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Office Condos Look Like a Safe Bet Again

NEW YORK CITY--In contrast to the first half of 2009, tenants are showing renewed interest in owning their office space

By Paul Bubny | Updated on October 30, 2009

NEW YORK CITY—In common with the investment sales market in general, office condominium sales activity for the first six months of this year tanked, according to a recent report from Time Equities Inc. The sector managed just seven sales totaling 46,159 square feet and totaling $35.2 million in the first half of 2009, compared with 45 sales totaling $144.2 million in the second half of 2008. However, a pair of office condo sales in the space of a few days at the end of October accounted for nearly one-third of the six-month dollar volume and more than half the square footage.

In late October, TEI announced that it had completed the $6.9-million sale of a 15,217-square-foot office condo at its 131 W. 33rd St. to Progressive Credit Union. “Progressive’s purchase highlights the growing trend of stable New York businesses who wish to own their office space and benefit from appreciation as the market rebounds,” says Michael Rudder, director of office leasing and sales of TEI, who represented the seller along with Michael Heller. “This sale highlights the sentiment amongst buyers that the market is bottoming out and that now is the time to buy.” A.J. Camhi of Murray Hill Properties represented Progressive Credit Union, a cooperative financial institution that specializes in lending to New York City taxi medallions, in the transaction

Within that same time frame, Winoker Realty Co. represented the Elizabeth Foundation for the Arts in the $4.85-million sale of its 10,314-square-foot office condo at 323 W. 29th St. to Michael Brandon Enterprises, a menswear company. The space’s new owner will use its as a showroom and as its new corporate headquarters within the city.

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