In interview, Prudential Real Estate chief reflects on 11 Times Square investment

TRD New York /
Aug.August 29, 2012 09:30 AM

The lead investor in SJP Properties’ $1.2 billion 11 Times Square admitted it overestimated the long-term strength of the market when it backed the struggling office tower (note: clarification appended). In an interview with the New York Times, Prudential Real Estate Investors CEO J. Allen Smith said there was no way he expected the property to be just 40 percent leased three years after opening. “If we had known it would go on this long, we probably wouldn’t have done it,” he said.

Smith attributed the property’s struggle to an office leasing market that is dominated by renewals. He appeared to take comfort from the fact that the building wasn’t regularly losing out to other big blocks of spaces because of faulty pricing. He also indicated that because of the support of his firm, which invests some $50 billion in real estate, the debt level is “manageable” and under 50 percent on the property.

The 1.1 million-square-foot office tower officially opened for leasing in November 2008 and signed law firm Proskauer Rose to 406,000 square feet in May 2010. It also added Zukerman Gore Brandeis & Crossman to 17,144 square feet one year later. Things have looked up for the building of late as it signed a tenant for half of its 55,000-square-foot retail space this past May and is said to be in talks with Microsoft for an office lease. [NYT]Adam Fusfeld


Related Articles

arrow_forward_ios
Clockwise from top left: 37 Perry Street, 595 Broadway, 1424-1428 Lexington Avenue, 204 Fourth Avenue and 93 North Ninth Street (Credit: Google Maps)

Gowanus trade biggest of six mid-market investment sales this week

Clockwise from left: 2 East 55th Street, 25-25 Borden Avenue and 91 Ludlow Street (Credit: Google Maps)

Here’s what the $10M-$30M investment sales market looked like last week

1890 Lexington Avenue and 22 St. Marks Place (Credit: Google Maps)

Here’s what last week’s $10M-$30M investment sales market looked like

From left: 254 Water Street, 45-01 Northern Boulevard and 34-08 46th Street (Credit: Google Maps)

Here’s what the $10M-$30M investment sales market looked like last week

From left: 305 East 47th Street and 286 River Avenue (Credit: Google Maps)

Here’s what the $10M-$30M NYC investment sales market looked like last week

Clockwise from top left: 2-34 Beach 102nd Street in Far Rockaway, 175 Canal Street West in Mott Haven, 102 Fulton Street, and 71 Smith Street in Boerum Hill (Credit: Google Maps and StreetEasy)

Here’s what the $10M-$30M NYC investment sales market looked like last week

145-65 Wolcott Street in Brooklyn, 3428 Park Avenue in the Bronx and 20 East 35th Street (Credit: Google Maps)

Here’s what the $10M-$30M NYC investment sales market looked like last week

Fire, flood and profit: Real estate investors are chasing crises

Fire, flood and profit: Real estate investors are chasing crises

arrow_forward_ios