Rockwood Capital is looking to cash out on its Midtown, Manhattan trophy office property, 2 Grand Central Tower — at a potentially hefty discount.
Gary Phillips and Will Silverman of Eastdil Secured are leading the marketing efforts in a deal expected to fetch more than $270 million, the Commercial Observer reports.
Originally, Rockwood bought 2 Grand Central for $401 million, according to The Real Deal, leaving the potential for a loss of north of $100 million. It would come after the investment manager marketed the asset for $580 million in February 2020, the news outlet further reported.
Additionally, the $260 million loan that MetLife provided to 2 Grand Central in 2018 remains in place, sources told the CO.
The property is where Rockwood's New York headquarters lie — right on the 34th floor. Some other tenants include Greenlight Capital, Banorte-Ixe Securities International, Cigna, Nuvo Group, Deerpath Capital and Cortec Group.
The 667,000-square-foot building features a two-story atrium, an outdoor plaza, 12 passenger elevators, a freight elevator and a redesigned lobby. Additionally, the site at 140 East 45th Street provides direct access to Grand Central Station, which is a half block away.
It's unclear if a buyer will pay up for 2 Grand Central, but it would join some other big Manhattan office sales this year. That's so far led by RXR, whose close to $1.1 billion acquisition of 590 Madison Avenue was the largest New York purchase in three years, The Real Deal separately reported. And last month, Tishman Speyer struck a deal to acquire 148 Lafayette Street for $105.5 million, according to the CO.
© Arc, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to TMSalesOperations@arc-network.com. For more information visit Asset & Logo Licensing.