BXP is trying its hand at a nine-figure deal in the heart of Manhattan.
Owen Thomas’ firm is seeking to sell the ground lease tied to 7 Times Square, the Commercial Observer reported. BXP is reportedly expected to ask between $700 million and $750 million for the 1.2 million-square-foot property.
What’s unclear is whether or not that asking price pertains to the entire ground lease, or the majority stake BXP possesses. Eastdil Secured’s Will Silverman, who is marketing the ground lease with Gary Phillips, did not respond to a request for comment from The Real Deal and declined to comment to the Observer.
The marketing was first reported by Green Street Alert.
In 2013, Norges Bank Investment Management purchased a 45 percent stake in the property for $684 million, valuing the full property at $1.52 billion. A $700 million-plus target for the remaining majority stake would fit that 2013 valuation, but considering the decline in office values since 2020, that could very well be a logical price for the entire property, too.
Developed in 2004, Times Square Tower is on a 99-year ground lease with the city, which includes an option to purchase. The property is 91 percent leased and has roughly 100,000 square feet available on the top floors.
Tenants include Japanese trading firm GSI Exim America, law firm Friedman Kaplan and private plane renters Flewber. Cloud computing firm Snowflake signed a lease for 83,000 square feet in March, while a year prior, KnitWell Group — the parent company of brands including Ann Taylor, Chico’s, Lane Bryant and Loft — signed a 20-year lease for 246,000 square feet, a 55,000-square-foot expansion to KnitWell’s 191,000-square-foot space.
BXP recently added amenities to the property, including conference space, a client lounge and cafe services. The property also has four floors of electronic billboards, providing another revenue source for ownership.
Should BXP land at least $700 million for the ground lease, it would mark one of the few single-property office deals at that price point in recent years. Since 2020, only nine deals have crossed that threshold, according to Green Street’s Sale Comps Database.
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