NYU’s $935 Million Deal Reshapes Greenwich Village
In the largest lease transaction New York has seen since 2019, NYU has secured a 70-year master lease at 770 Broadway from Vornado Realty Trust. The deal includes a staggering $935 million upfront payment, plus $9.3 million in annual rent. Though technically structured as a lease, Vornado is treating the transaction as a sale—using the proceeds to pay off a $700 million mortgage and add $200 million to its cash reserves. NYU, meanwhile, will take over income-producing office leases—including 500,000 square feet still occupied by Meta—and has the option to purchase the office portion of the building in 2055 or at lease end.
The university intends to transform vacant space into classrooms, laboratories, and research facilities as part of its growing focus on engineering and technology. This follows NYU’s $98 million purchase of 400 Lafayette last year and positions the school for long-term control of a massive, strategic footprint in the heart of Greenwich Village.
Vornado Posts Strong Q1 Results and Talks Penn District
Vornado followed the NYU deal with better-than-expected Q1 earnings. Funds from operations rose to $126.2 million, or 63 cents per share, up from 55 cents a year ago. Net income was $86.8 million, a sharp turnaround from a 5-cent-per-share loss in Q1 2024. Revenue hit $461.5 million, aided by the partial sale of Uniqlo’s Fifth Avenue space and strong leasing in Manhattan.
On the earnings call, CEO Steven Roth reiterated his belief that Manhattan remains the country’s top market for office, apartments, and retail. He teased a possible apartment component at the Penn 15 site and said Vornado is evaluating “all opportunities” across the Penn District. While acknowledging the complexities of New York’s political environment, Roth emphasized that residential construction offers less volatility and potentially lower costs than new office development.
NYU’s Real Estate Chief to Retire After Transformative Run
Martin Dorph, NYU’s Executive VP overseeing real estate and operations, will retire in October after nearly two decades with the university. Dorph led expansion efforts that grew NYU’s NYC footprint to more than 15 million square feet. He helped launch campuses in Abu Dhabi and Shanghai, managed the development of the 750,000-square-foot John A. Paulson Center, and closed key acquisitions like 35 Cooper Square and the new 770 Broadway lease. NYU President Linda Mills credited him with helping the institution thrive through volatile market cycles and shifting political headwinds.
Tishman Speyer Returns to Manhattan with SoHo Acquisition
Tishman Speyer is reportedly under contract to acquire 148 Lafayette Street in SoHo for around $108 million. The 13-story, 150,000-square-foot office building is anchored by tenants like General Catalyst and WeWork. If the deal closes, it would mark the firm’s first Manhattan office acquisition since 2019. Tishman continues to manage major trophy assets across the city, including The Spiral at Hudson Yards and Rockefeller Center.
Engel & Völkers Consolidates Under One NYC Operator
Donald Brennan, who owns Engel & Völkers’ Brooklyn franchises, has acquired the brokerage’s Manhattan flagship at 430 Park Avenue. The deal includes 45 agents and gives Brennan full control of the Engel & Völkers brand across all five boroughs. A former architect and developer, Brennan plans to expand citywide, though specific targets remain under wraps. The firm ranked 19th in Manhattan last year by transaction volume.
Durst, Skyline Land Refinancing Deals
The Durst Organization secured a $70 million refinancing from Citibank for 655 Third Avenue, a 380,000-square-foot office building in Murray Hill. The new loan replaces a previous $60 million facility. Separately, Skyline Developers obtained an $18 million JPMorgan Chase loan for 41 Broad Street, home to Léman Manhattan Prep in the Financial District. Both refinancings reflect a cautious but functioning debt market for stabilized office assets.
Legal Trouble Hits Bowery and Long Island City
A bankruptcy filing has halted a foreclosure auction at 139 Bowery, where Global Joint Venture Inc. developed an 18-residence, 14-commercial-unit building with a projected $59 million sellout. The developers borrowed $32 million in 2019 but encountered delays before completing the project in 2024.
Meanwhile, in Long Island City, Alma Realty faces a $25 million pre-foreclosure action from M&T Bank over a loan that matured in December 2024. The 80-unit rental building spans over 120,000 square feet and generated $2.4 million in recent revenue.
Adding to the distress, Moshe Silber’s company—CBRM Realty, which controls over 6,000 apartments nationwide—is facing an auction sale initiated by a creditor linked to UBS Asset Management. Silber recently pleaded guilty to wire fraud and was sentenced to 30 months in prison. A separate federal case in Pennsylvania is still pending.
Brooklyn Rezoning Could Redefine NYC Density Limits
Finally, in Downtown Brooklyn, the city is proposing to rezone 395 Flatbush Avenue Extension to allow a massive 1.5 million-square-foot tower. The proposed development, backed by Rabina and Park Tower Group, would include 1,263 apartments—253 to 379 of which would be affordable—and feature new retail, public space, and a renovated subway entrance. The tower would replace an outdated 50-year-old office building and marks one of the first projects expected to test the state’s newly lifted cap on residential FAR. A public hearing is set for June 5.