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May 10, 2012
Gehry Spire Stake on Block
The Wall Street Journal
by Laura Kusisto
Savvy sale — or strapped for cash?
As apartment rents in Manhattan hit new highs, the owners of New York by Gehry, the city's tallest rental building, are looking to cash in by putting a stake in the tower up for sale.
A venture led by Forest City Ratner Cos., which developed the Frank Gehry-designed silver spiral in lower Manhattan, is seeking to sell as much as a 49% interest in a deal that is expected to value the 76-story building at more than $1 billion.
...Forest City and its partner in the tower, National Electrical Benefit Fund, are looking to take advantage of the high demand among investors for New York City apartment buildings, which have been steadily increasing rents despite the shaky economy. Dallas-based Invesco Real Estate, for example, recently closed on a nearly $60 million purchase of the Arias in Park Slope, which was built as condos and converted to rentals.
...Some in the industry, though, believe the rental market has peaked as renters are fed up with rising prices and may turn to buying. Thousands of new rental units are also in development, adding more competition to the market.
Photo: Bryan Derballa for The Wall Street Journal
Posted by eric at May 10, 2012 11:04 PM