NEW YORK CITY—RFR has hired Eastdil Secured to market 757 Third Ave. following the Grand Central District office property's successful repositioning. The owner expects valuations of more than $800 per square foot on the 500,000-square-foot property from potential buyers among the institutional and international investment communities, a ballpark figure that would value it at upwards of $400 million.
Aby Rosen, RFR's co-founder and principal, says his company has transformed 757 Third into “a compelling alternative for tenants seeking quality space near Grand Central at competitive prices, and thereby enhanced asset value tremendously. At the same time, there should be further opportunity for new ownership to grow rents as leases roll.” He calls the repositioned tower “an outstanding property that should see significant interest from institutional and sovereign investors.”
RFR paid $102 million to acquire the 27-story 757 Third from Emmes & Co. LLC in 1999. Since then, it has been re-made and re-tenanted, with $21 million spent on capital improvements since 2012. Within that same 24-month period, nearly 400,000 square feet of new leases and renewals has been signed, including Grant Thornton's new long-term commitment to 136,837 square feet earlier this year.
On the retail side, CVS Health recently leased 12,204 square feet of space. The property is now 98% leased, with a weighted average term of seven years remaining. Completed in 1963 and extensively renovated in 1985, then subsequently upgraded further still under its current ownership, the tower was designed by Emery Roth & Sons.
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