Weekly Market Report - October 28, 2025
- Broker Support
- Oct 31
- 15 min read
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JPMorgan Chase unveiled its new 60-story headquarters on Park Avenue, reaffirming New York City's status as a financial epicenter. During the ribbon-cutting ceremony, Governor Kathy Hochul emphasized the tower's representation of confidence and ambition for the city's future despite Mayor Eric Adams' absence. The $3 billion structure symbolizes massiveness and patriotism, featuring a lobby adorned with bronze beams and an American flag. The building will accommodate 10,000 workers and exemplifies JPMorgan's extensive presence in New York, with CEO Jamie Dimon highlighting the bank's employment of 25,000 residents and service to three million customers and one million small businesses.
The tower, the largest to debut since the opening of 1 Vanderbilt Ave., owes its height to a 2017 zoning change and acquired air rights from local churches. Dimon noted upcoming projects, including renovations at the former Bear Stearns headquarters and further development at Park Avenue. Developer Rob Speyer lauded Dimon's initiative, stating that leasing in Manhattan is currently robust. The ceremony included a reflection led by wellness expert Deepak Chopra, who described the tower as a "living organism of creativity" meant to foster abundance.
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Manhattan's commercial real estate sales nearly reached $5B in Q3, marking the most active period since early 2022, fueled by a billion-dollar office deal. Approximately $4.9B in properties traded, up 191% from Q2 and 54% from the previous year. The office sector dominated, highlighted by RXR and Elliot Investment Management's $1.1B purchase of 590 Madison Ave. “The flywheel has started moving, indicating a positive recovery outlook for the market. Each facet of commercial sales showed a resurgence, particularly in development and office sectors, overtaking multifamily and retail.
Institutional investment bolstered confidence, with significant transactions including Norges Bank's $572.3M acquisition of 1177 Sixth Ave. and Vornado's $218M purchase of 611 Fifth Ave. Development site sales surged by 1,993% quarter-over-quarter, with Naftali Group's $810M land acquisition spearheading this growth. Despite potential scarcity post-tax break changes, interest in outer borough sites remains robust, with investors adapting strategies for smaller developments amid ongoing changes in market dynamics.
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A Madison Avenue office building sold for nearly 60% less than its 2006 price, reflecting the slow recovery of the city's office market post-pandemic. The 15-story tower at 366 Madison Ave. was acquired by Sioni Group for $50 million, down from the previous $115.5 million sale. The transaction was documented by Payman Yadidi of Sioni Group. The seller, Ponte Gadea, owned by billionaire Amancio Ortega, operates the Inditex fashion group. The building, which has 84,518 square feet, is currently 93% occupied, housing tenants like Wombat Capital and Corsair Capital, with rental rates between $58 and $71 per square foot.
A long-standing retail tenant, men's fashion house Jos. A. Bank, occupies the ground floor. Sioni Group's intentions for the property remain unspecified, although Yadidi secured a $28.5 million loan from Valley National Bank during the purchase. Sioni Group's portfolio features various residential and commercial properties, including a recently acquired office building on Seventh Ave. and other developments like a residential skyscraper scheduled to open in 2026.
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Extell Development has submitted plans to significantly increase its Manhattan project at 871 Seventh Ave. from a 27-story hotel to a 71-story mixed-use tower. Initially proposed in 2023, the project was set to encompass approximately 336,000 square feet with 208 hotel rooms. The updated plan aims for a towering height of 1,050 feet and approximately 484,000 square feet, including 301,000 square feet of residential space and 183,000 square feet of commercial space.
The revised development would feature 156 hotel rooms, 130 residential units, and 55 parking spots, with improvements to the nearby 50th Street subway station including new elevators for greater accessibility. Extell acquired the site in 2022 for about $94.5 million from BD Hotels. Though BD Hotels' Richard Born confirmed his ongoing involvement, he withheld further comments. Extell also filed for an expansion project at 655 Madison Ave., seeking to elevate a planned 37-story tower to 74 stories by enhancing the Fifth Avenue/59th Street subway statio
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SL Green executives maintain that office rents are increasing within their 30 million-square-foot Manhattan portfolio, but investors remain skeptical, as evidenced by the company's stock price decline following a report of falling leasing spreads. Wall Street anticipated a 7.5% rise in leasing spreads for Q3, yet SL Green reported a 2.7% drop. This led to a 10% decrease in share price, which has since stabilized around $53. Analyst Alexander Goldfarb criticized the market's harsh reaction, suggesting it is unwarranted. SL Green's leasing director, Steve Durels, claimed there is broad rent appreciation across their portfolio, with increases between 7% and 10% in midpriced buildings.
