### Midtown Manhattan Office Buildings Sell at Significant Discount
A pair of century-old office buildings in Midtown Manhattan have been sold at a steep 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—more than 68% below their previous sale price of approximately $157 million in 2017.
The transaction was a short sale for lender Investcorp, reflecting a growing trend as office property values decline, often below the outstanding loan amounts. Last year, Empire Capital and a partner executed a similar short sale acquisition of a West 44th Street office building.
CBRE’s Doug Middleton and Jack Stillwagon are managing the sale. According to a source, the buyer is considering either retaining the buildings as office properties or converting them into storage facilities. Both properties are also located within a rezoning district, which could offer future redevelopment opportunities.
