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Thor weighs selling its HQ at 25 West 39th Street

JLL hired to market 208K sf office property, which sources say could fetch $200M-plus

25 West 39th Street in the Garment District (inset: Joseph Sitt)
25 West 39th Street in the Garment District (inset: Joseph Sitt)

Amid a Midtown selling spree, Joseph Sitt’s Thor Equities is considering selling the building that houses its headquarters.

The development firm hired a JLL team to potentially market the 16-story, 208,000-square-foot Garment District office property at 25-33 West 39th Street for sale, sources told The Real Deal. The Class B building is expected to fetch north of $200 million, sources said.

Thor and its affiliates, Thor Retail Advisors and Thor Equities Residential, occupy roughly 45,000 square feet across three floors – second, 11th and 16th. But sources said Thor has no plans to vacate those floors.

Representatives for Thor and JLL declined to comment.

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Other office tenants include apparel retailer Polo Ralph Lauren, watchmaker Movado and clothing store Seven for all Mankind, according to Thor’s website.

There is 31,300 square feet in available space – across the fifth and ninth floors. The open floors have asking rents in the mid-to-high $60s per square foot, CoStar data show.

The property, located between Fifth and Sixth avenues, was constructed as a home to the Engineering Societies in 1907. After the group left in the early 1960s, it was converted into offices. Thor and the Chetrit Group bought it from Tommy Hilfiger for $53 million in 2005. The following year, Chetrit sold its interest to Thor for $80 million.

In recent months, Thor has sought to part ways with the majority of its holdings on Fifth Avenue, just half a block away from the West 39th Street building. Thor is shopping buildings at 134, 590 And 597 Fifth Avenue and the retail at 530 Fifth Avenue, which it co-owns with General Growth Properties. The firm is currently in contract to sell 693 Fifth Avenue for $525 million and the offices at 685 Fifth Avenue for $160 million.

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