Brooklyn Law School has signed a contract to sell a residence hall in Brooklyn Heights for $12 million, according to people familiar with the deal.
The law school entered into an agreement with city-based BCN Development to hand over its 12-story Beaux Arts building at 184 Joralemon St. BCN Development intends to convert the residence hall into 24 two-bedroom condos.
The developer also plans to invest $3 million to $4 million dollars to renovate the lobby and each of the apartments.
"We are seeking to consolidate our housing and are looking for another project," said Joan G. Wexler, president of Brooklyn Law School, in a statement regarding the sale of the residence hall, which is currently occupied by graduate students.
Once the residence hall is converted into condominiums, brokers expect the units to sell quickly in a neighborhood where co-ops are much more common.
The 30,000-square-foot residence hall was built near the turn of the century. It has been used as student housing for the Brooklyn Law School for more than 30 years. The structure was a commercial building prior to that.
The residence hall is located within the boundaries of a proposed historic district currently under consideration by the city's Landmarks Preservation Commission. The proposed district would include many of the skyscrapers in downtown Brooklyn.
Ms. Wexler had voiced opposition to the plan to include 184 Joralemon St. in the historic district during a landmarks commission hearing in December, saying it would lead to rent hikes for student residents.
Now BCN Development plans on renovating the residence hall using an Italian-contemporary design. Those upgrades are scheduled to take place over the summer after school finishes and students have moved out, said Craig Nassi, chief executive of BCN.
While the units aren't in terrible shape, the student-occupied apartments are far from luxurious in their current conditions, Mr. Nassi said.
"Tired is the right word," he said.
There are two units per floor with most measuring at about 1,000 square feet. On the top floor, the two penthouses are about 2,000 square feet and feature 15-foot windows with views of the East River. Prices on the condos will start at $750,000.
The number of condos the building is slated to bring onto the market is rare for Brooklyn Heights, said Greg Williamson of the Williamson Group, a unit of real-estate company Prudential Douglas Elliman.
Many prospective buyers in Brooklyn Heights would be attracted to properties that would allow them to avoid applying with co-op boards, he said.
"Just the fact that these are condominiums, it will be very desirable," said Mr. Williamson, who wasn't involved with the sale of the residence hall.
Mr. Williamson predicts that the condos would be sold within eight to 12 months once they hit the market.
"Most people buying there are ex-Manhattanites that are priced out of the city," he said of the area.
Write to Joseph De Avila at joseph.deavila@wsj.com
Corrections & Amplifications:
Prices for condos planned for a Brooklyn Law School residence hall being sold to a developer will start at $750,000. An earlier version of this article incorrectly said the prices would start at $1 million.
Monday, January 10, 2011
Thursday, December 02, 2010
Building Through the Downturn: BCN Chief on Great Recession Construction, Financing Beyond Mezz and More
When Craig Nassi founded BCN Development in 1994, the city's landscape was a whole lot different. At his peak, the chief executive and his group were investing in $300 million projects, including 315 Park Avenue South, where Credit Suisse is headquartered. As a reaction to the downturn, BCN adjusted its ambitions by focusing on smaller projects. As a result, the group is among a shrunken pool of firms currently developing right now. Mr. Nassi, 41, talked about his strategy, making changes in a tough environment and the advice the part-time professor gives students.
The Commercial Observer: BCN Development is among a small pool of developers that are actually developing in New York City. How are you making that happen?
Mr. Nassi: Well, we've been around for about 16 years, and in 16 years you see how trends consistently move; and the directions they've moved in today, for developers, is that you need to find deals that have an upside that can be nontraditionally financed. And what I mean by that is, it used to be where you could go to a bank if you found a deal, and you say: 'We've got a great deal. And we want you to finance 85 percent of it, and we'll put the rest in.' Or the rest will be mezzanine above that, with a small piece of equity.
Today it's different. Today, what we're doing is we're finding deals that we can go to our investment groups and investors with and say, 'Hey, look, we found a deal that's manageable to do with all equity, and we can get it done in a 12-month period, and be in and out of there, make some money and move on.' So the days of big, huge mega-deals that take five years to do ... Those days are over.
It seems counterintuitive to be building in this economic climate.
Not at all, because in New York City—specifically in Manhattan neighborhoods—it's not a matter of the market being bad or good. The market is actually good in New York. We're still seeing $2,000-, $3,000- and $4,000-a-square-foot sales in New York City for residential. We're seeing $700- and $800-square-foot sales on large office buildings in Manhattan. We're seeing retail rents at $300 and $400 and $500 a square foot. So New York City is really not in a recession. In fact, it's just getting stronger and stronger every day we move through the national recession, in that our inventory is getting absorbed daily and there's slowly but surely becoming a lack of product types.
Are you seeing some of your peers in the development world following suit?
There is a lot of niche development happening. If you drive around any given neighborhood, you'll see that people are doing six- and seven-story buildings. They're doing renovations. They're doing stuff that's not as complicated and crazy as the stuff you saw happening four or five years ago.
BCN Development's strategy has been focused on smaller projects. Was that the idea from the outset, or did you downsize in the past several years?
We went from doing 100 and 200 and 300 million dollar deals to now doing niche developments that are from $3 million to $40 million.
Did you shift your building strategy right at the downturn?
Yeah, the last two or three years we've been doing this. We found our way into it because we were at a roadblock for finding investors and financing for bigger projects. Bigger projects just aren't happening.
How are you financing these projects? You mentioned investment banks earlier.
