Monday 23 October 2017

New York office block for €330m

New York office prices are surging
New York office prices are surging

Sarah Mulholland

Developer Scott Rechler's RXR Realty is putting 61 Broadway on the market, just 16 months after acquiring the office tower in lower Manhattan's financial district.

RXR, which paid $330m for the 790,000-square-foot (73,000-square-metre) building in May 2014, is looking to sell the property for about $450m, according to people with knowledge of the plans.

Rechler didn't immediately return a call or e-mail seeking comment on a potential sale.

Investor demand has pushed New York City commercial property values past the records set during the prior boom.

Rising rents in lower Manhattan are a draw for prospective buyers. In August, the average office rent for downtown was 16pc higher than a year earlier, brokerage CBRE said.

RXR is being represented by a team of brokers at Jones Lang LaSalle. Tenants at 61 Broadway, built for the Adams Express Co. in 1914, include securities firm Samuel A. Ramirez & Co. and architecture firm Bjarke Ingels Group, creator of the new design for 2 World Trade Center.

RXR owns about $10bn of real estate throughout New York, New Jersey and Connecticut, including the Helmsley Building on Manhattan's Park Avenue.

The firm acquired the iconic tower in May after selling a roughly 50pc stake in New York-area office properties worth $4bn to Blackstone Group earlier this year

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