REAL ESTATE INVESTMENT

EMPIRE STATE REALTY TRUST SIGNS PROGYNY, INC. FOR 70,573 SQUARE FEET ACROSS THREE FULL FLOORS AT 1359 BROADWAY

Empire State Realty | March 03, 2022

EMPIRE_STATE_REALTY
Empire State Realty Trust, Inc. (NYSE: ESRT) today announced a new lease with Progyny, Inc. a leading fertility benefits management company, at 1359 Broadway. Progyny has committed to occupy 70,573 square feet across three floors, which includes one floor that it previously subleased, one floor that Progyny will occupy in late 2022 and a third floor that they will occupy in early 2024.

We are growing rapidly as more and more employers recognize the value of Progyny's comprehensive fertility and family building solution, We look forward to expanding our presence in our corporate office in New York City with Empire State Realty Trust."

Pete Anevski, CEO of Progyny.

Located along the updated Broadway Pedestrian Plaza, 1359 Broadway offers convenient access to major transportation hubs, subway lines, dining, lodging, and shopping. The fully modernized office building features industry-leading energy efficiency and indoor environmental quality measures at a fraction of the cost of newer buildings.

Our premier indoor environmental quality measures and energy-efficient practices continue to attract high-quality tenants who appreciate our value proposition, Progyny is a welcome addition to our excellent tenant roster at 1359 Broadway after a successful sublease."

Thomas P. Durels, executive vice president, real estate at Empire State Realty Trust.

David Falk, Kyle Ciminelli, and Dylan Weisman of Newmark Knight Frank represented Progyny, Inc. in the lease negotiations. Property owner representation was provided by Shanae Ursini and Jordan Berger of ESRT, and Paul J. Amrich, Emily Chabrier, Neil V. King III, and Meghan Allen of CBRE.

About Empire State Realty Trust
Empire State Realty Trust, Inc. (NYSE: ESRT) is a NYC-focused REIT that owns and manages a well-positioned property portfolio of office, retail, and multifamily assets in Manhattan and the greater New York metropolitan area. Owner of the Empire State Building, the World's Most Famous Building, ESRT also owns and operates its iconic, newly reimagined Observatory Experience. The company is a leader in healthy buildings, energy efficiency, and indoor environmental quality, and has the lowest greenhouse gas emissions per square foot of any publicly traded REIT portfolio in New York City. As of Dec. 31, 2021, ESRT's portfolio is comprised of approximately 9.4 million rentable square feet of office space, 700,000 rentable square feet of retail space and 625 units across two multifamily properties.

Spotlight

Altus Group is a leading provider of independent advisory services, software, and data solutions to the global commercial real estate industry. Our businesses, Altus Analytics and Expert Services, reflect decades of experience, a range of expertise, and technology-enabled capabilities. Our solutions empower clients to analyze, gain market insight and recognize value on their real estate investments.


Other News
REAL ESTATE INVESTMENT

Bluerock Residential Growth REIT Stockholders Approve Acquisition by Affiliates of Blackstone Real Estate

Bluerock Residential Growth REIT | April 13, 2022

Bluerock Residential Growth REIT, Inc. announced that at a special meeting of stockholders held earlier, based on preliminary voting results, the Company's stockholders approved the proposed acquisition of the Company by affiliates of Blackstone Real Estate. The Acquisition will occur following the spin-off of the Company's single-family rental business through the taxable distribution to common stockholders of all of the outstanding shares of common stock of a newly formed real estate investment trust named Bluerock Homes Trust, Inc. Company common stockholders will receive $24.25 in cash per share of Company common stock in the Acquisition in addition to the BHM common stock that they will receive in the Spin-Off. The final voting results will be filed with the U.S. Securities and Exchange Commission (SEC) on a Form 8-K. We are pleased that our stockholders have approved this transaction and thank them for their continued support. Today's stockholder approval marks a key step in completing the transaction and delivering on the tremendous value it offers to our stockholders." Ramin Kamfar, Chairman and Chief Executive Officer of the Company The Acquisition and the Spin-Off currently are expected to close in the second quarter of 2022, and are subject to the completion of customary closing conditions. Upon the closing of the Acquisition, BRG's common stock and preferred stock will no longer be listed on any public market. About Bluerock Residential Growth REIT, Inc. Bluerock Residential Growth REIT, Inc. is a real estate investment trust that focuses on developing and acquiring a diversified portfolio of institutional-quality highly amenitized live/work/play apartment communities in demographically attractive knowledge economy growth markets to appeal to the renter by choice. The Company's objective is to generate value through off-market/relationship-based transactions and, at the asset level, through value-add improvements to properties and to operations. BRG has elected to be taxed as a real estate investment trust (REIT) for U.S. federal income tax purposes.

