Delshah, A.M. Property Buying CitySpire for $136M

Tishman Speyer and Singapore’s sovereign wealth fund are in contract to sell CitySpire, the Plaza District office tower they put up for sale in September.

Delshah Capital and A.M. Property Holding Corporation agreed to buy the 70-story, 377,000-square-foot building at 156 West 56th Street from Tishman and GIC for $135.7 million, the Commercial Observer reported. The deal breaks down to $360 per square foot.

Newmark’s Jordan Roeschlaub and Nick Scribani are hunting for acquisition financing for the deal, which is expected to close within 30 days. A Newmark team including Adam Spies, Adam Donegar and Doug Harmon arranged the sale.

None of the parties involved in the deal responded to the publication’s request for comment.

Tishman and GIC started marketing the office portion of the property several months ago, seeking $150 million. That came five years after the partners completed a $22 million upgrade to the office condo, which is 98 percent leased. That update included an upgraded lobby, modern elevators, a new cooling system and a handful of prebuilt suites.

The offices are across 24 floors in the building, which was developed by Bruce Eichner in 1990. Eichner infamously built the tower 11 feet taller than was allowed.

Tishman Speyer acquired a 51 percent stake in the office portion in 2004, three years after GIC bought the office floors. Major tenants include the law firm Windels Marx Lane & Mittendorf, the New York Road Runners and Calers, as well as Tishman Speyer’s co-working company Studio.

Tishman also picked up the fee interest and residential portion of the property in 2012.

Rob Speyer’s firm recently emerged as the frontrunner to re-acquire the ground lease for the Chrysler Building, a Manhattan landmark it previously owned before selling its last stake in 2019. The primary obstacle to the deal is the ground rent payments to Cooper Union, which owns the land.

An affiliate of GIC and a subsidiary of the Abu Dhabi Investment Authority completed an equity investment of $1.6 billion in Vantage Data Centers’ Asia-Pacific platform near the end of last year.

Only days ago, Delshah sold the 1,103-unit Park Hill Apartments complex in Staten Island to a joint venture of Arker Companies, L+M Development Partners and LIHC Investment Group for $364.7 million.

— Holden Walter-Warner