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Unizo to sell Hell’s Kitchen office building for a loss
Japanese-based investor is looking at a net loss of roughly $30M across three sales
Japan-based investor Unizo Holdings is set to sell another Manhattan property at a loss.
Related Companies’ fund management arm and East End Capital are competing to buy 321 West 44th Street, Crain’s reported.
East End Capital had previously owned the 180,000-square-foot building west of Times Square and has a right of first refusal option to match any offer made by Related.
A source told Crain’s that the property is expected to sell to either one of the two parties for around $150 million. That would be a roughly $15 million loss on the $165 million Unizo spent to acquire the property in 2015.
This would be the second office building Unzio – which changed its name from Jowa Holdings – is expected to sell at a loss.
The company recently reached a deal to sell 370 Lexington Avenue to Broad Street Development for around $190 million. That’s about $57 million less than the price Unizo paid to buy the 27-story, 311,000-square-foot property in 2015.
The investor has had better luck with 440 Ninth Avenue. Unizo has a deal to sell the 400,000-square-foot office building to TH Real Estate and Taconic Investment Partners for $290 million, or about $40 million more than it paid for the property in 2013.
Across the three deals, Unizo is looking at a net loss of $30 million.
The Cushman & Wakefield sales team led by Adam Spies and Doug Harmon is marketing the properties at 370 Lexington Avenue and 321 West 44th Street, while CBRE’s Darcy Stacom and Bill Shanahan are handling the sale of 440 Ninth Avenue. [Crain’s] – Rich Bockmann