9 Times Square To Sell For $100M Loss
American Strategic Investment Co. is under contract to unload 9 Times Square for $63.5M as it plans to move beyond Manhattan.
That price is more than $100M less than the $170M ASIC, which changed its name from New York City REIT last year, paid for the office and retail building in 2014, according to property records.
ASIC CEO Michael Anderson said the company will still come out ahead.
“We expect this sale to generate approximately $13.5 million in net proceeds at closing, which we intend to use to pursue the expanded asset acquisition and diversification strategy into higher yielding assets,” Anderson said in a news release. “If completed, we expect that this strategic disposition will strengthen our balance sheet.”
The firm began marketing 9 Times Square in April. To facilitate the sale, ASIC amended the loan on the property, extending the maturity date to October.
The building’s retail base is occupied by tourist shop I Love NY Gifts, which signed a lease for three floors totaling approximately 9K SF in 2018. The sale is expected to close within 120 days, according to a Securities and Exchange Commission filing.
The company also previously said that it intends to sell 123 William St. and 196 Orchard St.
Meanwhile, ASIC is looking to backfill space at 400 E. 67th St., where Weill Cornell Medicine’s lease expired earlier this year, emptying 30K SF of lab space on the Upper East Side.
When ASIC rebranded from New York City REIT in 2023, it said it would no longer operate as a REIT but would expand its coworking business and acquire other asset classes. That includes hotels and parking lots, as well as management companies specializing in those assets.
