United Nations-leased Albano Building hitting the market

The UN recently inked renewal for the entire 187K sf property at 305 East 46th Street

New York /
Sep.September 15, 2017 04:34 PM

UPDATED, Sept. 29, 10:50 a.m.: The Government Properties Income Trust is looking to sell its 187,000-square-foot Midtown East building that’s entirely leased to the Union Nations, sources told The Real Deal.

The Massachussetts-based real estate investment trust just locked in the UN for a short-term renewal of all 187,000 square feet in July, after its 10-year lease expired.

The REIT has owned the 16-story Class B property at 305-311 East 46th Street, also known as the Albano Building, for six years. In 2011, it paid $114 million to the seller, Gary Barnett’s Extell Development.

Sources said it is now expected to trade for closer to $120 million or $130 million, or between $640 and $695 per square foot.

The Albano Building, located between First and Second avenues in Midtown East’s Turtle Bay neighborhood, was constructed in 1928 and became part of the UN compound that was established in the 1950s.

Sources said the REIT has recently hired Eastdil Secured’s Doug Middleton and Brett Siegel, but has not officially put it on the market yet.

Representatives for the Government Properties Income Trust and the UN could not be reached for comment.

The UN signed a lease in 2007 for the majority of the building, while the landmarked Secretariat Building at 750 First Avenue was undergoing a renovation. The intergovernmental organization ended up staying put.

The REIT, which is led by David Blackman and specializes in leasing its office buildings to government tenants, owns 50 properties in the U.S. The holding company the RMR Group manages the REIT’s properties.

Elsewhere in the UN district, the Republic of Turkey is building a crescent-inspired 35-story tower that would serve as the headquarters of the Consulate General of Turkey in New York.


Related Articles

arrow_forward_ios
Before the pandemic, national tenants paid 94 percent of rent. (Getty)

Retail rent collections rebound to 90%

Retail rent collections rebound to 90%
Cindat Capital Management CEO Greg Peng and Hersha Hospitality Trust CEO Jay Shah with 51 Nassau Street (Google Maps)

7 Manhattan hotels head to auction block

7 Manhattan hotels head to auction block
As companies leave Silicon Valley, Austin, Texas is becoming a top destination. (Getty)

Silicon Valley exodus: Where’d everyone go?

Silicon Valley exodus: Where’d everyone go?
TF Cornerstone President Frederick Elghanayan with 2-10 54th Avenue and 55-01 Second Street in Long Island City (Google Maps)

The 10 biggest new project filings in NYC

The 10 biggest new project filings in NYC
Gov. Andrew Cuomo announced that a major development surrounding Penn Station. (Getty)

Cuomo adds housing to $51B Midtown West project

Cuomo adds housing to $51B Midtown West project
Alex Sapir (Getty)

Former Sapir employee accuses company of retaliation

Former Sapir employee accuses company of retaliation
229 West 43rd Street in New York and Two Westlake Park in Texas. New York and Texas are the states with the largest exposure to loans with appraisal reductions. (Photos via iStock; Google Maps; JLL)

What appraisal reductions mean for future losses on CMBS loans

What appraisal reductions mean for future losses on CMBS loans
Cushman & Wakefield CEO Brett White, Mayor Bill de Blasio, and Donald Trump, Eric Trump and Donald Trump Jr. (Getty)

Cushman & Wakefield, NYC cut ties to Trump Organization

Cushman & Wakefield, NYC cut ties to Trump Organization
arrow_forward_ios

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

Loading...