Finance
Marcus & Millichap’s IPA Capital Markets Arranges $75 Million Financing for Midtown Manhattan Office-to-Residential Conversion Project
NEW YORK, September 19, 2024–(BUSINESS WIRE)–IPA Capital Markets, a division of Marcus & Millichap (NYSE:MMI), specializing in capital markets services for major private and institutional clients, has secured $75 million in acquisition financing for the former Pfizer headquarters in New York City. Located at 219 E 42nd St., the property will be combined with the adjacent building at 235 E 42nd St. and converted into a free-market, Class-A, luxury multifamily apartment building.
“When these two buildings are combined, it will add more than 800 units to the project totaling to over 1,400 units, making it the largest office-to-residential conversion in New York City’s history,” said Max Herzog, IPA Capital Markets.
The New York-based IPA Capital Markets team of Herzog, Marko Kazanjian, Andrew Cohen and Max Hulsh secured the financing with Northwind Group on behalf of David Werner Real Estate Investments and Metro Loft Management.
Herzog added: “The shortage of free-market multifamily units in Manhattan, coupled with David Werner’s acquisition of the property at a favorable basis and Metro Loft’s expertise in office-to-residential conversions helped our team generate significant interest from lenders in providing the acquisition bridge loan. This led to IPA Capital Markets managing a smooth and efficient financing process, ultimately securing strong terms for DWREI and Metro Loft.”
Located in Midtown East, the property will be converted from a 10-story, 291,000-gross-square-foot office building into a 29-story, approximately 540,000 square-foot, luxury multifamily rental property with 660 units ranging from studios to three-bedroom loft-style layouts.
About IPA Capital Markets
IPA Capital Markets is a division of Marcus & Millichap (NYSE: MMI). IPA Capital Markets provides major private and institutional clients with commercial real estate capital markets financing solutions, including debt, mezzanine financing, preferred and joint venture equity, and sponsor equity. For more information, please visit institutionalpropertyadvisors.com/capital-markets
About Marcus & Millichap, Inc. (NYSE: MMI)
Marcus & Millichap, Inc. is a leading brokerage firm specializing in commercial real estate investment sales, financing, research and advisory services with offices throughout the United States and Canada. As of December 31, 2023, the company had 1,783 investment sales and financing professionals in over 80 offices who provide investment brokerage and financing services to sellers and buyers of commercial real estate. The company also offers market research, consulting and advisory services to clients. Marcus & Millichap closed 7,546 transactions in 2023, with a sales volume of approximately $43.6 billion. For additional information, please visit www.MarcusMillichap.com.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240919676375/en/
Contacts
Gina Relva, VP of Public Relations
Gina.Relva@MarcusMillichap.com
Finance
30-year mortgage rate hits 2-year low
The average rate on a 30-year fixed-rate mortgage was nearly unchanged this week but reached its lowest level in two years.
Thirty-year mortgage rates averaged 6.08% as of Thursday, down from 6.09% a week earlier, according to Freddie Mac data.
Average 15-year mortgage rates rose one basis point to 5.16%.
As mortgage rates hover around 6%, potential buyers are tiptoeing back into the market, and some homeowners who bought when interest rates topped 7% are weighing refinancing. Mortgage applications jumped to the highest level in more than two years last week, driven largely by refinancing volumes.
“Given the downward trajectory of rates, refinance activity continues to pick up, creating opportunities for many homeowners to trim their monthly mortgage payment,” Sam Khater, Freddie Mac’s chief economist, said in a statement. “Meanwhile, many looking to purchase a home are playing the waiting game to see if rates decrease further as additional economic data is released over the next several weeks.”
Thirty-year mortgage rates have dropped more than a percentage point since May.
Read more: Mortgage and refinance rates today, September 26, 2024: Rates finally decrease
The Pending Home Sales Index, a measure of housing contract activity, rose 0.6% to 70.6 in August, improving slightly from July’s record-low reading, according to the National Association of Realtors. A level of 100 is equal to the amount of contract activity seen in 2001.
“Buyers are finally getting more comfortable with the rate,” said Selma Hepp, chief economist at real estate data provider CoreLogic. “I don’t think that’s going to mean a big boost for home sales this year given how low they’ve been so far, but still, it’s a little bit of improvement.”
Claire Boston is a senior reporter for Yahoo Finance covering housing, mortgages, and home insurance.
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Finance
AI, new generations and consumer finance
Öztopçu explains that while consumers are rapidly diversifying within the financing ecosystem, there is a genuine need for new generation financing products capable of responding to this diversity: “Seizing and developing technological opportunities, especially AI, enables companies to develop new production methods and tools, do a much better job at sizing up their competitors, and build creative competitive strategies.”
As Generation Z enters its peak earning years, it has become the target of all sectors of the economy, Öztopçu notes. Generation Z prioritizes convenience over everything else, and appreciates special, innovative financial benefits, such as promotions and discounts. Öztopçu reports that Gen Z’ers also do a lot of their shopping on social media, but always after doing proper research, and rarely on impulse. To help them, they browse online channels and watch videos if necessary.
According to Öztopçu, this generation looks for the same perks and promotions when they are looking for financial products, such as loans, interest rates, and payment flexibility. In fact, when offered by brands, it builds greater customer loyalty among Gen Z’ers – even more so when the brands develop financial products that are customized to meet their needs.
Öztopçu explained that if a consumer uses a product developed in collaboration by brands and financial institutions, they visit the brand’s mobile app or website three times a month on average, and these visits convert into sales. During this transition period, the use of these hybrid structures is bound to become more widespread, as they are especially good at engaging with the customer, helping brands understand their needs and guiding them.
Therefore, according to Öztopçu, if consumer finance companies or banks insist on using traditional databases, they must be ready to work harder to offer new products that can keep up with changing consumer financing trends and lending habits.
Finance
Dow retreats from record high, Micron earnings on tap: Yahoo Finance
The Dow Industrial Jones Average (^DJI) is pulling back Wednesday, after reaching an all-time high in the previous session. Investors are now turning their attention to Friday’s PCE report to help assess whether the Federal Reserve will continue its aggressive rate-cutting cycle. Meanwhile, Micron Technology (MU) is in focus on Wall Street as the chip giant gears up to report it’s fourth-quarter results after the market closes.
Yahoo Finance trending tickers include Rocket Lab (RKLB), Ford Motor Company (F), and Rivian Automotive (RIVN).
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