The company said a cyberattack discovered in August caused “wide-scale disruption” to its operations.

JLL has listed for sale a $240 million nonperforming loan on a troubled Financial District office building.

The property, 61 Broadway, was owned by Scott Rechler’s RXR, but the company handed the keys back to its lender in July through a deed in lieu of foreclosure. The lender is a syndicate led by Aareal Bank.

RXR went into default on the property in December when it stopped making payments on the loan, which it took out in 2019. The loan had a two-year initial term and three one-year extensions. It reached maturity default on May 1.

Rechler said in February that it would shed the dead parts of its office portfolio because rising interest rates and falling office occupancy made the dated buildings not worth trying to rescue.

However, Rechler told The Real Deal that the company had already made its equity back on 61 Broadway after selling a 49 percent stake in 2016 to China Orient Asset Management, which is state-owned.

Built in 1913, 61 Broadway has 780,000 square feet and 33 stories. It was renovated in 1985 and 2019. RXR purchased it in 2014 from Broad Street Development for $330 million.

The office building has an occupancy rate of just 57 percent. In 2019, flexible workspace provider Knotel leased 60,300 square feet over four floors, but filed for bankruptcy two years later.

The loan listing is yet another sign of trouble in New York City’s office market. A report from Savills in July revealed that available office space in Manhattan reached an all-time high in the second quarter of this year, with 19.7 percent of all space being open for lease.

The report was particularly damning for the Financial District, where 29.3 percent of office space is available, the highest of any submarket in Manhattan.

Aareal Bank declined to comment on the listing. JLL didn’t respond to a request for comment in time for publication.

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CBRE has named a replacement for outgoing Debt & Structured Finance President Rachel Vinson, who is leaving the company to tend to family matters due to a medical situation involving her husband.
New York City-based James Millon will assume Vinson’s post Nov. 1 after serving as vice chair and co-head of large loans at the Dallas-based brokerage, per CoStar. Millon came to CBRE from Deutsche Bank in 2016 and will continue to work out of New York.

Urban-X Group wants to develop a 28-story apartment tower as part of the firm’s completed River Landing Shops & Residences mixed-use project. 

An affiliate of Andrew Hellinger and Coralee Penabad of Urban-X proposes a 475-unit rental building with a 533-space garage on 2 acres 1411 Northwest North River Drive, according to records. The project is christened MidRiverVu. 

It would mark an expansion of River Landing, which Urban-X finished in 2020 at 1500 Northwest North River Drive. River Landing was developed as a Special Area Plan, which allows developers of at least 9-acre sites to build more than allowed under the city code in exchange for public benefits such as green space. 

Urban-X is asking the city to expand the SAP designation to the new apartment tower property, which is directly north of the completed portion of River Landing. The Miami Urban Development Review Board is expected to take up the proposal at an as-yet unscheduled meeting. The item was postponed from Wednesday’s meeting. 

The existing River Landing SAP, which the city approved in 2013, allowed for the development of more than 1,000 units, though the completed project consists of 528 apartments, according to filings to the city. The site of the new tower allows for up to 300 units. If Urban-X’s SAP expansion bid is approved, the developer can transfer another 175-unit development capacity to the new project. 

Records show that an entity led by Hellinger and Penabad assembled the development site for $13.2 million in several deals in 2019 and 2020. 

River Landing, which includes 360,000 square feet of retail and commercial space, as well as 135,000 square feet of offices, was completed on 8 acres. Canada-based H&R REIT owns the 2.2 million-square-foot property.

The project is considered to have jump-started the Miami River District redevelopment. 

This year, Hyatt and Gencom won city approval for a 99-year lease for the publicly owned site of the James L. Knight Center and an adjacent 615-key hotel at 400 Southeast Second Avenue. The partners plan the three-tower Miami Riverbridge with apartments, service branded apartments and a 615-key Hyatt hotel. 

Also, ROVR paid $23.5 million for the sites at 1701 and 1851 Delaware Parkway, with plans for a 1,000-unit multifamily project. 

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The grocery-delivery company opens for trading at $42 a share, after setting a price of $30 a share in its IPO.

Shares opened at $42 on Tuesday, valuing the grocery delivery company at $13.9 billion.

The Class A office tower at 300 East 42nd Street is expected to sell for well under its previous valuation after its owners, Keith Rubenstein’s Somerset Partners and Jeffrey Kaplan’s Meadow Partners, resorted to handing the 237,000-square-foot building to its lender, Fortress Investment Group.

