Top Billion-dollar Plus Real Estate Deals of 2006; 6 in NYC
2006,
the year of housing slump, is also the record-breaking year for commercial
property deals. Half of the biggest U.S. single-asset real estate deals in
history were announced or closed in the past 12 months, with the top 8
deals topping $1 billion each. Six of the eight billion-dollar deals
were in New York city.
Top $1B Plus Real Estate Deals of 2006 (See the top 10 slideshow at BusinessWeek Online):
|
Top U.S. Real Estate Deals in 2006 |
||||
| Property | Value ($B) | Area | City | |
| 1 | Stuyvesant Town & Peter Cooper Village | $5.4 billion | 80 acres | New York |
| 2 | 666 Fifth Ave. | $1.8 billion | 1.5M sq. ft. | New York |
| 3 | Mall of America | $1.8 billion | 4.2M sq. ft. | Minneapolis |
| 4 | 1211 Sixth Ave | $1.52 billion | 1.9M sq. ft. | New York |
| 5 | Five Times Square | $1.28 billion | 1.1M sq. ft. | New York |
| 6 | AXA Financial Center | $1.25 billion | 1.97M sq. ft. | New York |
| 7 | 280 Park Ave. | $1.2 billion | 1.18M sq. ft. | New York |
| 8 | Bank of America Center | $1.05 billion | 1.8M sq. ft. | San Francisco |
Residential home sales are down 11.5% this year from last year, but more than $236 billion of commercial real estate deals were recorded during the first 10 months of 2006, vs. $231.9 billion a year earlier, according to the National Association of Realtors. Office properties represented $105 billion in transaction volume in the first 11 months of 2006, a 31% increase over the same period in 2005.
- Returns on real estate investment trusts (REITs) are up more than 32% year-to-date, vs. a 15.75% increase in the S&P 500 Index.
- In the past five years, REITs rose at a compound annual rate of 23.5%.