Read More

REAL ESTATE INVESTMENT

Nuveen Real Estate, Taconic Partners & North American Properties Acquire Ridge Hill Shopping Center

Nuveen | May 06, 2022

Nuveen Real Estate, Taconic Partners and North American Properties have acquired Ridge Hill for $220 million, a mixed-use lifestyle center in Yonkers, NY, with the intention of rebranding and transforming the 74-acre property into the preeminent outdoor lifestyle center serving the northern New York City metropolitan area. Renovation plans for the 1.2 million square foot complex are still in development, but the partners will look to incorporate state-of-the-art initiatives that enhance Ridge Hill's public spaces, street design and parking amenities. They will also draw on their combined network of retailers to attract top-tier local and NYC inspired food and beverage concepts, and national luxury apparel and boutique fitness providers, building on Ridge Hill's existing experiential features to create the leading lifestyle center in the tri-state region. We see this as an attractively priced asset in an evolving sector that fits within our well-diversified New York property focused real estate fund. The acquisition of Ridge Hill reflects a generational opportunity to re-position an already dominant lifestyle center that sits in the heart of one of the country's most affluent and densely populated regions." Nadir Settles, Managing Director at Nuveen and Head of the New York Property Fund "This unique retail asset will be a great addition to our Fund and we look forward to being a part of its successful redevelopment," said Chris Balestra, President and Chief Investment Officer at Taconic Partners. Lifestyle Centers Generating Strong Foot Traffic, Superior Rental Revenues As the retail economy continues to re-open, lifestyle centers may be one of today's most undervalued retail asset classes. Conceived as a modern-day interpretation of the shopping mall, lifestyle centers are characterized by outdoor settings and multiple uses, including office, multi-housing and hospitality in addition to upscale, national-chains and specialty retail. Research has shown the top 20 lifestyle centers in the highest population U.S. markets reported nearly 8.1 million visits in August 2021, compared with 1.3 million visits in April 2020. During 2021's second quarter, lifestyle centers drew 46 percent higher rents than regional malls and 11.5 percent higher rents than super regional malls.1 Developed in 2011, Ridge Hill features a wide variety of local and national retailers, including Apple, Banana Republic, Sephora, H&M, The Container Store, and Uniqlo. The center is also home to LEGOLAND® Discovery Center; a 12-screen National Amusements Showcase Cinema de Lux; Whole Foods; LA Fitness, and several full-service restaurants. Ridge Hill is located at Exit 6A off the New York State Thruway and at the Tuckahoe Road West exit from the Sprain Brook Parkway, making it easily accessible to all residents and visitors from Westchester and Putnam counties and the New York City metropolitan area. Growing Partnerships As a part of the partnership, North American Properties (NAP) will begin operations and repositioning of the property in May 2022. NAP is a boutique, full-service real estate owner/developer notable for projects such as Avalon in Alpharetta, GA; Birkdale Village in Charlotte, NC; Colony Square in Atlanta, GA; and, Newport on the Levee in Newport, KY. The partnership between Nuveen and NAP continues to grow, with Ridge Hill representing their third project together. The partners recently acquired the open-air lifestyle center The Forum on Peachtree Parkway in Peachtree Corners, GA. "Over the last decade, Ridge Hill has become a core component of the Yonkers community and we are thrilled to have the opportunity to enhance it by applying our high-touch, hospitality-driven approach toward management. We coined the term ExperienceMakers for our team years ago because making an impact on the lives of every guest we serve is in our DNA, and we can't wait to introduce ourselves to the market," said Tim Perry, Managing Partner at NAP. "We've already started working to enhance the public realm, bring technology forward in the guest and parking experience, as well as longer term unlocking the full development potential of the site. Helping to design and define this will require community engagement to determine what's missing, from a retail, as well as experiential, perspective." Nuveen Real Estate and Taconic Partners have collaborated since 2015, collectively investing more than $2 billion across over 2 million square feet in New York. The partners completed a $260 million fundraising round for their jointly sponsored value-add New York City Property Fund II in 2021. The acquisition of Ridge Hill reflects the partnership's first investment into value-add retail and an opportunity to diversify beyond its existing life science, office and industrial holdings. Together, Taconic Partners and Nuveen Real Estate will continue to capitalize on unique opportunities to reposition underutilized assets or build best-in-class products for the future. About Nuveen Real Estate Nuveen Real Estate is one of the largest investment managers in the world with $152 billion of assets under management. Managing a suite of funds and mandates, across both public and private investments, and spanning both debt and equity across diverse geographies and investment styles, we provide access to every aspect of real estate investing. With over 85 years of real estate investing experience and more than 725 employees located across 30 cities throughout the United States, Europe and Asia Pacific, the platform offers unparalleled geographic reach, which is married with deep sector expertise. About Taconic Partners Since 1997, Taconic Partners has acquired, redeveloped and repositioned over 12 million square feet of commercial office and mixed-use space, as well as over 6,500 units of luxury and workforce housing. As a fully integrated real estate company with a keen eye for uncovering value, its diverse capabilities are evidenced by its multifaceted success with luxury properties, as well as adaptive reuse and urban revitalization projects. In New York City, Taconic is currently developing 619 West 54th Street—the Hudson Research Center, 125 West End Avenue, 817 Broadway, 312 West 43rd Street and Essex Crossing on the Lower East Side. The firm also manages various real estate funds on behalf of institutional and pension fund investors. About North American Properties Founded in 1954, North American Properties is a privately held, multi-regional real estate operating and development company that has acquired, developed and managed more than $7 billion of mixed-use, retail, multifamily and office properties across the United States. Rooted in its purpose-driven approach to development, North American Properties is creating great places that connect people to each other; cities to their souls; partners to opportunities; and individuals to experiences that move them. Headquartered in Cincinnati, with offices in Atlanta, Dallas and Fort Myers, Florida, the company has developed 22 million square feet of commercial space and 19,000 residential units in 15 states and 67 cities. In the past three years, North American Properties has launched 36 projects totaling $2.2 billion in total capitalization. In metro Atlanta, North American Properties led the turnaround of Atlantic Station and the ground up development of Avalon. Currently, the company's mixed-use portfolio includes Avalon in Alpharetta, Georgia; Avenue East Cobb in Marietta, Georgia; Birkdale Village in Huntersville, North Carolina; Colony Square in Midtown Atlanta; Newport on the Levee in Newport, Kentucky; Riverton in the New York metro area; and The Forum on Peachtree Parkway.

