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January 19, 2023

Trial By Fire: CRE Players Channeled Grit And Determination To Seal Deals In Harsh Environment

Announcing Future Of The Chicago Suburbs March 21

The last several months have given rise to one of the most volatile periods in commercial real estate history: Pencils are down, construction starts have slowed to a drip, and what was once a gold rush of activity has morphed into a maelstrom of turmoil.

One would expect these conditions to kill deals, and in some cases, they have. But in others, the opposite is true. While less optimistic than usual, many CRE professionals view the obstacles as opportunities and continue to push projects across the finish line. 

“Now is the time when the men get separated from the boys,” said Mike Bryant, a vice chairman and managing director of debt and structured finance at CBRE. “Experience is extremely important today because it’s not easy.”

Trial By Fire: CRE Players Channeled Grit And Determination To Seal Deals In Harsh Environment

The following stories highlight the grit, determination and innovation that emerge during periods of economic hardship.Brokers, developers and lenders have forged unlikely partnerships, tapped into creative financing solutions and humbled themselves before societal stigmas to make deals work, even in the face of seemingly insurmountable odds.What all of these deals…

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Dozens Of Contractors Indicted For Allegedly Rigging Bids, Stealing Millions From Developers

Dozens Of Contractors Indicted For Allegedly Rigging Bids, Stealing Millions From Developers

Twenty-four construction executives and 26 contracting companies were indicted Wednesday as part of an investigation into an alleged bid-rigging and kickback scheme that bilked New York developers of more than $5M.The 83-count indictment charge was filed in New York County Supreme Court Wednesday, Manhattan District Attorney Alvin…

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What Recession? Prologis Expects No Meaningful Slowdown Ahead

What Recession? Prologis Expects No Meaningful Slowdown Ahead  

Despite a possible U.S. recession and slumping retail sales — down again in December, for the second month in a row — executives at Prologis said during the company's Q4 2022 earnings call on Wednesday that they anticipate 2023 will be another strong year for the industrial space giant.…

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A Conversation With The Developer Behind The Country’s Biggest Office-To-Resi Conversion

A Conversation With The Developer Behind The Country’s Biggest Office-To-Resi Conversion  

Turning obsolete office buildings into apartments seems like the perfect solution to two huge problems clouding the future of big cities like New York, Chicago and San Francisco: sagging commercial property values and a lack of affordable housing.

The theory is often batted down by reality — most conversions are out of the reach of even highly motivated developers after factoring in zoning restrictions, cost and other complexities. But some are pushing forward on projects that could truly make a dent in these seemingly intractable issues.

At 25 Water St. in Manhattan’s Financial District, GFP Real Estate, Metro Loft Management and Rockwood Capital are turning the 1.1M SF 1960s office building formerly known as 4 New York Plaza into 1,300 apartments. Last month, the team scored a $536M loan from MSD Partners and Apollo for the purchase and redevelopment of the building, the largest transaction of its kind in U.S. history.

Brian Steinwurtzel, co-CEO of GFP Real Estate, spoke to Bisnow last week to discuss the physical changes the development team is planning to make to 25 Water, what made the lenders feel comfortable enough to finance the development, and offered some practical changes the government…

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