Two Midtown Office Buildings Hit The Market
Two Midtown office buildings, each over a hundred years old, have gone on sale amid a struggling New York City investment sales market.
Empire State Equities is offering 29 West 35th St., a 12-story, Class-B building originally constructed in 1911, for sale. Of its 85K SF, 83.5% of it is occupied, and Empire State is expecting bids up to $80M, The Real Deal reports. The firm purchased the building in 2007 for $30M, and reportedly made $3.3M in net income last year.
Meanwhile, German firm Deka Immobilien is offering 19 West 44th St., which was built in 1917 and dubbed the Berkeley Building. At 16 stories tall, 86% of its 293K SF is occupied and its asking price is around $200M, The Real Deal reports. Deka purchased the building from SL Green Realty in 2010 for $123M. Both buildings are being marketed by Colliers International.
Transaction activity in Midtown has decreased sharply from last year to this, pressured by new deliveries on the West Side like Manhattan West and Hudson Yards. Yet for office tenants, older buildings such as these can be far more cost-effective than flagship Class-A properties.