Regardless of many corporations issuing return-to-office mandates, the industrial actual property market in massive cities like New York stays risky.
Iconic workplace towers as soon as valued within the a whole lot of thousands and 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 supply, 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, situated at 135 West fiftieth Road, was in-built 1963, and auctioned off by UBS on an public sale web site referred to 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 an enormous 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 corporations name it dwelling through the years, together with Zales and Sports activities Illustrated, although it is now 65% vacant because of the pandemic and firms downsizing on workplace house.
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 best tenant.”
Nonetheless, 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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