Quote:
Originally Posted by suburbanite
The price of the Coca-Cola Building can't just be for the existing asset can it? It's not very big, and at a 4% cap rate and 250,000 SF they'd have to be charging ~$150/SF net.
I don't know how heritage protection works in NYC, would they be allowed to build high-rise residential on top?
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It's for the asset. The structure is landmarked. No way could they build on top, except for maybe a small landmarks-sanctioned penthouse hidden from the street.
Most Midtown Class A buildings get north of $100 psf, and the lower (retail) floors probably get (blended) like $1,000 psf (so ground floor much higher). And these types of buildings aren't bought for amazing returns; they're a safe place for jittery money.