Despite strong leasing activity in 2025, investor confidence appears tenuous, with SL Green's stock down 21% year-to-date and other firms also experiencing declines. Class A average asking rents reached $75 per square foot, still below early 2020's peak of approximately $80. The reduction in leasing spreads is attributed to two out of 54 leases signed last quarter, particularly at 1185 Sixth, where the new tenant's rent was lower due to prior inflated rates. Durels contended that leasing spreads are not reliable indicators of market strength, though the declines have raised concerns among investors, especially with potential political changes on the horizon.
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Developer Scott Domansky of PRD Realty Corp. has filed demolition permits for several properties in Park Slope, Brooklyn, potentially paving the way for a new residential project. The addresses involved are 264 First St., 307 Second St., and 283 and 301 Fourth Ave., on a block bordered by Fourth and Fifth Avenues and First and Second Streets. The site covers more than 50,000 square feet, with the Second Street property measuring 21,200 square feet over two stories and the First Street property at 10,000 square feet over one story. Each Fourth Avenue address is one story and 10,000 square feet. Domansky acquired the site in November for about $2.3 million, but specific development plans remain unclear, and no new building applications have been submitted yet.
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34th Street, a once-bustling retail center, now grapples with high vacancy rates, especially between Fifth and Seventh avenues, with 39% availability noted in Q3 by JLL. This area, home to the Empire State Building and Macy’s, suffers from financial turmoil, as landlords like Wharton Properties face foreclosure issues. Shifts in consumer behavior, decreasing foot traffic, and the rise of online shopping exacerbate the situation. Dan Biederman from the 34th Street Partnership highlights ongoing challenges, with many storefronts remaining empty for years.
Legal troubles for some owners, including unpaid taxes, further complicate recovery efforts. The foot traffic decline is marked, with pedestrian numbers dropping from 12,300 in May 2015 to 7,500 in May 2025, partly influenced by the 2023 Grand Central Madison opening, which redirected commuters. Tourist declines, illustrated by a 3% drop in Empire State Building visits, further worsen business conditions. Despite these issues, positive developments include new leases to retailers like Old Navy and Primark, while Macy’s persists in its commitment, offering hope for future revitalization.
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Din Tai Fung, a Michelin-starred Taiwanese restaurant famous for its xiao long baos, is set to open a second location in Downtown Brooklyn by 2027, occupying 20,000 square feet at 567 Fulton St. This comes after the chain launched its first outlet in New York City in summer 2024 at 1633 Broadway, which became its largest site in North America at 25,000 square feet. Founded in Taiwan in 1958, Din Tai Fung boasts 165 restaurants worldwide, primarily in Asia and Europe, with only 18 in North America.
The new Brooklyn location will serve as the anchor tenant of The Brook, a 52-story luxury rental development completed this summer by the Witkoff Group and Apollo Global Management. The specifics of the lease, including terms and rental costs, remain undisclosed. Recently, Michelin recognized 12 new restaurants in New York City, further solidifying the area's reputation for quality dining, with establishments such as Bartolo, Gui, and Olmo being highlighted as potential future star award candidates.
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A family-owned real estate firm, CSC Real Estate, has acquired the downtown office tower at 75 Maiden Lane for approximately $40.2 million from Robert Wolf and A.M. Properties, revitalizing the challenged market. City records indicate that A.M. has partially owned the property since 2000. Additionally, CSC bought the nearby parking facility at 13 Gold St. for $5 million, though no specific plans have been disclosed for the site. The property, a 12-story building spanning around 172,000 square feet, was constructed in 1921 and underwent renovations in 2019, achieving a lease rate of 99%. Tenants include ORT America and law firm Kriesberg and Maitlaid, with asking rents between $34 and $42 per square foot.
