Weekly Market Report - August 26, 2025
- Broker Support
- 1 day ago
- 8 min read
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TRD reports top transactions for Monday, Aug. 18, 2025
On August 18, New York City recorded 197 deals over $100k, totaling around $1.33 billion. In residential sales, a condominium at THE 74 sold for $12.4 million, represented by Douglas Elliman for Elad Group. The most significant commercial sale was $1.08 billion for 590 Madison Ave and adjacent properties, sold by Ohio's State Teachers Retirement System to RXR's Scott Rechler. Additionally, a multifamily building portfolio in East Flushing sold for $12 million, while a single-family home on West 87th Street fetched $10 million.
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A high net worth individual bought the retail condominium at 229 W. 43rd St. for $28M, significantly lower than Kushner's $295M purchase price nearly a decade ago. Kushner initially acquired the 248K SF space and refinanced it with a $370M loan, with a peak valuation of $470M. The property, part of an 18-story building, suffered during the 2020 downturn, losing major tenants National Geographic and Gulliver's Gate, which combined occupied nearly 43% of the space. Following defaults, lenders moved to foreclose in November 2020, leading to KeyBank winning an auction and taking control in May 2021.
Despite being assessed at $51.3M, the retail condo transferred for $1K, indicating a distressed sale. A previous sales agreement fell through before the current transaction. The buyer, identified as Forum at Times Square LLC, plans to enhance the tenant mix with entertainment and dining options to create a vibrant atmosphere, particularly with the Caesars Palace Times Square casino proposed across the street. Built in 1912 for The New York Times, the tower now hosts various tech and media tenants. The current main tenant is Lucky Strike, operating a 76K SF Bowlero, while the property remains only 34.5% leased. CBRE managed the sale process, with advisors for both parties involved.
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The owner of the Helmsley Building faces challenges retaining control after a state judge allowed a foreclosure case to advance. Developer RXR is reportedly poised to sign an agreement altering the property’s mortgage, which will involve a significant equity investment, although specifics on the cash contribution or new investors remain unclear. RXR previously acquired the building in 2015 for $1.2 billion, but its value dropped to $770 million after appraisals indicated only 70% occupancy.
The property, located adjacent to Grand Central Terminal, may be viewed as a candidate for partial conversion into apartments. The case progresses as a judge dismissed RXR's attempt to halt the foreclosure, citing the mortgage trustee’s standing. Since entering foreclosure, the Helmsley has seen a vacancy increase to 44%, with current income falling short of mortgage obligations; rising debt burdens due to reliance on borrowed funds for expenses compound the issue. Meanwhile, nearby developments continue, such as BXP's office tower project at 343 Madison Ave, despite setbacks in financing partnerships.
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Tech giant occupies majority of CIM Group’s beleaguered office
Amazon has expanded its presence at 1440 Broadway in Times Square, adding 259,000 square feet, bringing its total to 560,000 square feet within the 745,000-square-foot property owned by CIM Group and QSuper. The space is managed by WeWork, although details on rent and lease duration remain undisclosed. Amazon's aggressive expansion in New York City includes a 330,000-square-foot lease at 10 Bryant Park, a 193,000-square-foot sublease at 237 Park Avenue, a 112,000-square-foot expansion at 5 Manhattan West, and a 304,000-square-foot lease at 330 West 34th Street. Additionally, Amazon purchased the former Lord & Taylor building for $1.2 billion for its headquarters. However, concerns arose when a $399 million loan tied to 1440 Broadway entered special servicing due to a default, following a previous missed maturity payment that significantly decreased the building's value.
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Tavros Capital set to buy beleaguered parcel at 250 Water Street
Seaport Entertainment Group (SEG) is selling the controversial Seaport Tower site at 250 Water Street for $150.5 million to Tavros Capital, a significant loss compared to the $220 million invested since its separation from Howard Hughes Holdings. SEG's President and CEO Anton Nikodemus noted that this sale will foster new sustainable growth and bolster long-term shareholder value. Howard Hughes acquired the site for $180 million in 2018, after prior attempts for building approval failed, backed by a contentious $40 million air rights deal for the South Street Seaport Museum. Following legal disputes and approval challenges, the project regained momentum, aided by a deadline extension for the 421a tax abatement until 2031, crucial for the viability of the 399-unit development, with 100 affordable units.
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Value per square foot has dipped below former asking rents at 1140 Sixth Ave.
Midtown, particularly near Grand Central, is experiencing significant changes, but not all property owners are benefiting. The ground lease for the office building at 1140 Sixth Avenue has plummeted in value by 90%, from an appraisal of $180 million in 2016 to just $17.8 million today. Leasing costs have dropped to $70 per square foot, down from $85 in 2012. Despite the area recovering post-pandemic, American Strategic Investment Co. has struggled financially and lost tenants.
The 20-story building, built in 1931, was once bought by Blackstone, which renovated it and then sold it for $180 million in 2016. However, occupancy fell from 91% in 2016 to about 79% by 2019, and over 30% vacant by 2021. Net operating income nosedived from $9.5 million in 2016 to only $1.6 million in 2023. The major tenant is City National Bank, with other tenants receiving rent concessions. The loan was moved to special servicing due to the owner's financial woes, and foreclosure proceedings have begun.
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Developer ups messy dispute amid issues with Miami Beach trophy asset, German backer
Michael Shvo is pursuing the eviction of Core Club from 711 Fifth Avenue, following the club's lawsuit against his firm, alleging $600 million in damages for underperformance. Shvo responded, claiming the lawsuit is a strategic effort for concessions. His attorney indicated that despite attempts to maintain the club's tenancy, Core Club's failure to fulfill lease obligations necessitated the eviction. Shvo is also grappling with issues regarding his Raleigh condo project and ongoing disputes with his German investors, including an arbitration claim for over $85 million.