The venture purchased the 31-story tower in August of 2019 for $122.5 million, taking out a loan from Brookfield and pouring millions of dollars into capital improvements and amenities including a reimagined entrance, new lobby, elevators, mechanicals and façade as well as revolving art in the lobby.

At the time, Rubenstein told the New York Post, “There are large terraces to build out and we will make great amenity space in the lower portion.”

But the building, which is being marketed by JLL, is on the southeast corner of Second Avenue. Even as the Grand Central Terminal area has become a coveted office district since a Long Island Rail Road terminal opened and Covid-fearing commuters soured on subway connections, 300 East 42nd Street is a bit too far east for many tenants in a market replete with other options.

Last year, with Newmark handling leasing at the building and seeking rents in the $60s, the architecture firm CannonDesign and the Jamaican consulate signed leases — the address is near the United Nations — but 300 East 42nd has not been able to sustain the momentum.

Fortress refinanced the building with $110 million in late 2021, PincusCo reported, although Traded put the number at $137 million.

In June 2022, the broker for CannonDesign, Jeffrey Peck of Savills, told the Commercial Observer, “Cannon recognized that this was a typical Grand Central building but with ownership behind it that treats it like a Class A trophy building. It’s not often that you get a building which is more of a value play that also has ownership that is creative enough to attract upscale tenants.”   

But the current owners are on their way out.

“We’re still working with Fortress and trying to create as much value as we possibly can,” Rubenstein told The Real Deal by text. “We did 60,000 square feet of leasing last year and have a couple of deals we are working on. It’s really a great building.”

Like other Class A properties, it has seen an uptick in tours over the past few weeks as is typical after Labor Day. But the decision to let the property go is an increasingly common outcome as the value of struggling office buildings falls below the outstanding debt on the properties, interest rates remain elevated and the prospects of a leasing turnaround dim.

Rubenstein previously owned 450 Park Avenue, which he bought for $509 million in 2007 and sold for $575 million in 2014.

He also bought up huge swaths of the Mott Haven area in the Bronx, bringing in local retail tenants and restaurants while selling off portions that have since been developed with several apartment towers.

He is also working on plans to redevelop the extensive and picturesque grounds of the former Nevele Hotel in the Catskills into an upscale haven of homes. 

JLL and Meadow Partners declined to comment and Fortress did not respond to requests for comment.

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The far-reaching bill had set off debates about balancing free speech and privacy rights against efforts to halt the spread of harmful content online.

AEW Capital Management is testing the multifamily market in Chicago’s West Loop, where apartment demand is strong while high interest rates and a tight lending climate make it tough to sell.

The Boston-based firm, whose North American CEO is Jonathan Martin, hired Newmark brokers Chuck Johanns, Liz Gagliardi and Susan Lawson to market the 190-unit JeffJack Apartment at 601 West Jackson Boulevard, Crain’s reported.

No official asking price has been revealed, but people familiar with the property expect offers to range from $60 million to $70 million, based on its net operating income of roughly $3.7 million, the publication reported. If it sells within that price range, it would highlight how much the building’s value has dropped since 2015, when it was bought by LaSalle Investment Management for $82 million for it shortly after opening.

While Chicago’s multifamily sector faces challenges, there have been some silver linings, particularly in the West Loop area. Last month, the family office of billionaire Zara founder Amancio Ortega purchased the 492-unit, 45-story luxury apartment tower at 727 West Madison Street for $232 million, marking the priciest multifamily sale in Chicago this year.

It’s unclear why AEW is selling the 15-story asset or how much the firm paid for the asset in 2020, when the landlord took over the property from LaSalle. However, there’s a chance it’s worth less than what the building last fetched, given that hiked interest rates have pushed down property values across much of the city since last year.

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Despite the building’s 94 percent occupancy rate and a 4 percent increase in average leased rent over the past year, borrowing costs could hinder a potential sale. Nationally, apartment sales this year were down 67 percent year-over-year through July, the outlet reported, citing data from research firm MSCI Real Assets.

Newmark is emphasizing JeffJack’s more than 17,000 square feet of amenities, including an indoor pool, to help land a buyer. The average unit size in the property is 718 square feet, and average rent is $2,548 per month.

— Quinn Donoghue 

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Disney’s plans to nearly double its investments in its theme parks makes sense, but can’t fully offset the challenges faced by its much larger media side.