850 3rd Avenue
Midtown Office Building Acquired for Nearly $266M
A 21-story, Class-A office building, located at 850 Third Avenue in Manhattan's Midtown East area, has just been sold for $265.93 million. The structure was acquired by HPS Investment Partners, from the previous owner, Chetrit Group. HPS already has a history with both the building and the seller as back in 2021, it supplied a $320 million refinancing package, which prevented Chetrit Group from foreclosing on the property.
Designed by Emery Roth & Sons, the square foot building was originally constructed in 1960. In order to bring it up to date, the structure received subsequent renovations in 1996 and 2011. As a result of capital improvements, the property currently maintains LEED Gold certification.
850 Third Avenue boasts square feet of leasable office area, and square feet of ground-floor retail space. It also houses the NYPD's 17th Precinct and an FDNY fire station. Tenant amenities include a deli and newsstand in the lobby, as well as multiple landscaped roof terraces, made possible by the building's tiered massing.
Chetrit Group is taking a major hit on the sale of this property, having originally purchased the building for $422 million back in 2019.