Landlord had sought investor to rehab property and lure tenants
The building located at 825 Third Avenue between E 50th and E 51st streets in Midtown Manhattan has been pulled from the market by the Durst Organization.
Earlier this year, the major Manhattan landlord started marketing a long-term ground lease for the 40-story tower. In exchange for paying rent to Durst, an investor would have been granted control of the 544,000-square-foot property, which was designed by Emergy Roth & Sons and developed in the late-1960s.
According to Crain’s News, “Tens of millions of dollars in upgrades, along with a strong marketing effort, will likely be necessary to find new tenants. Durst had hoped to entice an investor to take on those responsibilities and provide the cash necessary for renovations. CBRE’s Darcy Stacom had been hired to market the ground lease.”
A representative of Durst told Crain’s, “Darcy Stacom and her group at CBRE did an outstanding job of conceptualizing the repositioning of 825 Third Ave. They were diligent, professional, provided invaluable insight and experience and delivered compelling offers. In the end, we decided to create the capacity to do it ourselves and to also maintain control of the asset.”
Next year, when Advance Publications’ long-term lease expires, the building will become unoccupied. In 2021, the space at 750 Third Avenue is also expected to become vacant. With large vacancies at 875 and 805 Third Avenue, plus other buildings in the area that will soon be unoccupied, Durst will be faced with striking competition when it comes to attracting tenants, according to brokers familiar with the East Midtown market.
By Charles Bernstein