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Experts Spot Hints of Spring in Manhattan

NEW YORK CITY-Newmark's Gural and Capstone's Zamir tell a NAIOP audience they see positive signs in the market, although there's a continuing drought of sales transactions.

By Paul Bubny | Updated on March 24, 2010

NEW YORK CITY-Signs of spring are showing up in Manhattan’s commercial market after an exceptionally long winter—i.e. the post-September 2008 downturn, two key players told a NAIOP New York audience Wednesday morning. A continued stumbling block remains the dearth of quality assets coming to market.

Comparatively few owners are selling properties at the moment, and those that do are “not as pressured” as might be expected in an era of rising distress, said Joshua Zamir, managing partner of Capstone Equities. “They’re only selling because a broker told them, ‘I can get you a sub-6% cap rate,’” Zamir commented.

A lack of capital isn’t the problem, said Zamir, who observed that there’s “tons of money out there and no place to put it.” Capstone did figure in one of the few large transactions of late: the purchase of the 1.1-million-square-foot office property at 4 New York Plaza, reportedly for $107 million, in a partnership with Norfolk, VA-based the Harbor Group. Eric Gural, executive managing director at Newmark Knight Frank, said “the idea that there’s no financing out there is wrong. There’s no financing at 90% anymore, but those types of loans should never have been made.”

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