NEW YORK CITY—The landmark office tower known as the HelmsleyBuilding is up for sale, and industry watchers say the propertycould bring in more than $1.1 billion, according toBloomberg. The 1.4 million-square-foot skyscraperstraddles Park avenue and sits just north of Grand CentralTerminal.

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The property is being put on the market by InvescoLtd. and Monday Properties, Darcy Stacom, vice chairmanat CBRE—which is representing the owners—says. South Korea'sNational Pension Service also reportedly has a stake in theproperty.

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The Helmsley Building “is a great below-replacement-cost play, agreat value play at the most irreplaceable location you can get,”Stacom says.

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The tower may sell for at least $800 per square foot, whichwould put its value at more than $1.1 billion, according to someonewith knowledge of the offering. By contrast, in 2011, Invesco andNational Pension bought their interests in the building for at $635a square foot, Bloomberg reports. Prior to that transaction, theasset was held by a joint venture between Goldman Sachs GroupInc., GE Capital and Lehman Brothers Holdings Inc.

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Today, 230 Park Ave., is about 94% occupied and almost $200million of capital improvements have been made to the tower in the16 years that Monday Properties has been an investor in theproperty, reports CEO Anthony Westreich.

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“The building's rents are approximately 15 percent belowmarket,” he tells Bloomberg. “Bringing those rents to themarket rate will boost the cash flow and boost the valueof the building.”

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A $350 million New York Life Insurance Co. senior mortgage wastaken on the building in 2011 and matures in 2018, according toindustry data. A buyer would have the option to replace thefinancing, Stacom notes.

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The Beaux Arts tower was built by the New York Central RailroadCo. asto serve as its headquarters in the 1920s, Bloomberg reports.The building was later sold to Harry Helmsley, who renamed theasset after himself.

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Stacom reveals ideas for several possible revenue streams thatan investor in the building could create.

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The building's ground-floor retail space, which totals about70,000 square feet, could be improved and/or enlarged, she says.The tower also has a pair of arcades between the train terminal andPark Avenue, through which thousands of commuters stream daily, sothe value of signs in the passageway could be increased.

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Rayna Katz

Rayna Katz is a seasoned business journalist whose extensive experience includes coverage of the lodging sector, travel and the culinary space. She was most recently content director for a business-to-business publisher, overseeing four publications. While at Meeting News, a travel trade publication, she received a Best Reporting award for a story on meeting cancellations in New Orleans during Hurricane Katrina.