Mezzanine is a word that has almost vanished. It was a relatively new word in the dictionary about 15 years ago, and came about and was very hot for a while, and now it's a word you really haven't heard in many peoples' vocabulary in three years.
Right now a lot of people are taking advantage of refinancing. Are you?
Yes, we have. We've refinanced some things and we've taken advantage of the extremely low interest rates. But, again, banks are very cautious and they're not fast to refinance and get deals done the way they used to. So a refinance today could take four to five times as long as it used to.
You're about ready to begin construction on an additional 43,000 square feet at an existing building at 45 East 33rd Street in Manhattan. What's the status on that project?
That's a project that we felt the market right now wants—smaller units at a price point under $1,000 a square foot. And that kind of thing is financeable today. So when we're selling these things to people, people have a true vehicle to finance these things through. Construction begins in the middle of next year.
That's a residential condo project. Is that your focus now, or are commercial projects equally as lucrative right now in this economic climate?
We're not really looking at commercial as much. There's a lot more commercial office space in Manhattan that could be considered maybe a little like a flood. We feel a little more comfortable with niche residential than we do commercial.
Before the downturn, were you focused more on commercial development?
Well, in 2006, we bought 315 Park Avenue South, and that's a 330,000-square-foot building that is Credit Suisse's United States headquarters. We bought it because it had great tenancy, but we specifically bought it because there was great financing for it. That, again, was a time when they were doing amazingly leveraged financing on AAA assets like this.
What is the status on the building? Is it all leased up?
The status is that it's all leased up. It's 100 percent occupied through 2017. And we're very excited about the building and the possibilities in 2017, and maybe turning it into a world-class condominium asset or a hotel. It's a great neighborhood for that.
What, right now, would be an ideal commercial opportunity for you?
I think an ideal commercial investment is in the Rockefeller Center core. I think the Park Avenue core, from the Pan Am building to 57th Street, is great commercial. I think also the core of midtown south is really coming back strong as well, which is where our building is at right now. I think people really like that area right now.
You're a part-time professor at N.Y.U., teaching a course called Real Estate Development. What advice are you giving students right now in this climate?
I always tell any young, aspiring real estate person that you have to look for assets out there that have value-add to them. Which means, buy something vacant where you're willing and able to put some sweat equity into it by repositioning it and getting brand-new tenants in there who will pay the price—market or even above-market—for having great finishes, new finishes, new lobbies, new entries, cosmetic jobs that make the asset look nice. These are the kinds of things they should do.
The Commercial Observer: BCN Development is among a small pool of developers that are actually developing in New York City. How are you making that happen?
Mr. Nassi: Well, we've been around for about 16 years, and in 16 years you see how trends consistently move; and the directions they've moved in today, for developers, is that you need to find deals that have an upside that can be nontraditionally financed. And what I mean by that is, it used to be where you could go to a bank if you found a deal, and you say: 'We've got a great deal. And we want you to finance 85 percent of it, and we'll put the rest in.' Or the rest will be mezzanine above that, with a small piece of equity.
Today it's different. Today, what we're doing is we're finding deals that we can go to our investment groups and investors with and say, 'Hey, look, we found a deal that's manageable to do with all equity, and we can get it done in a 12-month period, and be in and out of there, make some money and move on.' So the days of big, huge mega-deals that take five years to do ... Those days are over.
It seems counterintuitive to be building in this economic climate.
Not at all, because in New York City—specifically in Manhattan neighborhoods—it's not a matter of the market being bad or good. The market is actually good in New York. We're still seeing $2,000-, $3,000- and $4,000-a-square-foot sales in New York City for residential. We're seeing $700- and $800-square-foot sales on large office buildings in Manhattan. We're seeing retail rents at $300 and $400 and $500 a square foot. So New York City is really not in a recession. In fact, it's just getting stronger and stronger every day we move through the national recession, in that our inventory is getting absorbed daily and there's slowly but surely becoming a lack of product types.
Are you seeing some of your peers in the development world following suit?
There is a lot of niche development happening. If you drive around any given neighborhood, you'll see that people are doing six- and seven-story buildings. They're doing renovations. They're doing stuff that's not as complicated and crazy as the stuff you saw happening four or five years ago.
BCN Development's strategy has been focused on smaller projects. Was that the idea from the outset, or did you downsize in the past several years?
We went from doing 100 and 200 and 300 million dollar deals to now doing niche developments that are from $3 million to $40 million.
Did you shift your building strategy right at the downturn?
Yeah, the last two or three years we've been doing this. We found our way into it because we were at a roadblock for finding investors and financing for bigger projects. Bigger projects just aren't happening.
How are you financing these projects? You mentioned investment banks earlier.
Mezzanine is a word that has almost vanished. It was a relatively new word in the dictionary about 15 years ago, and came about and was very hot for a while, and now it's a word you really haven't heard in many peoples' vocabulary in three years.
Right now a lot of people are taking advantage of refinancing. Are you?
Yes, we have. We've refinanced some things and we've taken advantage of the extremely low interest rates. But, again, banks are very cautious and they're not fast to refinance and get deals done the way they used to. So a refinance today could take four to five times as long as it used to.
You're about ready to begin construction on an additional 43,000 square feet at an existing building at 45 East 33rd Street in Manhattan. What's the status on that project?
That's a project that we felt the market right now wants—smaller units at a price point under $1,000 a square foot. And that kind of thing is financeable today. So when we're selling these things to people, people have a true vehicle to finance these things through. Construction begins in the middle of next year.
