Office ‘romance’
Brokerage merger rumors hot
RUMORS can be made of flimsy stuff. But they take on added attention when so little verifiable, large-scale activity is taking place in the commercial office market these early summer days.
One tale that has tantalized the commercial brokerage world for months is that Cushman & Wakefield and Newmark, the city’s Nos. 2 and 3 brokerages by leasing and sales volume behind leader CBRE, plan to merge. It was part of the buzz at the Real Estate Board of New York’s glittering gala gathering at the Glasshouse event space Thursday night.
One insider at the bash told us, “I think that cratered a long time ago.” But another said in a nearwhisper, “It did fall apart but now it’s on again.”
A Cushman rep declined to speak for the record but referred us to a nearly 2-year-old Bloomberg report that Newmark had rebuffed a “takeover” in 2020. No one from Newmark got back to us.
The merger chatter gained added currency with an inside tip to Realty Check that Cushman & Wakefield, which is now based at Vornado’s 1290 Sixth Ave., secretly signed a lease to move its offices to 220,000 square feet at Brookfield’s 660 Fifth Avenue.
According to this intriguing but unconfirmed tale, the lease is under wraps pending the outcome of the Cushman-Newmark merger discussions. A Brookfield rep acknowledged there were “talks” for a possible lease but denied a deal was signed. A Cushman rep also denied it. But a lease would be another coup for 660 Fifth, where Macquarie Group recently signed for a similar amount of space.
A high-powered Cushman team that includes global brokerage chairman Bruce Mosler happens to be the leasing agent for 660 Fifth, the former 666 Fifth that’s been renamed and redesigned.
A move there would be an expansion for Cushman, which has 180,000 square feet at 1290 Sixth, where its lease expires in 2025. Cushman’s interest in leaving 1290 Sixth when its lease is up was reported by The Real Deal earlier this month. A Cushman-Newmark merger would likely benefit Newmark most. CBRE, JLL, Cushman and Newmark are the top four-ranked firms internationally, which matters more than their local standings.
REBNY revamped
The city’s real estate elite mostly cheered REBNY’s hipped-up, spiced-up annual gala, which made a splash above the Hudson River.
The gathering dubbed “New York Forever: A Celebration of Our City” was REBNY’s first such gathering since 2019. The event honored TF Cornerstone’s Tom Elghanayan, Fetner Properties’ Hal Fetner, CBRE’s Darcy Stacom, Douglaston Development’s Jeff Levine and the Gotham Organization’s David Picket, among others.
Attendees paying $1,400 a ticket mingled and nibbled on small plates served up by chefs such as Daniel Boulud, Michael Lomonaco and J.J. Johnson. The edibles and the come-as-you-are dress code were a far cry from the stuffy midwinter black-tie affairs at the New York Hilton.
So was the setting on the sixth floor of Glasshouse, which has large windows and an open outdoor deck — that guests had to flee when a brief rain spritz popped up.
Guests included executive committee members Douglas Durst, CBRE’s Mary Ann Tighe, JLL’s Bob Knakal, Cushman & Wakefield’s Bruce Mosler, SL Green’s Laura Johnson and Boston Property’s Hilary Spann. We also spotted Branton Realty’s Woody Heller, Cushman’s Joanne Podell, and RXR Realty’s Scott Rechler and Frank Pusinelli, and the Rent Stabilization Association’s Frank P. Ricci.
Boulud, who supervised menu offerings including citrus-marinated shrimp and sweet corn veloute from his Le Pavillon, mingled with guests.
It wasn’t all about food and fun. My colleague Lois Weiss reports that Gov. Hochul met privately with REBNY officials to discuss the conversion of old office buildings to housing and the cancellation of the 421-a tax-abatement program.
Rudin loan
The Rudin family’s Three Times Square got a vote of confidence from leading banks with a $415 million refinancing of the 30-story building — one of the pioneering quartet of towers in the “New Times Square.” JPMorgan led a lending consortium that included Bank of America and M&T Bank. The tower is a joint venture of the Rudins and Thomson Reuters. As Realty Check first reported last January, Touro College and University System signed a lease for more than 243,000 square feet at Three Times Square.
The Rudins plan to use loan proceeds to continue capital improvements at the location.