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July 2016

July 2016 » Market Analysis » NYC Buildings For Sale

July 2016: New York Buildings For Sale

New York Buildings sold

Harry Macklowe and Qatari investment bank QInvest closed on a deal to buy 432 Park Avenue's retail space for $411.1 million. CIM Group is developing the 1,396-foot condo tower in partnership with Macklowe the seller. The cube will include 6,600 square feet of retail space and will be connected to 20,000 square feet of retail space in the tower itself through a 30,000-square-foot underground concourse.

Global Holdings is in contract to buy 1250 Broadway, an office tower owned by Jamestown and Murray Hill Properties, for $565 million. 1250 Broadway is a 39-story, 721,000-square-foot tower. The contract price equates to just over $780 per square foot. The firms bought the glass-and-steel tower, built in 1968, for $310 million in 2008 from SL Green Realty. The Class A tower is 84% occupied, and its largest tenant is the Visiting Nurse Service of New York, a nonprofit, which has 320,000 square feet across 15 floors. Its lease expires in December 2018.

Ashkenazy Acquisition Corp. bought the Nylo New York City Hotel on the Upper West Side for about $140 million, or about $500,000 per key. The seller, a trust affiliated of Lehman Brothers, had been seeking a buyer for the 16-story, 291-key hotel at 2178 Broadway and West 77th Street since 2014. The four-star hotel, formerly known as On the Avenue, was rebranded in 2013 as part of the Dallas-based brand Nylo Hotels. In 2011. Lehman Brothers took control of it through a deed in lieu of foreclosure in a deal valuing the building at $191.1 million,

Extell Development">Extell Development sold a five-story parking garage at 10 West 48th Street for $37.2 million. The building's last filed permits had plans to demolish it, but now apparently abandoned its development plans. The buyer is affiliated with the entity Cydonia W48 LLC. Attorney Peter Barack of Barack, Ferrazzano, Kirschbaum & Nagelberg LLP signed the deed as the LLC's president. The new owner has the opportunity to build a 75,310-square-foot residential building on the lot as-of-right.

Ponte Gadea purchased a 205-key hotel at 70 Park Avenue for $67.6 million from KHP Capital Partners. The neoclassical-style Murray Hill hotel was built in 1928 and will now be operated by Spanish hotel company Grupo Iberostar. Seller KHP bought the 16-story building, 83,000 square feet, for $88.5 million in 2006.

A member of the Saudi royal family and London-based investment firm 3 Associates are in talks to buy The Plaza for $352 million. The joint venture is also looking to buy Grosvenor House for $882 million and the Dream Downtown Hotel in Chelsea for $235 million. The Plaza is owned by India's Sahara India Pariwar. David and Simon Reuben who own the Plaza's debt decided to foreclose on the property but canceled an auction in order to give Roy more time to sell the property and repay his loan. The Reuben brothers paid $800 million for the Plaza's debt, plus notes on the Dream hotel. The 557,000-square-foot Plaza, located at 768 Fifth Avenue, has changed hands several times over the past few decades.

The Kash Group's and Skyway Development Group's bought the seven-story, 52,300-square-foot property at 19 West 20th Street. The developers paid $32.2 million to Extell Development. Icon Parking who have the ground lease which expires in 2033. There are no plans to redevelop the property at this time.

Rudin Management sold a partnership stake in its 35-story Financial District office tower at One Battery Park Plaza to Allianz Real Estate of America. The U.S. branch of Munich-based investment firm Allianz bought a 49% stake in the 870,000-square-foot tower located at 24 State Street.

French billionaire Marc Ladreit de Lacharriere lined up $250 million to finance his acquisition of 693 Fifth Avenue a 20-story, 105,000-square-foot property, which is anchored by a 19,600-square-foot Valentino store. The debt financing on the $525 million deal is coming from JPMorgan Chase.

Luxottica U.S. Holding Corp. bought 1 West 37th Street an office and retail building just off Fifth Avenue for $73 million. The building previously sold for $25.5 million in 2013 to an Argentinian partnership represented by Hogg Holdings. Luxottica, headed by billionaire Italian businessman Leonardo Del Vecchio, plans to turn the property into its New York corporate headquarters.

The Blackstone Group closed on 44 Wall Street. The transfer is part of a $2.7 billion real estate portfolio sale of assets owned by Obligo in Scandinavia, Latvia, Germany and the U.S.
As of November 2012, Swig held a 12.2% stake in the property. Zamir held 9.6% and an entity tied to Obligo held 78.2%. During the course of 2012, Obligo moved to take over the minority stakes after Swig, who was reportedly in financial trouble at the time, and Zamir failed to meet capital calls.

Citigroup closed on the repurchase of its Tribeca headquarters at 388-390 Greenwich Street from SL Green Realty for $1.76 billion. Citi had named the buildings as its global headquarters in January and is currently renovating them.

The New York City Transit Authority paid $13 million for a parking lot at 6 East 20th Street in the Flatiron District. Madison Capital last bought the site in 2013 for the same amount. The transportation agency has not revealed its plans yet for the property, and no permits have been filed with the Department of Buildings. The site offers up to 29,000 buildable square feet and is zoned for commercial and manufacturing.

