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January 2016

January 2016 » Market Analysis » NYC Buildings For Sale

January 2016: New York Buildings For Sale

New Developments

Overseas retail Brands operate 39% of the stores on Fifth and Madison Avenues and in Soho. Of the 906 retailers, Soho is the most nationally-diverse area, with 24 countries represented. Fifth Avenue had 17 non-U.S. outlets and Madison Avenue had 13. Italianstores had the largest number of stores in those areas.

Footlocker and Nike signed leases for large spaces on Broadway. Footlocker signed a $15 million deal to lease 36,000 square feet at 1460 Broadway and Nike signed a $16 million lease for 55,000 square feet at 529 Broadway.

Gap signed two leases at 1514 Broadway, into two stores for its parent brand, Gap and Old Navy. The Gap will take up 31,000 square feet, 6,000 square feet on the ground floor and 25,000 square feet on a lower level as well as signage at the top of the Bow Tie Building. Old Navy will take 32,500 square feet and build an additional floor that will bring its total space up to just under 50,000 square feet.

Toys R Us is a Times Square landmarkand will close its doorsleaving its 110,000-square-foot flagship store at 1514 Broadway due to rising rents. Asking rent for the building's ground floor was $2,500 per square foot, with $350 per square foot asked for the second floor and $150 per square foot for the below-grade level.

Victoria's Secret signed a new flagship store at 640 Fifth Avenue, near 51st Street. The multi-level 63,780-square-foot store is expected to open in November 2016. The deal, which had an annual starting rent of $34 million, was the second most expensive retail lease in Manhattan of 2015.

The owner of Gansevoort Marketis planning to open additional food halls in the Grand Concourse and in two other areas of the city.The market will also relocate from its current Meatpacking District location 52 Gansevoort Street, which is being redeveloped to a 12,000-square-foot space at 353 West 14th Street.

Sam Pa, A shadowy Chinese energy tycoon who was recently arrested in a Communist Party corruption probe, is responsible for keeping 23 Wall Street out of commission since 2008. Sam Pa has failed to find a tenant for the 101-year-old landmark building, which is across from the New York Stock Exchange.

Ocean Grill sued a partnership led by GTIS Partners, claiming that the company's condo conversion at 101 West 78th Street cost them $6.3 million in income from Jan. 1, 2013 to Nov. 30, 2015 by erecting scaffolding and a construction elevator in front of the building which drove away customers, forcing the restaurant to close its doors after 18 years in business.

The latest plans for the four-story base of the towersat 76 11th Avenue will consist of 242,750 square feet of combined retail and office space. Retail will occupy the cellar level, first and part of the second through fourth floors of the building, while offices will also share space on the second through fourth floors. The total square footage of the project is slated to top 800,000 square feet, including the residential component. The towers are slated to rise 402 feet and 302 feet, respectively.

Clarion Partners bought a 70% interestin the American Stock Exchange Building in the Financial District for $105 million. The historic property is located at 86 Trinity Place. The building has 182,000-square-foot. The investors reportedly planned to lease out the lower floors of the building, including the ground-floor area to retailers while transforming the rest into a 174-room hotel.

The city's Economic Development Corporation moved forward with its East 125th Street Development project. The RFP calls for the commercial redevelopment of a 7,000 square foot site at 2321-2325 Third Avenue, which is currently a vacant lot. With the project, dubbed E125, the city ultimately aims to build 100 apartments, about 80% affordable, as well as 700,000 square feet of commercial space, including 50,000 square feet reserved for local businesses and at least 30,000 square feet to be used for community facilities.

Kuafu Properties went on a $700 million-plus Manhattan spending spree, the Chinese development firm Kuafu is headquartered in Times Square, and announced plans with Siras Development to build a 47-story, mixed-use tower on the Far West Side topped off by a restaurant targeted at an international clientele.

Related Companies and Oxford Properties Group secured $5 billion in construction funding for a 90-story office tower and connected mall at Hudson Yards. The announcement marks a major step towards completion of the megadevelopment on the far West Side.

New York Buildings sold

Smith Limousine Company sold 624-636 West 47th Street, a Midtown West development site with 95,000 buildable square feet for $36.5 million. The property consisted of a two-story, 21,670-square-foot building. The deal closed for about $384 per buildable square foot.

