NorthEnd Equities, an investment firm headed by investor Charles Herzka, is set to acquire the leasehold on a 65,000-square-foot office building at 16 West 36th Street, between Fifth and Sixth avenues, the New York Observer reported.
NorthEnd made the leasehold deal for $8.2 million or $130 per foot, according to Eric Meyer, senior managing director at Colliers International, who brokered the transaction on both sides; the leasehold expires in 30 years, he added.
A significant portion of the building’s space is slated to free up this spring as leases expire, the Observer noted, giving NorthEnd the opportunity to attract new tenants and increase rent roll at the property.
“Leaseholds that stretch for 75 years or more typically trade for about the value of the property,” Meyer said. “When they start to get below 50 years their value begins to decrease exponentially, usually every decade.” [NYO]