Regardless of many firms issuing return-to-office mandates, the business actual property market in large cities like New York stays risky.
Iconic workplace towers as soon as valued within the tons of of hundreds of thousands are taking a serious hit. For instance, a Midtown Manhattan workplace constructing simply offered at a 97.5% low cost after solely receiving one provide, the New York Instances reported.
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A 23-story, 925,000-square-foot constructing, redesigned by the famed Gensler Architects staff, offered for $8.5 million final week. The constructing final offered in 2006 for a whopping $332 million.
The workplace constructing, positioned at 135 West fiftieth Avenue, 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 form 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 advised The Actual 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 because of the pandemic and corporations downsizing on workplace area.
The constructing’s web site boasts flooring that vary from 12,000 to 63,000 sq. ft with full-floor blocks that “may 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 offered that to Safehold in 2019 for $285 million.
The brand new proprietor of the constructing has not been revealed.
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