Core Club's new attorney contended that the eviction notice coincided with negative media regarding Shvo’s financial troubles, framing it as a distraction strategy. The legal battles have persisted for over a year, with a recent ruling ordering Core Club to pay nearly $1 million linked to a defaulted loan. Core Club accuses Shvo of misleading them about property ownership and excessive expenses. Shvo counters that these claims contradict existing agreements. An initial lawyer for Core Club admitted to using AI for inaccurate legal citations, resulting in a directive to cover Shvo’s legal costs.
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Corebridge files pre-foreclosure suit over office building.
Corebridge Financial filed a $138 million pre-foreclosure suit against Edward J. Minskoff Equities (EJME) due to defaults on three mortgages for the 11-story office building at 29 Jay Street in Dumbo, Brooklyn. The loan, initially from AIG Investments, was inherited by Corebridge after AIG’s spinoff in 2022. EJME purchased the property in March 2020 for $61.5 million, using a $40 million Bank of America loan and planned a significant redevelopment project. Despite requesting a project extension, the lawsuit claims EJME failed to pay the associated fee. In July, EJME faced another foreclosure risk at 500-512 Seventh Avenue due to rent collection issues. However, the firm has secured large leases recently, including contracts with L.E.K. Consulting, FDIC, and U.S. Customs and Border Protection, indicating a mixed but resilient performance in leasing.
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Deutsche Finance of America invested in many of Shvo’s trophy assets, including the Transamerica Tower
Marty Burger, former CEO of Silverstein Properties, and European firm Revetas will manage a $4 billion real estate portfolio, including stakes in properties owned by Michael Shvo. Revetas is set to take over Deutsche Finance America (DFA), which invested in notable projects such as the Coca-Cola building and the Raleigh Hotel. Burger will be the U.S. point person for Revetas as they aim to reposition DFA's U.S. portfolio through various strategic methods like refinancing and selective dispositions. He replaces Jason Lucas, DFA's founding partner, who has left amid a dispute with Deutsche Finance Group while retaining a minority stake.
Burger and Revetas' authority may be limited by their operating agreement with Shvo, affecting their ability to influence property management. Eric Assimakopoulos of Revetas emphasizes their commitment to maximizing investor value while addressing challenges faced by German investors in U.S. real estate, including setbacks from Covid-19 and rising interest rates. Shvo’s projects, such as The Raleigh, are under scrutiny, with a bid to sell the property and ongoing disputes regarding fees with BVK, a key investor.
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Actor-turned-investor Ashton Kutcher joins the club
Soho House, the exclusive members-only club favored by celebrities, is going private in a $2.7 billion deal. MCR Hotels, led by Tyler Morse, is spearheading a group that will purchase the company's public stock for $9 per share, an 18 percent increase from Friday’s trading, but below the $14 IPO price in 2021. Billionaire Ron Burkle and Yucaipa Companies will maintain majority control, with Burkle rolling over his stake. Morse will serve as vice chairman on the board, joined by actor-investor Ashton Kutcher, also part of the new investment group.
Apollo Global Management is refinancing approximately $700 million in debt. Soho House operates 46 locations and boasts over 200,000 members, having pioneered the members-only club trend in New York City since its founding in 1995. The trend remains strong, evidenced by Chetrit Organization's recent lease for a 19,000-square-foot membership club and Little Big Hospitality's upcoming 45,000-square-foot club in Brooklyn, underscoring growing demand for private social venues.
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Wiener has placed 5,200 New York apartment units into bankruptcy
Flagstar Bank has filed serious allegations against billionaire landlord Joel Wiener, claiming mismanagement of his 82 property entities, which owe over $1.1 billion to the bank and Israeli bondholders. The properties, including 93 New York apartment buildings with over 5,200 units, have not paid mortgages since January, leading to potential foreclosures. Although Wiener’s businesses aim to use rental income for operational expenses, Flagstar objects, expressing concerns about fund management and alleging that the properties paid $12 million to bondholders without covering their mortgages. Wiener has engaged Michelle Zell, an appraiser for Bowery Valuation, as an expert witness in the bankruptcy case, asserting that the properties are worth more than their debt.
However, Flagstar’s expert, Scott Fowler, labeled Zell’s appraisal report as flawed and lacking credibility. Past defaults in the Israeli bond market by New York real estate players, including notable cases like Brooklyn developer Yoel Goldman’s and Starwood Capital’s, raise further red flags. Additionally, Zell is currently facing accusations of misappraisal from Saluda Grade for an apartment complex deal. In the ongoing bankruptcy proceedings, Flagstar has also contested the high management fees paid to Wiener-controlled companies, prompting a federal judge to mediate interim cash usage with the parties involved.
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Crown Heights property with no competing bids sells out of bankruptcy for $10.1M
Avery Hall Investments acquired a development site at 1550 Bedford Avenue in Crown Heights for $10.1 million, once planned for a hotel by Yoel Goldman, who filed for bankruptcy earlier this year. Goldman initially valued the site at $14 million. Financing was provided by Maxim Capital, and Avery Hall is considering various potential uses for the property. The sale highlights the downfall of Goldman’s Brooklyn portfolio, which peaked at a billion dollars before collapsing under debt and legal issues.
Although the Bedford site was not owned by Goldman’s company, All Year Holdings, it was a personal asset, purchased for $7 million in 2014. Plans for the site included a 100-key hotel. Upon bankruptcy, Goldman faced over $1.4 million in mechanic's liens and owed Downtown Capital Partners about $45 million. Despite expectations of a higher sale price, only Avery Hall bid on the property, which is zoned for commercial and hotel development. Goldman's legal troubles continue as his restructuring team investigates alleged deals.
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