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November 2017

November 2017 » Market Analysis » NYC Buildings For Sale

November 2017 New York Buildings For Sale

Buildings For Sale:

HSBC and Edge Fund Advisors put a 48% stake in the office portion of 1540 Broadway on the market, hoping to get around $445 million.

Brookfield Property Partners is looking to sell its 2.3 million-square-foot office tower at One Liberty Plaza and could go for as much as $1.6 billion which works out to $695 per square foot. Brookfield is open to selling the entire tower or a partial stake.

RFR Realty is looking to sell the 38,000-square-foot commercial condominium at the base of the Park Avenue Place of 60 East 55th Street, which RFR developed in 2005. The condo is fully leased with the elite private club Core Club, which occupies 33,260 square feet, and restaurant chain Sweetgreen, which leases 4,590 square feet. The Park Avenue Place commercial condo is expected to sell for around $65 million, or $1,700 per square foot.

Lone Star Funds is shopping a 300-room Hilton hotel located at 304 East 42nd Street asking $75 million.

SL Green Realty is shopping a 36-story office tower at 600 Lexington Avenue which is nearly fully leased, and is valued at $305 million.

Isaac Chetrit and Ray Yadidi are shopping their development site at 981-995 Sixth Avenue between 36th-37th Street. They have received several offers north of $200 million from prospective buyers. At least one offer was in the $225 million range. At $200 million, for example, the price per buildable square foot would be $533.

New York REIT is near a deal to sell 256 West 38th Street and 229 West 36th Street to Brickman for $155 million.

Extell Development is in contract to sell 140-146 West 24th Street to Sam Chang for around $60 million, to construct a 45-story tower. Chang filed plans for a 172,640-square-foot hotel on the vacant lot where two commercial buildings stood just earlier this year.

NYC Buildings Sold:

Israeli insurance company Migdal Group bought a 49% stake in 240 West 35th Street an 18-story Garment District office building owned by ATCO Properties & Management.

Nightingale Properties is in contract to buy the Related Companies’ Soho office and retail development at 300 Lafayette Street. The building is currently under construction and Related plans to finish the development. Nightingale is paying between $130 million and $140 million. As the deal includes a ground lease not the fee the transaction’s total value for Related is likely much higher.

Hudson’s Bay Company is selling Lord & Taylor’s flagship store to WeWork and its partner for $850 million. Lord & Taylor will lease the bottom floors of the building, taking less than a quarter of its current space. The move is expected to take place after Christmas next year.

Icon Realty Management sold a 10-unit building in Chelsea for $11.7 million to the Japan-based Tuskaki Company. The 6,399-square-foot building at 244 10th Avenue, between West 24th and 25th streets, includes apartments and one ground-level store.

Related Companies closed on the purchase of six sites in West Chelsea and air rights for $234 million, to get started on a 23-story mixed-use building. The developer purchased a six-site parcel at the corner of 11th Avenue and 23rd Street from U-Haul’s parent company Amerco. Related paid $175 million for three of the sites: 548-552 West 23rd Street, 555 West 22nd Street and 170 11th Avenue and $16.6 million each for 162 and 164 11th Avenue. The company also purchased 70,000 square feet of air rights from another U-Haul site for $25 million.

Raymond Gindi of ASG Equities, paid $38.6 million for the two-story retail property at 173 Broadway in the Financial District. Gindi already owns two adjacent five-story buildings at 175-177 Broadway. Now he could build a 106,000-square-foot commercial property as of right on the corner lot facing Cortlandt Street. The sellers, Broadway and Cortlandt Realty and Knolls Realty, had owned the building since 1974.

JPMorgan Chase bought a block of air rights in Midtown for $13.6 million from Vornado Realty Trust. The air rights, from the five-story retail building at 510 Fifth Avenue, now the North Face flagship, were part of an agreement between Vornado and Chase in 2000, when Chase sold Vornado the building at the corner of West 43rd Street. Chase exercised its right of first refusal to acquire the rights.

Marx Realty & Improvement Co. bought the commercial condo at 124 Hudson Street in Tribeca for $15.2 million. The retail condo is fully occupied by three long-term tenants.

Unizo Holding Co. closed on its purchase of 685 Third Avenue in an all-cash deal for $467.5 million. The Japanese real estate firm, formerly known as Jowa Holdings, bought the 31-story, 651,429-square-foot property from TH Real Estate.

Hubb NYC Properties bought two adjacent five-story properties at 128-130 First Avenue for $12.25 million. The two buildings have eight residential units each and three retail units between them. The retail at 130 First Avenue is leased to the bakery Sweet Generation.

A five-story townhouse near the Met sold for $10.7 million. The Queen Anne-style building at 16 East 82nd Street was built in 1888 and includes a ground-floor doctor’s office and six residential apartments. The buyer is 16 East 82nd Owner LLC.

A parking garage in Kips Bay traded hands for $16 million. Select Garages, which operates the lot, bought the property from Corinthian parking. The lot is located on the site of a 57-story building at 345 East 27th Street between First and Second avenues.

Junji Hada, a private investor, bought a six-story, mixed-use property at 331 East 81st Street in Yorkville for $12.75 million, or $1,202 per square foot. The 10,606-square-foot building includes 14 apartments and one retail unit, which is leased to Prima Bar. The seller, Justin Management, paid $12.2 million for the property in 2014.

In Yorkville, a vacant storage facility traded for $11 million. The buyer, going by Skylight Properties, LLC bought the 15,750-square-foot commercial building at 1587 Third Avenue, between East 89th and 90th streets. The building has been in possession of the seller, Yorkville Van & Storage, for 70 years. Madison Realty Capital provided a $4.8 million mortgage to finance the acquisition.

The Khimji family-controlled Highgate is in contract to buy the Gansevoort Park Avenue NYC in NoMad for almost $200 million, or close to $800,000 per key. The 19-story, 249-key upscale boutique hotel at 420 Park Avenue South is the latest in a wave of New York City hotels to trade hands after dozens of properties languished on the market in 2016 and early 2017. The sellers are the Gansevoort Hotel Group, Centurion Realty and Douglaston Development. The Tawils had exercised their buy-sell option to the Achenbaums, to either prompt a buyout of the Achenbaums’ stake or jointly sell the full ownership. The Achenbaums and the Tawils each have a 45.05% stake, while Douglaston has a 9.9% interest and is part of the Achenbaums’ ownership group. The price is said to be just shy of $200 million.

Columbia Property Trust is in contract to buy two Chelsea office buildings for around $515 million from New York REIT as it liquidates its portfolio. Atlanta-based Columbia Property is in contract to buy 245 West 17th Street and 218-220 West 18th Street. New York REIT purchased the 12-story building on 17th Street in 2014 for $335 million. The company paid $112 million in 2013 to purchase the 18th Street building, which is best known as Red Bull’s New York headquarters.

A subsidiary of Israeli real estate investment firm Gazit-Globe put out $73.3 million for a 92,000-square foot retail condominium at 401 East 60th Street,
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