The folks at Clarion Partners may be ready to sink their sorrows in a Thanksgiving turkey after selling an office building for less than half of what they paid to acquire it.
Clarion sold 114 West 41st Street near Bryant Park for $133 million, the Commercial Observer reported. The buyer was a trio of firms: AM Management, Eyn Holding and Axonic Capital.
The deal for the 350,000-square-foot building — which closed on Tuesday night — breaks down to $380 per square foot. That’s a 53 percent discount from the $282 million — and $800 per square foot — Clarion doled out to acquire the property from EQ Office in 2018.
At the time of the deal, which was financed with a $141 million loan from MetLife, the property was a darling of the TAMI tenant movement. Tenants included Roku, VTS and Guess. That financing is remaining in place under the incoming ownership.
Eastdil Secured’s Gary Phillips, Will Silverman and Jeff Organisciak advised the seller. All involved companies either declined to comment or did not respond to requests to comment.
The century-old, 22-story building between Sixth Avenue and Broadway and West 40th and 41st Streets was renovated in 2015. Tenants include Quartet Health, AI platform Snowflake, Demandbase, MediaRadar and French bakery Maman, which occupies retail space at the building’s base.
Despite the conversion boom taking hold in Manhattan, there are no plans to turn the property into a residence.
This isn’t the only tough situation Clarion is facing.
The developer and Alchemy Properties are in danger of foreclosure at 209-211 East 43rd Street, a 24-story, 211,000-square-foot property only a block from Grand Central Terminal. A Miami-based plaintiff filed a lawsuit in Manhattan Supreme Court against a limited liability company with apparent links to a venture between the two owners, alleging default on a $57 million loan.
Elsewhere around Bryant Park, Salesforce recently added 71,000 square feet to its footprint at La Caisse’s 3 Bryant Park.
— Holden Walter-Warner
Read more
Clarion Partners buys Bryant Park-area office building from EQ Office for $282M
Clarion, Alchemy face foreclosure on office near Grand Central
Salesforce adds 71K sf at 3 Bryant Park
