111 Eighth Avenue hits the market for $2B

New York /
Sep.September 10, 2010 12:00 AM

September 10, 2010 09:00AM

Almost two years to the day after Lehman Brothers crashed and burned, bringing commercial real estate deals to a near-standstill, the owners of the city’s fourth-largest office building have put the property up for sale for what appears close to a pre-crisis price: $2 billion. While that figure far eclipses any other deals in the post-Lehman world of New York City commercial real estate, if any property can bring in that kind of cash, analysts say 111 Eighth Avenue may well be the one. The nearly 3 million-square-foot building, which has unobstructed views and 15-foot ceilings, is chock full of desirable tenants like Google, Nike USA, barnesandnoble.com, Sprint and Armani Exchange. Next year, it is expected to generate a net operating income of almost $100 million. The current owners, a partnership of Taconic Investment Partners, the New York State Common Retirement Fund and German investment group Jamestown, are looking to sell at least a 90 percent stake in the building. They bought it, along with three other buildings, for $387 million in 1998. “There are very few investment options in today’s market, where interest rates are at historic lows, that provide yield, safety and secure growth,” said Douglas Harmon of Eastdil Secured, who is marketing 111 Eighth Avenue. “This property provides all three, plus it’s a franchise that acts as a hedge against inflation.” [NYT]

Tags:

111 eighth avenue

armani exchange

barnes & noble

douglas harmon

 

Leave a Comment

Name:

(optional)

Email:

(optional)

Comment:

Related Articles

arrow_forward_ios
Matt Lauer exposes Hamptons estate to the market
Matt Lauer exposes Hamptons estate to the market
Matt Lauer exposes Hamptons estate to the market
 Fredrik Eklund and the property (Getty, Steve Frankel)
Fredrik Eklund lists Bel Air mansion for rent as family moves to “forever home”
Fredrik Eklund lists Bel Air mansion for rent as family moves to “forever home”
Gordon Ramsey and his Lucky Cat restaurant (Lucky Cat)
Gordon Ramsay to open first South Florida restaurant in Miami Beach
Gordon Ramsay to open first South Florida restaurant in Miami Beach
Latest fintech unicorn offers credit-score boost to renters
Latest fintech unicorn offers credit-score boost to renters
Latest fintech unicorn offers credit-score boost to renters
TRD Brand Studio: Your business, powered by The Real Deal
TRD Brand Studio: Your business, powered by The Real Deal
TRD Brand Studio: Your business, powered by The Real Deal
Marc Holliday, chairman and CEO, SL Green Realty Corp. (SL Green Realty Corp.)
Real estate bragging rights reach new heights
Real estate bragging rights reach new heights
Jason Rabin and 70 Cobb Road, Water Mill, NY (Google Maps, LinkedIn)
Southampton compound sells for $118.5M
Southampton compound sells for $118.5M
Jonathon Yormak,founder, managing principal, East End Capital; and map of 48-02 48th Avenue in Sunnyside Queens (East End Capital, Google Maps)
East End Capital bets on Sunnyside industrial
East End Capital bets on Sunnyside industrial
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...