That's a residential condo project. Is that your focus now, or are commercial projects equally as lucrative right now in this economic climate?
We're not really looking at commercial as much. There's a lot more commercial office space in Manhattan that could be considered maybe a little like a flood. We feel a little more comfortable with niche residential than we do commercial.
Before the downturn, were you focused more on commercial development?
Well, in 2006, we bought 315 Park Avenue South, and that's a 330,000-square-foot building that is Credit Suisse's United States headquarters. We bought it because it had great tenancy, but we specifically bought it because there was great financing for it. That, again, was a time when they were doing amazingly leveraged financing on AAA assets like this.
What is the status on the building? Is it all leased up?
The status is that it's all leased up. It's 100 percent occupied through 2017. And we're very excited about the building and the possibilities in 2017, and maybe turning it into a world-class condominium asset or a hotel. It's a great neighborhood for that.
What, right now, would be an ideal commercial opportunity for you?
I think an ideal commercial investment is in the Rockefeller Center core. I think the Park Avenue core, from the Pan Am building to 57th Street, is great commercial. I think also the core of midtown south is really coming back strong as well, which is where our building is at right now. I think people really like that area right now.
You're a part-time professor at N.Y.U., teaching a course called Real Estate Development. What advice are you giving students right now in this climate?
I always tell any young, aspiring real estate person that you have to look for assets out there that have value-add to them. Which means, buy something vacant where you're willing and able to put some sweat equity into it by repositioning it and getting brand-new tenants in there who will pay the price—market or even above-market—for having great finishes, new finishes, new lobbies, new entries, cosmetic jobs that make the asset look nice. These are the kinds of things they should do.
Monday, September 20, 2010
BCN Development reported planning to create 108 condo apartments at 45 East 33rd St.
BCN Development of which Craig Nassi is a principal has a contract to buy the six-story mid-block building at 45 East 33rd Street where he plans to add about 12 floors and create a 108-unit residential condominium building, according to an article today by Adam Pincus at therealdeal.com
The article said that "several sources put the price at approximately $20 million," adding that "the building would be delivered vacant."
According to the article, "the property was tied up in litigation for nearly a year after a development entity called Empire 33rd LLC, which included the builder of the Toren condominium in Brooklyn, Donald Capoccia, failed to conclude the purchase of the building after signing a contract in March 2007 to buy it for $34.9 million."
"Cappocia's group," the article continued, "also paid $13 million for neighboring properties and air rights to build its project, where it planned to build a hotel, court papers indicate. In April, a judge ruled against Empire 33rd, and it lost its effort to win back its $5.3 million deposit."
The building is owned by the Forward Association and Workmen's Circle/Arbeter Ring.
Mr. Nassi began developing real estate in Colorado, "but in recent years he turned his attention to Manhattan, where in 2007 he paid $265 million for 315 Park Avenue South," the article said, adding that "the office building was purchased at the height of the market, and now the $219 million loan is on a watchlist along with many Manhattan commercial buildings, but is performing in part because the building is 85 percent leased by lender Credit Suisse until 2017, securitized loan documents show."
The article said that "several sources put the price at approximately $20 million," adding that "the building would be delivered vacant."
According to the article, "the property was tied up in litigation for nearly a year after a development entity called Empire 33rd LLC, which included the builder of the Toren condominium in Brooklyn, Donald Capoccia, failed to conclude the purchase of the building after signing a contract in March 2007 to buy it for $34.9 million."
"Cappocia's group," the article continued, "also paid $13 million for neighboring properties and air rights to build its project, where it planned to build a hotel, court papers indicate. In April, a judge ruled against Empire 33rd, and it lost its effort to win back its $5.3 million deposit."
The building is owned by the Forward Association and Workmen's Circle/Arbeter Ring.
Mr. Nassi began developing real estate in Colorado, "but in recent years he turned his attention to Manhattan, where in 2007 he paid $265 million for 315 Park Avenue South," the article said, adding that "the office building was purchased at the height of the market, and now the $219 million loan is on a watchlist along with many Manhattan commercial buildings, but is performing in part because the building is 85 percent leased by lender Credit Suisse until 2017, securitized loan documents show."
BCN Development reported planning to create 108 condo apartments at 45 East 33rd St.
BCN Development of which Craig Nassi is a principal has a contract to buy the six-story mid-block building at 45 East 33rd Street where he plans to add about 12 floors and create a 108-unit residential condominium building, according to an article today by Adam Pincus at therealdeal.com
The article said that "several sources put the price at approximately $20 million," adding that "the building would be delivered vacant."
According to the article, "the property was tied up in litigation for nearly a year after a development entity called Empire 33rd LLC, which included the builder of the Toren condominium in Brooklyn, Donald Capoccia, failed to conclude the purchase of the building after signing a contract in March 2007 to buy it for $34.9 million."
"Cappocia's group," the article continued, "also paid $13 million for neighboring properties and air rights to build its project, where it planned to build a hotel, court papers indicate. In April, a judge ruled against Empire 33rd, and it lost its effort to win back its $5.3 million deposit."
The building is owned by the Forward Association and Workmen's Circle/Arbeter Ring.
Mr. Nassi began developing real estate in Colorado, "but in recent years he turned his attention to Manhattan, where in 2007 he paid $265 million for 315 Park Avenue South," the article said, adding that "the office building was purchased at the height of the market, and now the $219 million loan is on a watchlist along with many Manhattan commercial buildings, but is performing in part because the building is 85 percent leased by lender Credit Suisse until 2017, securitized loan documents show."