Despite its occupancy, the downtown office market struggles post-pandemic, with roughly 900,000 square feet leased during the third quarter, an 18.1% availability rate, and an average asking rent of $59.15 per square foot recorded by Colliers. In contrast, Midtown areas showed stronger activity. CSC Real Estate, managed by brothers Alberto and Salomon Smeke, is also engaged in several other Manhattan projects, including a residential conversion at 770 Second Ave. and a mixed-use development at the Hudson Hotel. A.M. Properties, led by CEO Paul Wasserman, maintains a robust portfolio of around 2 million square feet across the tristate region, including 80 Maiden Lane, which recently secured a lease with Catholic Charities of New York.
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Joseph and Meyer Chetrit, members of a prominent landowning family in New York, face significant financial challenges as they default on $1.6 billion in debt. The brothers are personally liable for $280 million in loans. Meyer has been indicted for tenant harassment, pleading not guilty. Recently, a judge denied a summary judgment motion from lenders, providing the Chetrits with temporary relief and potential settlement opportunities to protect their real estate assets built over 40 years. Leo Jacobs, their attorney, celebrated the decision as a win for due process.
However, lender attorney Stephen Meister expressed confidence that his clients would prevail in other cases involving $230 million. The Chetrits have faced additional hardships, including the death of their brother Jacob and losing properties to foreclosure. Meyer is also accused of asset shielding related to a $21.7 million claim against Jacob's estate, raising concerns about fraudulent activity. Judge Bannon questioned the brothers about their financial decline.
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Partners bought 1 Broadway for $140M in 2018
Rockwood Capital has listed its 230,000-square-foot office building at 1 Broadway, targeting a sale price of approximately $180 million. The building, fully leased to FiServ which occupies 92 percent of the space, is valued for its significant upgrades, as FiServ has invested over $65 million and plans further improvements. Rockwood, alongside partner Joe Cayre’s Midtown Equities, acquired the property in 2018 for $140 million and undertook a comprehensive renovation that included lobby redesigns and new amenities like a fitness center and a roof deck with harbor views.
The property features a 10-year average lease term, $180 million in contractual revenue, and a net operating income of nearly $13 million, resulting in an estimated capitalization rate of around 7 percent. This marks at least Rockwood's third property for sale recently; it also listed a Lower East Side rental building for $115 million and an office at 2 Grand Central Tower for $270 million. Additionally, Rockwood announced its integration into Harrison Street Asset Management while maintaining key leadership positions.
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Blackstone provides $199M debt for Ridge Hill
A joint venture of prominent real estate firms secured $198.5 million in debt to refinance the Ridge Hill shopping center in Yonkers, situated 20 miles from Midtown Manhattan. The loan from Blackstone Real Estate Debt Strategies aims to retire existing debt and support leasing initiatives. The property, encompassing 1.2 million square feet and opened in 2011, boasts tenants such as Apple, Whole Foods Market, and T.J. Maxx, alongside various entertainment and fitness options like a Legoland Discovery Center and indoor skydiving. Recent enhancements include a 17,000-square-foot activity zone and a 25,000-square-foot community hub.
Over the past three years, leasing activity totaled 679,000 square feet. In 2022, Ridge Hill traded for $220 million. This refinancing marks the second significant deal on Ridge Hill Boulevard recently; earlier this month, Azorim North America secured a $145 million loan for the nearby Mizora multifamily complex. Additionally, MGM Resorts opted out of the downstate casino competition despite prior support from a community committee, citing a challenging competitive landscape due to concentrated proposals in the area.
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Zhang Xin acquires Upper East Side site for $63M
Zhang Xin, known for her role in Soho China, is expanding her efforts to New York City through her family office, Closer Properties. The firm purchased five adjacent parcels on the Upper East Side for $62.5 million, with additional acquisition costs expected to total $76 million after a sixth parcel closes in June. These sites include 150, 152, 154 East 79th Street, and 1131 and 1135 Lexington Avenue. Xin plans to initiate her first ground-up development, a luxury condominium with ground-floor retail, beginning demolition in the first quarter of next year.
