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September 2008

September 2008 » Market Analysis » NYC Buildings For Sale

September 2008 New York Buildings For Sale


NYC Buildings For Sale



New York Buildings sold


Lehman Brothers Holdings Inc. is negotiating to sell its $40 billion portfolio of commercial real estate.

A group led by Boston Properties finalized the purchase of Harry Macklowe's Two Grand Central Tower buying it for $237 million and the assumption of $190 million in mortgage debt.

Real estate firms rich in cash have snatched up the most high-profile office towers on the market in Manhattan this year, while highly-leveraged players have been sidelined. Shorenstein Properties bought two of the seven office buildings that Harry Macklowe needed to unload, the Park Avenue Tower at 65 East 55th Street and 850 Third Avenue. Shorenstein, based in San Francisco, had never bought a New York City property until 2003. Just 44 Manhattan towers have been sold this year, down 57 percent from last year,

New York University purchased the Gramercy Green condo building for $275 million. NYU is turning the 21-story building at 23rd Street and Third Avenue into a dormitory.

Boston real estate investment firm, AEW, closed on the office tower at 360 Lexington Avenue and 40th Street for $90 million plus the assumption of a $38.6 million mortgage.

104 East 40th Street Geo. A. Gottlieb & Co. sold a nine-story commercial building in Midtown for $36 million to Philips International.

The owner of a 50-year lease covering a 9,300-square-foot Times Square building sold it for $33.4 million. The four-story building is occupied by Sam Ash Music, a national music chain based in Hicksville, Long Island.

431 West 33rd Street Sam Chang's McSam Hotel Group sold a 7,406-square-foot Chelsea parcel for $30 million to the Port Authority of New York and New Jersey, six months after buying it for $24 million.

The Forward, bought a 25,600-square-foot eighth floor office at 125 Maiden Lane for $11.5 million.

150 Delancey Street Sam Chang (McSam's ) latest purchase is a two-story commercial building at 150 Delancey Street on the Lower East Side, which he bought for $12.25 million,. Chang has filed for a permit to build a six-story hotel. McSam also bought the neighboring 152-154 Delancey Street for $3.5 million.

There were $8.17 billion in closed building sales in the year's first half, with an additional $5.62 billion in sales under contract. Closed sales were down 65.1 percent compared to the same time period year, when $23.42 billion in sales closed. Most of the activity was in Midtown, with 18 properties closed or under contract and class A office selling for an average of $972 per square foot. Midtown South had 11 transactions, with class A office selling for an average of $403 per square foot. Downtown saw three transactions at an average of $405 per square foot.
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