of $88 per square foot. The building, originally developed in 1931 and previously known as 708 Third Ave., has undergone repositioning by owner Marx Realty, including a redefined lobby entrance and outdoor terrace spaces. Green Street, co-founded by a University of Chicago graduate, challenges conventional analyses from Wall Street investment banks and recently celebrated its 40th anniversary. CEO Jeff Stuek emphasized the firm's role in providing clients with insights on forecasting and market valuations, while Marx Realty’s CEO noted the importance of a workplace that fosters creativity and collaboration.
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Jenel Management, facing a $24.9 million judgment in a foreclosure case, has sold its retail properties at 136 and 138 W. 34th Street to Vornado Realty Trust for $19.1 million, averting an auction scheduled for October 1. The properties, previously occupied by Kay Jewelers and Sprint, were collateral for a $30 million mortgage from Citigroup, which Jenel allegedly defaulted on due to rising vacancies on West 34th Street amid post-pandemic struggles. The sale, completed swiftly within a week, suggests Jenel's willingness to relinquish the properties, originally bought for $3 million in 1992. Notably, the $6 million difference between the owed amount and the sale price indicates Jenel retained some equity in the buildings. The auction's cancellation has puzzled observers, as Citigroup would likely have gained ownership otherwise. Vornado, a major retail property owner in Manhattan, adds these sites to its existing portfolio but has not disclosed its specific interest in them.
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NYC’s top deals: Bank Hapoalim offloads troubled FiDi dev site for $26M
The top commercial deal was Rivington Company's acquisition of a development site at 140-142 Fulton Street for $26.4 million from Bank Hapoalim. The former owner, Hidrock Properties, had intended to build a hotel on the site. Additionally. In Brooklyn, a retail property at 960 Halsey Street sold for $9 million. Meanwhile, U.S. home prices dropped by 0.3% in August, marking the weakest annual growth rate in over two years.
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Mix of asset classes scored Manhattan’s top financing
In September, Manhattan lending decreased significantly after a hot August, with the top five real estate deals totaling just over $2 billion, a 50% decline from August. The leading transaction was SL Green and Prudential’s $1.4 billion refinancing of 11 Madison Avenue, led by Wells Fargo. The refinancing replaces existing debt, with an interest rate increase from 3.6% to 5.8%. Rabsky Group’s $320 million condo project loan in Tribeca followed, with plans for 280,000 square feet over multiple lots.
Barings provided $230 million to refinance mixed-use buildings at 520 and 524 Broadway, while Bank Hapoalim lent $220 million for a new mixed-use development in Harlem, featuring 490 rental units. Lastly, JPMorgan Chase allocated $145 million for Vornado’s acquisition of the office tower at 623 Fifth Avenue, intended for redevelopment into a Class A office building. Each transaction highlights diverse lending activity across different property types in Manhattan amidst overall market cooling.
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DekaBank, Crédit Agricole provide financing on 888 Broadway following Cannon Hill Capital & Williams Equities recap
Global Holdings and its partners refinanced the Netflix-leased office building at 888 Broadway for $130 million, with financing from DekaBank and Crédit Agricole. The 220,000-square-foot building, which includes an annex at 38 East 19th Street, is also occupied by Atlassian and features retail spaces leased to ABC Home & Carpet and restaurants by Jean-Georges. Michael Cohen of Williams Equities highlighted 888 Broadway as an attractive investment due to its pre-war design in Midtown South.
Cannon Hill Capital, involved in the recapitalization alongside Global Holdings, acquired the property through its purchase of Normandy Real Estate Partners for $133 million in 2017. Earlier, Cannon Hill partnered with Global Holdings and Williams Equities, with the latter contributing land under 38 East 19th Street. Cannon Hill also sold 799 Broadway last year for $255 million and is developing a 158-unit apartment building in Gowanus, while Williams Equities purchased a 300,000-square-foot building at 470 Park Avenue for $147.5 million.
