NEW YORK CITY—A 471,000-square-foot office building on 48th street—known as 866 United Nations Plaza and located between First avenue and the FDR Drive—has been converted to a commercial condominium containing office, retail, and garage uses. Office condominium specialist, Rudder Property Group, launched sales Wed. and is exclusively marketing office units at the property. The project is sponsored by an affiliate of Meadow Partners, a privately owned real estate investment and asset management firm.
Existing tenants of the building are buying up their office space, Rudder principal Michael Rudder tells GlobeSt.com. “866 United Nations Plaza is filled with long term tenants who have a deep understanding of the benefits of office ownership and they intend to purchase their space. We are discussing the pricing and terms with the tenants.”
He explains, “Converting 866 United Nations Plaza to an office condominium is satisfying an unmet demand for tenants who want an office in this area and who recognize the benefits of ownership.
“Ownership has long been a preference in the United Nations submarket. Purchasing space not only allows a tenant to lock in their occupancy costs and protects them from the always rising price of leasing in Manhattan; it allows them to avoid paying taxes if they're a tax-exempt entity. Also, for foreign organizations associated with the United Nations, the prestige of owning in this building also paints their country, as well as their commitment to the United Nations, in a very good light.”
For the past few decades, 866 United Nations Plaza has remained close to 100% leased. The property is home to the highest concentration of United Nations missions, foreign consulates, and non-governmental organizations in the city.
866 United Nations Plaza is situated at the base of two 32-story luxury residential towers that are separately owned and not part of the offering. Each floor of the building totals 78,000 square feet and is comprised of units that range in size from less than 1,000 square feet to more than 50,000 square feet. Units can also be combined to accommodate users of varying sizes.
Sale prices range from under $1 million to over $60 million. 866 United Nations Plaza is managed and operated by Jones Lang LaSalle. The building's 41,500-square-foot underground parking garage—as well as three retail condominiums with prominent frontage along First Avenue—also will be a part of the condominium offering. These units will be marketed for sale at a later date by Glenn Tolchin and Jon Caplan of JLL.
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Rayna Katz
Rayna Katz is a seasoned business journalist whose extensive experience includes coverage of the lodging sector, travel and the culinary space. She was most recently content director for a business-to-business publisher, overseeing four publications. While at Meeting News, a travel trade publication, she received a Best Reporting award for a story on meeting cancellations in New Orleans during Hurricane Katrina.
