SJP and PGIM Sell 470 Park Avenue South at Nearly $100M Loss

Steven Pozycki’s SJP Properties and PGIM Real Estate have offloaded a Midtown South office tower at a hefty loss.

Williams Equities purchased 470 Park Avenue South for $147.5 million, just shy of a $100 million discount from when the sellers bought it in 2018 from the Teachers Insurance and Annuity Association of America for $245 million, according to a source with knowledge of the deal.

The New York Post first reported the story.

Eastdil Secured’s Gary Phillips and Will Silverman represented the sellers in the deal, but declined to comment. Colliers‘s Jessica Verdi and Mac Roos as well as Williams Equities principals Michael Cohen, Andrew Roos and Robert Getreu negotiated on behalf of the buyers. 

MetLife Real Estate provided a $56 million loan for the acquisition, according to property records.

“As an ownership group that takes long-term positions, we see a window of opportunity right now to make investments that will position us well as we head into the next cycle and beyond,” Cohen said in a statement.

SJP Properties and PGIM did not immediately respond to requests for comment.

The building between East 31st and 32nd streets was formerly known as the Schwarzenbach Buildings and was home to silk and textile importers Schwarzenbach, Huber & Company from 1912 to 1932, according to the website 14to42.net. It spans 300,000 square feet, is currently about 60 percent leased, and could be around 30 percent rented out in the near future, the source said.

Despite the discount, the price per square foot in the sale was actually higher than average for the surrounding area, the source said.

Mark Hallum can be reached at mhallum@commercialobserver.com.