Paramount Group Sells Manhattan Building for $130M
- Feb 12, 2019
The Paramount Group has completed the disposition of Zero Bond St., an approximately 75,000-square-foot mixed-use asset in Manhattan. With the assistance of CBRE, the REIT sold the office and retail property for $130.5 million to a buyer identified in New York City records as Frankfurt-based Cara Investment GmbH.
Paramount had owned Zero Bond since late 2015, when the company purchased it from F.D.R. Industries for $112 million. Originally developed in 1873, the property was known as 670-674 Broadway until 2018, when Paramount completed a restoration project that included the relocation of the corner building’s lobby to Bond Street.
CBRE saw no shortage of interested buyers. “Investors were attracted to Zero Bond Street because it combined long-term cash flow with a hip NoHo location on the corner of Broadway and Bond Street, right next to NYU’s campus,” Ryan Spector, a first vice president with CBRE, told Commercial Property Executive.
Zero Bond encompasses 41,000 square feet of retail space and 34,000 square feet of office accommodations and is fully leased. The five-story property’s tenant roster features a handful of tenants, including clothing brand Bandier, social club Zero Bond and fitness center Equinox, which inked a lease for 29,000 square feet on four floors in 2015.
According to CBRE, boutique assets like Zero Bond have been a strong draw for investors over the last few years. Transactions include APF’s purchase of the 60,000-square-foot office building at 163 Varick St. for $65 million and Eretz Group’s acquisition of the 100,000-square-foot office property at 9 E. 40th St. for roughly $70 million. CBRE was involved in both transactions.
Image courtesy of CBRE