The Real Deal New York

GGP looks to sell 50% stake in 685 Fifth Ave.

REIT and partner Thor bought the building in 2014 for $460M
May 03, 2017 08:40AM

685 Fifth and GGP’s Sandeep Lakhmi Mathrani

General Growth Properties is shopping its 50 percent stake in retail and Office Building 685 Fifth Avenue, which it owns in partnership with Joe Sitt’s Thor Equities.

Both partners have options to buy the other’s stake in the 115,000-square-foot-building if one chooses to sell, meaning any buyer could also buy Thor Equities’ half, Real Estate Alert reported. The property includes 25,000-square-foot of retail space, most of which is leased out to Coach. It also includes around 90,000-square-foot of office space, most of which is vacant.

Last year, the Turkish company Gulaylar Group signed a deal to buy the office space from Thor TRData LogoTINY and GGP, but ultimately backed out of the $150 million deal and is currently suing to get its $15 million deposit back.

Thor bought the property from Gucci in 2014 for $460 million and brought GGP on as a partner.

Average ground floor rents on that stretch of Fifth Avenue average $3,484 a square foot, the highest in the city.

The Real Deal reported last year that Coach landed a hefty concession package as part of its lease at the building. [REA] — Konrad Putzier