"We expect strong buyer response for this rare and flexible repositioning opportunity," says Vincent Carrega, executive managing director at Grubb & Ellis, in a release. Carrega says 555 Sixth "benefits from its proximity to an abundance of outstanding restaurants and top tier retailers as well as all the other amenities associated with Chelsea and the Flatiron District. Its location near Union Square and the fact that the property abuts a subway entrance provides great access to public transportation."
The six-story elevatored building, which occupies a blockfront between West 15th and West 16th streets, contains a total of 178 studio, one-bedroom and two-bedroom apartments, along with a 90-car parking garage and 27,585 square feet of commercial space. Excess development rights of more than 64,000 square feet are included with the offering, the release states.
St. Vincent's, which filed for bankruptcy two weeks ago, used 555 Sixth to house employees and other affiliated residents. The property will be delivered vacant with the exception of three residential tenants and an operating agreement for the parking garage, which may be terminated as of May 31, 2012.
According to court documents, TIP Acquisitions LLC, an affiliate of Taconic Investment Partners, is setting the floor at a court-supervised auction with its $48-million offer. Grubb & Ellis will be conducting the sale of the property on an "as is" basis according to bidding procedures to be approved by US Bankruptcy Court in Manhattan.
Carrega is marketing the property with colleagues Neil Helman, senior managing director, and Yoav Oelsner, EVP. Grubb & Ellis EVPs Jon Epstein and Charles Kingsley will also support the marketing effort. A spokeswoman for Grubb & Ellis did not respond by deadline to GlobeSt.com's request for additional details.
The marketing of 555 Sixth is unrelated to Rudin Management's redevelopment plan for properties surrounding St. Vincent's main campus in Greenwich Village, which has been in the works since 2007. When St. Vincent's announced earlier this month that it was closing its landmark inpatient facility, Rudin president William Rudin told GlobeSt.com that his company remains "committed to working with all of the stakeholders to come up with a viable alternative plan to create an appropriate healthcare facility and to continue with the development on the east campus."
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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.
