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Old Posted Jan 29, 2020, 2:02 AM
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suburbanite suburbanite is offline
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Join Date: Apr 2011
Location: Toronto
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Originally Posted by Crawford View Post
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.
I've looked at some prospective Manhattan purchases but ~$3,000 psf still seems insane to me. It doesn't even look like it's fully leased and that vacancy had to be priced into the first $909 million sale. Basically implying it's a billion dollar building at full occupancy!

I know Manhattan office leasing is tightly held by traditional brokerages so I don't really trust any public online listings, but the one with recent activity shows a decent chunk of vacant space marketed at $90 psf. There must be a much higher proportion of retail space than initially appears since the valuation is closer to what I saw for the Saks flagship store.
Discontented suburbanite since 1994
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