### Midtown Manhattan Office Buildings Sell at Steep Discount in Short Sale
A pair of century-old office buildings in Midtown Manhattan have been sold at a substantial discount as lenders seek to minimize losses. According to Bloomberg News, Empire Capital Holdings has agreed to purchase the properties at 229 W. 36th St. and 256 W. 38th St. for under $50 million—at least 68% below their previous sale price of approximately $157 million in 2017.
The transaction was categorized as a short sale for the lender, Investcorp, reflecting a growing trend as office property values decline, often falling below loan amounts. This is not the first such deal for Empire Capital, which, along with a partner, acquired a West 44th Street office building in a similar short-sale transaction last year.
CBRE’s Doug Middleton and Jack Stillwagon are managing the sale. The buyer is weighing whether to retain the sites as office spaces or repurpose them for storage, according to a source familiar with the matter. Additionally, both buildings are located within a rezoning district, which could present future development opportunities.