Read More

REAL ESTATE TECHNOLOGY

CapStone Holdings Inc. and Blaq Projects Continue Their Growing Partnership on New State-of-the-Art Real Estate Development in Australia

CapStone Holdings Inc. | March 11, 2022

CapStone Holdings Inc, a self-funded family office business incubator and investment group – announced its continued strategic partnership in real estate with Blaq Projects, an innovative property development, construction, and investment company in Australia. Through the collaboration, CapStone set up an ongoing real estate funding platform with a second US$25 million. Blaq Projects will use these funds towards medium-density property development opportunities in the metropolitan areas of Sydney and Illawarra in New South Wales, Australia's highest populated state. The Australian partnership further diversifies CapStone Holdings' investment portfolio internationally. CapStone first supported Blaq Projects' US$90 million Dé Mira Commercial Tower, 21-story mixed-use development including 88 residential units and 124,000 square feet of commercial space in Wollongong's medical precinct. CapStone and Blaq Projects will also bring new low-rise mixed-use residential apartments to the Subiaco/Perth area. Construction is expected to begin this summer. All developments are built with state-of-the-art innovative technology and a significant focus on sustainability and environmental protection. New South Wales is a beautiful destination poised for substantial economic growth. When we started looking for the right international partner, and Blaq Projects was very receptive towards our investment goals. Most importantly, their approach to the construction and quality of the development is important to our investment philosophy. Blaq Projects meets that standard." Keith J. Stone, Founder and Chairman of CapStone Holdings Inc "CapStone Holdings' partnership has been instrumental in Blaq Projects' and Wollongong's real estate growth," said Jared Beneru, Managing Director at Blaq Projects. "Having the backing of a financial powerhouse like CapStone Holdings through COVID times enabled us to build over a $1 billion (AUD) real estate pipeline. Together, our vision and goals align to deliver new projects that continue to set the benchmark for the Wollongong CBD." CapStone Holdings continues to build a robust real estate investment portfolio and offers a unique diversified investment platform. In addition to its recent ventures in Australia, one of its additional significant real estate developments includes the fast-growing City Foundry STL located in St. Louis, Missouri, United States. About CapStone Holdings, Inc. CapStone Holdings, Inc. is a family office-structured holding company that keeps a balanced portfolio through investment strategies that maximize innovation and return with minimal risk. CapStone Holdings and its founders have invested across a wide range of industries for over 33 years and engage in focused philanthropic efforts. About Blaq Projects Blaq Projects is an innovative property development, construction, and investment company. Throughout the years of experience, Blaq has obtained industry excellence, a culture built on quality and a mindset of providing cost effective building and design solutions.

