Upper East Side Development Picks Up
Activity is heating up around the Q train at 72nd Street. Three major residential projects are in motion:
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Chetrit Group is moving forward at 1357 Second Avenue, planning a 21-story, 54-unit condo building with retail and affordable housing. Excavators have arrived on-site after years of dormancy.
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Avdoo is prepping 242 East 71st Street for demolition. The 21-story rental will feature 134 units and community space. No construction timeline yet.
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Torkian Group quietly assembles a mixed-use site across the street, acquiring $3.8M in air rights. Demolition appears imminent, with no formal plans released.
Extell’s Medical Tower Nears Completion
Extell’s 30-story medical office tower at 1520 First Avenue is 95% built and expected to deliver in Q3. HSS will anchor the base, with upper floors leased to other healthcare providers. Amenities echo luxury hospitality: terraces, wood-paneled rooms, concierge lobbies, and oversized elevators. The property aims to reset expectations for medical real estate in Manhattan.
Manhattan Office Leasing: Mixed Signals
Leasing volume in May was 3.1M SF, down 7% from April but up 5% YoY, thanks to NYU’s blockbuster 1.1M SF lease at 770 Broadway. Midtown, however, underperformed—leasing dropped 31% from April, while availability tightened to post-2020 lows.
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Fox Rothschild expanded at 101 Park Avenue
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Aquarian Holdings took penthouse space at 550 Madison
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Sublet supply shrank for the 8th straight month, nearing pre-pandemic levels in Midtown South
Distressed Office Sales in Garment District
Brickman and Investcorp offloaded two office buildings at steep losses:
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256 W 38th St: Sold to Hakimian & A&H for $21.5M, down from a 2017 purchase of $63.3M
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229 W 36th St: Sold to Cayre Equities & A&H for $19.2M, down from $93.5M in 2017
Each deal was partially financed and involved the same acquisition teams. This continues a trend of distressed resales in the district despite active turnover and development interest.
Refinancing Moves Downtown and in Kips Bay
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75-77 Spring Street (SoHo): Anne Goldrach refinanced the 54,800 SF office building for $25.3M via BNY Mellon.
- 222 E 34th Street (Kips Bay): Hakim Organization secured a $99.8M refinance from Northwestern Mutual, renewing their original 2014 loan with a new maturity date of June 2030.