Morgan Stanley Selling 2 Park Avenue to Haddad Brands for $360M
Put it in Park
By Cathy Cunningham December 16, 2024 6:00 am
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Morgan Stanley is selling its 28-story office building at 2 Park Avenue for roughly $360 million to a children’s clothing manufacturer, Commercial Observer has learned.
Haddad Brands is the buyer and will also occupy the 1 million-square-foot building’s office space, sources close to the transaction told CO.
Newmark’s Adam Spies, Adam Doneger, Doug Harmon, Willis Robbins, Joshua King and Marcella Fasulo negotiated the sale on behalf of the seller, sources said. The deal is expected to close by year end.
Haddad Brands is led by CEO Sam Haddad. The privately held family business has over 90 years of experience in apparel and accessories, creating designs for household names such as Nike, Converse, Ralph Lauren and Jordan, according to its website.
The sale of 2 Park Avenue works out to roughly $360 per square foot. If it closes as expected by the end of 2024, it would represent one of the city’s top 10 office investment sales of the year.
It also represents a big trend for recent investment sales: occupiers becoming owners of their buildings. In January, Kering — the owner of luxury brands Gucci and Balenciaga — dropped $963 million to buy 715-717 Fifth Avenue from Wharton Properties and SL Green Realty. In July, Ikea took a stake in Extell Development’s 570 Fifth Avenue for a small-format store, and in August, Uniqlo snapped up a portion of 666 Fifth Avenue from Vornado for $350 million.
The same Newmark team that worked on 2 Park Avenue negotiated the sale of Vanbarton Group’s 15 Laight Street to Hyundai Motor Group for $275 million in early 2023 and— on the West Coast— computer chip maker Nvidia’s acquisition of its office space from L.A.-based asset management firm Preylock Holdings for $374 million in March. Then, although the debt on RFR Holding‘s 522 Fifth Avenue ultimately traded to SL Green in September, several occupiers were bidders on the $224 million loan, sources said.
Morgan Stanley has owned 2 Park Avenue since 2007 when it bought the property between East 32nd and East 33rd streets from L&L Holding Company and an unknown partner for $519 million, according to a news release from the time, meaning the firm took a substantial loss. On the flip side, the transaction represents one of the highest sales prices this year for a Manhattan office building.
And, when it comes to investments, Haddad isn’t the only one putting dollars ‘in Park.’ The same Newmark team that sold 2 Park Avenue also sold Morgan Stanley’s office condo at 500 Park Avenue to SL Green Realty for $130 million last month.
Haddad Brands didn’t immediately return a request for comment. Morgan Stanley and Newmark declined to comment.
Cathy Cunningham can be reached at ccunningham@commercialobserver.com