Read More

REAL ESTATE TECHNOLOGY

National Association of Realtors: Why Industrial Spaces Lead Commercial Real Estate in Bouncing Back From COVID

National Association of Realtors (NAR) | March 28, 2022

Commercial real estate took a hit during the COVID-19 pandemic, as did many industries. But the market is starting to bounce back this year, largely due to increased investments in industrial properties. According to research by the National Association of Realtors (NAR), commercial real estate transactions of less than $2.5 million fell by 1% in the beginning of 2021 and the value of commercial real estate properties fell by 6% compared to 2020. Still, there is hope for the future as certain types of commercial properties are driving sales and seeing positive growth from the year before. Here's a closer look at how industrial spaces are helping commercial real estate bounce back from COVID-19. Spend on industrial properties and land increased Sales for all types of commercial real estate decreased in 2021, with the exception of three categories: land (+3%), industrial warehouses (+2%), and industrial flex spaces (+1%). That means, while businesses were shying away from commercial real estate lending for apartment buildings, offices, retail shops, and hotels, they were still spending money on industrial properties and land on which they could build their own structures. Prices rose for industrial properties, land, and apartments The number of commercial real estate transactions may have dropped, but sales prices increased by 2% on average. Specifically, prices for land increased by 6%, industrial flex spaces and warehouses by 5%, and certain types of apartment buildings by 5%. Meanwhile, sales prices declined for retail shops, offices, and hotels. Industrial and residential construction projects grew Commercial development projects are also on the rise for industrial and residential properties. Construction activity is up 1% from last year with a whopping 12% jump in construction for industrial warehouses, a 6% increase for industrial flex spaces, and a 6% growth for certain types of apartment buildings. Vacant malls, for example, are being converted into new types of commercial spaces, such as mixed-use buildings for residential, retail, and office purposes, as well as industrial buildings for distribution and fulfillment processes. Construction activity for retail spaces, offices, and hotels, on the other hand, dropped. Survey respondents noted certain obstacles to reaching their construction goals, including accessing materials, obtaining permits, and hiring workers. Office real estate activity shrunk due to remote work Office spaces, in particular, saw a decrease in real estate activity, largely due to an increase in remote work during the pandemic. Even though some people are heading back to the office, vacancy in these spaces continued to increase, reaching 16.4% from 13% in 2021. What's more, 70% of survey respondents said their companies are moving into smaller offices. Vacancy in industrial properties, however, declined to 4.9%. 2022 promises more growth This year may continue to be rocky for the commercial real estate market, with industrial and land investments pulling their weight. Specifically, businesses predict a 5% increase in land sales, a 3% increase in industrial warehouse sales, and a 1% increase in sales of certain types of apartments. By 2022, however, commercial real estate activity is expected to recover across all categories as more businesses reopen, travel resumes, and people return to the office. Still, sales for land and industrial properties are expected to lead this recovery process, proving their value as part of the commercial real estate market.

Read More

Spotlight

Altus Group is a leading provider of independent advisory services, software, and data solutions to the global commercial real estate industry. Our businesses, Altus Analytics and Expert Services, reflect decades of experience, a range of expertise, and technology-enabled capabilities. Our solutions empower clients to analyze, gain market insight and recognize value on their real estate investments.

Resources