NEW YORK CITY — Newmark Grubb Knight Frank (NGKF) announced that NGKF Capital Markets has closed the sale of 246 Fifth Avenue in New York City. HH Realty Equities, a New York-based owner and developer, purchased the 32,049-square-foot building for $19 million.
The NGKF Capital Markets team of David Noonan, Jennifer Schwartzman and Paul Gojkovich led the marketing effort preceding the sale, representing the seller, a special servicer. The previous owner lost the building through foreclosure after defaulting on a loan in a commercial mortgage-backed securities transaction.
The $19 million sale price represents a substantial recovery of the asset’s peak value of $20 million, set in 2007 at the height of the market. The property was 42 percent occupied at the time of the transaction.
“We are pleased with the pricing, and the volume of interest in this property,” Mr. Noonan stated. “We were able to show potential investors how to unlock the value in this asset, which is in a tremendous location, but needs to be re-positioned.”
Built in 1920, the building is on the southwest corner of Fifth Avenue and West 28th Street, an area north of Madison Square now known as “NoMad”. Commercial and retail activity in the vicinity includes several new upscale hotels, and the neighborhood is enjoying residential growth with nearly a quarter of a million residents living within a one-mile radius, fueling high-end residential condominium construction.
About Newmark Grubb Knight Frank
Newmark Grubb Knight Frank (NGKF) is one of the world's leading commercial real estate advisory firms. Together with its affiliates and London-based partner Knight Frank, NGKF employs more than 12,000 professionals, operating from more than 320 offices in established and emerging property markets on five continents.
With roots dating back to 1929, NGKF's strong foundation makes it one of the most trusted names in commercial real estate. Its integrated services platform includes leasing advisory, global corporate services, investment sales and capital markets, consulting, program and project management, property and facilities management, and valuation services. A major force in the real estate marketplace, NGKF serves the local and global property requirements of tenants, landlords, investors and developers worldwide. For further information, visit www.ngkf.com.
NGKF is a part of BGC Partners, Inc. (NASDAQ: BGCP), a leading global brokerage company primarily servicing the wholesale financial and real estate markets. For further information, visit www.bgcpartners.com.