A Manhattan-based real estate investment banker tellsGlobeSt.com that "this is an extremely unique asset that willtrigger huge demand from a host of domestic and global investors. Ateam of investors might be better suited to buy the property giventhat the sale price will likely be huge. I estimate that the GMBuilding could fetch roughly $3.3 to $3.8 billion today. Still,it's tough to estimate what the market will pay for this asset. Thedebt markets have radically changed since Macklowe bought theproperty. If we knew the debt structure in place on the property,we could ball-park the expected sale price much better."
Another anonymous industry source tells GlobeSt.com that this isan extremely rare deal to come up in the market twice three years;although they added that it is "not that surprising." MackloweProperties purchased the building for a record-breaking $1.4billion from Conseco Inc. in 2003, as GlobeSt.comreported.
Deborah Jackson, executive managing director of Weiser RealtyAdvisors LLC, tells GlobeSt.com that since the purchase of theproperty in Sept. 2003 for $735 per sf, the market has strengthenedfor all office product, especially for well-located trophybuildings. She points to 666 Fifth Ave., "which is a great buildingin the area, but doesn't have the appeal of the GM building." Itrecently sold for $1,238 per sf.
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