575 Fifth Ave. Hits The Market For $400M
Beacon Capital Partners and MetLife are the latest Manhattan office owners to test investor appetite for their buildings, listing their recently renovated office tower at 575 Fifth Ave. for sale.
The office condominium spans 500K SF and is 80% leased, and Beacon and MetLife are hoping for a price north of $400M, The Real Deal reports. Beacon purchased a 50% stake in the 40-story property from Metlife in 2015, according to the publication, and the companies have spent $30M upgrading the property.
MetLife also owns the retail condo in the building, which isn't for sale. Axpo, Charlesbank and Russell Investments all rent space in the office condo, and property manager FirstService Residential inked a deal for 48K SF at the building in January.
There has been serious interest in how the office investment sales market will fare in the wake of the pandemic, as many occupiers recalibrate the future of their workplaces. There were 11 office sales for a total of $3.3B during the first quarter of this year, up from just four sales totaling $88.9M in the first quarter of 2021, per Avison Young.
In recent weeks since Q2 has begun, several other large office properties have traded hands. This week, SL Green reached a deal to buy 450 Park Ave., a 33-story, 337K SF skyscraper near Central Park, for $445M from Oxford Properties. Last month, Blackstone acquired a 49% stake in One Manhattan West, valuing the building at $2.85B.
Brookfield Asset Management and China Investment Corp. have also put One New York Plaza, their jointly owned Financial District tower, on the market for roughly $1.4B.
