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August 2008

August 2008 » Market Analysis » NYC Buildings For Sale

August 2008 New York Buildings For Sale

NYC Buildings For Sale

Starrett City's bidders have been narrowed down to four finalists. Bids for the 46-tower Brooklyn complex were between $600 million and $1 billion, and government officials and Starrett City Associates are expected to choose the new owner by Sept. 1. Starrett City's 140 acres near Jamaica Bay in Brooklyn have retail space, a power plant, a sports center, office space, parking garages and vacant land.

Large Leases

Burberry is in negotiation for offices at 444 Madison Avenue, for 68,448 square feet. The asking rent is around $85 per square foot. Burberry is also planning a ground-floor retail store.

The world's largest fragrance company, Coty, leased nearly 90,000 square feet in the Empire State Building in what was described as one of the largest lease deals for the office tower.

The malpractice law firm Weitz and Luxenberg paid $70 million for a 100,000-square foot, 19th century building at 700 Broadway. The firm plans to occupy all of 700 Broadway when it moves some time next year.

New York Buildings sold

Hotel developer, Sam Chang, sold a Times Square area parcel in the early stages of construction for $59 million, above the $13.48 million the developer paid for the site in 2006. The Rhode Island hotel development company Magna Hospitality Group bought the 74,000-square-foot site from the McSam Hotel Group. It was at least the fifth hotel site Chang has sold to Magna since February.

Fashion bag maker, Longchamp bought the building housing one of its two Manhattan retail stores on the Upper East Side for $48 million. The Paris-based retailer and manufacturer of fashionable bags, clothes and accessories bought the five-story townhouse at 713 Madison Avenue from heirs to the Mailman family.

Tower 56 at 126 East 56th Street, one of several Macklowe Properties' Midtown office towers on the market, may be in contract to Chicago-based Transwestern Investment Company for $160 million, or $925 per square foot.

Wachovia Corp. has agreed to sell an office tower at 1372 Broadway for $41 million. Wachovia, owner of an 85 percent stake in the building, and minority shareholder SL Green Realty Corp. are trading the 21-story property for $294 million, or around $542 per square foot. Wachovia acquired its controlling interest in the 541,752-square-foot building from SL Green in July 2007 for $335 million.

The Carlyle Group has closed on a $525 million interest in the retail condo at 666 Fifth Avenue, which the Kushner Companies bought last year for $1.8 billion. Carlyle paid $170 million in equity, while Barclay's and SL Green provided financing. A new Abercrombie & Fitch kids store will be built in about half of the occupied by Brooks Brothers, which is leaving the building. Abercrombie lease starts Feb. 1 at an estimated $2,500 per square foot, reportedly the highest rent in the city. The 90,000-square-foot retail is also occupied by the NBA store. Kushner will keep a 51 percent interest in the retail condo.

A 50% interest in a five-story commercial townhouse on Fifth Avenue that is home to Harry Winston jewelry store was sold for $62 million to the Paramount Group. Prior to the sale of the 16,200-square-foot building at 718 Fifth Avenue, it was owned in equal parts by brothers Ronald and Bruce Winston, sons of Harry Winston, who died in 1978.

An Abu Dhabi sovereign wealth fund has closed on its purchase of the 77-story Chrysler Building. Abu Dhabi Investment Council bought a majority stake in the tower from a fund managed by Prudential Financial, for about $800 million. The seller is TMW Real Estate Group, an Atlanta-based investment company acquired by Prudential. TMW bought its stake in the Chrysler Building for $300 million in 2001. Last year, Prudential sold 666 Fifth Avenue for $1.8 billion and the Lipstick Building for $649 million.
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