She aims to create boutique luxury condos in historic districts, specifically targeting areas like the Upper East Side and West Village. The land was previously acquired by W Financial through a foreclosure sale after HFZ defaulted on a loan. The site can provide 71,500 square feet of buildable space. Additionally, a neighboring pizza restaurant initially planned to sell to Macklowe Properties, but the deal fell through, posing less risk to Xin’s development plans. In 2022, Xin and her husband resigned from their roles at Soho China, yet she remains on its board. Her development experience includes over 54 million square feet in Beijing and Shanghai, and her investments in the U.S. include notable properties in Manhattan and Boston.
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Midtown West hotel trades after death of embattled owner
Ben-Josef Group Holdings has purchased the Chatwal hotel in Midtown West for $53.2 million, acquiring the ground lease for the 76-room luxury property at 130 West 44th Street. The seller was connected to the estate of the late Dubai businessman Iyer Vaidyanathan Narayan. The 10-story building includes the Chatwal hotel and the Lambs Club restaurant and is located on land owned by the Metro New York District Church of the Nazarene. Narayan had taken over the lease in 2013 for $115 million.
This transaction follows a two-year legal battle after a lender linked to the billionaire Reuben Brothers initiated foreclosure proceedings due to a default on a $62.5 million loan, which was expected to reach $79 million before an auction set for January 2024. However, the auction did not occur, and the case unfolded in the state Supreme Court. Narayan died in February 2024, and the legal matters have recently been resolved.
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Firm acquires assemblage from A.M. Property for $45M
The firm acquired a 178,000-square-foot assemblage from A.M. Property Holding for $45.2 million at 75 Maiden Lane and 13 Gold Street, equating to $254 per square foot. The majority of the cost was attributed to the Maiden Lane property, purchased for $40.2 million, while the Gold Street addition cost $5 million. Genesis Credit provided $28.9 million in acquisition and pre-development financing. Although CSC Real Estate’s plans for the assemblage remain undisclosed, there’s potential for either maintaining the office space or converting it into residential units.
This acquisition follows CSC's recent $52 million purchase of 300 East 42nd Street, where they intend to convert the property into 135 rental units while allowing existing office tenants to stay. Additionally, CSC is involved in a hotel-to-apartment conversion at the Hudson Hotel, facing challenges including a lawsuit from Parkview Financial, which provided $207 million for the hotel’s purchase and redevelopment. With ongoing projects and the possibility of office-to-residential conversions, CSC is positioning itself strategically within the Lower Manhattan commercial landscape. A Colliers team facilitated both the sale and financing for the A.M. Property assemblage.
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Coworking company to be first tenant at RFR building in years
Industrious, a coworking company, is expanding into the long-vacant office market by leasing 33,000 square feet at RFR's 190 Bowery in Nolita, as reported by the New York Post. This lease encompasses the entire office segment of the 38,000-square-foot property, which has remained largely empty since RFR acquired it a decade ago. The asking rent was set at $95 per square foot with a seven-year lease term, according to the Commercial Observer.
A JLL team, including Clark Finney, Alex Riguardi, and Jake Bargas, represented the landlord, while Natalie Levine and Kylie VanBuren represented Industrious. Originally purchased by photographer Jay Maisel in 1966 for $102,000, the property was acquired by RFR for $55 million in 2015, prompting modernization efforts. Potential redevelopment ideas had included condos, retail, offices, or an art space, with streetwear brand Supreme currently occupying part of the retail space. Recently, Industrious also leased about 20,000 square feet at 220 Park in Burlingame and is developing two more South Bay locations.
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Partners allegedly defaulted on $57M loan tied to 24-story building
Proximity to Grand Central Terminal is often pitched as an attractive feature by Manhattan office landlords; however, it does not solve the market's challenges. Clarion Partners and Alchemy Properties face potential foreclosure at 209-211 East 43rd Street, a 211,000-square-foot property located just a block from Grand Central. A Miami-based plaintiff has filed a lawsuit in Manhattan Supreme Court against a limited liability company possibly linked to both owners, claiming default on a $57 million loan. While individuals and ownership are unnamed in the suit, key principals signed a $65 million loan from Signature Bank in 2015, reduced to $57 million in 2022.
The plaintiff asserts ownership owes $56.3 million plus interest, having notified them of default in April. Ownership states it is working on a positive outcome through a recapitalization strategy. Alchemy and ABR Partners purchased the leasehold for $99 million in 2015 after Meadow Partners acquired it for $61 million. Current tenants include various missions and businesses, with office rental rates between $35 to $144 per square foot, and approximately 30,000 square feet available across the upper floors.
