The Real Deal New York

New York REIT shopping four office buildings as one large package

If sold as portfolio, Twitter HQ and other properties could fetch combined $700M: sources
By Mark Maurer | June 28, 2017 12:57PM

From left: 245-249 West 17th Street, 218 West 18th Street and Wendy Silverstein

As part of a $2.8 billion liquidation, New York REIT TRData LogoTINY is looking to sell four of its remaining assets as a single package spanning about 750,000 square feet, sources told The Real Deal.

The real estate investment trust expects to sell the four office buildings in Chelsea and the Garment District for a combined $700 million, sources said. The properties could still sell individually, sources added.

The package consists of the Twitter-anchored 245-249 West 17th Street; 218 West 18th Street; 229 West 36th Street and 256 West 38th Street. The REIT bought the properties for a combined $560.5 million between 2012 and 2014, including $335 million in 2014 for the 119,000-square-foot building on West 17th Street.

Office investment sales deals average $1,000 per square foot in Chelsea and $600 per square foot in the Garment District.

Twitter subleased 24,000 square feet of its 140,000-square-foot spread on 17th Street to Major League Baseball in October. The 18th Street building is best known as Red Bull’s New York headquarters.

A Cushman & Wakefield team led by Adam Spies and Doug Harmon is marketing the buildings.

The brokers declined to comment, and a representative for New York REIT could not be immediately reached.

The REIT is aiming to liquidate its 3.3 million-square-foot office-and-retail portfolio by late March 2018. Wendy Silverstein was appointed its head in February to oversee the liquidation.

Eastdil Secured and CBRE are jointly marketing the 1.8 million-square-foot One Worldwide Plaza – as well as the 756,000-square-foot 1440 Broadway. Eastdil is also marketing the Viceroy Hotel on West 57th Street, and RKF was recently retained to handle the retail holdings. CBRE was tapped to market the parking garage at the base of the Centurion condominium building at 33 West 56th Street.

(To view more of New York REIT’s commercial sales transactions, click here)