Eastern reports sales surge.

Eastern Consolidated Properties has announced a sharp increase in Manhattan sales deals in its early 1997 results, mirroring the unprecedented pace of sales activity in the market in general.

According to Daun Paris, president, over the past three months alone Eastern reported closings totaling over $95 million, with an additional $161 million in contract and 27 exclusive assignments ranging from 2 Rector Street, a 410,000 square-foot Downtown office building being offered at $35 million, to 177 East 77th Street, a prime 12-story, 58-unit pre-war apartment building.

Eastern's reputation in this extremely active trading niche has resulted in a number of assignments from many of the City's well-known and highly -regarded owners and institutions. The highly confidential sale of the 585,000 square-foot 250 Broadway has just been completed, with Eastern representing SaraKreek, a Dutch pension fund. Brian Ezratty, senior executive director and Peter Hauspurg, CEO and chairman of Eastern, selected one client who was required to contract and close the all-cash transaction in three weeks. Eastern was the sole broker representing the purchaser and seller in this transaction.

Eastern's activity in the Downtown Class B office building market also reflects the stepped-up trading atmosphere in the Wall Street office sales market. During the past month, in addition to the sale of 250 Broadway, the firm sold 100 Wall Street, a 475,000 square-foot office building with a purchase price of $34 million. Gordon Borvick, Brian Ezratty and Charles Kings-Icy, all of Eastern, represented both buyer and seller.

None of these buildings were openly available on the market and both said on an all-cash basis with very short closings. Current contracts completed within the last 90 days on Downtown buildings include a 130,000 square-foot office building on William Street, a 110,000 square-foot office building on John Street, a 117,000 square-foot office building on Lower Broadway, a 385,000 square-foot residential conversion at the foot of the Financial District and numerous commercial buildings in virtually all of the other various Manhattan sub-markets.

On the development end, Eastern reports tremendous activity in Manhattan land trades and has announced the sales of two large sites. On East 38th Street, Eastern closed a 400,000 square-foot land deal representing a purchase from a lender in a deal that never surfaced on the open market. At the other end of Manhattan, 1260 Fifth Avenue at 108th Street, Eastern has arranged a deal to sell a parcel of land that will become the future site of a 100,000 square-foot facility for assisted-living which may well become the newest trend in Manhattan residential development.

"In my opinion", said Hauspurg, "there is now more money in the market than at the peak of the 1980's, and it's anybody's guess as to what will happen now. Despite the heated pace of buy/sell transaction activity, which clearly is also at the peak 1980's level or even beyond, prices are still 20 to 40 percent cheaper than 1989 pricing levels, which was the peak year of the Manhattan market. Personally, I would prefer things to slow down and stretch out longer. How this market will look in three years, which coincidentally marks the end of the millennium, is the big question mark in the community right now."