According to Crain's, the deal was contingent in part on NBC Universal committing to a sizeable space at Worldwide Plaza, located at 825 Eighth Ave. Reports have put the network's consolidated space needs at more than 600,000 square feet. Instead, NBC has leased interim space at 75 Rockefeller Plaza and other Midtown properties, and has not announced a permanent location for the consolidated operations.
Quoting unnamed sources, Crain's says the two properties are expected to bring a price closer to $1.2 billion. A source at Eastdil Secured, which is marketing the properties for Deutsche Bank, tells GlobeSt.com the company does not comment to the press. Calls to George Comfort & Sons were not returned by deadline.
Deutsche Bank and other lenders took over control of the seven-property EOP portfolio in February after Macklowe Properties defaulted on short-term loans. Macklowe had bought the portfolio for $7 billion in 2007.
Since then, five of the seven properties have sold, for a total considerably less than Macklowe Properties paid for them. In June, Boston Properties closed on the GM building for a reported $1.9 billion. The Boston-based REIT closed on 540 Madison Ave. and Two Grand Central Tower on Aug. 13, paying $705 million. A day later, Boston Properties closed on 125 W. 55th St. for $444 million. That same day, the Paramount Group closed on 1301 Ave. of the Americas for $1.45 billion. In September, Mitsui Fudosan acquired 527 Madison Ave. for $225 million and Chicago-based Transwestern purchased 126 E. 56th St. for $160 million.
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Paul Bubny
Paul Bubny is managing editor of Real Estate Forum and GlobeSt.com. He has been reporting on business since 1988 and on commercial real estate since 2007. He is based at ALM Real Estate Media Group's offices in New York City.
