Joint venture acquires 830 Third Ave. in $72M off-market sale
JLL arranges sale and acquisition financing on behalf of Empire Capital Holdings and Namdar Realty
NEW YORK, N.Y., Sept. 14, 2022 – JLL Capital Markets announced today that is has arranged the off-market $72 million sale and $53.25 million acquisition financing of 830 Third Ave., a Class A office building at the corner of 51st St. and Third Ave. in Manhattan’s Midtown East neighborhood.
JLL marketed the property on behalf of the seller, AEW Capital Management. JLL also worked on behalf of the borrower, a joint venture of Empire Capital Holdings and Namdar Realty Group, to secure the financing through Truist.
Originally built in 1958 and fully renovated in 1994, the 13-story boutique building was once home to the Girl Scouts of America headquarters. Its unique blue-green glass windows stand out on a block surrounded by retail, cultural amenities and dining options in a submarket experiencing a resurgence. 830 Third Avenue is currently 62 percent occupied, including 3,799 square feet of retail leased to Republic Bank.
Since acquiring the 147,068-square-foot property in 2001, AEW has invested in an upgraded lobby and elevator cabs, 24/7 attended lobby, storage space and a bike room. The building has MERV-13 air-filters designed to meet air filtration efficiency in common areas and efficient, functional floor plans from 8,200 to 12,300 square feet suited to smaller tenants seeking full-floor occupancy. The top three floors are connected by an internal staircase, with a private outdoor terrace located on the 12th floor.
The JLL Capital Markets Investment Sales team representing the seller included Senior Managing Directors Andrew Scandalios and David Giancola, Managing Director Vickram Jambu and Vice President Jennifer Zelko.
The JLL Capital Markets Debt Advisory team working on behalf of the borrower included Senior Managing Directors Aaron Niedermayer and Max Herzog, Senior Director Marko Kazanjian, Director Robert Tonnessen, Vice President Jackie Ferrer and Analyst Joy Dracos.
“With nearly all of the office space rolling by year-end 2023, this was a case of turning what could have been a challenge into an opportunity,” said Jambu. “830 Third Ave. offers smaller, boutique tenants the rare opportunity to occupy entire floors, which is highly desirable in today’s office market, and the new owners can focus on a pre-build single-floor campaign that will appeal to tenants seeking personalized space that encourages employee collaboration.”
“830 Third Avenue is an institutionally maintained asset with abundant transportation options, a bustling work-and-live neighborhood that is teeming with restaurants and entertainment options,” added Niedermayer. “The buyers are well positioned to capitalize of demand from future tenants seeking a boutique, Class A Midtown East experience at an attractive price point.”
Located a 10-minute walk from Grand Central Terminal, a block from the 51st St. 6 train and two blocks from the Lexington Ave. E and M trains, among others, 830 Third Ave. offers tenants connectivity to the rest of New York City in one of the most highly amenitized neighborhoods in Manhattan.
Led by the success of One Vanderbilt, the rezoning of Midtown East to promote commercial development and future access to the Long Island Railroad (LIRR) via Grand Central, owners including Blackstone have announced expansions in the district, while JPMorgan Chase is rebuilding a brand new 2.5 million headquarters at 270 Park Ave.
JLL Capital Markets is a full-service global provider of capital solutions for real estate investors and occupiers. The firm’s in-depth local market and global investor knowledge delivers the best-in-class solutions for clients — whether investment sales advisory, debt advisory, equity advisory or a recapitalization. The firm has more than 3,000 Capital Markets specialists worldwide with offices in nearly 50 countries.
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JLL (NYSE: JLL) is a leading professional services firm that specializes in real estate and investment management. JLL shapes the future of real estate for a better world by using the most advanced technology to create rewarding opportunities, amazing spaces and sustainable real estate solutions for our clients, our people and our communities. JLL is a Fortune 500 company with annual revenue of $19.4 billion, operations in over 80 countries and a global workforce of more than 102,000 as of June 30, 2022. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated. For further information, visit jll.com.