$1.8b sale of 666 Fifth Ave. breaks records--for now.

New York City's investment sales market is ending the year on a high note with the largest single asset sale in its history--so far.

Tishman Speyer Properties has negotiated a $1.8 billion contract to sell the 1.5 million square foot 666 Fifth Avenue to the Kushner Companies.

The deal comes on the heels of other groundbreaking high ticket sales, including the $1.72 billion Met Life building at 200 Park Avenue and the $1.28 billion sale of 5 Times Square just last month. The Park Avenue tower broke down to just over $600 per square foot, while 5 Times Square shattered records at $1,200 psf, the same price netted by Tishman for its trophy.

But in a market that's been sizzling for what seems to have been years, nothing is surprising brokers. "The sale price is not that novel in the context of the market," said Nat Rocott, senior vice president with Jones Lang LaSalle's Capital Markets Group.

"The joke is, brokers have been asking if this is the top of the market since 1997, and they're still wondering."

On a square foot basis, there are other trophy buildings in the city that could go onto shatter sales records but, said Rocett, it's anyone's guess if they'll go under the hammer.

"In terms of being able to achieve premium amounts, there's the GM Building, 9 West 57th Street, 712 Fifth ... very few are owned by programmatic sellers, so it is a very random thing. Everything could be sold, or nothing could be sold, who knows. But there are thousands of buyers out there."

Kusher reportedly looked at the multi-billion dollar Stuyvesant Town/Peter Cooper Village sale before opting to go after 666 in a move to put the firm back in public view after several months in the shadows amidst family controversy.

The acquisition of the 41-story s/f trophy skyscraper establishes the New Jersey based Kushner family--whose five million square feet of industrial and office space are concentrated in New Jersey and Pennsylvania--as a major player in the Manhattan office market. Other reputable properties the company owns in Manhattan include the 220,000 s/f Puck Building on Lafayette Street.

"The Manhattan office market is a logical expansion for our company," said Jared Kushner, principal. "This acquisition is an excellent opportunity for us to immediately and significantly increase our presence here."

The 41-story Class A tower is located between 52nd and 53rd street. It includes 84,855 s/f of retail space. Prestigious clients in the building include the Brooks Brothers and the NBA store. The 41st floor is home to the Grand Havana Cigar Club, an elite bar overlooking the city whose use is restricted to private members.

The building was developed in 1957 by Tishman Realty and Construction, and renovated in 1998 and 2001, the year after it was bought for $518 million by Tishman Speyer Properties and European investors, TMW.

The deal is expected to close early in 2007. The lead lender will be Barclay's Bank. Cushman & Wakefield's New York Capital Markets team, Scott Latham, Richard Baxter, Ron Cohen and Jon Caplan, handled the building's marketing. No comment was available from Tishman Speyer by press time.