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May 2010

May 2010 » Market Analysis » NYC Buildings For Sale

May 2010 New York Buildings For Sale


New York City Buildings sold

The retail space at 40 Mercer, the Jean Nouvel-designed condo, has sold for $41.9 million. The space at 465 Broadway contains 9,400 square feet of space at the ground level.

SL Green is buying Hines Interests' 600 Lexington Avenue for almost $180 million, or $700 a square foot. The 282,000-square-foot office tower is one of three major city properties of its kind that had been attracting attention from investors while on the market despite the sector's slump. The others are 340 Madison Avenue and 125 Park Avenue. The acquisition for the city's largest landlord follows that of 100 Church Street, which was picked up at a foreclosure auction earlier this year. The company also bought the debt on 510 Madison Avenue, on which a foreclosure is scheduled pending a hearing.

The first major non-distressed office building sale Manhattan has seen in two years closed, with the $350 million sale-leaseback of the HSBC tower at 452 Fifth Avenue between 39th and 40th streets. The purchase was made by a special purpose vehicle known as 452 Fifth Owners LLC, which includes Joseph Cayre's Midtown Holdings, Israeli-based Koor Industries, and Property and Building Ltd.

RXR Realty has stepped up to the plate to buy Broadway Partners' 23-story office tower at 340 Madison Avenue for roughly $570 million, or $760 a foot. Broadway purchased the 750,000-square-foot building, which was redeveloped in 2003 by Macklowe Properties, for $550 million four years ago, when it was only 40 percent leased. After a $50 million investment by Broadway, it is now 92 percent leased.

NYC Buildings For Sale

The Durst Organization is one of four bidders, along with Boston Properties, Related Companies and Hines Interests, angling for a stake in the Downtown building from the Port Authority of New York & New Jersey. All four have made $100 million offers for a non-traditional equity stake in the tower.

Bankrupted St. Vincent's Hospital is already looking to unload some of its Greenwich Village real estate. The New York Times reported that 555 Sixth Avenue, also known as Staff House, is set to officially hit the market today. St. Vincent's has long been trying to sell the 180,000-square-foot property; Taconic Investment Partners is in contract to buy the building for $48 million. Any other prospective buyer would have to offer more than $49.37 million

Private equity firm Blackstone Group is looking to buy a minority stake in Extended Stay, a now-distressed hotel chain it sold in 2007 for $8 billion. Blackstone's approximately $100 million investment would be part of a larger, $905 million potential buy-up of the troubled hotel company, made by a group of investors led by Centerbridge Partners and Paulson & Co. The companies' bid for the 680-property hotel chain, whose bankruptcy filing is the largest ever recorded in the hotel industry, is a direct challenge to a similar buy up proposed by Starwood Capital Group, the company whose hotel branch is best known for its line of W Hotels.

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