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Real estate investment trust owns more than 32M sf across ten markets
Plymouth Industrial is transitioning from public to private following a merger agreement with Makarora Management and Ares Alternative Credit, which will acquire all outstanding shares for $22 each, valuing Plymouth at $2.1 billion. This all-cash deal significantly surpasses a prior unsolicited bid from Sixth Street Partners. Makarora founder Chad Pike highlighted the strategic positioning of Plymouth's properties in high-demand regions. The merger has been approved by Plymouth’s board but requires shareholder consent, with expectations for closure early next year. Additionally, Plymouth is initiating a 30-day “go-shop” period to explore other offers while preparing to issue its third-quarter dividend. The company owns 226 buildings in 10 markets, totaling over 32 million square feet. Last year, Plymouth had considerable revenue growth through a partnership with Sixth Street, securing a substantial investment in its Chicago holdings.
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The American Jewish Committee (AJC) is selling its Midtown East office building located at 165 E. 56th St. for approximately $40 million. Owned since 1959, the 8-story, 60,000-square-foot property, also known as 936 Third Ave., is being listed as favorable for office-to-residential conversion, particularly for luxury condos due to their scarcity in the neighborhood. Potential buyers may benefit from tax breaks, including the 467-m and 485-x programs, for converting it into rentals.
A residential building could reach around 89,000 square feet and 370 feet in height, while a mixed-use building could be about 112,000 square feet. Improvements to the nearby subway station may allow further height increases. The AJC is currently the largest tenant in the building, alongside other tenants like Flagstar Bank and The Tikvah Fund. Estimated office rents in the building range from $61 to $74 per square foot. This sale represents a broader trend of office-to-residential conversions in Midtown following the pandemic.
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InterVest filed plans for the office-to-residential conversion
InterVest Capital Partners is transforming a downtown office building at 30 Broad Street into 571 rental apartments after acquiring it for $1,000 at a foreclosure auction. Previously owned by Tribeca Associates, the tower had significant financial issues, including a refinanced debt increasing from $96 million to $124.6 million. InterVest initiated a $126 million pre-foreclosure action against the property's former owners. The conversion project, assisted by Rose Associates, will add a floor and include retail units, a fitness center, yoga room, lounge, and roof deck. Additionally, a nonprofit, CompletePlayground, signed a long-term lease for an indoor playground, taking over from the New York Sports Club. The building is under a lease until 2079 with a rent adjustment due in 2035.
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The owners of Columbus Square, an outdoor mall on the Upper West Side, have defaulted on their mortgage for the second time. Developed 18 years ago by Chetrit Group and Stellar Management, the center features 270,000 square feet of retail space anchored by Target and Whole Foods. Although retail activity remains strong, the mortgage of $360 million was sent to special servicing after missed payments, according to Morningstar Credit Analytics. The specific cause of these defaults is unclear, as business leaders note a healthy retail environment with new stores opening.
The financial issues stem from the co-owners, Joseph and Meyer Chetrit, who face defaults on nearly $2 billion in loans, including about $280 million personally guaranteed. A recent court hearing highlighted the lack of substantial defense from the Chetrits regarding their financial situation. Additionally, Meyer Chetrit faces criminal charges for alleged harassment of residents in a Chelsea building, which he denies. Concerns about property maintenance have arisen among residents of nearby Park West Village, owned by the Chetrits, with reports of broken service elevators and malfunctioning intercoms, leading to worries about the management's financial health and capabilities.
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Alleged $29M loan default adds to mounting financial strain for landlord
A&E Real Estate, a major private landlord in NYC, is facing foreclosure on 1080 Amsterdam Avenue, near Columbia University, due to a default on a $29 million loan. Apex Bank has filed suit in Manhattan Supreme Court, claiming A&E missed three mortgage payments and violated loan terms. The bank is pursuing the sale of the 20-story, 96-unit building to recover the $28.3 million owed, plus interest and fees. A&E’s co-founder, Douglas Eisenberg, stated they are working with the lender to find a resolution that won't affect tenants, maintaining that negotiations are ongoing. The building, a mix of market-rate and rent-stabilized apartments, has been impacted by a 2019 rent law overhaul that limited rent increases. A&E previously purchased the property for $42.7 million in 2022, financing it with the Signature Bank loan, now in dispute after the bank's collapse. The firm, which manages around 20,000 apartments, is also facing additional financial challenges.
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