Amancio Ortega, the Spanish billionaire known for founding the Zara fashion brand, has agreed to sell 366 Madison Avenue in Midtown Manhattan at a significant loss. Pontegadea, Ortega’s family office, will transfer ownership of the 85,000-square-foot office building to Sioni Group for $50 million, according to Bloomberg. Neither party responded to requests for comment.
Ortega originally acquired the property about 20 years ago for $115.5 million. The recent deal values the building at $588 per square foot—less than half of its previous purchase price. Eastdil Secured is advising on the sale, with Will Silverman, Gary Phillips, and Jeff Organisciak leading the team as reported by Commercial Observer.
The transaction highlights ongoing challenges in Manhattan’s office market since the pandemic began. Despite Ortega’s continued global investments—including recent purchases such as Miami’s Sabadell Financial Center for $275 million and Fort Lauderdale’s Veneto Las Olas apartment tower for $165 million—even large-scale investors are facing losses in New York City offices.
Elsewhere this summer, Pontegadea also acquired Paris’ Hotel Banke for $113 million and an office building in Barcelona that serves as Planeta publishing headquarters for $284 million.
Forbes estimated Ortega’s net worth at $115 billion as of July, ranking him as the world’s 13th richest individual at that time.
The loss on Madison Avenue is not unique; other major owners have faced similar setbacks. Last week, Savanna entered into contract to buy Westbrook Partners’ leasehold interest in 444 Madison Avenue for $50 million—a steep decline from Westbrook’s 2007 acquisition price of $314 million. Westbrook recently defaulted on a Wells Fargo loan tied to that property.
“Even if Ortega’s net worth puts him in a different stratosphere from most, he can take solace in knowing he’s not alone in Manhattan’s tricky office market.”
