NEW YORK CITY-Clarion Partners LLC is reportedly in contract to acquire the 100-104 Fifth Ave. office tower for $225 million, which is more than double the price the property traded for three years ago.
The New York City-based real estate investment funds manager is in contract with the ownership, which includes the Kaufman Organization and Invesco Ltd., which purchased the 108-year-old, 17-story building for $93.5 million in 2010, according to Bloomberg News. The building, adjacent to Union Square, totals 270,000 square feet.
The deal values the building at more than $800 a square foot, a price which only few properties have achieved since the real estate crash, says Ben Thypin, director of market analysis for New York-based research firm Real Capital Analytics Inc. “Employers want to be in midtown south because their employees want to be there,” he says. “As a result, employers are willing to pay significantly higher rents in midtown south than they have historically and, in turn, the anticipation of further rent growth makes midtown south an attractive place to buy property.” See story at Bloomberg News.