Both Good and Bad News
The Wall Street Journal reports: Tuesday's news that a New York City skyscraper sold for about $600 million, in the city's largest real-estate transaction so far this year, holds good and bad news for the nation's largest and priciest office market.
The accord by a partnership led by developer George Comfort & Sons to buy the 47-story Worldwide Plaza from Deutsche Bank AG offers hope the deal drought might be ending. However, the price, which translates to roughly $375 a rentable square foot, means the building's value plunged 65% in just 2½ years.
According to research firm Real Capital Analytics, developer Harry Macklowe acquired Worldwide Plaza for $1.74 billion in February of 2007 -- $1.14 billion less than the new price.
Moreover, the transaction could mean big drops in rents are ahead for landlords. "At that price, [Comfort] can now afford to undercut the whole midtown market," said real-estate attorney Steven Schlesinger, of Jaspan Schlesinger LLP, who wasn't involved in the transaction. Comfort declined to comment via a spokesman.
View the full article on The Wall Street Journal: Both Good and Bad News
Posted by: Nina Turner