Vacant Hell’s Kitchen Office Buildings Sell at a Steep Discount
By Mark Hallum November 26, 2024 12:47 pm
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KRW Realty Advisors sold its two Hell’s Kitchen buildings originally known as The Hive, after pumping in millions to convert the buildings to offices but failing to attract tenants.
Blake Partners, JAM Real Estate Partners and The Straus Group acquired the renovated office buildings at 303 West 42nd Street and 300 West 43rd Street — recently rebranded as Times Square West — for $48 million, according to the seller brokers from Cushman & Wakefield (CWK).
In 2019, the developers put $80 million toward redeveloping the former industrial buildings in Hell’s Kitchen into boutique offices, which would span a total of 126,000 square feet. It’s unclear when or for how much KRW acquired the properties.
However, the renovations weren’t enough to entice office tenants to sign on to the project. While the retail component of the building is occupied by Smashburger, 7-Eleven, Little Italy Pizza and Dunkin’ Donuts, the office portion above sits entirely vacant, according to C&W. KRW put the properties up for sale in April hoping to fetch around $60 million, Bisnow reported.
“The recent renovations have transformed Times Square West into a premier destination for both office and retail tenants,” C&W’s Andrew Berry, who negotiated the deal for KRW with Charlie Gravina, said in a statement. “The fully occupied retail space… Provides a stable income stream, while the vacant office space offers significant lease-up potential as New York’s office market continues its recovery.”
It’s unclear who represented the buyers, who did not immediately respond to a request for comment. Kevin Wang, the founder of KRW, also did not immediately respond to a request for comment.
Gideon Gil and Zachary Kraft of C&W arranged for the buyers to take on the assumption of debt, which may include a $20 million loan from Wells Fargo in late 2017, according to property records.
The buildings also sit a block away from the Port Authority Bus Terminal as well as all the major subway lines with stations on West 42nd Street.
Mark Hallum can be reached at mhallum@commercialobserver.com.
