Commercial condo fetches high price of $1,000 per square foot
December 12, 2008 05:51PM By Adam Pincus
36 West 44th Street
Despite the economic downturn, a 1,635-square-foot, seventh-floor office condominium in the Bar Building in Midtown sold for a premium price of $1,000 per square foot.
The condo sale at 36 West 44th Street for $1.635 million by TGG Holdings to Solari Real Estate was finalized November 20 after going into contract in August, according to recently published city property records.
Gregg Roberts, a partner in TGG Holdings and president of brokerage CitySites Commercial Group, said the low supply of commercial condos kept the prices relatively high.
In 2007 and 2008 there were a number of full office buildings with sales prices above $1,000 per square foot, including the General Motors Building which sold in June 2008 for $1,466 per square foot. However since the credit crunch began in earnest in July, it appears that no buildings have traded at such a level.
"The time came to expand and New York was the place they wanted to be," said Anthony Romito, New York area manager for Italy-based Solari Corporation, which is affiliated with Solari Real Estate. He said he was not authorized to speak about the price paid for the condo.
A notable recent large transaction, the purchase by New York University of 726 Broadway for $210 million, was for much less than the 44th Street buy, at $600 per square foot.
TGG Holdings bought the seventh floor in May 2007 for $6 million, and then subdivided it into individual units, property records show. Solari will be in one unit in the front of the building facing the Harvard Club.
Ivan Hakimian, an associate broker at IPRealty, said the $1,000 per square foot price would be high even in a good market.
"That is a pretty good number," he said.
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Comments
Anonymous
There is a loss factor of roughly 33% in the building, so the person actually spent a lot more than a $1K per sf. I have to meet this guy, I have a bridge to sell him.
Comment #1 Posted By: Anonymous 12/12/08
Anonymous
This might be the only way for some office owners to avoid foreclosure. If you bought a $1B tower in 2004/5 with a 5 year loan and you're LTV was 90%. Now the building is worth only $800M and no bank is going to let you refi in 2009. Perhaps the only was to avoid foreclosure is to cut up the building and sell it off in pieces for $1,000/ft. Even if you just sell 30% of the building it might be enough to help you recapitalize the property. We'll see if this is the trend.
Comment #2 Posted By: Anonymous 12/13/08
All City Commercial
There's no comparison in price per sq ft when you compare a 1600 sq ft office condo to a 350,000 sq ft building (726 Broadway). You could get a 2500 sq ft commercial condo in LIC for $400 per sq ft.
Comment #3 Posted By: All City Commercial 12/13/08
Anonymous
ivan hakimian is da bomb!
Comment #4 Posted By: Anonymous 12/14/08