An 11-story office building next to the High Line is being acquired by an unidentified buyer for $205 million, a further sign that the market for at least certain office towers continues to strengthen.
The price values the building at 512 W. 22nd St. at $1,184 per square foot, a bit more than the $1,127 per square foot paid last year for 625 Madison Ave. by Related Cos., which plans to build a supertall condominium tower on that site. By comparison, RFR Holding recently agreed to sell 522 Fifth Ave. for $760 per square foot to Amazon. Older office towers have sold for $400 a square foot or less in the past year, according to Cushman & Wakefield data.
512 W. 22nd was developed in 2018 by Vornado Realty Trust and Albanese Organization at a cost of $130 million, a filing shows. The 173,000 square-foot building is 100% occupied with average office rents of $115 per square foot, according to Vornado, which has a 55% stake.
Proceeds from the sale will be used in part to repay the $124 million mortgage that carries an effective interest rate of 7% and comes due next month. Vornado declined to comment, and Albanese didn’t respond to emails seeking comment.
