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Chase Portfolio for Sale; Who Will Buy?

NEW YORK CITY-Setting prices on the 23 office properties in eight states won't be easy in a market with few data points, says RCA's Dan Fasulo.

By Paul Bubny | Updated on August 12, 2009

NEW YORK CITY-In what is reportedly the largest office portfolio to go to market this year, JPMorgan Chase has put 23 properties on the block, including the iconic One Chase Manhattan Plaza in Lower Manhattan. A report in Wednesday’s Wall Street Journal , which is corroborated by a source familiar with the bank’s marketing plans, says the eight-state, 7.1-million-square-foot portfolio could fetch more than $1 billion. However, it’s not clear how these assets would be valued in a market with few data points to go by, or who would ultimately buy them.

“I honestly have no idea what these properties are worth” in the current market, Dan Fasulo, managing director of Real Capital Analytics, tells GlobeSt.com. He notes that the cap rate for HSBC’s long-rumored sale-leaseback of its headquarters at 452 Fifth Ave. would probably be in the range of 8% to 9% if it goes through, “and that’s where I’d put the ballpark for these assets as well.”

At any rate, that’s where Fasulo would rank the values of One Chase Plaza and Four New York Plaza, also in the Financial District. For the others, which range from the 865,000-square-foot former Washington Mutual headquarters in Seattle to a 46,000-square-foot office property in Utah, “It’s a crapshoot. That’s one of the reasons there have been so few transactions–buyers and sellers can’t get together and agree on a price.”

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