Ninth Ave Building Trades at Steep Discount in Short-Sale Deal

Real estate investor David Werner has reportedly purchased the approximately 398,800-square-foot office building located at 440 Ninth Avenue for “slightly more than $100 million in cash” according to the Bloomberg press release posted on Crain’s New York. The purchase that has yet to hit city records was a short-sale, since the price fetched was reportedly less than the remaining unpaid debt encumbering the property. The recent sale marks the 4th time since 2008 the building constructed in 1927 has changed hands, when SL Green Realty sold it to Paramount Group and Sherwood Equities for $160 million, after paying $31.7 million in 1998 and investing $24 million to reposition and retain key tenants according to the REIT’s press release at the time. A $100 million mortgage originated by DekaBank Deutsche Gorozentrale financed the transaction. In 2013 Japan-based Unizo (formerly Jowa Holdings) acquired the building for $211.5 million, followed by the $269 million sale five years later in 2018 to Taconic Investment Partners and TH Real Estate (rebranded in 2019 as Nuveen Real Estate), the property arm of Teachers Insurance and Annuity Association of America (TIAA). Press at the time indicated that MetLife Real Estate Investment provided $137 million to close on the transaction. In 2020, the art-deco building, formerly known as the Harding Building, underwent an extensive repositioning that according to the building’s dedicated website included a full restoration of the stone masonry façade, creation of a grand lobby, new elevator cabs, exterior entries, and a new energy-efficient heating system. Anchor retail tenant B&H Photo in 70,000 square feet at the base of the 18-story building had secured a 10-year renewal and expansion of its office space in 2012, increasing its footprint to 42,495 square feet. Although plans have yet to be announced, in March 2023, B&H closed on the purchase of nearby 333 West 34th Street, paying $150 million for the 347,000-square-foot block-through building to seller Brookfield Property Partners.

Additional Sources Referenced: ACRIS, Crain’s New York, SL Green Realty, Nuveen, B&H Photo