Office Tower for Sale; Apple Store Revamped
- Jun 24, 2011
Beacon Capital Partners has announced plans to sell all or a partial stake of its office tower located in Midtown Manhattan at 1211 Sixth Ave. Beacon purchased the 2 million-square-foot building in 2006 for $1.52 billion. Roy March of Eastdil Secured, the company that will begin marketing the tower, declared in the Wall Street Journal that Beacon hopes to achieve a selling price of over $900 per square foot.
If the company sells the entire office space, the property’s value could increase as much as $1.8 billion, placing the tower on the top list of the largest-ever building deals in Manhattan, says the Wall Street Journal. News Corp., the owner of the WSJ, is the building’s largest tenant, occupying almost half the space.
According to March, approximately 175,000 square feet of leases will expire next year, so Beacon Capital hopes to increase the income by doubling the rents. These are quite high expectations, given the fact that the building’s annual income has decreased since Beacon acquired it in 2006. According to real estate research company Trepp LLC, in 2010, the building generated $77.4 million in net income, a $6.4 decrease from the net income generated in 2006.
Also in the news this week, Crain’s New York Business reports that Apple plans to spend $6 million to renovate its giant glass cube-shaped store on Fifth Avenue by creating a new employee entrance and expanding underground space. The changes were recently announced on the company’s blog and will also include removing protective bollards, installing new pavers around the cube’s perimeter, and removing and installing surrounding water drains.
The store on Fifth Avenue is part of Apple Store 2.0, a project that aims to catch the public’s attention and reinvent the company’s stores by replacing the price and information posters next to each device with electronic signboards via the iPad 2.