The Real Deal New York

BlackRock quietly shopping 600 Third

Sources say the building is worth around $400M
May 31, 2017 11:30AM

600 Third Avenue (Credit: L&L Holding)

A partnership led by BlackRock is gauging buyer interest in its office building at 600 Third Avenue.

BlackRock has a 95 percent stake in the building, and L&L Holding Company owns the remainder. BlackRock is now approaching possible buyers, Real Estate Alert reported. However, it’s not known how much of its stake the firm wants to sell.

Last year, BlackRock TRData LogoTINY and L&L hired Eastdil Secured to begin shopping a 49 percent interest in the building, an attractive stake for foreign investors because majority stakes result in significant capital-gains taxes. The stake was to come from BlackRock’s share, as L&L does not want to sell.

L&L picked up its stake in 600 Third Avenue in 2004, when it joined with GE Management to pay $212 million for the building. BlackRock bought GE’s stake in 2006, in a deal that pegged the building’s value at $315 million.

The building spans 575,000 square feet, and is worth $700 per square foot, or $403 million, Real Estate Alert reported, citing industry sources.

In 2014, chef Danny Meyer signed a 15-year lease there for his burger chain Shake Shack. The largest tenant in the building — which is nearly fully occupied — is L3 Technologies, which renewed its lease for approximately 100,000 square feet in 2015. [RE Alert]Miriam Hall

(To view more of Blackrock’s commercial sales transactions, click here)