Photo: COURESESY Photo
It was two years ago that 281 Park Avenue South, The Six-Storary Flemish Renaissance Building That Brought Down Scammer Anna DelveyWent on the Market for $ 135 Million – A Steep Ascing Price, But Maybe just Possible if you squinted. Interest Rates Were Still Relativly Low, and the Building Had a Trophy Tenant, Swedish Photography Museum photography, with a 15 -ear lease.
Except the Building Didn’t Sell, and Earlier This Month Photography announedd It was leaving mess than halfway into its lease. Crain reported The Building Wauld Be Listed Again, Though it’s’ Tenantless in a FAR LESSABLE MARKET for selling commercial real estate. When I Reached Out to the Owner, Aby Rosen’s RFR, the Company Had Nothing But Nice to Say About Photography and Added it is “Excited to Bring this Architectural Gem Back to Lease or Believe It Is More Valuable Now As a New User.” The listing hasn’t been circulated publicly, but it is not exactly a whisper lissting, eather. A Commercial-Real-Astate Broker I spoke with told me rfr haen shopping it around for $ 140 million, an amout the broker Found “asinine-just plain stupid.”
The Restaurant, Veronika, Was a Hit, but the verticality of the Building and the Limited EXHIBITE SPACE WERE ISSURE for photography. Photo: COURESESY Photo
“I’m Not convinced it’s evening what aby paid for it,” Says Another Broker. Rfr Bought The Building In 2014, for $ 50 million, From Its Longime Nonprofit Owner, The Federation of Protestant Welfare Agencies. The firm then poured ANOTHER $ 30 to $ 40 million ino the renovation, an ultrahigh-end oversseen by novel and Williams and Cetraruddy that Involved “Essentially Building a Building,” Acciting to One Person I spoke with. It is, by all accunts, a stunning space, with a very popular restaurant, veronika, on the second floor, an event space on the top floor, and a private-club bar in an adjacent chapel (all run by photographers). But it was not, apparently, well suited to its solent, who will shutting it down on September 29.
The Galleries, in the Middle Floors, Did Not Have the Same Soaring Ceiling Heights As the Restaurant and Chapel Bar. Photo: COURESESY Photo
The problem, it seames, is the exhibration Space, which is Spread Across the Middle Three Floors of the Building. Photo-Board-Board Chairman, Yoram Roth, Told Artnet that the 42,000-scape-fiot building has only about 7,600 Square religions of exhortation and the walls are just nine feet high, limiting the kinds of can can travel. (The Museum’s Other Locations have at Least 12,000 Square Feet of Exhibition Space and 12-Foot-High Walls.) Someone Else I spoke with the exhortation of the space is less problem than the verticality: “Ideally, it should have ben a more fluid space, but hasing the spraying out over the different floors of Balkanized. Separated from the Event Space. ”
The Chapel Bar, in a renovated chapel adjacent to the Main Building. Photo: COURESESY Photo
A broker who has done other deals in the area points out that park avenue south doesn’t get great foot -traffik, which is crucial for a museum that opened right before the pandemic. And though the building has offten been described as 45,000 Square feat, commercial-real-aestate math the usable squared is probably consider IT’S ON AN 80-BY-70 LOT, SO THAT’S 5,600 FOR FLOOR, WITH A CUTOUT ON THE BACK, ONE POINTED OUT, AND OTHER CARVEOUTS FOR Elevators and Stairs. None of that is Bad, Exactly, but it does limit the usage somewhat and makes the price ee-popping.
No one i spoke with though it is worth $ 100 million right now, let Alone $ 140 million. The Breuer Building, A Trophy Property in a Great Location, SOLD A AGO AGO FOR $ 100 MILLION AND HIGH 77,000 SQUREE FEET. “It ‘s the classic,’ it didn’t sell, let’s ask for more, ‘“ Says Jonathan Miller, CEO of the Appraisal Firm Miller Samuel. “I Can’t Speak to this Particular Building, But the Commercial-Real-Astate Market Has Seen, Acoss Mary Property Types, A Sharp Correction in Values. And that is in Manyays an understatement.”
“He”’d asking $ 3,294 per Square Foot. If you look at the premiums trophy buildings that sold recently, they’re ‘trading for $ 500 or Square Foot,” Says Adelaide Polenseli, A Commercial Broker at Compass. She pointed out that in 2021, a much better time to be off-laoding trophies, She sold 604 Fifth Avenue for $ 56.4 million, which works out to $ 2,500 per Square Foot. And that was in the plaza distribution, the most expensive retail strip in the city. Compare that to 281 Park, which one broker described to me as being in what is, “in Maryy Ways, one of the Coolest Locations in the City” but far from its pricides. “If it is on fifth avenue, the then of Worth $ 140 million. But it is not,” They Said. “There’s no universe in which this building is worn $ 140 million.”
Maybe Rosen Will Find Someone Who Wants It SO BADLY THIS JUST DON’T CARE. “USSERS”-that is, companies buying properties for their own use Versus real-aestate companies look to turn a profit off-“Have become unicorn in today’s investment sales market,” Says erik Edeen, a principal at Avison Young, “Paying Top and Strethching Top and Strethching Top. Where investors can make returns pencil. ” They’re overpaying, in other words, as Gucci arguably did when it paid Nearly $ 1 Billion for a prima avenue retail Property. But Again, Fifth Avenue.
“Nota Anna’s Paying that Kind of Money!” Another Broker Said. The Building “Has Some Pedige, But No One Is Paying for Pedigree Right Now. Everyone is looking for distress, distress, distress.” It ‘s more likes rfr will will Find a new tenant, which should will well enough for now; Photo was Said to be paying $ 100 per Square Foot. Another Museum, A Foundation, Maybe Some Kind of Luxury Retail Concept. Private Clubs Are Clearly Having a Moment – It Wold Make a Nice Home for One. “A Tenant Will Come Along Who Wants,” Says a Broker, though the pre-Covid rent may be a stretch these days. “I COULD Rent it Tomorrow for $ 75 or $ 80 per Square Foot.”
Source link
اترك تعليقاً