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August 2016

August 2016 » Market Analysis » NYC Buildings For Sale

August 2016 New York Buildings For Sale


Buildings For Sale:

The Blackstone Group is shopping its 665,000-square-foot office tower at 1065 Sixth Avenue and hopes to get as much as $700 million.

ABC Carpet & Home is shopping around its property at 880-888 Broadway, an office-and-retail condominium that could get upwards of $200 million, or over $2,600 per square foot. ABC has owned and fully occupied the six-story, 76,400-square-foot building since 1981. The property has a 20,600-square-foot retail condo and a 55,800-square-foot condo for office and manufacturing space. It is still not clear if ABC Carpet would vacate upon selling the building or make a sale-leaseback agreement.

The sale of the majority stake in the Plaza Hotel seems to have hit another roadblock. Qatar Investment Authority and Kingdom Holding reportedly offered $550 million for a 75% interest in the hotel. The controlling stake is currently owned by the Sahara Group who has spent the last two years in prison for an alleged illegal bond sale. Roy’s family, however, is seeking at least $600 million so it’s unclear if they will reject the Qatar Investment Authority’s bid. It appears that the sale of Roy’s stake is going to be difficult given the number of stakeholders and their competing interests

NYC Buildings Sold

Sierra Assets sold 160 East 56th Street to Noorollah Asherian and Kami Rehanian for $44 million. Sierra had owned a stake in the 12-story building since 1976, and bought out its partners for $18.7 million ahead of the sale. The 63,778-square-foot property is almost full. The building holds 42 units, mainly office tenants though some are retailers.

Conway Capital, Schottenstein Realty, Fox-Wizel joined B+B Capital to purchase the stake from owners Allied Partners and Brickman for $295 million. The size of the stake and the building’s valuation were not disclosed. Allied and Brickman bought the landmarked, 175,000-square-foot building at 1619 Broadway between West 49th and West 50th streets for $185.5 million in 2013.

The Blumenfeld Development Group bought out Prusik Group’s stake and is now the sole owner of the Hunts Point Mall. Blumenfeld paid $35.6 million to Prusik for their 30% interest in 925 Hunts Point Avenue, a 40,000-square-foot shopping center in the Bronx. Prusik is an affiliate of Taconic Investments who partnered with Blumenfeld in 2012 after the property was rezoned to promote mixed-use development in the area. Construction has started and tenants have started to move into the mall, which will open later this year.

The Italian family who owns Ermenegildo Zegna and Taconic Investment Partners bought 61 West 23rd Street, a seven-story cast iron office building spanning just over 50,000 square feet. The sellers were the Drachman family and extended family members, who owned the building for more than 50 years.

Rabsky Group decided to sell its East Village development site for $23 million. Opal Holdings, bought the vacant site at 644-652 East 14th Street. Opal also got a $29.3 million acquisition and construction loan. Rabsky paid $15 million in 2014 for the site, and demolished a one-story warehouse. There has been no progress on the project since the Department of Buildings issued permits in 2016.

DNA Development bought Extell Development’s parking garage at 12 West 48th Street and two single-room-occupancy buildings at 346-350 West 71st Street for $92.5 million. At 12 West 48th Street, (paid $37.2 million) DNA plans to demolish the vacant garage and develop a retail building. At 346-350 West 71st Street, (paid $55.25 million) DNA plans to convert the two SRO buildings into a single 72,000-square-foot condominium building with 38 units, designed by DXA Studio.

Time Equities and Hamlin Ventures have sold two retail spaces at 131 West 33rd Street for $27.3 million. The buyer is listed as 131 West 33rd Street Eat LLC. The two retail condos total around 22,500 square feet. There are 17,736 square feet on the cellar level, first floor and mezzanine, as well as 4,757 square feet on the first floor and mezzanine.

Extell Development sold the controlling interest in 116 Seventh Avenue, as well as a four-unit residential building at 204 West 17th Street for $29 million, more than double what they paid for the properties just six months ago. Extell transferred ownership to an entity known as 717 Subsidiary LLC, which is controlled by A&H Acquisitions. Combined, the buildings contain 31,478 buildable square feet. Extell bought the buildings last year for $11 million from Duell Management.

Status Capital, a venture formed by co-founders of Sitt Asset Management, sold a five-story retail building at 34 Gansevoort Street for $19.5 million. L3 Capital acquired the property, which has been at the center of dispute between the Sitt family and was once part of Sitt Asset’s retail portfolio. Sitt Asset paid $9.9. million for the building ten years ago and the property fell into disrepair after the family fell behind in payments. In 2013, the family refinanced the building and investors were paid out, except for Ralph, who alleges in his lawsuit against his brothers Ralph and David, that he was never compensated. Fairstead Capital acquired 117 West 79th Street a single-room occupancy hotel known as the Park 79 for $22.5 million, with plans for a residential conversion. The deal called for the building to be delivered vacant upon closing. The seven-story hotel holds 108 rooms across 32,100 square feet.

Ben Ashkenazy bought the Nylo New York City Hotel at 2178 Broadway for $140 million with a $92 million acquisition loan from the Bank of the Ozarks. 2178 Broadway is a 16-story, 291-key hotel located. The seller was a trust, which took control of the formerly named On the Ave in 2011 through a deed in lieu of foreclosure deal valuing the property at $191.1 million. Lehman Brothers then invested about $20 million in renovations and rebranded the hotel in 2013.

The hospitality arm of Qatar’s Alduwaliya Asset Management bought 312 West 37th Street a Garment area hotel for $167 million from a group of owners led by Rockwood Capital. The property is a 293-key Hilton Homewood Suites at 312 West 37th Street. The seller was a joint venture between Rockwood, the Albanese Organization and Buccini/Pollin Group.

The Chen Foundation is in contract to purchase a 12-story loft office building at 335 West 35th Street for $50 million and obtain a $50 million loan from Madison Realty Capital to finance the acquisition. The loan is cross-collateralized with a 20,000-square-foot, block-through structure at 250 Lafayette Street. In 2014, the firm initially agreed to sell the 95,000-square-foot building to an entity tied to a Chinese developer but the deal fell through when the developer failed to raise enough money.

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