4 New York Plaza Trading at $99/PSF with 15-Year Leaseback From JPM
December 17, 2009
JP Morgan Chase is in contract to sell 4 New York Plaza. The 23-story, 1.1 million square foot building is undoubtedly not the best looking asset, but it is trading at $99/psf. And….JPM is reportedly leasing back 75% of the building for 15-years to boot!
This is an example of where values are if buildings are “allowed” to trade.
The buyers of the 23-story, 1.1 million square foot building are Harbor Group International, a real estate company based in Norfolk, Va., and Josh Zamir’s Capstone Equities…
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that is a terrible looking building. if it were beige the federal govt would have paid a premium for it! could the price have a lot to do with jpm's leaseback terms?
most probably is a big part of the equation, but on a price per pound basis, it's a pretty telling comp…
very telling. but if the building is being held hostage for 15 years, then the comp may not be a comp. or maybe jpm intends on purchasing it back a pre-negotiated rate. either way, distressed, strategic, straight deal, its definitely an attn grabber due to psf.
The price of $99 per sq. ft. is the price for the equity. In addition, the buyer must have assumed some debt.