MHP to pay $460M for 850 Third Avenue

Seller Shorenstein bought 21-story office building in 2008 for $300M
January 13, 2016 08:30AM

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.