Land Under 909 Third Avenue Trades for $192M

An entity led by Colonnade Management has purchased the nearly 2-acre lot beneath 909 Third Avenue from 601W Companies. The transaction attracted a price of $192 million, having last traded in 2004 for $50.1 million according to the deed. The 490,000-square-foot warehouse at the base of the 32-story office tower serves as the main handling facility in New York of the U.S. Postal Service, which occupies about 37% of the total 1.35 million square feet. Vornado Realty currently controls the building under a leasehold interest acquired in 1999, paying $1.6 million a year in ground rent with no rent steps or resets through 2063.