KPG plans to acquire more than $ 1 billion of New York office, retail real estate

New York office developer KPG Funds plans to acquire more than $ 1 billion in office and retail assets in New York City.

KPG, which specializes in acquisitions and value-added development, believes the New York market will recover.

To help drive this growth, KPG hired Noah Kaufman as its first general manager of acquisitions. Kaufman, who will oversee KPG’s acquisition and asset management functions, brings more than 20 years of acquisition and asset management experience to the growing real estate company.

Prior to joining KPG, Kaufman was a senior executive at several real estate companies, including The Zar Group and CLK properties. His addition is part of an initiative by KPG to strengthen its investment and asset management team. The company expects a substantial transaction volume in 2021 and 2022.

After struggling during the pandemic, New York is starting to show signs of recovery, according to a recent index of demand for VTS offices (VODI).

New York City experienced a serious crash with its VODI dropping 121 index points (down 95%) from March to May 2020. Since then demand has flourished and its VODI of 102 from March 2021 was just 13% lower than the average New York VODI in 2018. -2019.

The potential resurgence of the New York market has fueled some recent transactions, notably Recapitalization by Harbor Group International of its 32-storey office tower in New York’s financial district. The company refinanced the existing first mortgage with an initial $ 107.7 million senior loan from an insurance company lender with a future funding component of up to 8.4 million dollars for future rental. The new capital has removed Paramount Group’s preferred stake and is financing the costs associated with the recent rental activity of the building, located at 55 Broadway.

“As the New York office market begins to recover, we believe the recapitalization of 55 Broadway will create new opportunities for the property and position it to take advantage of improving fundamentals in the downtown market,” he said. Harbor Group President Richard Litton said in a prepared address.

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