George Comfort & Sons and ASB Capital Management acquired 7 West 18th Street, a nine-story, 46,000-square-foot Flatiron District commercial building for just under $44 million from Scandia Realty for $43.75 million.

Cornell Realty Management bought 259 West 34th Street for $20.5 million, a 6,418-square-foot retail property, comprising of a total of 21,690 buildable square feet. The building is currently occupied by a Wendy's restaurant and has belonged to the Moran family since 1977.

Dalan Management bought 22-24 West 38th Street, a 70,000-square-foot office building for $43.5 million, or $620 a foot. Dalan plans to revamp the property for tenants in the technology and creative service sectors. The 12-story building had been under the same ownership since 1978.

Gemini Real Estate Advisors sold 37 West 24th Street for $60 million. The property is a 124-key Wyndham Garden at 37 West 24th Street. Fortuna Realty Group bought the hotel. One of the partnerssued the other two and accused them of moving to sell the properties without his consent.

Ponte Gadeapaid $145 million for 490 Broadway in Soho from family owners, Train City Ltd.

Duell Management sold 957 Park Avenue for 16 million, 27 Washington Square North for 20 Million and 1611 Madison Avenue for 40 million in three separate transactions.

Alduwaliya Asset Management">Alduwaliya Asset Management paid $123.5 million for a 17-story, 208,000-square-foot office buildingat 250 West 39th Street from Lincoln Property Company. The building located between Seventh and Eighth Avenues is nearly at full occupancy, and average office asking rents are in the $40s per square foot. The deal closed for just shy of $600 per square foot.

Rhodium Capital Advisors bought six Upper Manhattan buildings for $34.1 million. The buildings are located at 100 West 143rd Street, 118 West 137th Street, 210 West 133rd Street, 22 Bradhurst Avenue, 243 West 135th Street and 515 West 156th Street, comprise a total 109 rental units and nine retail spaces across 89,873 square feet.

William Macklowe Company and a subsidiary of Iowa-based Principal Financial Group acquired a 14-story office building in Hell's Kitchen from Atlas Capital Group for $107 million.

Isaac Chetrit and Ray Yadidi are in contract to buy 235,000 square feet of air rights from Himmel + Meringoff Properties which are the unused development rights from 1352-1362 Broadway. When completed Chetrit and Yadidi will have gathered an assemblage spanning roughly 375,000 buildable square feet.

Thor Equities bought two Lexington Avenue retail properties in Harlem for $75.5 million. The larger building, at 2082 Lexington Avenue, stands six stories and encompasses 59,000 of space.The other is a three-story, 44,000-square-foot building at 2080 Lexington Avenue.

Slate Property Group and RWN Real Estate Partners obtained a 40,000-square-foot rental building opposite Baruch College for $29 million. The buyers plan to expand the residential componentat the 10-story building, located at 144 East 24th Street. They will also increase the retail presence on the ground floor.

Status Capitalbought the retail and office building at 820 Madison Avenue for almost $7,000 per square foot.Duell Management Systems sold the five-story, 6,700-square-foot property between East 68th and East 69th Street in Lenox Hill.

The Jackson Group acquired a five-story retail and commercial building at 712 Madison Avenue for $83 million from Duell Management Systems. The roughly 5,500-square-foot building is located near East 63rd Street.

Maefield Development acquired the leasehold interest in the Doubletree Guest Suites Times Square hotel from Sunstone Hotel Investors for $540 million. The deal for the 468-room hotel at 1568 Broadway is valued at just over $1.15 million per key. There is a planned redevelopment of the property into a premier cultural entertainment, retail and hospitality experience.

Chetrit Group">Chetrit Group and Cornell Realty Management swapped a property for another pair of buildings owned byinvestor Charles D. Cohen that would make way for separate retail projects on 34th Street. Cornell Realty Management closed on the purchase of a pair of one-story retail buildings at 245-247 West 34th Street in Chelsea from Chetrit and Cornell. Chetrit and Cornell bought them for $31.5 million and proceeded to file plans for a 17-story, 45,000-square-foot hotel-and-retail project at the site. In exchange for the two buildings, Chetrit and Cornell agreed to buy a three-story retail building at 261-263 West 34th Street, which Cohen has owned since 1983.

NYC Buildings For Sale

RXR Realty is selling a 49% stake in its 61 Broadway office tower in the Financial District. The deal values the 33-story building at $440 million. RXR acquired the stake from Broad Street Development for $330 million in May 2014.

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