#United States #New York #Newmark Group #Haddad Brands #Two Park Avenue

Newmark Facilitates Major Office Property Sale in NYC

In a significant development in the real estate sector, Newmark Group, Inc. announced the successful arrangement of a $360 million sale of the Two Park Avenue office towers located in Manhattan. This transaction stands out as the largest advisor-led office sale in New York City for the year 2024, reflecting the growing tendency among corporations to pivot from leasing to ownership.

The Transaction Details

On January 9, 2025, Newmark revealed that it represented Morgan Stanley in this high-profile sale, with Haddad Brands stepping in as the buyer. Haddad Brands is set to occupy a portion of the over one million square-foot property while planning to lease out the remaining space.

The deal signifies a critical shift in how businesses view real estate as an integral part of their strategic operations. Adam Spies, Co-Head of US Capital Markets at Newmark, highlighted that this transaction aligns well with a trend where more companies are choosing to invest in property ownership as a means to secure long-term business goals.

Property Specifications

The Two Park Avenue towers encompass 29 stories and are strategically located at the intersection of Park Avenue and East 33rd Street. The building is conveniently situated within a 10-minute walking distance of both Grand Central Terminal and Penn Station, making it a prime location for businesses. As a Class A property, the building features several amenities, including:

• - A penthouse lounge located on the 27th floor, offering stunning views of the city.
• - A ground-floor lobby and a conference center designed to cater to business needs.
• - Bike parking for tenants and visitors, promoting eco-friendly transportation options.

The versatile floor plates in the building can efficiently accommodate a variety of layouts, tailored to meet the specific needs of different occupiers.

Market Trends and Implications

According to Newmark Research, there has been a notable 36% rise in owner-occupier transactions year-to-date as of the third quarter of 2024. This trend underscores a pivotal change in the market, where companies increasingly prefer purchasing properties at discounted rates over continuing to lease. The decision by Haddad Brands to purchase this office space is part of this evolving narrative, marking a new chapter in the company's growth strategy.

About Newmark Group

Newmark Group, Inc., traded on Nasdaq under the symbol NMRK, stands as a global leader in commercial real estate services, offering comprehensive support throughout the real estate lifecycle. With revenues reaching approximately $2.6 billion for the twelve months ending September 30, 2024, Newmark leverages its global reach and market insight to provide tailored services that meet the diverse needs of its clients. Currently, the firm operates nearly 170 offices worldwide, staffed by a team of over 7,800 professionals.

This recent arrangement not only showcases Newmark's capability to secure high-value transactions in a competitive market but also sets a positive precedent for potential future engagements in the commercial real estate landscape of New York City.

This transaction, especially in a market as dynamic as New York, reflects both the potential for investment in commercial properties and the critical importance of professional advisory services in navigating complex real estate transactions successfully.