C&W Arranges Sale of 2 Mixed-Use Manhattan Assets

By Barbra Murray

224 Fifth Ave. and 18 E. 23rd St. in NYC

There’s been plenty of activity in Manhattan’s mixed-use arena, for which Cushman & Wakefield can take partial responsibility. Standing in for separate sellers, the commercial real estate services firm recently orchestrated the disposition of two mixed-use properties—18 E. 23rd St. and 224 Fifth Ave.—at prices notably higher than those achieved in the previous trades.

Investors were attracted to 18 E. 23rd St. and 224 Fifth Ave. like bees to honey. “Both properties were highly sought after and contested as we received several competitive offers,” John Ciraulo, vice president with Cushman & Wakefield, said in a prepared statement.

C&W marketed 18 E. 23rd on behalf of Bait & Tackle Realty LLC. Originally developed circa 1900, the fully leased property features 16 free-market apartment units and ground level retail space currently occupied by a restaurant. Last renovated in 2011, the 9,400-square-foot asset fetched $13.5 million. Bait & Tackle grabbed the five-story structure in 2010 for $5.7 million.

Just blocks away across the six-acre Madison Square Park, C&W assisted 224 Fifth Madison Park LLC in securing a buyer for 224 Fifth, a 16,000-square-foot tower featuring office accommodations and a ground-level retail space. Redeveloped in 1980, the mid-19th Century-era property offers the new owner a little something extra: the potential to be transformed into luxury condos. The building sold with a price tag of $21 million, after last trading in 2012 for $10 million.

“The properties’ excellent locations adjacent to Madison Square Park in the NoMad/Flatiron District made these attractive opportunities for investors looking to purchase mixed-use assets in this extremely popular neighborhood,” Ciraulo added.

Mixed-use madness

Whether they’re big transactions—like SL Green Realty Corp. and RXR Realty’s agreement to acquire a sizeable stake in the 2.2-million-square-foot Worldwide Plaza building in Midtown—or small, it appears the New York investment community is quite keen on mixed-use properties. Office with retail, retail with residential; they’re all highly coveted.

C&W’s arrangement of a bevy of mixed-use trades across the tri-state area over the last few months serves as evidence of investors’ fondness for the asset type. The firm’s deals in November alone include the $15 million sale of the 19,000-square-foot property at 85 Chambers St. in Lower Manhattan. C&W also orchestrated the $30 million disposition of the four-building, 37,500-squre-foot complex at 212-218 E. 85th St. on Manhattan’s Upper East Side, as well as the sale of the 6,000-square-foot asset at 320 Macon St. in Brooklyn, which was picked up for roughly $3.9 million.

Image courtesy of Cushman & Wakefield