NEW YORK CITY—Sherwood Equities and joint venture partner J.P. Morgan have put a Midtown East class A office building on the market. Spanning more than 310,000 square feet of space and 98% leased, 370 Lexington Ave. could fetch a $300 million purchase price, according to industry sources. The property is being marketed by HFF and is said to be best suited to small tenants.

It provides stable diversified cash flow but also features upside opportunities as 57% of the rent roll is scheduled to expire within the next three years, allowing the purchaser to capitalize on surging office rents in New York, according to HFF. More than 90% of the building has been pre-built to a high level of finish resulting in significant rent premiums, while also maintaining a significantly above market retention ratio.

“There's some very interesting and completely unique spaces in the basement and subbasement and a creative developer/owner might come up with some interesting ideas how to maximize value with the space that no one ever paid attention to improving before,” HFF senior managing director Eric Anton tells GlobeSt.com EXCLUSIVELY.

I spent the majority of my career directly in this Grand Central submarket, on Lexington Avenue and in the Pan Am/Met Life building; I think the area's convenience to transportation and its ability to provide quick access to all of Midtown is unparalleled,” he continues. “With the coming 1.6 million square feet of SL Green's tower at One Vanderbilt, these elegant properties surrounding Grand Central will be in even more demand.”

Grand Central Terminal is one of the country's most highly trafficked transportation hubs with more than 750,000 daily visitors, a number that is expected to double with the planned extension of the Long Island Rail Road to the station in 2019. The property benefits from proximity to the Park Avenue corridor, Bryant Park, Midtown South, the United Nations, and the First Avenue medical corridor. Surrounded by a variety of economic drivers, the Property has a diverse tenant roster of professional services, TAMI, United Nations, and FIRE users.

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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.

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