Wednesday, March 21, 2007

Record NYC Office Price PSF Could be Broken Soon

According to IPG/CRENews, Taconic and NY Common's sale of 450 Park should fetch $1,500 per square foot ($510 million), which would set a new Gotham record.

The 340,000-sf office is 95%-leased, with 30% of the total square footage rolling in the first two years (rents are no doubt substantially below market). The office is located at the northern tip of "Wall Street North", at 57th and Park, where rents continue to rise above the $100 psf mark.

2006 NOI totaled $13.7 million, yielding a 2.7% cap rate (!!!) at $510 million, excluding closing costs.

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