UPDATED: Feb. 8 2:26 p.m.: Jamestown has closed with George Comfort & Sons and Loeb Partners Realty on the purchase of a 49 percent stake in two major Midtown South office properties that reportedly valued the pair at $1.15 billion.
The properties are the 15-story, 870,000-square-foot 63 Madison Avenue, which boasts tenants such as CBS and New York Life; and the 26-story, 750,000-square-foot 200 Madison Avenue, where tenants Philips-Van Heusen, Roche BoBois, Greater New York Mutual Insurance and others make their homes.
The Wall Street Journal originally reported the potential deal.
Jamestown is a major national real estate investor, and owns various New York assets including the Chelsea Market, the Falchi Building, 1250 Broadway and One Times Square, along with a stake in Industry City.
The Atlanta-based firm is looking to pay $710 per square foot on both properties, another sign that Midtown South’s office market continues to soar in value. According to Newmark Knight Grubb Frank data, the vacancy rate in January was 7.9 percent, down from 8.5 percent in the same period in 2015. Office rents are up to $69.84 in Midtown South, NKGF said.
Real estate experts told the Journal that 63 Madison has little ground-floor retail space and has redevelopment potential.
Eastdil Secured’s Doug Harmon, Adam Spies, Adam Doneger and Josh King brokered the deal.
The sale is the first major commercial investment sales of the year.
George Comfort & Sons, partnering with ASB Capital Management, paid $43.75 million for 7 West 18th Street in the Flatiron District late last year. [WSJ] – Ariel Stulberg
Update: The story was updated to reflect the deal’s closing, and additional details on tenants at the building and brokers on the sale were added.
Source: The Real Deal