The article said that "several sources put the price at approximately $20 million," adding that "the building would be delivered vacant."
According to the article, "the property was tied up in litigation for nearly a year after a development entity called Empire 33rd LLC, which included the builder of the Toren condominium in Brooklyn, Donald Capoccia, failed to conclude the purchase of the building after signing a contract in March 2007 to buy it for $34.9 million."
"Cappocia's group," the article continued, "also paid $13 million for neighboring properties and air rights to build its project, where it planned to build a hotel, court papers indicate. In April, a judge ruled against Empire 33rd, and it lost its effort to win back its $5.3 million deposit."
The building is owned by the Forward Association and Workmen's Circle/Arbeter Ring.
Mr. Nassi began developing real estate in Colorado, "but in recent years he turned his attention to Manhattan, where in 2007 he paid $265 million for 315 Park Avenue South," the article said, adding that "the office building was purchased at the height of the market, and now the $219 million loan is on a watchlist along with many Manhattan commercial buildings, but is performing in part because the building is 85 percent leased by lender Credit Suisse until 2017, securitized loan documents show."
Saturday, September 11, 2010
Old Forward newspaper building selling for $20M, to become condo
The long-time home of the Jewish Daily Forward newspaper and a Jewish social service agency is in contract with developer Craig Nassi's BCN Development, which plans to build 108 condominium units at the site near the Empire State Building.
The developer has inked a deal to buy the six-story Workmen's Circle building, at 45 East 33rd Street, between Park and Madison avenues, Nassi told The Real Deal. Several sources put the price at approximately $20 million. The building would be delivered vacant.
The property was tied up in litigation for nearly a year after a development entity called Empire 33rd LLC -- which included the builder of the Toren condominium in Brooklyn, Donald Capoccia -- failed to conclude the purchase of the building after signing a contract in March 2007 to buy it for $34.9 million.
The approximately 42,000-square-foot building, owned by two non-profit organizations the Forward Association and Workmen's Circle/Arbeter Ring, comes with additional development rights to build more than 83,000 square feet, PropertyShark.com shows. The conversion comes on the heels of the condo conversion of the old Jewish Daily Forward newspaper building at 175 East Broadway.
Through his BCN Development, CEO Nassi began with projects in Colorado. But in recent years he turned his attention to Manhattan, where in 2007 he paid $265 million for 315 Park Avenue South. The office building was purchased at the height of the market, and now the $219 million loan is on a watchlist along with many Manhattan commercial buildings, but is performing in part because the building is 85 percent leased by lender Credit Suisse until 2017, securitized loan documents show.
The plans for the Workmen's Circle building involve constructing on top of the existing six-story structure to create an 18-story building, the developer said. Nassi paid a hefty nearly 20 percent down payment for the building after signing the contract in May. The closing is scheduled for October with construction set to start early next year, he said.
He expects to charge $900 per foot to $1,100 per foot for the apartments, and plans to finish construction in about 18 months. He has not selected a marketing and sales company, but said he anticipates starting the process in about a month.
Nassi said he was one of four bidders for 45 East 33rd Street. "We were fortunate to win," he said.
Empire 33rd the prior developer who sought to buy the building, went into contract in March 2007 to buy the property for $34.9 million, a lawsuit filed in New York State Supreme Court in July 2009 shows.
Cappocia's group also paid $13 million for neighboring properties and air rights to build its project, where it planned to build a hotel, court papers indicate. In April, a judge ruled against Empire 33rd, and it lost its effort to win back its $5.3 million deposit.
The Forward moved into a space at 125 Maiden Lane in the Financial District after buying a commercial condominium there in July 2008. The Workmen's Circle still occupies the building, and declined to comment. Capoccia did not immediately respond to a request for comment.
The developer has inked a deal to buy the six-story Workmen's Circle building, at 45 East 33rd Street, between Park and Madison avenues, Nassi told The Real Deal. Several sources put the price at approximately $20 million. The building would be delivered vacant.
The property was tied up in litigation for nearly a year after a development entity called Empire 33rd LLC -- which included the builder of the Toren condominium in Brooklyn, Donald Capoccia -- failed to conclude the purchase of the building after signing a contract in March 2007 to buy it for $34.9 million.
The approximately 42,000-square-foot building, owned by two non-profit organizations the Forward Association and Workmen's Circle/Arbeter Ring, comes with additional development rights to build more than 83,000 square feet, PropertyShark.com shows. The conversion comes on the heels of the condo conversion of the old Jewish Daily Forward newspaper building at 175 East Broadway.
Through his BCN Development, CEO Nassi began with projects in Colorado. But in recent years he turned his attention to Manhattan, where in 2007 he paid $265 million for 315 Park Avenue South. The office building was purchased at the height of the market, and now the $219 million loan is on a watchlist along with many Manhattan commercial buildings, but is performing in part because the building is 85 percent leased by lender Credit Suisse until 2017, securitized loan documents show.
The plans for the Workmen's Circle building involve constructing on top of the existing six-story structure to create an 18-story building, the developer said. Nassi paid a hefty nearly 20 percent down payment for the building after signing the contract in May. The closing is scheduled for October with construction set to start early next year, he said.
He expects to charge $900 per foot to $1,100 per foot for the apartments, and plans to finish construction in about 18 months. He has not selected a marketing and sales company, but said he anticipates starting the process in about a month.
Nassi said he was one of four bidders for 45 East 33rd Street. "We were fortunate to win," he said.
