Brookfield in contract to buy NY REIT’s
333 West 34th for $255M

REIT's last office building, on East 61st Street, is also hitting the market

TRD New York /
Nov.November 09, 2017 07:07 PM

From left: 306 East 61st Street, 333 West 34th Street and Wendy Silverstein

Brookfield Property Partners is in contract to acquire a large office building in the Garment District for $255 million, the latest move from the seller New York REIT to liquidate its New York City holdings, The Real Deal has learned.

The 10-story, 350,000-square-foot property at 333 West 34th Street offers an additional 150,000 square feet of unused development rights. The price per buildable square foot would translate to $510.

The real estate investment trust led by Wendy Silverstein hired Cushman & Wakefield to market the last two office buildings in its portfolio. In addition to 34th Street, Cushman recently began marketing the 58,340-square-foot Interior Design Building at 306 East 61st Street. Sources said that property is expected to sell for close to $50 million, or $850 per square foot.

Brookfield, New York REIT and the Cushman team — led by Adam Spies, Doug Harmon, Josh King, Adam Doneger and Kevin Donner — declined to comment.

The 34th Street property is 100 percent leased, with tenants such as the Metropolitan Transportation Authority and consulting firm the Segal Group.

The REIT, when it was called American Realty Capital New York Recovery REIT, paid Urban Development Partners $32.8 million for the 61st Street building in 2010, and bought the 34th Street property for $220.3 million from SL Green Realty in 2013.

In recent months, the REIT has made moves to sell much of its 4.4 million square feet of office and retail holdings across the city. It is in contract to sell 1440 Broadway for $520 million. Meanwhile, it completed the sales of 245 West 17th Street for $155 million; the office condominium at 50 Varick Street for $135 million; and a stake in One Worldwide Plaza, which values the building at $1.7 billion.

The REIT opted to hang on to a 51 percent stake in One Worldwide Plaza. Also, RKF is currently marketing New York REIT’s retail portfolio, the bulk of which is located on Bleecker Street.


Related Articles

arrow_forward_ios
A federal judge issued an injunction allowing TikTok to remain in app stores. The company recently signed a major office lease at One Five One in New York (Getty; iStock; Google Maps)

TikTok, savior of NYC’s office market, not yet banned in US

TikTok, savior of NYC’s office market, not yet banned in US
The pandemic is leading to huge losses in value for hotels, malls and other commercial properties (iStock)

Troubled commercial properties see values fall 27%: report

Troubled commercial properties see values fall 27%: report
Facebook CEO Mark Zuckerberg, a rendering of the Farley Post Office building redevelopment and Vornado's Steve Roth (Credit: Getty Images, VNO)

Facebook snagged $100M discount on Farley Post Office deal

Facebook snagged $100M discount on Farley Post Office deal
Blackstone's Frank Cohen and Amazon CEO Jeff Bezos with the HQ2 site (Getty; Blackstone; Google Maps)

Amazon grows HQ2 site near DC with hotel buy

Amazon grows HQ2 site near DC with hotel buy
Rendering of the Tokyo Tokiwabashi project (Courtesy of Mitsubishi)

Mitsubishi unveils design for Japan’s tallest skyscraper

Mitsubishi unveils design for Japan’s tallest skyscraper
Charles Rettig, Commissioner of the IRS (Getty)

Opportunity Zone rule change seeks to entice foreign investors

Opportunity Zone rule change seeks to entice foreign investors
The proposal to rezone Industry City in Brooklyn was unveiled five years ago, but collapsed under political pressure (Courtesy of Industry City)

Here’s how Industry City’s controversial rezoning unraveled

Here’s how Industry City’s controversial rezoning unraveled
731 Lexington Avenue and 410 East 61st Street (inset) with Vornado's Steve Roth (Googel Maps; VNO)

Home Depot eyes former Bed Bath & Beyond space on First Ave

Home Depot eyes former Bed Bath & Beyond space on First Ave
arrow_forward_ios

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

Loading...