JPMorgan Chase is seeking to sell a Plaza District office building at a significantly reduced price compared to its pre-pandemic valuation. The bank’s asset management division has listed the 23-story property at 125 West 55th Street, also known as Avenue of the Americas Plaza, for $270 million. This figure is about half of the $550 million asking price set in January 2020.
The building, which measures approximately 587,000 square feet, is currently around half vacant. Most of the empty space is located on the upper floors, which typically generate higher rental income.
Newmark, led by Adam Spies and Josh King, is managing the sale process. In an offering memo from Newmark, it was stated: “Given the obvious dearth of Class A office space in the Plaza District (let alone Manhattan), 125 West 55th Street offers an unmatched contiguous block that will certainly command a pricing premium in today’s market.”
A spokesperson for J.P. Morgan Asset Management declined to comment on the listing.
JPMorgan originally purchased the property for $470 million in 2013 from BXP—formerly Boston Properties—which had acquired it as part of a larger $3.9 billion portfolio deal involving buildings previously owned by Harry Macklowe, including the General Motors Building.
Shortly after JPMorgan initially put the building up for sale in early 2020, New York City reported its first Covid-19 cases and entered a shutdown period. Many owners removed properties from listings and reconsidered their strategies during this time.
While Manhattan’s office leasing activity has improved and could reach its highest level since 2019 this year, high interest rates and costs related to attracting tenants have resulted in many properties being sold below previous valuations. More information on recent trends can be found at https://www.crainsnewyork.com/real-estate/manhattan-office-leasing-track-best-year-2019-cbre.