Empire 33rd the prior developer who sought to buy the building, went into contract in March 2007 to buy the property for $34.9 million, a lawsuit filed in New York State Supreme Court in July 2009 shows.
Cappocia's group also paid $13 million for neighboring properties and air rights to build its project, where it planned to build a hotel, court papers indicate. In April, a judge ruled against Empire 33rd, and it lost its effort to win back its $5.3 million deposit.
The Forward moved into a space at 125 Maiden Lane in the Financial District after buying a commercial condominium there in July 2008. The Workmen's Circle still occupies the building, and declined to comment. Capoccia did not immediately respond to a request for comment.
Monday, March 01, 2010
Leucadia holding over at 315 Park Ave. South
BCN Development, the award-winning developer of high-end, mixed-use, luxury properties, announced that it has secured lease commitments from the holding company, Leucadia National Corporation, for over 32,000 s/f of office space through 2017 at its New York City flagship property, 315 Park Avenue South.
The deal is valued close to $25,000,000.
Craig Nassi, CEO of BCN Development, welcomed the news. "It is a pleasure to be able to continue our relationship with one of New York City's fastest-growing companies," Nassi said.
Leucadia National Corporation has been ranked at number 14 on the strength of a 2006 net income of $186 million on revenue of $827.8 million and a share price appreciation of 119.1%
"I am delighted that Leucadia recognizes the desirability of 315 Park Avenue South as the location to continue to grow their business."
The 340,000 s/f 315 Park Ave. is also headquarters to Credit Suisse. The property has a just renovated 50-year-old lobby with a $1-million detailed finish.
BCN just signed a lease with Phoenix Partners Group for more than 16,400 s/f in the building a lease valued at approximately $13 million.
"Leucadia holding over at 315 Park Ave. South". Real Estate Weekly.
The deal is valued close to $25,000,000.
Craig Nassi, CEO of BCN Development, welcomed the news. "It is a pleasure to be able to continue our relationship with one of New York City's fastest-growing companies," Nassi said.
Leucadia National Corporation has been ranked at number 14 on the strength of a 2006 net income of $186 million on revenue of $827.8 million and a share price appreciation of 119.1%
"I am delighted that Leucadia recognizes the desirability of 315 Park Avenue South as the location to continue to grow their business."
The 340,000 s/f 315 Park Ave. is also headquarters to Credit Suisse. The property has a just renovated 50-year-old lobby with a $1-million detailed finish.
BCN just signed a lease with Phoenix Partners Group for more than 16,400 s/f in the building a lease valued at approximately $13 million.
"Leucadia holding over at 315 Park Ave. South". Real Estate Weekly.
Monday, January 25, 2010
Tuesday, January 15, 2008
Team Continuum 2007 ING New York City Marathon
ING New York City Marathon is renowned for its enthusiastic and extremely plentiful crowds of spectators. Despite the enormousness of the city, the first Sunday of November is always ‘Marathon Sunday’, and 2 million New Yorkers leave their Sunday doings and head out to cheer the runners, listen to the 100 live bands and suck in the ebullient atmosphere. The hailing onlookers line the whole course from the start on Staten Island, over Verazano-Narrows Bridge to the sound of Frank Sinatra singing ‘New York, New York’ and into Brooklyn and Queens. Then the route goes over Queensboro Bridge for a roundtrip on Manhattan and a short stop in the Bronx before reaching the finish outside the famous restaurant Tavern on the Green in Central Park. Along the way, runners will witness the cultural diversity of New York’s neighbourhoods and pass five more or less famous New York bridges. The marathon course makes up a great sightseeing tour and runs through parts of the city that many tourists would otherwise never have seen. The bridges on the route provide superb views but also add some inclines to the course. The Verazano marks the highest point with just over 80 metres/250 feet, but this bridge is right at the beginning, when energy is still intact and the field is probably too crowded to get some speed going, anyway. Queensboro Bridge after 24 kilometres is also known to be pulling some teeth, as well as the final and rather hilly 4-5 km in Central Park. The next New York City Marathon will take place on Sunday November 2, 2008.
Saturday, December 15, 2007
News: 315 Park Avenue South
BCN Development, an award-winning, leading developer of high-end, mixed-use, luxury properties, announced today that it has secured lease commitments from Leucadia National Corporation (Ticker: LUK) for over 32,000 square feet of office space through 2017 at its New York City flagship property, 315 Park Avenue South. The deal is valued close to $25,000,000.
Craig Nassi, CEO of BCN Development, welcomed the news. “It is a pleasure to be able to continue our relationship with one of New York City’s fastest-growing companies,” Mr. Nassi said, citing an article from the November 19, 2007 issue of Crain’s New York Business that ranked Leucadia National Corporation at number 14, on the strength of a 2006 net income of $186 million on revenue of $827.8 million and a share price appreciation of +119.1%. “I am delighted that Leucadia recognizes the desirability of 315 Park Avenue South as the location to continue to grow their business.”
The 340,000-sf 315 Park Ave. is also headquarters to Credit Suisse. The property has a just renovated 50-year-old lobby with a $1-million detailed finish.
Craig Nassi, CEO of BCN Development, welcomed the news. “It is a pleasure to be able to continue our relationship with one of New York City’s fastest-growing companies,” Mr. Nassi said, citing an article from the November 19, 2007 issue of Crain’s New York Business that ranked Leucadia National Corporation at number 14, on the strength of a 2006 net income of $186 million on revenue of $827.8 million and a share price appreciation of +119.1%. “I am delighted that Leucadia recognizes the desirability of 315 Park Avenue South as the location to continue to grow their business.”
