MTA's Pain is Midtown Investors' Gain with Madison Avenue Trio Up For Sale
New York Times reports: As the New York City’s Metropolitan Transit Authority looks to close an astoundingly large budget deficit, it has decided to dispose of three 20-story office buildings it currently owns and occupies in one of the hottest office markets in the world. It was recently announced that the MTA would look to market 341, 345, and 347 Madison Avenue, a move the Authority has previously passed up in favor of holding on to the space that sits adjacent to Grand Central Terminal and its Metro-North commuter rail operations.
The MTA is seeking $150 million for the three buildings, though the New York Times pointed out that the trio could easily sell for more given their location and value-add potential. “A buyer could demolish the three existing outdated buildings to erect a modern skyscraper, with even more potential if the new owners purchase air rights over Grand Central, which would allow them to build a tower much taller than might otherwise be allowed.
Of the remarkable Midtown Manhattan offering, Real Capital Analytics’ Dan Fasulo commented that the timing was right for such a sale, given that the real estate market has begun to show signs of life. He added that “Tenants today are asking for all the bells and whistles in new buildings,” suggesting that a new, modern office tower would be a profitable addition to the Midtown market.
View the full article on New York Times: MTA's Pain is Midtown Investors' Gain with Madison Avenue Trio Up For Sale
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Posted by: Nina Turner