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July 2012

July 2012 » Market Analysis » NYC Buildings For Sale

July 2012 New York Buildings For Sale


Buildings for Sale

Vantage Properties and Area Property Partners have unloaded the Savoy Park apartment complex in Harlem for more than $210 million, satisfying the outstanding balance on the senior mortgage.

Larry Silverstein is cutting his losses and moving on from Lexington Avenue. His Silverstein Properties and the California State Teachers’ Retirement System have entered contract to sell the 35-story office building at 575 Lexington Avenue for about $360 million to Normandy Real Estate Partners and New York Life Insurance. The deal is worth $10 million less than the agreement the owners nearly struck with Rockrose Development, before Henry Elghanayan walked away.

The Metropolitan Transportation Authority will issue a request for proposals for a private company to lease the entire 13-store retail complex at the Columbus Circle subway station, then sub-lease and manage the individual shop units. This will be the first time a private company will manage and fill an MTA-owned space.

The Beatrice, completed two years ago by J.D. Carlisle Development, is composed of 28 floors of rental units that sit above the 25-story Eventi Hotel at 835 Sixth Avenue near West 29th Street. The deal comes on the heels of a record quarter for Manhattan apartment trades.

The Trevor Day School is selling the Upper East Side townhouse where its childhood education program is currently housed. This move is part of Trevor Day’s effort to consolidate its properties. Originally built in 1912, the six-story, 25-foot-wide mansion at 11 East 89th Street is currently configured as classrooms and offices and has two outdoor playgrounds.

Buildings Sold

The Ace Hotel Empire is expanding beyond Broadway to a second New York City location on Canal Street. The old Jarmulowsky Bank Building, at 54 Canal Street on the corner of Orchard Street, was bought for $36 million last year by DLJ Real Estate Capital Partners, which is now working with the Ace Hotel group to redevelop the 12-story property.

The upscale department store Nordstrom is close to reaching a deal at West 57th Street and Broadway. Rumors originally suggested that the retailer was considering anchoring developer Gary Barnett’s One57 building, just one block east of its future site. The site, adjacent to the landmarked B.F. Goodrich Building, was demolished by Extell Development to give way to a gleaming new tower.

The New York Public Library has sold five floors of a Madison Avenue building for $60.8 million. The third through seventh floors of the Science, Industry and Business Library at 188 Madison Avenue near East 34th Street was purchased by the Church Pension Group, which will use the space as its headquarters. The space comprises 140,000 square feet and only the fifth floor is currently occupied.

Two Trees Development has signed a contract to buy the Domino Sugar Factory site on the Williamsburg waterfront for $185 million. The deal may be in the works for $160 million, giving new life to the planned $1.4 billion development of 2,200 housing units that was once thought to be dead.

Residential developer TF Cornerstone signed a long-term lease to take control of four parcels on the West Side where AvalonBay once considered building a luxury rental tower.

Thomas and Fred Elghanayan’s TF Cornerstone closed on the 99-year lease for 602 West 57th Street with property owner Four Plus, a real estate investment company based in Montgomery, Ala., in May.

Hadassah, the Jewish women’s philanthropic group that has been beset by turmoil in recent years, has sold its 60,500-square-foot headquarters at 50 West 58th Street. The sale, valued at $71.5 million, is expected to be approved at a meeting next month.

After losing out to Cornell-Technion in its bid to build a technology campus on city-owned land, the New York Genome Center is close to signing for 150,000 square feet at Edward Minskoff’s 101 Sixth Avenue in Soho. The center is a group of universities, medical centers and labs that conducts DNA-sequencing research. The group could help the city catch up in the field of genomic science, which involves using machines to analyze a blood samples and decode a person’s entire DNA sequence. It is expected to create 2,000 new jobs in the next five years.

Sam Zell’s Equity Residential is in contract to purchase the 301-unit Beatrice apartment complex on Sixth Avenue for nearly $250 million. The transaction will mark the latest in a series of big apartment deals struck in recent months for record-high prices.

The buyer is the New York Affordable Housing Preservation fund, a real estate fund created by Citigroup and L&M Development Partners. The 1,800-unit complex is made up of seven rent-regulated building between 139th and 142nd streets.

Harbor Group International found a buyer to pay more than $265 million for a 22-story office building at 4 New York Plaza for which Harbor paid $107 million two and a half years ago.

J.D. Carlisle Development has acquired the second of five parcels it needs to move forward with a planted residential and retail development on Madison Avenue. The developer closed on the seven-story building at 166 Madison Avenue for $8.37 million, and is in contract to buy 160 Madison Avenue.
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