Real estate investor Scott Rechler's RXR Realty is in negotiations to acquire 340 Madison Ave. in Manhattan, according to sources. The 22-story midtown office building, owned by Broadway Partners, might trade for $570 million.
SL Green is acquiring 600 Lexington Ave. in Manhattan for $193 million. A joint venture led by Hines US Core Office Fund is selling the office building. SL Green is assuming $50 million in debt on the property as part of the transaction.
Shorenstein Co. is focusing on buying properties in distressed markets, including the 607,000-square-foot Main Plaza office property in Orange County, Calif., from Maguire Properties for $211 million. "Our ability to quickly and expertly assess, underwrite and close transactions despite ongoing dislocation in the real estate credit markets means that we continue to see solid opportunities to acquire debt and equity interests in key Class A buildings, generating attractive risk-adjusted yields throughout our target markets," said Douglas Shorenstein, chairman and CEO of Shorenstein Properties.
The Carlyle Group and Crown Acquisitions closed the acquisition of a controlling interest in the retail portion of 666 Fifth Ave. from Kushner Cos. for $525 million. The 90,000-square-foot property has 200 feet of uninterrupted retail frontage on Fifth Avenue in Manhattan.
Commercial real estate starts will continue to weaken in 2008, according to a report by Standard & Poor's. The analysis by David Wyss, which appeared in BusinessWeek, did, however, note that construction spending should be higher this year. The downturn in the commercial sector has not garnered as much attention as the housing slowdown.