CRE debt maturities and a Midtown office tax break initiative

Welcome to Traded’s new weekly NY newsletter where we give you the top stories and deals in CRE to start your morning ahead of the curve, in 5 minutes or less ☀️☕💰

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Now here's what we're serving up today:

• A deep-dive into the CRE debt maturities sitting on the horizon, with potential outcomes and solutions

• Top ten stories of the past week and last week’s big closings

• A new initiative offering tax breaks for older office buildings

The DIRT 📈 

Daily Interest Rate Tracker

What You Need to Know 🗞️ 

NYC Gives a Tax Break Lifeline to Older Office Buildings

The new M-CORE program is incentivizing office landlords with tax breaks to renovate properties that are over 250k SF built before 2000, south of 59th Street.

The city aims to reduce high vacancy rates and stimulate modernization through incentives, seeking to boost office occupancy, elevate property values, and create $750M+ in tax revenue.

Successful applicants for the program, chosen by submitting development proposals, will earn credits for enhancing building layouts, infrastructure, energy systems, amenities, and commercial areas – a hopeful solution for the city's office woes.

Top 10 Stories

1. ConnectCRE published a deep dive into CRE debt maturities to find out how much trouble we are really in, and find potential solutions.

2. In a bid to challenge New York's 2019 rent reform laws, landlords and real estate groups have escalated their fight to the Supreme Court, arguing that the state's rent stabilization measures violate constitutional property and due process rights.

3. The markets seem to be shrugging off the threat of the US Debt Ceiling fallout. Suggesting traders either believe Congress won't allow a default or if they do, it would be short-lived and less damaging than feared.

4. City Council has approved a new law that increases penalties for housing violations and creates a new watchlist for landlords who falsely claim to have addressed issues.

5. Spotify is downsizing its presence and rethinking real estate needs by subleasing five floors at 4 World Trade Center.

6. With billions of dollars in NYC multifamily loans facing maturity and a constrained housing supply, the city's multifamily market could see a surge in sales, potentially offering opportunities for investors and shaking up the market dynamics.

7. RFR has reportedly secured a multiyear extension on the billion-dollar debt on the Seagram Building. The loan was due to mature this week and was the largest maturing CMBS office loan in NYC this year.

8. A new report from the Mortgage Bankers Association shows a big Q1 drop in CRE loan originations (56% YoY) due to tightened underwriting criteria and a drop in demand.

9. Sweetgreen opened its first robotic kitchen and Wendy’s is launching AI drive-thru locations.

10. CRED iQ is a great tool for monitoring distressed rates and market performance in nearly 400 MSAs across the US.

Closing Time 💰️ 

This Past Week in NYC: 56 deals closed… 39 deals over $3M… 16 deals over $5M… 5 deals over $10M… 3 deals over $20M… OVER $290M in closed transactions… Get to work 💥 

Trending from last week

One More Thing…

OVER AND OUT!

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• Baruch Edelkopf, Renowned Brooklyn Investment Sales Broker

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