Shorenstein looks to sell 850 Third Avenue

JLL marketing 614K sf Midtown East office tower, which was valued at about $300M in 2008

TRD New York /
Mar.March 19, 2015 06:23 PM

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.

Related Articles

(Illustration by Oivind Hovland)

Why HFF has been muscling out some of JLL’s top producers

JLL CEO Christian Ulbrich (Credit: iStock)

JLL revenue skyrockets after HFF merger

WeWork co-CEOs Artie Minson, Sebastian Gunningham and Jones CEO Omri Stern (Credit: LinkedIn)

WeWork is investing again with fundraise for proptech

Jackson Park at 28-40 Jackson Avenue and Tishman Speyer's Rob Speyer (Credit: StreetEasy and Tishman Speyer)

Tishman Speyer locks in $1B in financing for Jackson Park

An aerial of 469 President Street, 473 President Street, 514 Union Street (Credit: Google Maps)

Avery Hall Investments buys Gowanus development site for $44M

70 Pine Street and Goldman Sachs chairman Lloyd Blankfein (Credit: Wikipedia and Getty Images)

Goldman Sachs refis Art Deco apartment conversion at 70 Pine with $386M loan

Jonathan Schwartz and Aaron Appel

Aaron Appel leaves JLL to launch own firm

Tom Brady (L) and Gisele Bundchen arrive at the 2018 Met Gala on May 7, 2018, at the Metropolitan Museum of Art in New York. (Angela Weiss/AFP/Getty Images)

Tom Brady, Gisele home shop in suburbs, North Jersey industrial site sells for $66M & more Tri-State real estate news