New York City office
and retail Market Research

June 2013

June 2013 » Market Analysis » NYC Buildings For Sale

June 2013: NYC Buildings For Sale

NYC Buildings For Sale

Hines is selling off two Midtown office properties at 499 Park Avenue and 425 Lexington Avenue for a combined price of more than $1 billion. JPMorgan Asset Management will pay $750 million for 425 Lexington.

Quinlan Development Group will pay $4 million for air-rights from God’s Love We Deliver and intends to build a 14-story residential condominium project. The charity wants to sell the development rights to raise funds for a $26 million expansion at 166 Sixth Avenue, at Spring Street.

Verizon is planning on selling or leasing around half the space inside its 31-story headquarters. The company will keep the first 10 floors of the property, which is located at 140 West Street. Real estate investors are headed to the building to ascertain its potential uses, which include hotel, residences and retail.

A pair of distressed buildings on West 46th Street on New York City’s Restaurant Row has been sold in an all-cash auction. The starting bid for 334-336 West 46th Street which is the subject of a Chapter 11 bankruptcy case will be $9.25 million. The two adjacent four-story mixed-use buildings have a total of 9,299 square feet between them, with 10 residential rental units and a single ground floor commercial space.

A residential tower that developer Douglas Steiner is building in the East Village will contain 11,356 square feet of retail space. Steiner’s representatives signed a deal to tear down a parcel of Mary Help of Christians, a church, rectory and school located at 181 Avenue A between East 11th and East 12th streets. The developer plans to build a 140-unit residential tower at 181 Avenue A. All plans to date are awaiting approval.

Two Soho retail properties: a condominium at 121 Greene Street and a co-op at 349 West Broadway are coming to market asking $35 million. The Greene Street building, between Prince and Houston streets, houses an upscale eyewear purveyor.

The MAve Hotel in NoMad is for sale and could go for about $30 million through a bankruptcy court auction. The 62 Madison Avenue property, near East 27th Street, was formerly owned by an entity controlled by Livorno Properties principal Ben Zion Suky and Roxy Deli owner Joseph Ben Moha. The 12-story, 72-room hotel, features two penthouse suites, a fitness center and roof access. First-round bids for the boutique hotel are due mid June.

The Helmsley Park Lane Hotel on Central Park South is going on the auction block, with the estate of Leona Helmsley looking to cash in on the surging demand for high-end condominium conversion sites. The 370,000-square-foot 46-story hotel has already attracted two serious investors with nonbinding offers north of $600 million.

A Queens building which housed the defunct Parkway Hospital is set to be auctioned off soon with an outstanding lien of $14.86 million. The 70,000-square-foot property, at 70-35 113th Street in Forest Hills, was home to the city’s only privately owned hospital until 2008, when the New York State Commission on Healthcare Facilities mandated its closure.

CME Group, the Chicago-based commodities exchange operator, plans to sell the headquarters of the New York Mercantile Exchange at 1 North End Avenue in Lower Manhattan.

A 38,885-square-foot office and retail property located at 415 West Broadway between Spring and Prince streets could sell for over $40 million.

A Developer, Ian Bruce Eichner, plans to spend $100 million for a site near the Flatiron Building as well as the air-rights of several nearby buildings so he can put up an 800-foot glass condominium tower.

Major New York players such as Vornado Realty Trust, Ashkenazy Acquisition Corp. and Crown Acquisitions have moved to buy Carlyle Group’s 650 Madison Avenue office tower, with some bids coming in at north of $1.3 billion.

Meadow Partners, an investment fund based in Midtown, has bought a $30 million senior loan for the conversion and recapitalization of 42-15 Crescent Street in Long Island City. The nine-story property, formerly an office and retail building, will be turned into a 124-unit, 10-story multi-family development with retail.

New York Buildings sold

A Hertz rental car garage on West 77th Street has just sold. Naftali Group purchased the property, at 210 West 77th Street, between Broadway and Amsterdam Avenue. The development firm, which last year bought several buildings on West 82nd Street for a little more than $17 million. The sale was on behalf of the Jewish Board of New York.

JPMorgan Asset Management is paying around $750 million for a 31-story office tower at 425 Lexington Avenue. JPMorgan’s decision follows last month’s major lease deal at the 750,000-square-foot tower, with law firm Simpson Thacher & Bartlett renewing as an anchor tenant in a 20-year, 600,000-square-foot deal.

Collegiate School is selling its Upper West Side campus for $97 million to the Reformed Protestant Dutch Church, which will look to develop the site. Collegiate School will use the proceeds from the sale to build a $118 million campus at West 62nd Street and West End Avenue. The $97 million price tag was determined last year, when Gary Barnett’s Extell Development made an offer for the site at that price.

Lalezarian Properties paid $21.25 million for a commercial loft building in the Hudson Yards Special District, with plans to erect a residential rental development on the site. The company intends to raze the existing six-story, 37,929-square-foot structure at 511-515 West 36th Street and build on that lot, as well as adjacent parcels it already owns at 519 and 525 West 36th Street.

The $250 million sale of the office building at 315 Park Avenue South was a much needed relief, both personally and for company wise, which has faced foreclosure of the property since August 2012.

St. John’s University announced agreement to sell its satellite Tribeca building at 101 Murray Street to a joint venture of Fisher Brothers, Howard Lorber and Witkoff Group for $200M, which plan to raze the building to construct condominiums.

Charles Blaichman’s CB Developers has sold a Tribeca development site to Hoboken, N.J.-based Applied Development Company for $23.2 million, mere months after paying Fishman Holdings $22 million for the plot.

Two Chelsea mixed-use buildings have sold for $15.9 million after three months on the market. Located at 205 and 207 Eighth Avenue between 20th and 21st streets, the buildings have 23 apartments and two retail spaces.

A partnership between Black House Development and Oriel is bringing an 11-story, 27-unit luxury condominium building to West Chelsea.

Half the homes at Long Island City’s luxury condominium Five27 are already in contract with prices reaching $960 per square foot.

Magnum Real Estate Group has sold a high-end rental property in the Financial District to Queens-based construction and management firm Werber Management for $25 million.

Bonjour Capital has closed on a long-stalled Bedford-Stuyvesant apartment complex that has been the subject of much dispute, paying $16 million. The deal will allow the new owner to proceed with the 57-unit rental project.
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