Printer Friendly
The Free Library
23,403,340 articles and books


High-tech Chelsea building is expected to fetch $300m.

After selling 85 Tenth Avenue to Level 3 Communications four years ago and then buying it back two years later, Angelo Gordon, of Belvedere Capital, and partners, Irwin Cohen and Young Woo Associates, are again selling the building.

This time, they'll get to the ride a trend of big values in the neighborhood, including the $775 million sale last year of nearby 111 Eighth Avenue and the $280 million sale two years ago of Chelsea Market, and expect bids upwards of $300 million for the high-tech building..

Eastdil's Douglas Harmon--who brokered the sale of 111 Eighth and Chelsea Market as well as the sale two years ago of 85 Tenth--will fittingly broker this transaction, the bidding for which is expected to begin this week.

Harmon called the 15-story, 600K s/f building a near perfect asset because of its amenities, superior leasing, excellent light and air, as well as its location in a burgeoning Westside corridor.

"I think we're going to get a lot of attention from patient institutional money," Harmon said. "This building has such solid cash flow, about 60% of it is leased to credit worthy tenants for 15-20 years."

85 Tenth Avenue's diverse occupants include L3 Communications, backup facilities for Lehman Brothers, and governmental tenants. Chefs Mario Batali and Tom Colicchio are both opening restaurants on the building's ground floor.

Harmon indicated that the short term leases in the nearly fully occupied building offer a potential upside for buyers eager to cash in on continually improving fundamentals.

Although the property was originally a manufacturing facility for Nabisco, whose Oreo cookies were made on the premises, 85 Tenth has undergone significant renovation and is now known as a high tech building. According to Harmon, as part of a $150 million renovation L3 outfitted the building with extensive Internet capability and onsite backup power generators. During the blackout, the building was alight and experienced no interruption of electricity.

"There is going to be not just national but worldwide interest in this asset," he said.
COPYRIGHT 2005 Hagedorn Publication
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 2005, Gale Group. All rights reserved. Gale Group is a Thomson Corporation Company.

 Reader Opinion

Title:

Comment:



 

Article Details
Printer friendly Cite/link Email Feedback
Author:Geiger, Daniel
Publication:Real Estate Weekly
Geographic Code:1U1MA
Date:May 4, 2005
Words:335
Previous Article:Kent Swigg, Man of the Year.
Next Article:Cash-strapped MTA to sell $1b portfolio.
Topics:



Related Articles
Hi-tech business parks in NJ remain active.
Alchemy Properties buys 129 W. 20th.
Onsite brings services to East Orange.
Trends, emerging neighborhoods and predictions: snapshot of Manhattan's real estate sales market.
Home buyers pioneer new neighborhoods.
RKF negotiates Five Points deal.
Cookie building's sweet deal.
A garden blooms in Chelsea.
Luxury tower offering 24,000 s/f of space in latest 'it' spot.

Terms of use | Copyright © 2014 Farlex, Inc. | Feedback | For webmasters