Icon Realty Management bought the Chelsea Pines Inn and paid $13.75 million to longtime owner Jay Lesiger for the five-story, 23-key property. Icon plans to continue to operate the building as a boutique hotel.

Caerus closed for $38.2 million, after entering contract to acquire the five-story, 29,000-square-foot office-and-retail property from the Zionist Organization of America which used the building as its headquarters. Caerus also bought the adjacent 10-story, 55,000-square-foot Ditson Building at 10 East 34th Street from Brause Realty for $51.7 million. Tsimmer's firm is funding its purchase of both buildings, worth a combined $89.9 million, with the loan from Apollo. Caerus Group secured $50 million in financing from Apollo Commercial Real Estate Finance to fund its acquisition of 4 and 10 East 34th Street.

Sam Chang's just acquired a 99-year ground lease at 523-529 Eighth Avenue which is currently a one-story retail strip for $27.1 million. Joseph P. Day Realty Corp owned the property, which holds a row of five retail units spanning more than 7,400 square feet. The site has 75,000 buildable square feet. McSam has yet to file a permit application for demolition or for a new building. Chang also has a right of first offer to purchase 523-529 Eighth Avenue outright under the terms of its lease agreement.

Gemini Investments is in contract to buy a Chelsea bank building and an adjacent walkup for $53 million. The combined lot at 531-539 Sixth Avenue has enough air rights for a 60,000 square foot apartment building. Gemini paid $42.4 million for the single-story, 14,000 square foot retail building at 531-537 Sixth Avenue. Eva Usdan, Rebecca Colin and the Samuel Flug Colin 2004 Legacy Trust are the sellers. Gemini also bought the adjacent, four-story retail and apartment building at 539 Sixth Avenue from an unnamed seller.

Saudi conglomerate Olayan Group closed on its $1.4 billion acquisition of the Sony Building at 550 Madison Avenue, receiving a $570 million bridge loan from a U.S. subsidiary for Dutch banking giant ING Group. Olayan America, the U.S. investment arm of Olayan Group, closed on the Sony Building on May 26th. Apart from the financing from ING subsidiary ING Capital, Olayan, a family-led investment firm founded by the late Suliman Olayan and chaired by his son Khaled, paid all cash for the 37-story, 853,000-square-foot Midtown office tower.

NYC Buildings For Sale

A U.S. subsidiary of Brazilian investment firm Grupo Victor Malzoni is looking to sell 145-147 East 57th Street and expects about $75 million. It has since spent some $10 million renovating the 64,000-square-foot property, and filed plans in 2014 to build a 2,600-square-foot penthouse that will add another floor to the 12-story structure. The city approved those plans.

RPW Group wants to sell 240-246 West 35th Street, an 18-story, 165,000-square-foot office building for sale and expects to get about $120 million, or north of $700 per square foot. The Class B property, located between Seventh and Eighth avenues, is 95% occupied. The office tenants are a mix of fashion and TAMI firms, with fashion designer Thom Browne serving as the biggest occupant at 20,000 square feet. Nearly two-third of the tenants have leases set to expire after 2020.

Dalan Management is looking to sell a pair of office buildings at 10 and 12 East 33rd Street for $60 million. Dalan bought the adjacent 11-story buildings spanning a combined 70,000 square feet for $36 million in January 2015. At the time, most of the rents were in the $20s and low $30s per square foot. But Dalan pumped about $5 million worth of capital improvements into the buildings and leased about 45,000 square feet to new tenants. Rents are now in the $50s per square foot.

Mount Sinai Beth Israel hospital is looking to sell the Gilman Building at 353 East 17th Street. Beth Israel plans to close its East Village hospital and open a smaller facility nearby. The hospital itself will not be sold for another four years until an alternative facility is built.
The new buyers could potentially buy air rights from Stuyvesant Town-Peter Cooper Village. The de Blasio administration pledged to support an air rights sale in return for affordability concessions and a commitment not to build on the Stuy Town site.

The Durst Organization worked out a sale with Ian Bruce Eichner to buy his distressed development site at 1800 Park Avenue in East Harlem. Durst acquired about $100 million worth of distressed debt on the property at 1800 Park Avenue, where Eichner's the Continuum Company had plans to build Upper Manhattan's tallest towers: a pair of 32-story mixed-use buildings with 682 rental apartments. The Durst Organization then moved to foreclose on the site and even scheduled an auction for late April. But rather than go through the prolonged and messy foreclosure process the two sides cut a deal behind the scenes in a short sale.

Rockpoint Group" >Rockpoint Group and 60 Guilders are looking to sell the leasehold on a 180-unit Turtle Bay rental building at 300 East 46th Street. The leasehold for the 190,000-square-foot property, which has 30 years remaining, is expected to get around $40 million. The building largely includes unrenovated apartments,96 market-rate units and 70 rent-stabilized units. The other 14 apartments have been recently renovated.
Thor is planning a 623,000-square-foot office and retail development on the Red Hook waterfront. The four-story, Norman Foster-designed complex will feature more than 600,000 square feet of office space and around 23,000 square feet of retail and restaurant space.
The project will also come with a waterfront esplanade that will be open to the public, as well as a courtyard and rooftop terraces for tenants, per plans filed with the city's Department of Buildings.

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