The Real Deal New York

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
By Mark Maurer | Twitter_logo_blue copy November 09, 2017 07:07PM

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 and 218-220 West 18th Street for $515 million; 256 West 38th Street and 229 West 36th 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.