In switch, Related puts Far West Side property up for sale
Listing of West 25th Street property marks departure following firm's buying binge in the area
The Related Companies is switching gears, opting to sell a Far West Side property. The company had been snapping up properties and building new buildings in and around the Hudson Yards.
The 511-541 West 25th Street parcel is listed for $160 million, and being marketed by CBRE Group brokers Darcy Stacom and Bill Shanahan. Related paid only $92 million for the 200,000-square-foot property — which holds three conjoined buildings — two years ago.
The building was purchased out of an $825 million equity pool that Related raised and used to acquire a number of buildings in the city that fell into financial trouble during the recession. The firm also picked up 225 Rector Street and One Madison Park, both in default at the time, with the funds, according to a report from Crain’s.
Now, Related is switching gears and looking to liquidate the fund — and thus lock in the profits it has garnered for investors, which include sovereign wealth funds, pensions and endowments, Crain’s said.
The property for sale is located only a few blocks south of Related’s Hudson Yards project, which will ultimately house millions of square feet of commercial and residential space. [Crain’s] — Julie Strickland