![\"Placeholder\"\/](\"https:\/\/www.newsbeep.com\/us-ny\/wp-content\/uploads\/2025\/10\/placeholder.png\")
<\/p>\nNew York City\u2019s top real estate owners are suddenly more willing to slice off a piece of their pie, shedding stakes in marquee assets.<\/p>\n
They\u2019re not exiting the market \u2014 in fact, it\u2019s the opposite. At a time when traditional equity\u00a0sources\u00a0have dwindled and opportunities have become pricier, developers are finding ways to recycle capital without giving up the whole pie.\u00a0<\/p>\n
<\/p>\n
\u201cWe have seen people be more open to different structures and creative ideas when they build conviction around a certain type of investment,\u201d Northmarq<\/a> Managing Director Chinmay Bhatt said. \u201cWe are in this era where every deal is like a puzzle.\u201d<\/p>\n Tumultuous times have driven passive investors to reduce direct exposure, either by moving their capital to the debt side<\/a>\u00a0of\u00a0real estate capital stacks or to funds managed by private equity giants with diversified portfolios. Without interest from limited partners, developers pursuing the recovering market\u2019s new opportunities must unlock equity elsewhere \u2014 and fast.\u00a0<\/p>\n That means partnering with fellow developers, some of whom may have previously been competitors in the market.\u00a0<\/p>\n As of 2024, general partner-led recapitalizations accounted for an estimated 65% to 75% of all real estate secondaries<\/a> transactions. Historically, that percentage stood at or below a quarter, according to a report<\/a> by the Commercial Real Estate Development Association, formerly known as NAIOP<\/a>.<\/p>\n LPs are instead consolidating their rosters of GPs to those that operate diverse portfolios at scale.\u00a0<\/p>\n A survey<\/a> by McKinsey & Co. found that 17% of institutions expect to decrease the number of managers they invest in. Meanwhile, the top 20 managers\u2019 share of trailing five-year, closed-end real estate fundraising increased to roughly 51% in 2025,\u00a05 percentage points higher than in 2016.<\/p>\n \n Courtesy of Volley Studio\n <\/p>\n \n A rendering of 343 Madison Ave., for which BXP is looking for a financial partner\n <\/p>\n SL Green<\/a> has sold interests in a handful of buildings over the past 12 months, including at 346 Madison Ave.<\/a>,\u00a0in which Mori Building Co.<\/a>\u00a0bought a 49% interest. The Tokyo-based developer also upped its stake in SL Green\u2019s crown jewel, One Vanderbilt<\/a>, to 16% in October.\u00a0<\/p>\n New York\u2019s largest office landlord agreed to sell the residential and retail components of 7 Dey St.<\/a> for $222.6M, while retaining the office portion.\u00a0<\/p>\n The deals are part of a $2.5B disposition plan. SL Green will use those proceeds to lower its debt by $1.2B and make $1B of new acquisitions.\u00a0<\/p>\n \u201cWe’re going to have to close a lot of deals here,\u201d SL Green CEO and Chairman Marc Holliday<\/a> said during the company\u2019s 2025 investor day<\/a>. \u201cBut there’s a lot of demand for New York City assets right now and to be partners with SL Green in some of these great assets.\u201d<\/p>\n The shift comes as the price to build grows from all sides. Conflicts overseas and inflation at home have kept construction and borrowing costs elevated. In New York City, prime land is scarce and projects have become more complicated than ever.<\/p>\n \u201cThe result is that every dollar of equity has become much more valuable,\u201d Palladius Capital Management<\/a> founder and CEO Nitin Chexal said.\u00a0<\/p>\n Manhattan\u2019s new office developments are largely supertalls, costing billions of dollars to get off the ground, like 343 Madison Ave.<\/a>\u00a0BXP<\/a> told investors it is searching for a financial partner to take a 30% to 50%<\/a> leveraged interest in the $2B tower. Norges Bank had initially agreed to partner but pulled out of the deal<\/a>.<\/p>\n A joint venture between Vornado<\/a>, Rudin<\/a> and Ken Griffin<\/a> was created to build a $6B tower at 350 Park Ave.<\/a>\u00a0Nearby, at 175 Park Ave.,\u00a0RXR<\/a> and TF Cornerstone<\/a> teamed up for a $6.5B office and hotel project.\u00a0<\/p>\n \u201cWe still prefer to own 100% of an asset and only consider partnerships where we are particularly excited about the investment strategically and with the right partner,\u201d TFC principal Jake Elghanayan<\/a> said in an email.\u00a0<\/p>\n That includes the firm\u2019s partnership with Dune to pursue conversions outside of its home markets and 175 Park, \u201cwhich at a total budget over $6 billion, is too large for us to consider as a 100% owned asset,\u201d Elghanayan said.<\/p>\n \n Courtesy of RXR\n <\/p>\n \n A rendering of 175 Park Ave., a project planned by developers RXR and TF Cornerstone\n <\/p>\n In addition to its joint venture with TFC, RXR has moved into filling the gap across various balance sheets. Most recently, it infused $185M of equity into a new project<\/a> by leading Gowanus<\/a> developers Charney Cos., Tavros Capital and Incoco Capital. The planned tower\u2019s capitalization, including $600M in debt, is $1B.\u00a0<\/p>\n RXR is also leading a $500M recapitalization<\/a>\u00a0of 55 Broad St., an office-to-residential project in partnership with Silverstein Properties<\/a> and Metro Loft Management<\/a>, a specialist in adaptive reuse.\u00a0<\/p>\n \u201cAs we’ve continued to grow and raise more capital, it’s been a great way to expand our reach and form relationships with groups that are their perspective experts in whatever geography or sector,\u201d RXR Investment Management Group Executive Vice President Russell Young said. \u201cIt’s been a really rapidly growing part of the business.\u201d<\/p>\n At the same time, JV agreements have become more sophisticated, giving developers control of what a partnership ultimately looks like, Chexal said. Terms include major decision rights, reporting requirements, approval thresholds, exit provisions, buy-sell mechanisms and the alignment of incentives.<\/p>\n \u201cTwenty years ago, many investors wanted complete control because they viewed control as their primary risk mitigant,\u201d Chexal said. \u201cToday, the largest institutions recognize that the best operators often won’t sell control of their highest-quality platforms or assets. If you want access to the best industrial portfolio, the premier multifamily developer or the highest-performing operating company, you often have to accept minority ownership.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"New York City\u2019s top real estate owners are suddenly more willing to slice off a piece of their…\n","protected":false},"author":2,"featured_media":289373,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[39],"tags":[110619,110618,2177,9,24,110616,92953,63,110617,110620,10318,4191,134,136,135,18349],"class_list":["post-289372","post","type-post","status-publish","format-standard","has-post-thumbnail","category-staten-island","tag-chinmay-bhatt","tag-jake-elghanayan","tag-marc-holliday","tag-new-york","tag-new-york-city","tag-nitin-chexal","tag-northmarq","tag-nyc","tag-palladius-capital-management","tag-russell-young","tag-rxr","tag-sl-green","tag-staten-island","tag-staten-island-headlines","tag-staten-island-news","tag-tf-cornerstone"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/posts\/289372","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/comments?post=289372"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/posts\/289372\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/media\/289373"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/media?parent=289372"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/categories?post=289372"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/tags?post=289372"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}<\/p>\n<\/p>\n