Hey TD, How Was Your Year?

A White Paper by Thomas Donovan

Tis the season that is upon us! We are in December 2025 and are about to start the year end festivities – Fall ICSC, holiday lunches, dinners and firm parties. I am preparing my response to the above heading, “Tommy D, how was your year?”

Overall, my team and I would say it was a better than expected “good year”. By year end, our team is on pace to close 19 buildings with a gross sales volume of $219,000,000 plus various referrals of roughly $61,900, not including two closings deferred to January 2026.

This past year we found the market to be active but not pretty – interest rates have come down a bit which helped, but “everything” is taking longer. For our team’s deals, it took an average of 38 days from the term sheet out until fully executed contract and an average of 128 days from contract signing to closing.

Upfront diligence and title issues were the main hurdles with every point being heavily negotiated. The market was very efficient – we did not see any opportunistic sales; in fact; we found little to no upward price movement from buyers after their initial offer. The pricing was affected if the diligence didn’t match – on some offerings there was no real path to clearance. Despite all these factors stated above, our team considered it was a good year.

What about 2026?

No one has the crystal ball but in my opinion the year will start off strong and will adjust as market factors arise. The stock market, interest rates and politics have direct effects on our market. I would like to discuss a few points that may help if you are contemplating a sale, lease, or refinance. As mentioned, we saw a rise in title and diligence issues affecting timing and pricing on most transactions. Take initiative and access your properties now to avoid delays or re-negotiations.

Here are 10 of the most common issues we encountered this year:

1. Open permits
2. Estates not settled
3. Non-conforming C of O’s
4. DHCR rent registrations not filed on time or properly
5. Free market paperwork not accurate or provided
6. Property tax liens
7. Leases / renewals not signed / countersigned
8. Non-paying tenants not addressed
9. Estoppel certificates not requested promptly
10. Oil tank removal paperwork not available

Time hurts deals and current market conditions have favored buyers. We strongly suggest prior planning if you are due for a capital event. This will help facilitate smoother transactions and lead to higher sales prices, leasing rates or finance proceeds.

If you are interested in discussing your property or timing, please let us know and we will prepare a comprehensive analysis and suggest what steps you can take to increase value. Please call us at (646) 502-3481 or e-mail teamdonovan@meridiancapital.com.

Best regards,

Thomas Donovan

President, Queens Investment Sales

Meridian Capital Group