A pair of century-old Midtown Manhattan office buildings are trading at a steep discount as lenders look to cut their losses, Bloomberg News reported. Empire Capital Holdings agreed to buy the properties at 229 W. 36th St. and 256 W. 38th St. for less than $50 million, or at least 68% below the roughly $157 million the buildings last sold for in 2017.
The deal was a short sale for lender Investcorp, according to Bloomberg. Short sales have become more common as office values have plummeted, often below loan amounts. Last year, Empire Capital and a partner purchased a West 44th Street office building in a short sale.
Bloomberg reported that CBRE’s Doug Middleton and Jack Stillwagon are handling the sale. The buyer is considering either keeping the sites as offices or turning them into storage properties for now, a source told Bloomberg. Both properties also sit within a rezoning district.
Read More: Midtown Manhattan Office Duo Trades at Steep Discount in Short Sale
