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Although many companies are calling for a return to the office, the commercial real estate market in major cities like New York remains volatile.
Iconic office towers once valued at hundreds of millions are taking a major hit. For example, an office building in Midtown Manhattan was just sold at a 97.5 percent discount after only a single offer was received, the New York Times reported.
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A 23-story, 85,000-square-foot building redesigned by famed architecture firm Gensler Architects sold last week for $8.5 million. The building last sold in 2006 for a whopping $332 million.
The office building at 135 West 50th Street was built in 1963 and was auctioned by UBS on an auction website called Ten-X, attracting only one bid.
“UBS' perspective was, 'We need to sell this quickly, we've accepted that this is going to be a big loss. We need to sell it and then move on,'” Ten-X President Steven Jacobs said in an interview with The Real Deal.
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Over the years, numerous companies have called the building home, including Zales and Sports Illustrated, but due to the pandemic and companies reducing office space, 65% of the space is now vacant.
The building's website touts floors ranging in size from 12,000 to 63,000 square feet, as well as entire blocks that “could serve as a building within a building for the right tenant.”
However, the sale of the building does not include the land underneath, as UBS sold it to Safehold for $285 million in 2019.
The new owner of the building has not been disclosed.
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