T
he NYC real estate market is experiencing a buying opportunity, with values down 20-25% from their peak in 2019. Office condos that once sold for $800-$1,000 per foot are now selling for around $400 per foot. Owners and lenders are negotiating prices to stay afloat due to factors like high interest rates, ground rent resets, and regulations.

    Savanna paid $255 million for the 185,000-square-foot office building at 799 Broadway, which cost $300 million to develop and is 71% occupied. Zar Property New York bought two smaller deals for even lower prices: 119 W. 57th St. for $27 million ($170 per foot) and 30 W. 61st St. for $15.2 million ($97 per foot).

    Buyers are taking a chance on sub-$300 or sub-$200 per foot properties, but the city's perceived status as a safe haven makes it hard to go wrong. High-net-worth individuals, family offices, and international groups are driving the market, with some Asian investors seeking distressed opportunities.

    SL Green sold an 11% stake in One Vanderbilt to Mori Building Company for $4.7 billion ($3,000 per foot). Owners are more willing to bring in new equity, even if it means a smaller share, as they capitalize on interest from wealthy foreign investors.

    The market is bouncing off the bottom and creating opportunities at reduced prices. SL Green bought 500 Park Ave. from Morgan Stanley for $130 million, while Haddad Brands purchased 2 Park Ave. for $360 million (a significant discount from its original price). The former Sports Illustrated Building was sold in early 2024 for $8.5 million, a fraction of its previous value.

    With deals like these available, industry leaders are eager to buy more. As one CEO put it, "We want to buy more."