"It's been a solid and interesting quarter for Brookfield," Clark said. In the second quarter, the firm's largest New York City transaction was a 12-year lease of 52,000 sf with McCarter & English at 245 Park Ave. "We are witnessing increased activity in almost all of our markets." So far the firm has completed more than two million sf of leasing this year.

Additionally, Brookfield is exploring the possibility of constructing a mixed-use environment on its development site at 401 West 31st St. The site, which has a potential for 2.5 million sf of development, is located directly across from the Moynihan Train Station project recently won by the joint venture of Vornado and the Related Cos. Clark said the venture's plans will be a "catalyst for redevelopment" in the area. He said a residential component will attract immediate interest as opposed office space in the area. "It's very likely to be mixed use," he said. In fact, Clark added that the firm is giving considerable thought to adding residential component to other development projects as well.

Clark says the proposed O&Y portfolio acquisition is currently at a "standstill." Brookfield has until Aug. 29 to decide how to proceed. "We believe that we can add considerable value to the O&Y portfolio and thus continue to evaluate our options going forward," Clark noted.