The owner of an office tower in New York — specifically, Manhattan — recently sold the property for a minimum of $300 million. Apparently, the company that sold the tower is based outside of the United States and is laden with debt. The conglomerate has been on the search for commercial real estate buyers globally.
An investment firm purchased the tower located on Sixth Avenue. It spans more than 398,000 square feet. The conglomerate that sold the company first started to look for a purchaser for the property in early 2017. It purchased a 90 percent stake in this property back in 2011, with the deal at that time valued at $274 million.
The founding principal of a real estate service company held the remaining 10 percent of the office tower. He reported that the conglomerate, however, had recently purchased his stake in the property. The foreign company has been trying to sell properties valued at over $6 billion worldwide, including in San Francisco, Minneapolis and Chicago, in an effort to repay its debts. Years ago, the company was in a completely different position: It was a voracious hunter of trophy assets around the world.
It appears that the recent New York commercial real estate transaction went smoothly. However, not all of these types of deals do. Unfortunately, a seemingly minor hiccup can lead to the loss of a potentially lucrative deal altogether for the seller. A qualified real estate attorney can provide the guidance needed to navigate and complete a deal in the most personally favorable manner possible.
Source: crainsnewyork.com, “HNA is said to sell NYC office tower for at least $300 million“, Feb. 16, 2018