The 340,000-sf 315 Park Ave. is also headquarters to Credit Suisse. The property has a just renovated 50-year-old lobby with a $1-million detailed finish.
315 Park Avenue South
Sunday, November 11, 2007
See more at Thursday, July 26, 2007
Dear Friends and Family,
"In charity there is no excess" ~ Sir Frances Bacon.
This is a motto by which I have chosen to live my life. It is with this in mind, that I have registered to run the New York City marathon for charity. The charity that spoke to me most is Team Continuum. Team Continuum is a non-profit organization dedicated to taking immediate care of anyone involved in fighting cancer. They give cancer patients access to the everyday cure. They fill in the physical and emotional gaps of support so cancer patients can have the strength to focus on their treatment. Currently, Team Continuum has raised and distributed more than $3.5 m.
We have all known people, near and far, who have suffered from cancer. We have all been personally affected in one way or another by cancer. We have seen the emotional toll cancer takes on the patient, friends and families. I believe cancer is the most serious illness facing us today; it does not discriminate and it does not relent.
Please sponsor me by donating to this amazing nonprofit. Donations are tax deductible and can be made on my page. Every dollar goes a long way in making a difference in someone’s life.
Thank you for your support,
Craig Nassi
Craig Nassi
Thursday, July 19, 2007
Bcn development purchases 315 park ave. south a 330,000 s/f building for $265 million
MANHATTAN, NY: In March, Craig Nassi’s firm BCN Development completed
plans to make its first entrance into Manhattan, agreeing to purchase 315 Park Ave. South, a 21-story, 330,000 s/f office building located in midtown located at the south east corner of 24th St. and Park Ave. South. The purchase was an off-market transaction, where BCN was represented by Venture Capital Properties LLC’s threesome Ebi Khalili and Josh & Joseph Rahmani and Vladimir Kovalenko of Continental Realty from the partnership representing the seller. The purchase price was $265 million.
Friday, June 15, 2007
CPN Magazine: Park Avenue Buy Closed, BCN Eyes More Manhattan Office Property
Now that his firm's acquisition of 315 Park Avenue South has officially closed, BCN Development CEO Craig Nassi says that his firm is planning to further expand its holdings in the thriving Manhattan office market."The New York City office market is absolutely phenomenal," Nassi told CPN this morning. "It's better than anywhere in the country, and we're looking for the best markets to be in."
In March, Nassi's Denver-based firm announced plans to make its first major foray into Manhattan, agreeing to purchase 315 Park Avenue South--a 21-story, 333,000-square-foot office building (pictured) located in Midtown--in an off-market transaction, for a purchase price reportedly somewhere north of $265 million. Credit Suisse First Boston is the property's major tenant, occupying some 82 percent of the building's space, and Nassi identified the banking firm's tenancy as a major asset, characterizing Credit Suisse's lease as "good as gold."
With the purchase of 315 Park now closed, BCN will now turn its attention to making other investments in Manhattan. The firm currently has four other Gotham properties under contract for acquisition. "There's such a tightness in the market right now that any good square footage in good buildings is absorbed as soon as it's put on the market," Nassi said. "So that makes for very profitable office product."
And with little space available for new construction, Nassi said he expects the value of existing office stock to continue to climb. "Under our calculations, we expect to see a 12 to 15 percent annual rise in rents in Midtown," he noted, adding that BCN was looking to acquire space all over the borough, not just in that submarket. "We're looking for office deals throughout Manhattan. One of the deals we have under contract is for approximately 1 million square feet of office near Wall Street," he said, noting that as the Midtown market continues to tighten, tenants will increasingly be pushed to look for space in other Manhattan submarkets.
By Adam Perrotta, CPN News Writer (link)
Sunday, April 22, 2007
Sunday, April 15, 2007
Thursday, March 15, 2007
BCN Development Buys 315 Park Ave.
NEW YORK CITY-Denver-based BCN Development has purchased 315 Park Ave. South in an off-market transaction. An undisclosed partnership quietly put the 333,000-sf Midtown building on the market and was being heavily pursued by a number of companies, according to GlobeSt.com sources.
Credit Suisse First Boston is the building’s major tenant, holding a long-term lease on about 82% of the fully occupied building. The building's location and quality tenant was what attracted BCN to the property, according to CEO Craig Nassi. “[It] may be the best tenant in the city,” he tells GlobeSt.com.
The 21-story building sold as a cap rate in the 5% range, according to Nassi. He declined to name the purchase price since the deal has not yet closed. It is expect to close in the next two weeks.
In December, Vornado purchased 350 Park Ave. for $542 million, as reported by GlobeSt.com. Although that 538,000-sf class A office building is located about 30 blocks from BCN’s newest acquisition. In January, 2 Park Ave. sold for $519 million. The one-million-sf building is located 10 blocks from 315 Park Ave. South and was purchased by Morgan Stanley Real Estate’s Prime Property Fund.Additionally, BCN is looking to acquire another two million sf of office, retail, hotel and residential, developments or conversions. Nassi tells GlobeSt.com that his firm currently has 865,000 sf under contract in the city that should close in the next 30 to 60 days.
Article by Katie Hinderer of Globest.com
Friday, March 02, 2007
Craig Nassi - Getting it right by P. Reston Manfredi
In Ayn Rand’s The Fountainhead, Howard Roarke, a brilliant architect, watches as developers destroy his outstanding design by adding balconies. He also falls victim to a bunch of media hacks and critics who go on a verbal rampage to destroy him. So he blows up his own building in protest.
