"Demand is very strong. There is a pent-up demand for office space," says Jon Caplan, executive director of Cushman and Wakefield's New York Capital Markets Group. "There are only a handful of Midtown trophies. It (230 Park) can draw tremendous response from a diverse group of buyers. It's an icon in Midtown." According to C&W figures, 2005 sales are on track to exceed last year's record (Last year, there was a sales volume of $15.1 billion; the prior record was $12 billion in 2001.)

Caplan notes that though, private capital has been the dominant player of late in New York City asset sales, often when the asset has such as high price tag, it's necessary for the investor to team with other capital sources. Private capital dominated the market in 2003, 2004 and 2005 year to date at 46%, 59% and 67%, respectively, of total sales volume, according to C&W statistics.

Earlier this year, the Metlife Building at 200 Park Ave. garnered the highest price ever paid for a single asset commercial property in the US. Tishman Speyer acquired the landmark for $1.72 billion. C&W marketed the site. Last week, Monday Properties, which is also the managing agent for 230 Park, formed a joint venture with Boston-based Beacon Capital Partners to recapitalize 237 Park Ave. which Monday--then known as Max Capital-- acquired in 2003 for $455 million.

One industry source tells GlobeSt.com that 230 Park Ave. has undergone approximately $45 million in capital improvements recently and asking rents are within the $50-to $60-dollar range. "It's a beautiful building and has destination cache. It should do well. Stay tuned." Estimates are that the site could command more than $600 million. The asset last sold in 1998 for $250 million.

CB Richard Ellis' Darcy Stacom and William Shanahan, executive vice presidents and partners, are marketing 230 Park Ave., also known as the Helmsley Building. CBRE officials would not comment. Office tenants include Swiss Re America Holding Corp., Bear Stearns & Co. and HSH Nordbank. On the retail side, Bobby Vans Steakhouse, Starbucks and Wachovia Bank are on the roster.

Instant Insights /

Pent-Up Demand Fuels Interest in Trophy Assets

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