MHP to pay $460M for 850 Third Avenue

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

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
Brock Emmetsberger and B6 CEO Paul Massey (Photos via JLL; Massey via Axel Dupeux)

Veteran broker Brock Emmetsberger joins B6

Veteran broker Brock Emmetsberger joins B6
JLL CEO Christian Ulbrich, Trump International Hotel in Washington DC and Donald Trump (Getty; Trump Hotels)

JLL backs out of selling Trump’s DC hotel

JLL backs out of selling Trump’s DC hotel
JLL CEO Christian Ulbrich (Getty)

JLL says hasn’t seen “anything worth spending our…money on” after reportedly passing on Cushman

JLL says hasn’t seen “anything worth spending our…money on” after reportedly passing on Cushman
JLL CEO Christian Ulbrich and CBRE CEO Bob Sulentic (Getty; CBRE; Pixabay)

JLL, CBRE keep cutting as recovery drags

JLL, CBRE keep cutting as recovery drags
Brock Emmetsberger, Tom Gammino and Will Suarez (JLL)

JLL makes cuts to I-sales team

JLL makes cuts to I-sales team
The Vitre at 302 East 96th Street with Wonder Works Construction's Joseph Klaynberg and Daniel Klaynberg (Google Maps; Wonder Works)

Wonder Works’ UES condo being shopped at foreclosure sale

Wonder Works’ UES condo being shopped at foreclosure sale
The Real Deal founder and publisher Amir Korangy and Massey Knakal founder Bob Knakal

JLL’s Bob Knakal on the future of New York

JLL’s Bob Knakal on the future of New York
Former JLL employee sues alleging toxic “boys club”

Former JLL employee sues alleging toxic “boys club”

Former JLL employee sues alleging toxic “boys club”
arrow_forward_ios

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

Loading...