Weekly Market Report - December 16, 2025
- Broker Support
- 13 minutes ago
- 12 min read
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Rockpoint trading office tower for $270M, six years after paying $566M
David Werner is set to acquire One Dag Hammarskjöld Plaza, a 50-story office building in Midtown East, for $270 million, which is about half the price Rockpoint Group paid in 2019. The transaction is expected to finalize early next year. This is part of Werner's strategy of purchasing undervalued office properties, following his acquisition of properties like 440 Ninth Avenue for $105 million and 205 East 42nd Street at around $300 per square foot.
One Dag, built in 1972, is situated near the United Nations and has a current occupancy rate of 72%, with major tenants including Memorial Sloan Kettering and the Republic of Germany. The building recently underwent over $20 million in capital improvements. Newmark’s marketing memo describes One Dag as a relative discount, given that average rents for similar properties range from $80 to $90 per square foot. While Rockpoint financed its acquisition with a $430 million loan, Werner's price translates to approximately $310 per square foot. Renowned for his unique approach and timing, Werner has been active in the Manhattan real estate market since 2022, buying and converting properties into residential spaces.
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The mood at ICSC's New York this week reflected strong retail sector performance due to resilient consumer spending and rising rents amid a K-shaped economic recovery. Retail landlords are facing challenges as high earners increase spending while others are more cautious. The New York City retail market mirrors the office market’s trend, with prime spaces in demand, but retail landlords lack leverage to hike prices as available spaces are less appealing to retailers. Over 3 million square feet of retail space was leased by September, reducing vacancy rates significantly. Recent reports show that ground-floor availability in prime shopping corridors fell 7%, and leasing velocity rose 43% compared to last year.
Prime luxury retail avenues maintain robust growth, with asking rents surpassing $2,200 per square foot on Upper Fifth Avenue, while other areas like the Financial District saw asking rents decrease despite lower vacancies. Retail spaces without luxury tenants are struggling, prompting landlords to creatively structure leases with concessions for tenant improvements. Elite shopping districts are near full capacity, making it hard for new luxury brands to penetrate. Midwood Investment reports low vacancy rates, with retail real estate thriving nationwide. Landlords are selective about tenants due to low availability. Ripco Real Estate highlights the demand for top shopping centers is such that waiting lists exist. Retailers are adapting by considering smaller formats and creative locations. Although there was notable activity among luxury brands in Manhattan, recent expansions have slowed, with brands reassessing their real estate strategies amid current market conditions.
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Commercial tenants previously vacated the Financial District for more upscale office spaces uptown, leading to an alarming vacancy rate of 23%. However, recent trends show improvement; the vacancy rate near the World Trade Center has decreased to 13%, down from 18% last year, with leasing activity in Q3 rising by 39% compared to the five-year average. Notable buildings like 255 Greenwich St., a Class B tower, are now almost fully leased, save for one vacant floor, demonstrating renewed interest in the area. Owner Jack Resnick & Sons has shown confidence through recent refinancing efforts for the property.
The tower primarily houses Borough of Manhattan Community College, the city’s Real Estate Division, and Target, while undergoing significant renovations. Meanwhile, the World Trade Center boasts a 95% occupancy rate due to competitive rental pricing. Another notable property, 28 Liberty St., recently refinanced its $900 million mortgage and is now only 8% vacant, indicating a resurgence in the Financial District's commercial real estate market.
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Oxford University Press has sold its longtime six-story building at 198 Madison Ave. for $40 million due to changes in work habits, particularly remote work during the pandemic. This historic publisher, which has published the King James Bible since 1478, made this significant decision as maintaining a large office became impractical. The buyer is a group led by Benchmark Properties, which secured a $12.3 million loan for the deal. The building struggles with vacancies and has office rents around $60 per square foot.
Previously, Oxford acquired the space in 1994 for $22 million and had extensive in-house facilities, including a library. In 2021, the publisher sold its offices to its parent, Oxford University, for $33 million. The Madison Ave. site is recognized for housing various nonprofits, including a CUNY graduate school center. Originally built in 1914 as a department store, the building later transitioned to commercial condos. As Oxford departs, occupancy sits at 68%. The publisher has reportedly moved to 546 Fifth Ave., though details about its new premises are unclear.
