Assets in primespots in Manhattan seem to be selling like hot cakes.
The Wall Street Journal reports that Joseph Sitt, head of Thor Equities, has just agreed to pay $277 million for a 35,000-sq.-ft. retail space at 680 Madison Avenue, on the corner of 61st Street. Vornado Realty Trust reportedly was willing to pay as much as $280 million for the asset, but its negotiations with the seller fell apart.
According to The Wall Street Journal:
Mr. Sitt said he plans to ask about $1,800 a square foot for the space—a jump from the $1,500 a square foot Mr. Barnett was asking a year ago.
Average asking rents on Madison Avenue have indeed climbed nearly 30% in the past year to more than $1,100 a square foot in the third quarter of 2012, according to the real-estateCushman & Wakefield.