Worldwide Plaza will definitely look to recapitalize, following several months of lingering on the auction block. Sellers, George Comfort & Sons and RCG Longview, had purchased the building – located at 825 Eighth Avenue – in 2009 for just under $600 million.
“The truth of the matter is that they have decided on a recapitalization Read More
The West Side of Midtown has increased its presence in the commercial real estate market within the past 20 years. The market now boasts a vacancy rate below 10 percent across all assets.
“To understand this market, it’s important to view it in the context of the history of the last 25 years,” explained Mitch Arkin, an executive director at Cushman & Wakefield. “In the ’80s, the market started pushing west with the development of Carnegie Hall Tower, the Equitable Building, 787 Seventh Avenue, followed by 1585 Broadway, 1540 Broadway, 750 Seventh Avenue, Worldwide Plaza, 1745 Broadway [and] Metropolitan Tower. Those buildings all brought Eighth Avenue and Broadway north of Times Square into Midtown.”
Bids for Worldwide Plaza are coming in below the sky-high projections sellers George Comfort & Sons and RCG Longview had hoped for when the partners (finally) put the nearly two million-square-foot office tower on the market in recent weeks.
Several sources familiar with the bidding process say that potential buyers who have stepped forward have so far offered around $1.5 billion for the property, which George Comfort and its partner purchased at the depths of the recession for around $600 million in 2009.
Every August, the Manhattan real estate industry grinds to a near standstill. Yet, even during these summer doldrums, which have seemed quieter in the face of economic and political uncertainty cast by November’s presidential election, big time dealmaking is quietly percolating.
Eastdil Secured finally put Worldwide Plaza up for bid last week after months of speculation the 1.8 million-square-foot office tower would be offered for sale.
Citibank is cutting loose more space in Midtown.
After deciding to give up 230,000 square feet at 666 Fifth Avenue, the bank is offering two floors for sublease at 909 Third Avenue totaling over 60,000 square feet.
Citibank is making the 1.3 million-square-foot building’s entire 18th and 19th floors available.
Midtown is starting to matter again.
At least that’s the view to take from commercial real estate deals like Japanese financial firm Nomura Holding’s $60-per-square-foot, 20-year lease for a plush 47-story headquarters at 825 Eighth Avenue.
The arrival of a Japanese multinational at the Worldwide Plaza property embodies the roller-coaster ride of the Midtown office market over the past five years. It was bought by Harry Macklowe for $1.7 billion in 2007, only to be sold at a 60 percent discount two years later in a fire sale that saw George Comfort & Sons snatch it up for $600 million in 2009 when the building was half vacant.
Nomura is casting off space at Worldwide Plaza by not exercising rights it had to portions of the 900,000 square feet it lease at the 1.8 million-square-foot skyscraper last year.
The decision whittles away at least 160,000 square feet from the Japanese financial institution’s large deal at the property, though some sources familiar with the company said it could give back as much as 200,000-250,000 square feet.
Is he the most prolific attorney in the city you’ve never heard about?
Still, it’s possible to lose track of just how many deals Fried Frank partner Meyer Last inked in 2011. Call it the Jon Mechanic effect.
The law firm Milbank Tweed, Hadley & McCloy LLP is negotiating to renew its lease at the downtown office building 1 Chase Manhattan Plaza, sources said.
The firm occupies 375,000 square feet on several floors at the property, which is owned by the bank JP Morgan Chase. Rents in the deal were not available by press time. The lease is a change in plans for the company.
Japanese bank Nomura’s decision to move out of the World Financial Center downtown and take 900,000 square feet at Worldwide Plaza in midtown is undoubtedly a blow for the tip of the island’s commercial future. The move will leave a huge vacancy at the Brookfield Properties-owned complex just as 3 million square feet of leases there are ending in 2013. (We saw the move coming in mid-May.)
But it’s more than just the vacancy.
Nomura, the most-watched tenant on the market right now, is close to finally signing a 700,000-square-foot deal at George Comfort & Sons’ Worldwide Plaza, numerous sources told The Observer.
In almost any other scenario, we would assume that if five top brokers have all heard such news it must be true, but with so many Read More
Deloitte, the mammoth accounting firm that represents the largest tenant looking for space in the Manhattan marketplace—it’s prospecting with Cushman & Wakefield for between 500,000 and 600,000 square feet—is narrowing its search to two buildings: World Financial Center, where much of its operations are currently housed, and Worldwide Plaza at 825 Eighth Avenue, according to Read More
When Worldwide plaza was completed in 1989, the West Side conjured thoughts of West Side Story, not high-end office space.
Fast-forward 20 years, and the sale of Worldwide Plaza—the 47-story granite and brick edifice that towers above Hell’s Kitchen, spanning 49th and 50th streets and Eighth and Ninth avenues—has been 2009’s biggest New York City Read More