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Top of the Market?

That looks like a top of the market price for the Sony Building in the heart of Manhattan's Midtown. Sure it's a trophy building near the most prime locations in one of world's best (and certainly America's top) real estate market(s). But paying $1.1 billion at a time when rents appear to have crested is a swallow hard proposition.

By Jonathan D. Miller | Updated on January 23, 2013

That looks like a top of the market price for the Sony Building in the heart of Manhattan’s Midtown. Sure it’s a trophy building near the most prime locations in one of world’s best (and certainly America’s top) real estate market(s). But paying $1.1 billion at a time when rents appear to have crested is a swallow hard proposition. 

Sporting the distinctive Chippendale crown, designed by legendary architect Philip Johnson in the early 1980s, the 37-story tower is wedged in among Trump Tower, the IBM Building, and other shadow inducing structures along comparatively narrow Madison Avenue. Indeed its views are not first rank and the building lacks the green amenities of today’s gold standard LEED office projects, which can command the highest office rents. Maybe there will be opportunities to convert street level space into high-end retail, and transform some of the upper floors into hotel rooms and condominiums, but new owner Joseph Chetrit will need to get out his checkbook again and dig deep for all the needed upgrades. 

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