Clarion Partners LLC is currently in private negotiations to buy a 108-year-old office tower for more than twice the original sale price two years ago. The tower is located near Manhattan’s Union Square and going for $225 million.
The deal values the building at more than $800 a square foot, a price at which only “a handful” of properties have sold since the real estate crash, said Ben Thypin, director of market analysis for global commercial property research firm Real Capital Analytics Inc.
“Employers want to be in midtown south because their employees want to be there,” Thypin said. “As a result, employers are willing to pay significantly higher rents in midtown south than they have historically and, in turn, the anticipation of further rent growth makes midtown south an attractive place to buy property.”