Real Estate: Coronavirus Hits Property Deals Across Manhattan

April 13, 2020 | News, Real Estate

As the coronavirus hits New York City, real estate investors like RFR Realty are backing away from previously announced deals.

RFR Realty Walks from Two Deals

Aby Rosen, the co-founder and principal of RFR Realty, is dropping out of two previously announced deals in Manhattan. RFR is backing out on a deal to buy 900 Third Avenue in Midtown from Paramount Group (PGRE) for $400 million. It is also walked away from a plan to buy property at 1600 Broadway in Times Square that listed at roughly $200 million. There are reports that Mr. Rosen is willing to consider closing the deal for 900 Third Avenue when the pandemic has passed.

RFR is a large owner of commercial real estate in New York. The firm owns landmark properties like the Seagram Building, The Chrysler Building, and The Gramercy Park Hotel.

RFR is not the only investment and property management firm backing out of transactions.

Joseph Chetrit of the Cherit Group has also pulled out the proposed purchase of the former Daily News building at 220 East 42nd Street in Midtown from SL Green for $815 million. In this case, the potential buyer didn’t just back away. The primary source of financing for the transaction was Deutsche Bank (DB). The German firm pulled out before the sale could close.

New York City commercial real estate market was one of the strongest markets in the country before the coronavirus hit the United States. We will likely see some repricing, especially since cash flows will likely fall due to the failure of small businesses and restaurants in the city.

Recent: Real Estate: REIT Directors Are Buying Up Shares

Free Industry News

Subscribe to our free newsletter for updates and news about alternatives investments.

  • This field is for validation purposes and should be left unchanged.


Latest Alternative Investment News
Alternative Investments/Real Estate: The New Guardian i3 Global REIT ETF
August 13, 2020     Alternative Investments, News, Real Estate

The inaugural suite of five ETFs from Guardian Capital comprises two Directed Outcomes solutions that combine high conviction ideas with derivative overlays to seek high income and risk mitigation and…
Venture Capital: Gong Secures Unicorn Status With $200M Series D
August 13, 2020     News, Venture Capital

Gong, the startup which helps businesses glean “revenue intelligence” from customer interactions, achieved unicorn status when it raised $200 million at a valuation of $2.2 billion. Coatue led the Series…
Digital Assets: NPP, A Blockchain Solution for Governments Considering a CBDC
August 13, 2020     Digital Assets, News

Apollo Fintech announced Wednesday the completion of its National Payment Platform (NPP), the first of its kind, blockchain-based, cashless national currency platform. It enables a central bank to issue a…
FinTech: Done With Beta, Revolut Preps For Australian Launch
August 13, 2020     FinTech, News

Revolut, the UK-based neobank led by Nikolay Storonsky, on Tuesday called an end to its beta mode operations in Australia. Country CEO Matt Baxby said the fintech was now readying…