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JULY 24, 2023
Japanese investors bullish on NY again As the Asian nation’s economy rebounds from its “lost decade” period, its companies have returned to snapping up real estate across the city. BY C. J. HUGHES
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ou’re not having a 1980s flashback: Japan does indeed appear to be on a buying spree in New York once again. Four decades ago Japan owned some of the skyline: Mitsubishi Estate Co., for example, once controlled Rockefeller Center. But the boom didn’t end well for many investors, who got wiped out by the early 1990s real estate market collapse. As the Asian nation’s economy rebounds from its “lost decade” period, investors are
snapping up real estate across the city, from Midtown spires to SoHo storefronts to Alphabet City walkups. The deals happening now are just as high-profile as the Reagan-era Rock Center play. In late June Mori Trust, a developer that rose to prominence accumulating cheap land in post-World War II Tokyo, grabbed a ANDY NATHAN’S major stake in 245 Park Ave., a com- MCRE works with mercial tower near Grand Central Japanese firms.
co-owned by SL Green Realty Corp. and a top address of financial firms. Landlords from the Land of the Rising Sun have made some key adjustments from the last go-round, however, including taking on more partners and less debt, which has some developers, brokers and professors saying the current wave is durable. See INVESTORS on page 18
BUCK ENNIS
RENEWED INTEREST: 150 E. 42nd St. (left) was acquired in 1987 by a Japanese company and sold in 2014. In late June, Mori Trust took a major stake in 245 Park Ave. (right).
Why the weak office market is a boon for local nonprofits There are more opportunities for such organizations to lease space in high-quality buildings and strike novel deals BY EDDIE SMALL
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lthough Midtown’s office buildings are best known for being home to law firms and finance companies, ABS Partners recently landed a different type of tenant in its building at 270 Madison Ave.: the New York Public Library. “In the throes of the pandemic, VOL. 39, NO. 27
we made an aggressive deal that benefited them,” ABS partner James Caseley said, “but, also, occupancy with a credit tenant benefited us.” The deal was structured as a leasehold condo, providing the library with an opportunity to essentially own the space outright, and it is indicative of the advantages nonprofit organizations are enjoying amid the most dismal market for
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New York office landlords in recent memory. As owners struggle with high amounts of available space, resulting in low rents, nonprofits are finding themselves able to break into the city’s nicer office buildings and secure concessions from landlords with increasing frequency. In a healthier office market, landlords tend to focus on making a
splash with a high-profile tenant and can afford to be picky about what types of companies they want in their buildings, said Carri Lyon, a Cushman & Wakefield broker who focuses on nonprofits. But in a market like today’s, simply finding a tenant who will occupy the space and pay their rent is often enough. “Nonprofits do benefit after a downturn,” Lyon said. “The solidity
Slow and steady Charitable giving declined in 2022, according to the Giving USA See LEASES on page 22
ASKED & ANSWERED
POWER CORNER
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Comptroller Brad Lander must toe a tricky line as both fiscal watchdog and unapologetic progressive.
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of some of these nonprofits is extremely appealing when you’re hurting—or not even hurting, but you’ve just got to get your building filled up.”
Former Trump impeachment prosecutor Dan Goldman talks life as a congressman.
7/21/23 4:24 PM