It’s quite an unusual move! Swiss bank UBS, along with its brokers at JLL, has listed a nearly 1 million-square-foot Midtown office building at 135 West 50th Street for sale on the online auction platform Ten-X. Here are the key details:
- Building: The 920,000-square-foot property is a Class A building constructed in the 1960s.
- Ownership: UBS owns the property through a long-term leasehold, while Safehold owns the ground underneath the building.
- Renovation: The building recently underwent a $76 million renovation.
- Occupancy: Currently, it is 35% occupied.
- Starting Bid: The starting bid for this prime Manhattan office space is just $7.5 million.
- Platform: Ten-X, typically associated with middle-market properties, is hosting the auction.
- Broker: JLL’s Andrew Scandalios is handling the listing.
- Historical Context: UBS sold the property to Safehold in 2019 for $285 million and then signed a $221 million lease that expires in 2123.
This move underscores the challenges faced by commercial real estate in NYC.
This is absolutely shocking…
UBS is attempting to sell a Midtown Manhattan office building via an ONLINE AUCTION, signaling the excruciating challenges of commercial real estate in NYC…
The starting bid for the 920k SF building located at 135 W 50th St will be $7.5M, or $8… pic.twitter.com/VMxXqFOw2w
— Triple Net Investor (@TripleNetInvest) June 25, 2024
Commercial Real Estate Delinquencies Rise
As the housing market navigates through challenging times, it's crucial to monitor key indicators that provide insights into the health of the commercial real estate sector.
Two important metrics to watch are delinquency rates and… pic.twitter.com/u468PztuuP
— Reef Insights (@ReefInsights) June 5, 2024