Candler Tower since 2006.
NEW YORK CITY-Paramount Group Inc. said Friday that it had sold the landmarked Candler Tower, net leased to Live Nation for its New York offices, to Epic LLC, the London- and New York-based real estate investment company headed by Steven and Michael Elghanayan. A spokeswoman for Paramount says the seller is not disclosing the price; however, industry data lists a rumored sales price of $261 million, or $1,150 per square foot, for the 228,000-square-foot office tower at 220 W. 42nd St.
“Candler Tower is a prime office asset with a globally prized address,” Albert Behler, president and CEO of Paramount Group, says in a release. “The property has performed impressively since Paramount Group acquired it in 2006. In this sale, we leveraged Candler Tower’s desirability with a profitable sale that will enable Paramount Group to further grow its national portfolio of class A office properties in the country’s preeminent business centers.” Paramount was represented in-house for the sale by Dan Lauer, VP of acquisitions.
Paramount paid $208 million in June of ’06 to acquire the Candler Tower from two non-traded REIT affiliates of what was then known as W. P. Carey & Co., Corporate Property Associates 14 and Corporate Property Associates 15. They in turn had acquired it from Cornerstone RE Advisors in November 2002 for $144.9 million, according to data from Real Capital Analytics.
Cousins of the Elgahanayans who run Rockrose Development Corp. and TF Cornerstone, brothers Steven and Michael Elghanayan have amassed a portfolio comprising more than two million square feet of commercial and multifamily properties in New York City and the UK. In 2011, they executed two deals locally, first acquiring 15 Little West 12 from Taconic Investment Partners and Square Mile Capital Management for $70 million; and then buying a quartet of small mixed-use properties from Vornado Realty Trust for $78 million.
The century-old Candler Tower, also home to the flagship Times Square McDonald’s on its ground floor, is one of a number of commercial properties developed by Asa Candler, an Atlanta druggist who paid $2,300 to acquire the formula for Coca-Cola in 1890 and grew wealthy as a result. At one time, it was the tallest building in Midtown, and was added to the National Register of Historic Places in 1982. In the mid-1990s, the tower’s fa