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January 2017

January 2017 » Market Analysis » NYC Buildings For Sale

January 2017 New York Buildings For Sale

Buildings For Sale:

Premier Equities.">Premier Equities is in the process selling three NoMad buildings and a Lower East Side retail condominium unit in separate deals for a total of about $26 million. Premier paid Victor Group $12 million for 275 Fifth Avenue and $4.6 million for 2 East 30th Street. The developer is in contract to buy 273 Fifth Avenue for around $3.5 million. The lot at 2 East 30th Street currently houses a five-story, 5,719-square-foot mixed-use building. The five-story apartment building at 275 Fifth spans 9,269 square feet. The adjacent four-story commercial building at 273 Fifth Avenue is 8,060 square feet. The two properties have a combined 49,000 buildable square feet. The deals for those buildings did not include air rights which Victor will retain.

Raphael Toledano is looking to unload 13 of his buildings in the East Village which comprise of 206 apartments and 12 retail spaces. They are looking for $160 million for the portfolio.

Buildings Sold:

The Related Companies closed on a 75-year ground lease on the final piece of land needed to develop 50 Hudson Yards, the largest building planned for the Far West Side megaproject. The firm will pay $60.8 million in rent for 503-505 West 33rd Street. The property is currently an 8,945-square-foot building owned by 503 West 33rd Street Associates. Related has spent about $200 million over the past seven years gathering the properties to construct the 2.9 million-square-foot building in Hudson Yards. It spent $152.3 million to acquire 427 10th Avenue and acquired a five-story building at 507-511 West 33rd Street for $30 million in 2015.

Walter & Samuels bought 130 Madison Avenue, a six-story office building for $14.5 million. The 15,300-square-foot Midtown South building between East 30th and 31st streets includes two retail units. JD Carlisle purchased the building next door at 132 Madison for $10.5 million as part of an assemblage.

Winther Investment Group bought 178 Mulberry Street, a seven-story 14,931-square-foot building, containing 29-unit rental on the corner of Mulberry and Broome streets for $15.2 million. The current retail tenants are an art gallery, a gelato shop and an Italian restaurant.

Cove Property Group obtained $220 million in financing for 441 Ninth Avenue, an office building on Manhattan’s Far West Side. Cove Property partnered with hedge fund the Baupost Group to buy the 423,000-square-foot building from insurance firm EmblemHealth. The partners signed a contract to pay $330 million for the property. The former warehouse building is located across the street from Brookfield Property Partners’ 1 Manhattan West development and a block away from the Hudson Yards. Cove Property is planning to expand the structure by 150,000 square feet. The property is between West 34th and 35th streets and got an increased floor-to-area ratio in a city’s rezoning in 2005. Cove also has the option to buy building bonuses from the Hudson Yards Infrastructure Corporation. The plan is to attract tenants who want to be close to the mega development, and may include converting portions of the ground floor to retail use.

Premier is also in contract to buy a 2,860-square-foot retail space on the ground floor of a six-story mixed-use building at 259 Bowery for $5.5 million. The space is leased to an art gallery. Premier is already developing an eight-story, 23,500-square-foot retail-and-residential condo across the street, at 260 Bowery. Premier is developing a six-story retail-and-office building at 134 Wooster Street.

Sam Chang obtained a vacant Koreatown development site at 292 Fifth Avenue from hotelier Richard Born for $42.5 million. The site can accommodate around 70,000 square feet of space. Born bought the three adjacent buildings at 292, 294 and 296 Fifth Avenue in 2013. He had torn them down and filed plans for a 20-story building with 57,000 square feet of hotel space and almost 12,000 square of apartments.

Northwind Group, Harrison Street Real Estate Capital and the Engel Burman Group bought a 14-story Upper West Side luxury senior housing facility at 305 West End Avenue for $150 million, or $800 per square foot. Esplanade Venture Partnership sold the 185,000-square-foot property in the wake of a recent controversy. Scharf and his company were charged over a façade collapse that killed a 2-year-old in 2015. Northwind and partners plan to upgrade the building with new amenities, but keep it as senior housing.

Icon Realty Management bought 30 East 23rd Street from Extell Development for $26.5 million. Icon paid about $815 per square foot for the vacant 12-story, 32,500-square-foot office building. The 25-foot-wide building has small floor plates of 2,500 square feet each.
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