Empire State Realty Trust Transaction Spree Set to Rage On
Tony Malkin is shuffling the deck of his property portfolio, one building at a time.
Empire State Realty Trust is marketing 1359 Broadway for sale, the Commercial Observer reported. A source familiar with the listing told the publication that the 22-story, 486,000-square-foot property could go for $225 million, which would work out to $463 per square foot.
The buyer would own the simple fee interest of the Garment District office property, which is at the corner of Broadway and 36th Street. There’s also no debt attached to the property, which could be a persuasive factor for any buyer.
The property is 95 percent leased to a tenant roster that includes SLCE Architects, Braven and recent addition Infinium Wall Systems, which just signed a 30,000-square-foot lease. Retail tenants, meanwhile, include Wolfgang’s Steakhouse and a Japanese restaurant.
A Newmark team including Adam Spies, Josh King and Adam Doneger is leading the property’s marketing. ESRT did not immediately respond to the Observer’s request for comment.
It’s been an aggressive season of wheeling and dealing for Malkin’s real estate investment trust, which has been moving to diversify its portfolio away from office buildings into areas like multifamily and retail.
Last month, the firm acquired the land beneath two Midtown properties — 111 West 33rd Street and 1400 Broadway — from developer Charles Cohen for $110 million. ESRT was already the leaseholder for the pair of buildings.
In April, Igal Namdar’s Namdar Realty Group entered into contract to buy the 540,000-square-foot office building at 250 West 57th Street from Empire State Realty Trust for approximately $280 million, a purchase price significantly lower than the $350 million ESRT had been asking for the property earlier this year.
And at the end of last year, ESRT signed a deal to buy the Scholastic Building in Soho from its namesake owner for $386 million.
Read more
Charles Cohen continues mad dash for cash
Igal Namdar buying ESRT’s 250 West 57th Street for $280M
Empire State Realty buying Scholastic Soho building for $386M
