Thank you for sharing!

Your article was successfully shared with the contacts you provided.

NEW YORK CITY-The Paramount Group has acquired the 24-story Candler Tower, located in the Times Square District. The 227,685-sf asset contains a mix of office and retail space.

WP Carey & Co. negotiated the transaction on behalf of two of its non-traded REIT affiliates, Corporate Property Associates 14 and Corporate Property Associates 15, that jointly owned the property. A spokesman for Paramount Group declined to release the acquisition price; however, he did tell GlobeSt.com that the company plans to hold onto the property “adding value as needed.”

Candler Tower is located at 220 W. 42nd St., between Seventh and Eighth avenues. The entire building is triple-net leased to SFX, the primary operating entity of Live Nation, Inc. According to Paramount, the SFX lease, which expires in September 2020, is guaranteed by Clear Channel Communications. Additionally, Paramount explains that McDonald’s occupies 100% of the retail space under a sublet agreement. The site is the restaurant chain’s flagship Times Square location. McDonald’s recently invested more than $13 million in renovations to the first three floors, two of which are restaurant space.

“The property represented an unprecedented opportunity to acquire a fully leased, recently renovated class A property with guaranteed escalating rental income through 2020 at a significant discount to replacement cost,” Paramount Group president and CEO Albert P. Belcher says in a statement. “In addition, its Times Square location at ‘the Crossroads of the World,’ only made the buy that much more attractive.”

Candler Tower was built in 1912 by Asa Candler. One of the last remaining white terra-cotta skyscrapers in the city, Candler Tower was restored in the mid-1990s through a $35-million capital improvement program.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?



Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt
Live Chat

Copyright © 2021 ALM Media Properties, LLC. All Rights Reserved.