Iconic 530 Fifth Avenue Building Changes Hands for $595 Million
- Jun 21, 2014
530 Fifth Avenue, one of Manhattan’s iconic office buildings, will change ownership in less than three months.
The 26-story Class A office tower was sold this week for $595 million to Thor Equities, one of New York City’s top rated development firms, which partnered in this transaction with General Growth Properties of Chicago and RXR Realty of Uniondale, N.Y. According to an official statement from the selling group—Rockwood Capital, Jamestown, Murray Hill Properties and Crown Acquisitions which were represented in the deal by Douglas Harmon and Adam Spies of Eastdill Secured—the transaction is expected to close in mid-September.
Completed in late 1950s and designed by Voorhees Walker Foley & Smith, the limestone-clad office building spans the entire block between West 44th and West 45th Streets in the heart of the Grand Central submarket of Midtown Manhattan. 530 Fifth Avenue. Also known as the Bank of New York Building, the facility changed owners several times along its history. The Wall Street Journal previously reported that the sellers acquired the asset in fall 2011 in a $390 million transaction and later invested another $20 million in upgrades.
Thanks to its prime retail location on the world-famous Fifth Avenue, the 500,000-square-foot building is a veritable gem for real estate investors, though currently it is only 65 percent occupied, according to the Commercial Observer. The list of retail tenants includes Chase Bank, whose lease will expire in September 2025, Fossil, and Desigual which operates on a month-to-month leasing basis, while the office floors are occupied by businesses such as Massachusetts Mutual, Diageo North America, Cablevision, Lionsgate and Athyrium Capital.
The partnership led by Thor Equities is expected to ask between $1,500 and $3,000 per square foot for the street-level retail spaces to reflect Fifth Avenue’s eye-popping rents.
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Image via 530 Fifth Avenue’s website