Craig Nassi, a dynamic, young developer, picked Daniel Libeskind to design the Aura in Sacramento, California, his most daring and forward-looking project to date. It’s a mixed-use condominium tower that revivifies the state capital. Libeskind—his was the inspired design for the Freedom Tower to replace the World Trade Center—knows the Roarke feeling and has no such qualms when working on his new project for Nassi. An unusually sophisticated yet simple design, sheer elegance is a good way to describe it.
Nassi’s Denver-based company, BCN Development, with a combined real estate portfolio valued at more than $500 million, is enjoying its bar mitzvah year by celebrating Libeskind’s Aura. Rising over 400 feet above the city center, it is 38 stories of luxurious residences that will have state-of-the-art technology and cutting-edge contemporary style. The Aura’s 265 apartments range in price from $386,000 to $1.3 million. The exterior of the building is a bluish-gray glass that covers 100% of the skin. Every home will have glass railed terraces with panoramic views of the wide sky and the horizons of Sacramento. Libeskind calls it “a sculpture that changes with light and the season.”
The stunning illustrations feature a building with trademark Libeskind twists—those textured surfaces that cause you to pause and try to figure out exactly how his buildings make their statements. From the hand-rendered illustrations, it is difficult to figure out how the building can be so translucent, yet so three-dimensional. And then you realize, it’s all about the balconies.
Nassi, a native Brooklynite, is in New York to present the project to a number of high-powered potential investors. He doesn’t pick a conference room or some mundane and tired place, instead, he picks New York’s newest hot spot, Buddakan—the most talked about restaurant in town. Tucked into the old Nabisco factory on 9th Avenue, it has cachet and grace, and the setting suits the developer and project perfectly.
In the faux library, its four walls lined in beige leather tooled with gold leaf and a hint of Chinese red—lines, square edges and clean lights, softened by the sensuous flow of Chinese grand graphics on the concrete wall—Nassi presents the Aura to New York.
When Nassi appears in the library with a PR posse, it is difficult to know what to expect, but almost instantly you realize he is not one of those all-about-me types. He was raised by his single mom, the Israeli-born daughter of a Polish father who just barely escaped the Holocaust in 1938. The rest of the family was wiped out.
When Nassi, 37, was 12, his mother remarried and the new family moved to Denver, where he attended high school, Colorado State University, and graduate school at the University of Northern Colorado, earning his masters degree in education. He always wanted to be a schoolteacher and taught social studies and coached football and basketball for three years in the Cherry Creek school system. Annual salary: $28,000 for a 75-hour week.
Becoming a schoolteacher shows character that most people don’t have. But as a career choice for an ambitious young man, it seemed hardly practical. Why did he make that decision?
“People who are motivated and inspired by teachers want to be teachers. In high school I had a few good teachers and coaches in football and track. I thought they were very noble people, working for $30,000 a year, to dedicate their lives to kids. It’s not a job where you come in at 10 and leave at 5. It’s a full-time job. But, for me, who went in every year wanting to make a difference and found myself rewriting and rearranging lesson plans from the year before, it became boring and was no longer a challenge. “When that final June rolled around, I couldn’t do it for another year and quit. I had no job, my mom said I was crazy, but she understood. Then friends suggested I get a real estate license, which introduced me to the field.“I sold for a couple of months and didn’t like that, so I got into construction and became a general contractor. I learned the sticks and bricks side of the business, building away.”He laughs when asked if he built one-family suburban Spanish villas and ranches. “Yes that kind of stuff. You get to understand that it really is all about the sheetrock and the taping, about the tiny details. That’s the essence of this business. If you don’t have a feel for that, you shouldn’t be in it because you will never figure out how to get things done under budget. It’s part of the art of this business.
“Donald Trump is very successful because he worked and lived with his father, a general contractor who understood you can use this screw for half a penny, or this screw for three quarters of a penny, and you will be using 2,000,000 screws over the next six months—so think about it. You have to know value. You can’t just jump into this at the top end and think you’re going to make it work. When we designed this building, we had to make sure it worked because if it didn’t, we wouldn’t build it.”
His first year in the business he made $200,000. “I realized that teaching is like slave labor, and because it is there is something drastically wrong with society. For me now, all of a sudden I was enjoying my life.”
When he was 25, he also went into the antiques business in Denver at Metropolitan Antiques Gallery. “I’ve always had a love of geography and history and art,” he told one local reporter in Denver, and often travels the world looking for the right object d’art to make the correct statement. “I just had an idea of mixing antiques with development.” He once bought an antique 20-foot-tall embassy gate in Argentina that he used in one of his projects.
His tastes, while eclectic, tend toward the European. It might be because of his Polish genes. When told that there were more than a few Polish Holocaust survivors who were real estate developers that started out as he did, Nassi laughed.
“Maybe that’s why I have an admiration for Daniel so much—for his Polish background. He was one of the first Jewish babies born in Poland after the Holocaust. He’s a wonderful guy and it was fun going from single-family homes to building this kind of building and working with someone incredibly exciting and talented like him.”
The feelings are mutual, says Libeskind. “It’s a pleasure to be working with someone who has Craig’s great vision, who saw something beyond square footage in the center of such a beautiful city. He wanted to contribute something architecturally. The structure is iconic, and it celebrates the city, giving the residents an art experience that will lift living into something that goes beyond the functional.”
