Garment Center tower tipped to fetch north of $50m price

Real Estate Weekly,  Oct 17, 2007  

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A 14-story, 128,203 s/f pre-war office and retail property located at 256 West 38th Street, in the heart of Manhattan's Garment Center, is on the market for sale through Eastern Consolidated.

Eastern's executive directors Eric M. Anton and Ronald A. Solarz with directors Samuel Schneider and Daniel Glaser, and financial analyst Jared Toothman, are marketing the property, situated between Seventh and Eighth Avenues, at an asking price in the low $50 million range

According to Anton, "The Garment Center is a 'painfully obvious' location for office tenants and investors to look at, given the recent rise in class A rents throughout the City. Access to mass transit is ideal, and the stock of class B office buildings ready for redevelopment is plentiful."

"The property has 24,000 s/f of existing vacancy as well as another 27,000-square feet that will be rolling in the next year," noted Schneider. "This will allow an investor to take advantage of the strong leasing environment and substantially increase the income of the building."

Market rental rates for office space in the Garment Center are in the $35-$40 per square foot range, a viable alternative for tenants not able to afford the unprecedented highs of today's Midtown rents. The building is ideal for office tenants seeking a full floor identity, offering floor plates ranging in size from 7,058 on the 14th floor, to 9,133 square feet on are within walking distance to 14 subway lines, the Long Island Railroad, New Jersey Transit, Amtrak, PATH and the Port Authority Bus Terminal.

The building is undergoing extensive renovation of the facade, mechanicals, common areas and vacant tenant spaces. The complete overhaul of the lobby will feature double high ceilings, a waterfall and a modernized FIVAC system.

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Added Solarz, "We expect this sale to generate a flurry of intense interest because of its' desirable floor plates, proximity to transportation, immediate vacancy and near-term turnover in the Garment Center office market."

COPYRIGHT 2007 Hagedorn Publication
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