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August 2015

August 2015 » Market Analysis » NYC Buildings For Sale

August 2015: New York Buildings For Sale

NYC Buildings For Sale

The Related Cos. is considering selling a stake in its 10 Hudson Yards office tower now that the building is almost fully leased. The developer is in discussions with Boston Consulting Group to take about 175,000 square feet at 10 Hudson Yards, which would boost the building to near full occupancy before its scheduled completion early next year. A stake sale would allow Related and equity partner Oxford Properties Group to capitalize on the building's value and provide funds to finance further construction at the 28-acre, $20 billion development.

Ian Bruce Eichner is shopping around his vacant Harlem development site. The 600,000-square-foot property at 1800 Park Avenue could sell in the vicinity of $150 million. Eichner bought the site, eligible for 421a, between East 124th and East 125th streets from Vornado Realty Trust in 2013 for $66 million.

A century-old warehouse at 541 West 21st Street currently used to store high-end art is being shopped as a possible office or hotel conversion. The current building is located less than a block from the HighLine in Chelsea and is eight stories with 65,000 square feet. Art storage company Crozier occupies the entire space, but its lease expires next year. The building is worth about $65 million. Asking rent for new office space in the neighborhood is $100 per square foot.

New York Buildings sold

SL Green Realty.">SL Green Realty's $2.6 billion purchase of 11 Madison Avenue, a 2.3 million-square-foot property from the Sapir Organization and CIM Group, is expected to close soon.

Blackstone Group sold the office portion of the former New York Times building for $516 million to Columbia Property Trust, just four years after purchasing it for $160 million. The property is a 12-story office condo at 229 West 43rd Street, in the historic building that housed the New York Times from 1913 to 2007.

Alfa Development is in contract to buy a four-building Gramercy Park development site from Property Markets Group and Apex Investments for $69.6 million.

Princeton International Property and Dune Real Estate Partners and Empire Capital Holding are in contract to buy 111 East 59th Street owned by Lighthouse International for more than $170 million, the blindness-advocacy organization's 14-story, 200,000-square-foot . The plan is to convert the lower floors of the building to make way for a big-box retail tenant.

Jeff Koons purchased another commercial building at 624 West 52nd Street, a three-story, 11,000-square-foot commercial building, from Celtic Realty LLC for $12.7 million. This is the third purchase in the artist's $23.7 million assemblage. Koons bought a lot at 622 West 52nd Street for $5.5 million and a vacant garage at 620 West 52nd Street for $5.5 million. Combined with the two adjacent properties, the site has nearly 50,200 buildable square feet.

Ashkenazy Acquisition bought 692 Madison Avenue occupied by the Hermes men's store for $115.2 million. An off shore entity of the Brooks family is the seller. The French brand, which moved into the building in 2008 and has nine years left on its lease, pays about $4 million a year in rent.

Kamber Management is the buyer of Tower 45. The firm paid $365 million for the 460,000-square-foot tower at 120 West 45th Street.

Georgetown Company and a Bill Ackman-controlled investment fund closed on 787 11th Avenue for roughly $250 million. Ford Motor Company paid $73 million to buy and renovate the site, between West 54th and West 55th Streets. Ford used the eight-story, 464,000-square-foot building as a service center for its brands. Jaguar and Land Rover dealerships occupy the building's ground-floor retail space.

Isaac Chetrit and Jacob Aini won a bid to buy 15 West 35th Street, a 63,000-square-foot vacant 14-story Midtown office building for $43 million at a bankruptcy auction. The total debt on the building is around $29 million, and the buyers will also pay $14 million in cash.

SL Green sold stakes in Tower 45, a 460,000-square-foot office building at 120 West 45th Street, to an unnamed buyer for a combined $587 million.

JMC Holdings sold an office condo's top three floors of 99 Hudson Street to LaSalle Investment Management for $48 million, more than doubling what it paid a few years ago. JMC purchased the space from the NAACP Legal Defense and Educational Fund for $18.5 million in 2012. The company spent $6.5 million on renovations, including building out the roof deck.
Northwind Group is in contract to buy a 20-story office building at 40-42 Exchange Place in the Financial District for $120 million. Weiss Realty put the 250,000-square-foot property on the market in October, and thought it would sell for around $140 million. The corner building was constructed in 1896 and has been owned by the Weiss family for more than 25 years.

RFR Holding bought a four-story 15,000-square-foot building at 350 Lafayette Street in Noho for $26 million from Admar Group. The building located on the corner of Lafayette and Bond streets, currently houses a 43-bed homeless women's shelter.
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