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Old Posted Jan 29, 2020, 12:33 PM
Crawford Crawford is online now
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Join Date: Nov 2003
Location: Brooklyn, NYC/Polanco, DF
Posts: 22,957
Originally Posted by suburbanite View Post
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!
The retail drives the valuation. Again, this is Fifth Ave, which, alongside Madison, generally has the most expensive retail space on the planet.

Inditex (Zara parent) paid $8,300 psf for their large retail condo at 660 Fifth Ave, which is two blocks away. And the east side of Fifth typically gets slightly higher rents than west side. So the Coca-Cola deal doesn't sound unreasonable.

Chanel, BTW, paid $25,000 psf for their SoHo retail condo, and $31,000 psf for their Madison Ave. retail condo, though these are smaller condos than the Zara condo. Prime Manhattan retail spaces have incredible valuations.

Bulgari, BTW, pays $5,500 psf to lease, just a block north of the Coca-Cola building. That's insane, and makes the retail condo sales look reasonable.
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