(For more retail coverage, click GlobeSt.com/RETAIL.)
NEW YORK CITY-An affiliate of Ponte Gadea SL acquired a 38,000-sf retail condominium space on 59th Street for $107.5 million. The seller was the UJA Federation of New York. It marks the Spanish-owned international real estate holding company's first acquisition here.
The space is located on the ground, cellar and second-floor levels of UJA-Federation's headquarters building. The retail space is leased to Gap Inc., which next month will open new Banana Republic and Gap stores there to replace smaller stores that had been located at 59th Street and Lexington Avenue for more than 20 years.
"The current interest rate environment combined with high demand for retail properties, particularly in Midtown Manhattan, makes this an excellent time to sell," says Morris. W. Offit, president of UJA-Federation. As part of the process of renovating the building the amount of space that was devoted to retail use. "By selling the retail space, which comprises less than 15% of the total building, we were able to monetize the most valuable part of the building, thereby diversifying our investments."
Proceeds from the sale will become part of UJA-Federation's endowment. The three-month process to determine the value of the retail space was conducted by Eastdil Realty, which approached over 900 domestic and international investment groups and conducted two rounds of bidding.
This is the second major retail condo sale this year. In March, Vornado Realty Trust acquired the 17,000-sf retail condominium portion of the former Westbury Hotel for $113 million.
Want to continue reading?
Become a Free ALM Digital Reader.
Once you are an ALM Digital Member, you’ll receive:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
*May exclude premium content© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
