Search
 

650 Madison Sale Confirms Trophy Strength

NEW YORK CITY-Although Ashkenazy's reported $695-million price is below an earlier estimate, sources don't see a downward trend in trophy pricing.

By Marita Thomas | Updated on February 14, 2008

NEW YORK CITY-According to multiple sources, Ashkenazy Acquisition Corp. has agreed to pay $695 million to Hiro Real Estate Co. for 650 Madison, the 27-story 600,000-sf office trophy at that address. The price translates to $1,185 per sf, the highest price for a Manhattan trophy this year, but as much as $148 per sf, or a total of $105 million less than the estimated selling price at the end of 2007.

A call to Ashkenazy was not returned by deadline and a call of Hiro was directed to the office of John Kenyon at JP Morgan, who heads the team recruited by Hiro to market the property. A spokeswoman for JP Morgan tells GlobeSt.com, “the property is not sold, but it is under contract.” She declined to disclose the price or buyer.

The drop in price from year-end 2007 to the start of this year caused speculation in some quarters that the credit crunch is depressing the value of trophy Manhattan office properties. Not so, says Deborah Jackson, executive managing director of locally based Weiser Realty Advisors. “No one deal makes a market, even though the price on that deal declined.”

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

NOT FOR REPRINT

© 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.

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2024 ALM Global, LLC. All Rights Reserved.