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TRD reports top transactions for Monday, Dec. 10, 2025
On December 10, 2025, New York City recorded 182 real estate transactions totaling $668 million before 4:00 p.m. The most expensive residential transaction was Little Tiger Love LLC's purchase of a condo for $22.7 million on the Upper West Side, equating to $6,700 per square foot. In commercial real estate, the Sapir Organization sold 260 Madison Avenue for $217 million to AmTrustRE, which plans to invest an additional $60 to $70 million in the 68% leased office building. Meanwhile, a three-story property at 41-60 Main Street in Flushing was sold for $64.3 million, significantly lower than its previous sale price, with financing from Preferred Bank.
Additionally, Morgan Stanley Real Estate Investing bought a commercial condo in the Goldin at Essex Crossing for $56 million. In residential transactions, a unit on Billionaires’ Row sold for $20.3 million, while a townhouse in the West Village exchanged hands for $19.3 million. Another Upper East Side townhouse was acquired for $13.7 million. In broader U.S. real estate trends, Texas cities like San Antonio, Dallas, Austin, and Houston are leading the nation in home turnover rates, attributed to increased inventory and new construction.
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Complaint deemed moot due to increased transparency from board
A judge has dismissed a lawsuit by residents of the Pierre Hotel against the board, which concerns the future of the hotel. The New York Supreme Court ruled that the case is no longer relevant, as transparency issues had been addressed when the board provided a non-binding term sheet and three years of board minutes. Both parties are claiming victory; the board asserts its win stems from the lawsuit's dismissal, while residents argue the case’s dismissal was not based on merit, marking a win for transparency and the shareholders.
The lawsuit, initiated by Tory Burch and other residents, aimed to halt a potential $2 billion sale to a firm reportedly linked to the Khashoggi family, alleging coercion and secrecy. They claimed the board did not disclose the buyer’s identity and rejected an offer from Taj Hotels to keep residents in place. As the sale remains a possibility, the board is exploring a deal with Taj that includes capital improvements. The Pierre, celebrating its 95th anniversary, faces challenges in maintaining its standards, prompting scrutiny over board decisions, particularly concerning prominent board member Howard Lutnick, who had connections to the advisory firm involved.
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Deal marks one of 2025’s priciest hotel trades as luxury market rebounds
A trio of investors—Highgate, Gencom, and Argent Ventures—has acquired the InterContinental New York Times Square for approximately $230 million from Tishman Realty and Metlife Investment Management. The deal, facilitated by a $190 million loan from Monroe Capital, underscores a resurgence in New York's luxury hotel market despite ongoing challenges such as rising labor costs and high interest rates. The 36-story, 607-room hotel, located at 300 West 44th Street, opened in 2010 and was developed at a cost of $500 million. Under the new ownership, the property is set to transition to an IHG franchise with Highgate taking over management.
This transaction is noted as the second-largest single hotel sale of 2025, following Kam Sang Company's $235 million purchase of the Edition Clocktower Hotel. The sale reflects a broader recovery trajectory in New York’s hospitality sector, although industry experts like Daniel Lesser acknowledge challenges in translating revenue gains to profits. The hotel continues to operate under IHG Hotels and Resorts management until the changes take effect. Eastdil Secured acted as the advisor for the seller and arranged the financing.
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Scott Rechler’s firm plans so far show redev for one floor of FiDi office
RXR is moving forward with plans to convert part of 61 Broadway in the Financial District into residential units. The firm's proposal includes redeveloping a single floor to create 21 apartments within 20,000 square feet, featuring amenities like a bike room and lounge, designed by CetraRuddy Architecture. RXR previously encountered financial issues with this property, defaulting on a loan in December 2022, which collapsed in May 2023.
