Regardless of many firms issuing return-to-office mandates, the industrial actual property market in large cities like New York remains volatile.
Iconic workplace towers as soon as valued within the a whole lot of tens of millions are taking a significant hit. For instance, a Midtown Manhattan workplace constructing simply bought at a 97.5% low cost after solely receiving one supply, the New York Times reported.
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A 23-story, 925,000-square-foot constructing, redesigned by the famed Gensler Architects group, bought for $8.5 million final week. The constructing final bought in 2006 for a whopping $332 million.
The workplace constructing, positioned at 135 West fiftieth Road, was inbuilt 1963, and auctioned off by UBS on an public sale web site known as Ten-X. It acquired only one bid.
“UBS’s perspective was, ‘We have to promote this fast, we have type of made peace with that is gonna be a giant loss. We have to promote it and we have to transfer on,” Ten-X president Steven Jacobs informed The Real Deal in an interview.
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The constructing has seen a slew of firms name it residence over time, together with Zales and Sports activities Illustrated, although it is now 65% vacant as a result of pandemic and firms downsizing on workplace house.
The constructing’s website boasts flooring that vary from 12,000 to 63,000 sq. toes with full-floor blocks that “might function a constructing inside a constructing for the precise tenant.”
Nevertheless, the sale of the constructing doesn’t embrace the land beneath it, as UBS bought that to Safehold in 2019 for $285 million.
The brand new proprietor of the constructing has not been revealed.
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