The Real Deal New York

Shorenstein looks to sell 850 Third Avenue

JLL marketing 614K sf Midtown East office tower, which was valued at about $300M in 2008
By Hiten Samtani | March 19, 2015 06:23PM

Shorenstein Properties is putting 850 Third Avenue, a 21-story Midtown East office tower spanning just under 614,000 square feet, on the market, The Real Deal has learned.

Through its $2.1 billion real estate fund known as Fund Nine, Shorenstein acquired a 93.4 percent stake in the entity that owns 850 Third and Park Avenue Tower — at 65 East 55th Street —  in 2008 for a combined $930 million.

At the time, 850 Third, which is located between East 51st and 52nd streets and was once known as the Western Publishing Building, was valued at north of $300 million. Both properties were part of the Equity Office portfolio in New York. Harry Macklowe bought seven buildings in the portfolio at the height of the market in 2007 for a whopping $7 billion, but then famously defaulted on them.

A JLL team is marketing the building, according to sources. Representatives for the firm could not be reached by press time.

Media firm Discovery Communications occupies more than 165,000 square feet at the Emery Roth & Sons-designed building, which is over 90 percent leased, according to CoStar Group data. Other tenants include the City of New York and Radio One. The property was last refinanced in August with a $170 million loan from MetLife.

Representatives for the San Francisco-based Shorenstein declined to comment. The investment firm is in contract to purchase the ground lease at 1407 Broadway for $330 million, as TRD reported.