Owner of 589 Fifth Avenue looks to sell
99-year leasehold Interest on ground and 184K sf building could be worth up to $400M: report
589 Fifth Avenue (Credit: Google Maps)
The owner of the H M-anchored 589 Fifth Avenue is looking to sell a leasehold interest in the retail-and-office building.
The owner, an entity controlled by London-based Mactaggart Family and Partners, 上海龙凤论坛sh1f is offering a leasehol阿拉爱上海同城 d interest in the 17-story, 184,000-square-foot building and a 99-year lease on the ground underneath, Real Estate Alert reported. Sources told the publication the property could be worth up to $400 million.
The property’s value is driven by the five-story, 68,000-square-foot retail portion, which is fully leased to 上海夜网 H M on a lease that runs until 2033. The 116,000-square-foot office portion is 92 percent leased.
At the $400 million valuation, the annual yield would pencil out to about 4.5 percent. Cushman Wakefield has the listing.
Retail asking rents on the stretch of lower Fifth Avenue between 42nd and 49th streets averaged $1,158 per square foot in the fall, down 8 percent from a year earlier, according to the Real Estate Board of New York.
Average Class A office rents in the Fifth Avenue/Madison Avenue submarket are slightly higher than $105 per square foot, which Cushman describes as a “relative value proposition” compared to the Plaza District. [REA] – Rich BockmannRead More
A deep dive into the inner workings of the city’s Chinese immigrant real estate market
(Illustration by Mike Quon)
Billy Zeng left his native Taishan in southern China in 1998 and moved into a rent-stabilized apartment in Manhattan’s Chinatown. Like millions of other Chinese expats who come to the United States in search of new opportunities and a different lifestyle, he didn’t look back.
Zeng, who moved to be closer to his family in New York, took a job as a building engineer and, within four years, was able to buy a $400,000 house in Bensonhurst, Brooklyn, he said. Nearly 15 years later, his daughter resides in the two-bedroom home, while Zeng remains in the same Chinatown apartment.
Sitting on a bench in Chinatown’s Columbus Park in September, the grinning man in his early 50s pulled out his phone and flicked through the Realtor.com app.
“These homes here are getting unaffordable,” Zeng told The Real Deal in Mandarin as he scrolled through a map of Lower Manhattan with a sea of red dots indicating condominiums that start at $1 million. “And these are just apartments,” he added.
In this sense, Zeng, who works with local landlords on a contract basis, is typical among New York’s growing community of Chinese immigrants — the pursuit of real estate is a major focus in his daily life.
As of 2015, there were 574,886 China-born New Yorkers, up from 483,886 in 2000, according to the latest U.S. Census Bureau data. They are the second-largest immigrant group in the city, behind Dominican[……]Read More