The building was only 57 percent occupied, with previous tenant Knotel filing for bankruptcy shortly after leasing 60,000 square feet. This micro-conversion project contrasts sharply with RXR's larger endeavor at 5 Times Square, in partnership with SL Green and Apollo Global Management, planning up to 1,250 housing units, primarily studios, with a quarter being affordable. This ambitious project could benefit from significant tax breaks if construction begins by June 2026, with $561 million in financing already secured for its development.
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A workforce management platform and financial services firm topped November’s list.
In New York City last month, the competition for the largest office lease by square footage was significant, with six of the top ten leases exceeding 100,000 square feet, and only a 4,000 square foot difference between the top two. The list features a mix of tech firms, law practices, and financial services. 1) Rippling: 133K sf at Penn Plaza.2) GFI Group: 129K sf at Financial District, expanding and consolidating its offices. 3) Robinhood: 125K sf at Penn Plaza, taking over a sublease from Madison Square Garden. 4) BakerHostetler: 115K sf at Plaza District, renewing its long-standing lease.5) Administration for Children’s Services: 105K sf at Crown Heights, consolidating offices.6) Sixth Street: 103K sf at Hudson Yards, under a new sublease. 7) Current: 62K sf at Penn Plaza, securing a 10-year lease.8) Overtime: 41K sf in Dumbo. 9) Moroccanoil: 40K sf at Times Square. 10) EQT Partners: 38K sf at Grand Central, expanding its space.
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Cerity Partners expands following aging building’s $30M repositioning
Eyal Ofer’s $30 million repositioning of 99 Park Avenue has led to a major lease with wealth management firm Cerity Partners, who will occupy nearly 49,000 square feet in the Midtown office tower. Global Holdings is upgrading the 1950s-era, 600,000-square-foot building, enhancing its exterior and adding amenities like a speakeasy, golf simulator, and conference center, with renovations expected to finish next year. Earlier this year, Amalgamated Bank signed a 15-year lease for 94,000 square feet, including a private lobby entrance. Other recent tenants include Geller & Company, Garan, Steward Partners, and Metropolitan Bank. Geller leased 45,000 square feet in March while Garan expanded its space. The Grand Central area has seen limited office availability, with an availability rate of 13.6 percent in the third quarter, indicating a competitive submarket.
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Bank renews and expands leases, leaving office landlords calm for now
As JPMorgan Chase prepares to open its new 2.5 million-square-foot headquarters at 270 Park Avenue, Midtown office landlords anticipate possible changes in the market. The building will house about 10,000 of the bank’s 24,000 New York employees, potentially creating a JPMorgan-centric neighborhood with another bank-owned building nearby. Following the grand opening by CEO Jamie Dimon, there are concerns about whether JPMorgan will vacate its other office spaces in the area, currently held under long-term leases. However, instead of reducing its footprint, the bank is expanding in some areas, including a $1 billion renovation of the 383 Madison Avenue property and securing a new 60,000-square-foot sublease at 390 Madison, raising its total presence there to nearly 500,000 square feet.
Additionally, JPMorgan renewed a 270,000-square-foot lease at 237 Park Avenue and extended its lease at 5 Manhattan West through 2031. While the renovations at 383 Madison are slated for completion in 2027, landlords with expiring leases at JPMorgan sites are seeing strong interest in the current Class A office market. Plans for further development nearby include potential renovations of 250 Park Avenue and 410 Madison Avenue. Not all properties are retained; JPMorgan Asset Management is seeking to sell a Plaza District office building for $270 million, significantly less than its pre-pandemic asking price.
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Life Time, Chelsea Piers, Equinox dominated this year’s largest retail leases
The landscape of high-end gyms in Manhattan has surged, highlighted by large leases spanning tens of thousands of square feet from major players like Chelsea Piers, Life Time, Equinox, and the newcomer Neko Health. Unlike last year, when no wellness facilities made the top retail lease list, luxury health clubs are betting on Manhattan's demand for premium amenities, including massage therapy and nutrition coaching.
