Megadeals Of 2018: The 10 Priciest NYC Investment Sales Of The Year
Although the investment sales market cooled after 2015, several blockbuster sales have positioned 2018 to be the best year since that historic peak.
Google’s purchase of the Chelsea Market was one of the most expensive building deals in New York City history, and Silverstein Properties’ and Brookfield’s high-profile purchases in the last few months have pushed up deal volume after a slow second quarter. Here’s a look at the top 10 biggest sales of the year in New York City, according to data provided by Colliers International:
Chelsea Market, 75 Ninth Ave.
The biggest sale of the year was Google’s purchase of the Chelsea Market from Jamestown for a whopping $2.4B. Before the buy, Google was already the biggest office tenant in the building, leasing 400K SF.
The sale — reportedly paid for in cash — is the second-most-expensive building sale in New York City history, behind the sale of the GM building in 2007. The deal for the landmarked property was further proof that Chelsea, the Meatpacking District and the rest of Manhattan's west side is on the same footing, in the eyes of the investment class, with Midtown Manhattan.
Times Square Hotel at 701 Seventh Ave.
Buyers: Maefield Development, Fortress Investment Group
Sellers: Winthrop Realty, Steve Witkoff and Vector Group
Earlier this year, Maefield Development agreed to buy out partners Steve Witkoff, Ian Schrager, Howard Lorber’s New Valley and Winthrop Realty Trust at 701 Seventh Ave., or 20 Times Square, for $1.5B.
Witkoff and Winthrop agreed to complete the building's construction on Maefield's behalf. The 42-story tower has a Marriott Edition Hotel with 452 rooms and is due to open this year.
666 Fifth Ave.
Seller: Kushner Cos.
Kushner Cos.’ embattled office building at 666 Fifth Ave. took on a new life in August, when Brookfield agreed to buy a 99-year ground lease on the property for $1.3B. The deal allowed Kushner Cos. to pay down much of the debt on the building, which is due in February.
Brookfield, drawn to its location, intends to renovate and re-lease the building. The Kushners paid $1.8B for the building in 2007, including the valuable retail space now owned by Vornado. The Canadian equity giant paid the rent for the ground lease up front to help Kushner escape its looming mortgage bill.
Disney/ABC's Upper West Side Campus
Buyer: Silverstein Properties
Seller: The Walt Disney Co.
Larry Silverstein’s Silverstein Cos. paid Disney $1.2B for ABC's Manhattan headquarters in a deal that closed in May, according to Colliers data. The nine sites in the sale reportedly were 125 West End Ave., 320 West 66th St., 147 and 149 Columbus Ave., 77 West 66th St., 47 West 66th St., 7 West 66th St., 30 West 67th St. and a parking lot on West 64th St.
Silverstein, the master developer of the World Trade Center complex, reportedly funded the acquisition with around $800M in loans from Deutsche Bank.
The Terminal Stores at 224 12th Ave.
Buyers: L&L Holding and Normandy Real Estate Partners
Sellers: Waterfront New York and GreenOak Real Estate Advisors
One of the biggest deals this year was the $900M sale of a former warehouse in Chelsea, which buyers L&L and Normandy plan to redevelop and reposition. The sale price is triple the last valuation of the building — which spans an entire block between 11th and 12th avenues and West 27th and West 28th streets.
Waterfront paid $12M for the building in 1983, and GreenOak bought a 49% stake in the property in 2014. Tenants like Uber and L’Oréal USA rent space there, and there is a La Colombe coffee shop on the ground floor.
Buyer: Allianz SE
Seller: SL Green
SL Green sold a 43% stake in 1515 Broadway to German insurance company Allianz SE. The building, in the heart of Times Square, is home to the "Lion King"-hosting Minskoff Theatre and the Playstation Theater, along with other retail spaces.
Viacom is headquartered in the office portion of the 1.9M SF building. SL Green retains majority ownership of the building, which was valued at more than $1.9B. The Manhattan-based REIT was able to pocket more than $400M in cash proceeds from the recapitalization.
St. John's Terminal
Buyers: Oxford Properties and Canada Pension Plan
Sellers: Atlas Capital Group and Westbrook Partners
Best known for its minority role in the Hudson Yards development, Oxford Properties is now branching out into leading a massive redevelopment of its own at St. John’s Terminal. Oxford has a 52.5% stake in the property and Canada Pension Plan, which came on as a joint partner before the deal closed, owns the rest. Earlier this month, Oxford revealed its plans to turn the three-block-long industrial property into a 12-story, 1.3M SF office building — a project expected to cost $1.3B.
4 Hudson Square
Buyer: The Walt Disney Co.
Seller: Trinity Church
Disney paid $650M for 4 Hudson Square, where it plans to build its brand-new New York headquarters. The deal gave Disney a 99-year ground lease with Trinity Church, which has controlled the land since the King of England granted it to the church in the early 18th century. While the new campus is built, Disney is leasing space from Silverstein at the Upper West Side campus it sold a few months earlier.
5 Bryant Park
Savanna closed on the sale of the 665K SF, 34-story office building, which has an alternative address of 1065 Sixth Ave., in May this year. Seller Blackstone first started marketing the property in 2016 with a $700M price tag, having picked up the building as part of a $7.2B joint venture with Trizec Properties with Brookfield.
Savanna — which secured a $463M loan from Deutsche Bank for the purchase — plans to renovate the building.
The Plaza Hotel
Buyer: Katara Hospitality
Seller: Sahara Group, Ashkenazy Acquisition Corp.
Katara Hospitality's $600M purchase of the Plaza in July saw the Qatar-owned company taking full ownership of the landmark property. The firm reportedly bought the majority stake from Sahara Group, as well as the 25% piece owned by Ashkenazy Acquisition Corp. and partner Saudi Prince al-Waleed bin Talal.
The hotel’s future had been the subject of an ongoing legal dispute. Sahara had reportedly agreed to sell it to Shahal Khan and the Hakim Organization. Ashkenazy and Saudi Prince al-Waleed bin Talal sued to stop the sale, on the grounds they had first right of refusal. After matching the offer, they pulled out and decided to sell their stake instead.