Nassi grew up in the Denver Jewish community of 50,000. He was bar mitzvahed in Israel, is a strong contributor to the Jewish National Fund, and goes to Israel at least once or twice a year. Though not observant, he’s a proud cultural Jew and not ashamed to be the first to say so, especially if challenged.
As part of his social involvement, Nassi sits on the board of a number of organizations and social agencies that are part of his local community and seeks to help make it a better place for everyone to live in. Beyond that, he has come upon an idea he’d like to pursue, if the government can be convinced to come on board.
As a former teacher, he feels that society has an excellent opportunity to restructure the way we parent our children. There’s a 30% high school dropout rate in America, and increasingly, children across the board are less educated and caring than they used to be.
“It’s not really the schools,” he says. “It’s the parents who don’t know how to parent. When you have 20 or even 40 kids in a class and some get straight As and go to Harvard and others get to the 11th grade and drop out to sell and do drugs and hang out in nightclubs—for those who succeed it’s almost always because of the parents. It’s one of the reasons I think Judaism is such a successful culture, in that it is central in holding family together. You keep a family by spending time, loving each other, talking with each other, doing things together, following tradition. It’s not your fifth-grade teacher who yelled at you or PS 197, where they didn’t have enough books for everyone in the classroom.
“So my idea would be to offer every pregnant woman who wants the local hospital to pay for her delivery to take a four-month course in parenting (with the father, if possible), pass some tests, and take it seriously. I think that would be a great national program and that we should convince our government to do it. It would benefit everyone and make a huge difference to our children.”
The conversation is interrupted. The PR posse tells him it’s time to present the Aura to the crowd that has gathered. Daniel Libeskind says a few words, exchange greetings, scope each other out, and check out the meticulously built model.
Without ever referring to The Fountainhead, Nassi and Libeskind are told, “No one is blowing this one up.” And Nassi immediately replies, “Hats off to Daniel for the balconies.”
They both got it right.
Monday, February 05, 2007
About BCN Development Owner Craig Nassi
Here's a little background about BCN Owner Craig Nassi
After graduating from CSU, Colorado, Craig Nassi went on to fulfill his lifelong dream to teach and coach youth in the public schools. He pursued his educational career for four years, while getting his Masters from UNC, Colorado. After departing from teaching he set out to challenge himself in the fast paced world of commercial real estate. Immediately leaving the classroom in 1994, he entered another one, but this time as a student. He enrolled in real estate college to gain the needed credentials for the real estate world. He achieved his real estate license and began working with a local agency. His duties were buying, selling, financing and repositioning assets.
It was a dramatic change from his previous career, but with his passion for architecture and construction Mr. Nassi caught on quickly. He immediately mastered the business and ventured into the field and began constructing single family homes. He completed a handful of homes in his first year in business, then entered into the grand world of multi-family dwellings and the commercial developments.
Quickly building and attracting a brilliant team of experienced individuals, Mr. Nassi's created BCN Development. With this ambitious group of seasoned professionals BCN set their goals on filling the void for luxury high rise living in downtown of Denver. The rest is history, by 2001-2002 he was voted by his peers as "Ernest and Young, Best Developer" for his first completed high rise, The Belvedere Tower. This asset also won the prize for development of the year.
Since then Mr. Nassi has expanded to both the east and west coasts to develop and acquire prize properties.
Today, the headquarters for BCN Development is located in New York City, Craig's home town and birth place. Here you will find him daily, working hands-on with his team to create their future developments and award winning unique structures.
Currently, Craig Nassi is also a part time professor at NYU Graduate School of Real Estate, and serves on several philanthropic boards, such as the Jewish National Fund. In his spare time Mr. Nassi is an avid runner, competitor in multiple marathons and triathlons a year, as well as enjoys skiing, spinning and yoga.
After graduating from CSU, Colorado, Craig Nassi went on to fulfill his lifelong dream to teach and coach youth in the public schools. He pursued his educational career for four years, while getting his Masters from UNC, Colorado. After departing from teaching he set out to challenge himself in the fast paced world of commercial real estate. Immediately leaving the classroom in 1994, he entered another one, but this time as a student. He enrolled in real estate college to gain the needed credentials for the real estate world. He achieved his real estate license and began working with a local agency. His duties were buying, selling, financing and repositioning assets.
It was a dramatic change from his previous career, but with his passion for architecture and construction Mr. Nassi caught on quickly. He immediately mastered the business and ventured into the field and began constructing single family homes. He completed a handful of homes in his first year in business, then entered into the grand world of multi-family dwellings and the commercial developments.
Quickly building and attracting a brilliant team of experienced individuals, Mr. Nassi's created BCN Development. With this ambitious group of seasoned professionals BCN set their goals on filling the void for luxury high rise living in downtown of Denver. The rest is history, by 2001-2002 he was voted by his peers as "Ernest and Young, Best Developer" for his first completed high rise, The Belvedere Tower. This asset also won the prize for development of the year.
Since then Mr. Nassi has expanded to both the east and west coasts to develop and acquire prize properties.
Today, the headquarters for BCN Development is located in New York City, Craig's home town and birth place. Here you will find him daily, working hands-on with his team to create their future developments and award winning unique structures.
Currently, Craig Nassi is also a part time professor at NYU Graduate School of Real Estate, and serves on several philanthropic boards, such as the Jewish National Fund. In his spare time Mr. Nassi is an avid runner, competitor in multiple marathons and triathlons a year, as well as enjoys skiing, spinning and yoga.
Tuesday, August 08, 2006
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