MHP to pay $460M for 850 Third Avenue

Seller Shorenstein bought 21-story office building in 2008 for $300M

TRD New York /
Jan.January 13, 2016 08:30 AM

UPDATED, Jan. 13, 4:15 p.m.: MHP Real Estate Services is in contract to buy 850 Third Avenue, a 614,000-square-foot Midtown East office building, for $460 million.

The seller, Shorenstein Properties, paid $300 million for the 21-story building in 2008. The property, once part of the Equity Office portfolio and briefly owned by Harry Macklowe, hit the market in early 2015.

MHP, formerly known as Murray Hill Properties, is acquiring it in an off-market deal for just over $718 per square foot. The property, located between 51st and 52nd streets, comes with a cap rate of between 3 and 4 percent, a source told TRD. A JLL team was marketing the building.

Tenants include the media companies Discovery Communications and Radio One and the city of New York.

The building was once part of the Equity Office portfolio that investor Harry Macklowe bought for $7 billion in 2007 and then famously defaulted on after the market crashed. The portfolio included the Park Avenue Tower at 65 East 55th Street and was a key part of “The Liar’s Ball,” Vicky Ward’s book on the GM Building. [NYO]Konrad Putzier

CORRECTION: An earlier version of this post incorrectly stated that the deal has already closed. 

 

Related Articles

arrow_forward_ios
470 Kent Avenue and Naftali Group’s Miki Naftali (Credit: Google Maps, Gonzalo Marroquin/Patrick McMullan via Getty Images)

Naftali closes on large Williamsburg development site for $100M

Naftali closes on large Williamsburg development site for $100M
Norman Sturner and David Sturner of MHP Real Estate Services (Credit: Getty)

Norman Sturner’s MHP lets go of more than half its brokers

Norman Sturner’s MHP lets go of more than half its brokers
JLL CEO Christian Ulbrich (Ulbrich by JP Yim/Getty Images for Women’s Forum of New York, iStock)

JLL slashes jobs in NYC capital markets group

JLL slashes jobs in NYC capital markets group
JLL CEO Christian Ulbrich (Ulbrich by JP Yim/Getty Images for Women's Forum of New York)

JLL predicts coronavirus’ impact to extend past 2020

JLL predicts coronavirus’ impact to extend past 2020
Barry Gosin, Sandeep Mathrani and Christian Ulbrich

WeWork taps JLL, Newmark to help negotiate rent relief

WeWork taps JLL, Newmark to help negotiate rent relief
JLL President and CEO Christian Ulbrich & JLL Global Chief Financial Officer Stephanie Plaines (Credit: iStock, JLL)

JLL still riding revenue wave after HFF acquisition

JLL still riding revenue wave after HFF acquisition
Glenn Tolchin and Yoav Oelsner (Credit: Jll; Getty Images)

Former JLL brokers launch boutique sales firm

Former JLL brokers launch boutique sales firm
AKS Capital Partners Managing Partners Aaron Appel and Walker & Dunlop CEO Willy Walker

Walker & Dunlop acquires Aaron Appel’s AKS Capital Partners

Walker & Dunlop acquires Aaron Appel’s AKS Capital Partners
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...