Blackstone scores $3.3 billion for 350 Park Avenue tower development
Blackstone just landed $3.3 billion in construction money.
The short version
- The massive tower stands 66 stories tall in Manhattan.
- Profits dipped 9 percent as higher bond yields hit markets.
- Higher borrowing costs mean tighter margins for commercial real estate deals.
Why it matters to you. For your business, higher interest rates mean lenders are watching every dollar on commercial mortgages.
Blackstone, the massive private equity firm, just scored $3.3 billion in construction financing for one of New York City’s most ambitious developments at 350 Park Avenue. Stephen Schwarzman, the Jewish billionaire who runs Blackstone, pointed to a complex environment on an earnings call as higher bond yields hit global markets.
Higher borrowing costs have slowed down investor settlement and transaction activity across the board. Meanwhile, UDR, a multifamily real estate investment trust, partnered with Apollo Global Management, the big alternative asset manager, for a $2 billion joint venture spanning 19 apartment communities and 7,059 units.
Manhattan investment sales saw numbers drop 27 percent last quarter, but dollar volume climbed 4 percent higher than last year according to Brandon Polakoff of Avison Young, the commercial real estate services firm. Down in South Florida, the luxury market is running hot with buyers from San Francisco and New York fueling demand.
Stephen Ross, the billionaire real estate developer behind Related Companies, just dropped $64 million for the North 40 office complex in Boca Raton.
