$350M Sale Closes at 285 Madison Avenue
A significant transaction has taken place in Grand Central, where Daol Asset Management, represented by Ocean West Capital Partners, has acquired the 407,127-square-foot office building located at 285 Madison Avenue for $350 million. The seller in this deal was RFR Holding. The closing date for the transaction was April 16, 2025, and it was supported by $270 million in financing from IGIS Asset Management. This acquisition marks Daol's most notable entry into the Manhattan market, particularly as RFR has divested over $639 million in assets within the last two years.
Manhattan Lending Market Surges
Last month, two of the largest loans in Manhattan were granted to office properties. JPMorgan Chase refinanced Milstein’s 22 Vanderbilt with a $645 million loan, while Blackstone provided $279 million for the refinancing of the Woolworth Building’s office portion. Loan activity was robust across various asset classes, including multifamily projects in Greenpoint and Sunset Park, a life sciences facility in Long Island City, and affordable housing developments in East New York.
Roosevelt Hotel Redevelopment Floated Again
Shahal Khan has put forth a new joint venture proposal to the Pakistani government regarding the redevelopment of the Roosevelt Hotel located in Midtown Manhattan. This proposal entails a 99-year ground lease and plans for a 1.3-million-square-foot development leveraging air rights. The site, which has recently functioned as a migrant shelter, is in the process of being repositioned. The Pakistani government has been considering various options for this property since at least 2020.
Mets Casino Plan Advances
In Queens, the proposed $8 billion casino plan by New York Mets owner Steve Cohen and Hard Rock International has received a favorable vote from a State Senate committee. This bill, which allows for development on the 50-acre parking lot adjacent to Citi Field, is essential for the project, which aims to create a mixed-use area featuring a gaming resort, 25 acres of green space, athletic fields, and affordable housing. However, the bill must still gain approval from the full state Senate, Assembly, and Governor Kathy Hochul.
Q1 Office Leasing Hits Post-COVID High
Manhattan's office leasing market has surged, with 11.4 million square feet of leases signed in the first quarter of 2025—the highest quarterly total since Q4 2019. A standout transaction was Deloitte's signing of an 800,000-square-foot lease at 70 Hudson Yards, which is expected to be a zero-carbon tower developed by Related Companies and Oxford Properties. RXR has also taken on management and leasing responsibilities for the Socony-Mobil Building at 150 East 42nd Street, dealing with the implications of Wells Fargo's impending vacancy, which has led to a loan default.
Adams Budget Expands Housing Push
Mayor Eric Adams has announced a comprehensive housing strategy as part of his Fiscal Year 2026 Executive Budget, which allocates $24.7 billion for housing initiatives. This plan includes $1 billion for the "City of Yes for Housing Opportunity" initiative, targeting the development of 50,000 housing units through rezoning efforts in areas including Midtown South, Long Island City, Jamaica, and Atlantic Avenue. The Mayor's office has also committed $46 million to strengthen the 15/15 Supportive Housing Initiative, aiming to finance and preserve 5,850 units for vulnerable populations.