The Real Deal New York

Brookfield pays $69M for space in Vectra’s Manhattan West holdout building

Developer has been constructing megaproject around the sole property it doesn't own

July 20, 2015 02:00PM
By Tess Hofmann

Ric Clark and 424 West 33rd Street in Midtown West

Ric Clark and 424 West 33rd Street in Midtown West

UPDATED, July 20, 2:25 p.m.: Brookfield Property Partners may be one step away from claiming the only remaining parcel surrounded by Manhattan West, its $4.5 billion megaproject on the far West Side.

The developer, based in New York and Toronto, paid $69 million to acquire Planned Parenthood’s 72,500-square-foot space at Vectra Management Group-owned 424 West 33rd Street, according to property records filed with the city Monday. Planned Parenthood had paid $34 million for the commercial condominium in 2012. Vectra still holds the title to the remaining 68,300 square feet in the 13-story building, and it’s unclear whether a deal had been struck for Brookfield to acquire that portion.

Brookfield has been constructing its U-shaped project entirely around Vectra’s property.

Vectra’s Raju Shah told Real Estate Weekly in August that “Brookfield hasn’t made an offer that we found acceptable.”

A representative from Brookfield confirmed the purchase of the Planned Parenthood condo but declined to comment further. Representatives from Planned Parenthood and Vectra did not immediately respond to requests for comment.

Brookfield’s Manhattan West development will contain three mixed-use towers, low-rise retail buildings, a public plaza and a hotel. Signed tenants include law firm Skadden, Arps and financial data firm Markit.