Chetrit, Levy put 620 Sixth up for grabs

June 08, 2011 05:58PM

A partnership of Joseph Chetrit, Yair Levy and Charles Dayan is looking to unload 620 Sixth Avenue, and according to the Observer, the nearly 800,000-square-foot mammoth anchored by Bed Bath & Beyond could fetch around $500 million in a sale. The landlords purchased the Chelsea property for $289.8 million in 2005, taking out a $235 million mortgage that they nearly defaulted on in the years following. But if recent blockbuster sales in the area are any indication ($900 million for the Starrett-Lehigh Building and $2 billion for 111 Eighth Avenue), it looks like they have a good chance of cashing in. For a buyer, the building appears to have significant upside, to boot. There are 250,000 square feet of additional development rights atop the existing structure, plus 75,000 square feet at an adjacent site that is zoned to allow for hotel development. Meanwhile, 620 Sixth Avenue‘s top two office floors, which offer 170,000 feet of contiguous space, are vacant, and one-third of the retail space is currently rented at below market rate (besides Bed Bath, retailers include Marshall’s and TJ Maxx). Douglas Harmon of Eastdil Secured has nabbed the listing. [NYO]