Minskoff Selling Stake in 101 Avenue of the Americas
The 23-story Hudson Square office tower is a magnet for life science players.
Edward J. Minskoff Equities is marketing a stake in a Lower Manhattan office building that has established itself as a magnet for life science players.
The 23-story building at 101 Avenue of the Americas in the Hudson Square neighborhood is 93% occupied, with 40% of the current leases occupied by life-science tenants.
Minskoff owns the tower via a leasehold interest and is talking to investors about selling a partial interest, according to a Green Street alert. The size of the stake is negotiable, but Minskoff is seeking to attract bids that would value the entire building at more than $250M, or $584 per SF.
Newmark is advising the firm, which has put the 428K SF building on the selling block as a recapitalization play. A buyer could assume a $200M CMBS with a fixed 4.65% coupon. The interest-only loan was originated in 2015 and matures in January 2035, the report said.
Life-science tenants at 101 Avenue of the Americas, which sits between Grand Street and Watts Street, include New York Genome Center and a life-science incubator sponsored by Johnson & Johnson known as JLABS @ NYC.
According to the marketing materials, the design of the building could accommodate conversion that would create additional space for life science companies. Amenities at the property include outdoor space on the seventh and 23rd floor.
Two Sigma Investments also is a tenant at 101 Avenue of the Americas. The hedge fund operator is headquarters across the street at 100 Avenue of the Americas. A block away, a new 1.2M SF, 22-story headquarters building for The Walt Disney Company is nearing completion at Four Hudson Square.
Trinity Church, one of the largest landowners in Hudson Square, owns the ground under 101 Avenue of the Americas. The ground lease has 65 years remaining, with yearly payments of about $2M, with 3% annual bumps.
According to Green Street, Trinity Church is entitled to receive some payment in the event of a property sale, but it is not certain that would apply to the sale of a partial interest.
Minskoff and Andalex Group developed the property in 1990, when it served as the headquarters for a local chapter of the Service Employees International Union. In 2011, the union moved out and Minskoff bought out Andalex’s stake.