The list for 2025 features significant leases, such as Meow Wolf at 75,000 sq ft in South Street Seaport and Old Navy with 55,000 sq ft in the Garment District. Other notable leases include Life Time at Grand Central, Equinox in Chelsea, and multiple facilities associated with Chelsea Piers. Retail wellness continues thriving with sauna concepts emerging, reinforcing a shift beyond traditional fitness clubs into comprehensive wellness offerings.
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Marc Holliday, CEO of SL Green, attempted to ease tensions with Mayor-elect Zohran Mamdani, emphasizing their shared interests despite differing views during the election. Holliday expressed confidence in collaborating with Mamdani’s administration, highlighting compatibility on issues like housing and business development. Holliday had previously hosted a fundraiser for Mayor Eric Adams and stressed the need for a pro-business approach combined with social responsibility. Despite SL Green's stock plummeting over 35% this year, primarily due to concerns about Mamdani's election and a failed casino initiative, Holliday remains optimistic. The company plans to repurpose the 1515 Broadway site into a hotel with entertainment options and intends to sell $2.5 billion in properties next year while addressing debt. Overall, Holliday’s comments reflect a commitment to partnership with local government for mutual benefit.
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Gov. Kathy Hochul addressed SL Green Realty Trust's investor conference, encouraging potential investors to support New York City’s largest office landlord. Speaking at One Vanderbilt, she praised SL Green’s CEO, Marc Holliday, as a visionary committed to navigating challenges. However, SL Green's earnings guidance for 2026 fell short of Wall Street's expectations, causing the stock to drop approximately 8%. The firm projected funds from operations per share of $4.40 to $4.70, under the analyst estimate of $5.13, while net income per share may range from a loss of $0.27 to a gain of $0.03.
SL Green announced a return to quarterly dividends instead of monthly ones and intends to reduce its debt by selling billions in assets, including properties like 185 Broadway and 245 Park Ave. Despite the challenges, SL Green is optimistic, planning development projects funded by asset sales. Following the setback of its casino proposal at 1515 Broadway, the company has shifted to converting floors into a hotel and entertainment complex. Executives remain hopeful despite political hurdles anticipated from incoming mayor Zohran Mamdani, emphasizing the importance of collaboration between the private sector and city officials. Hochul's support has been crucial, aligning with SL Green’s interests and facilitating a conducive business environment.
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Landau Properties has acquired a Brooklyn Heights site at 205 Montague St. for $140 million to develop a 136-unit mixed-use project. This purchase comes over a year after the developer filed plans for a 47-story building and nearly ten years after Midtown Equities put the property on the market. The acquisition is financed through a $113 million loan from Northwind Group and $100 million in equity, which includes $25 million from Atlas Capital Group. Midtown Equities retains a partnership role in the project alongside Chicago's Third Millennium Group. The proposed $500 million development will feature 46 luxury condos, 90 rentals, and 40,000 square feet of retail space, with work expected to begin early next year. Previous plans filed in early 2024 detail a structure spanning around 412,000 square feet, reaching 672 feet in height. Midtown Equities had purchased the site for $33 million in 2010, attempting to sell it for over $200 million in 2015 amid legal disputes with Rialto Capital Advisors.
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Mortgage backing 250 Livingston Street headed to special servicing
David Bistricer has secured new financing for a rental complex in Greenpoint, north Brooklyn, while facing potential foreclosure issues with a troubled office property in Downtown Brooklyn—250 Livingston Street. Clipper Equity, Bistricer’s firm, fell behind on a $125 million mortgage last month, prompting concerns over default. Although Clipper is considering handing the property back to lenders, Bistricer aims to prevent foreclosure by negotiating with them through IronHound Management. Despite Clipper’s intention to resolve the situation, a recent filing indicated the firm will not continue to support the operational shortfall and plans to sell the building.
This predicament stems partly from the city’s Human Resources Administration leaving 350,000 square feet, a significant blow to the property. Though Bistricer mentioned ongoing negotiations for a new tenant, details remained undisclosed. This isn’t Bistricer's first brush with financial difficulties in the Brooklyn office market; previously, a report highlighted delinquency issues with 141 Livingston Street, leading to foreclosure proceedings after a renewal request was denied by Kings County Civil Court.
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