Monday, June 26, 2006

The Paramount Group Acquires SFX HQ in Manhattan

Commercial Real Estate News - June 21, 2006

completed its deal to buy the Candler Tower at 220 West 42nd Street. The 24-story Class A office and retail property has 227,685 sf and is located on the south side of 42nd between 7th and 8th Avenues between Disney’s New Amsterdam Theatre and Madam Tussaud’s Wax Museum.

W. P. Carey & Co. negotiated the sale on behalf of two of its non-traded REIT affiliates, Corporate Property Associates 14 and Corporate Property Associates 15, that jointly owned the property.

The entire Candler Tower is triple-net leased to the entertainment conglomerate SFX. The SFX lease is guaranteed by Clear Channel Communications and expires September 2020. The retail is sublet to McDonald’s and is one of the chain’s highest grossing units. McDonald’s recently invested more than $13 million in improvements to the first three floors of the property, two of which are the restaurant space.

The building is named for Asa Candler, a wholesale druggist who purchased the Coca-Cola formula for $2,300 in 1887 and invested his company’s early profits in real estate, building Candler Tower in 1912. Designed in late Gothic and early Renaissance style by architectural firm Willauercar, Shape & Bready, the property was once the tallest structure in Midtown. It is one of the last remaining white terra-cotta skyscrapers in the city and was restored to its original grandeur in the mid 1990s through a $35-million capital improvement program. Sphere: Related Content

No comments:

Wikinvest Wire