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Four years ago, 28 Liberty St. faced challenges after the law firm Milbank moved out, resulting in a vacancy rate of 15%. Currently, the rate has improved to 8%, and Fosun International is preparing to refinance a $900 million mortgage for the building. The new loan is for three years, indicating lenders' hesitancy towards the Financial District compared to Midtown. Fosun plans to invest $78 million into the property, having previously acquired it for $725 million and invested $556 million in improvements, including an outdoor plaza and a large art installation.
The building is now valued at $1.35 billion, with average rents at $68 per square foot. Following Milbank's departure, the New York attorney general's office has occupied 20% of 28 Liberty, with a lease extending to 2038. Other tenants include Strip and the London Stock Exchange. The Financial District's office market is recovering, though vacancy rates remain high at 22.8%. Positive absorption rates suggest a trend of more commercial tenants moving in. Bobby Donohue, manager at 88 Pine St., notes increasing foot traffic due to nearby residential conversions, and anticipates an occupancy increase from 77% to around 90% next year as renovations progress.
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A Times Square billboard on the historic Brill Building has been purchased for over $12 million, significantly higher than the recent sale of an entire floor in the same building for $6.8 million. John Gore Organization, led by British producer John Gore, acquired the advertising rights for $12.2 million, marking a considerable investment in the property located at 1619 Broadway. The building’s fifth floor was bought by Nikunj Parekh through a different entity. Mack Real Estate Group sold both properties and obtained the Art Deco building for $216 million in 2023, with plans to sell portions of it.
The building, constructed in 1931, spans 158,150 square feet of office space and 48,698 square feet of retail, housing tenants like CVS and TD Bank. Signage rights cover parts of the first floor and the roof, separate from retail areas. Gore previously purchased the lobby and top five flooors for $28.8 million. The Brill Building is historically significant to Broadway, being a former music-publishing center where notable artists created numerous hits. Responses from Mack Real Estate and the John Gore Organization were not available.
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CityPickle faced significant challenges in finding indoor space for a pickleball center in Manhattan, assessing 175 buildings and touring over 40, with only one property ultimately suiting their needs—a former financial office at 1501 Broadway, signed on a 37K SF lease. The search highlighted the difficulties of securing suitable real estate in Manhattan, particularly for the fast-growing sport of pickleball, which has surged in popularity during the pandemic. Space needs are substantial, requiring at least 12K SF with minimum 13-foot ceilings, conditions that some outer boroughs can meet but Manhattan struggles to provide.
Demand in prime Manhattan areas has intensified, yet retail availabilities have dropped by 41% since 2021. Only 57 spaces between 14th and 104th streets meet the minimum space and ceiling height requirements for pickleball, and many of these aren't functional due to layout constraints. Landlords are interested in having pickleball tenants, as a 14K SF lease could yield significant revenue. Young professionals increasingly seek after-work activities like pickleball, resulting in a push for venues in Midtown. While larger gyms are adding pickleball courts, smaller participants have also entered the market. CityPickle's upcoming Times Square location will be its first permanent venue in Manhattan, marking a pivotal step amid ongoing real estate challenges.
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Pension funds, historically significant investors in New York City’s office buildings, are re-evaluating their portfolios amid changing market dynamics. High-profile sales like RXR's near $1.1B acquisition of 590 Madison Ave from Ohio’s State Teachers Retirement System demonstrate this trend. Other notable transactions include the $572M sale of 1177 Sixth Ave and the $100M offloading of 440 Ninth Ave. Despite these sales, pension funds are not retreating from real estate; they have steadily increased their allocation to alternatives, such as real estate and private equity, over the last two decades.
As of 2023, median target allocations for real estate have reached 9%. While established property types remain dominant, alternative assets have gained significance. The growing buyer pool has sparked renewed interest in office properties, with a marked increase in serious bidders. Asset managers and REITs continue to pursue opportunities in office spaces, and RXR's Gemini Office Venture exemplifies a strategy to leverage liquidity and diversify asset exposure, catering to evolving market needs.
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