325 Fifth Ave. has traded for $38 million.
NEW YORK CITY—HUBB NYC Properties has closed on the acquisition of a retail condominium property and parking garage at 325 Fifth Ave. in Midtown Manhattan for $38 million.
Holliday Fenoglio Fowler, L.P., which brokered the sale and also arranged $18 million in acquisition financing for HUBB NYC Properties, reported the purchase. HFF marketed the property on behalf of an unidentified seller and placed the 10-year, fixed-rate loan with Allianz Real Estate of America. Loan proceeds were used by HUBB NYC to acquire the property.
HFF senior managing director Andrew Scandalios and managing director Rob Rizzi led the firm’s investment sales team in the transaction. HFF’s debt placement team was led by senior managing director Michael Gigliotti and managing director Scott Aiese.
Rizzi says the deal is one of the largest New York City retail trades thus far in 2017 and demonstrates there is still a healthy appetite for retail investments, particularly those with strong locations and stable cash flow.
325 Fifth Ave. was completed in 2005 and consists of two condominium units—a 5,972-square-foot, Class A, ground-floor retail condominium fully leased to Bonchon Chicken, I Love Souvenirs and Hanmi Bank and a 174-space, 29,290-square-foot, below-grade parking garage leased to GGMC Parking.
“HUBB NYC is very excited about this transaction and appreciative of the opportunity to work with the sellers and HFF,” states Jesse Terry, HUBB NYC director of acquisitions. “We can only hope to acquire more assets like this one.”
The property located in the Murray Hill section of Manhattan is directly across the street from the Empire State Building and nearby Herald Square as well as multiple subway stations that access 15 subway lines.
HUBB NYC’s Terry tells Globest.com the deal marks the third acquisition for the firm in 2017. HUBB previously acquired 711 Nassau St., a 5,000-square-foot retail condo for approximately $20 million and 714 Ninth Ave., a 10,000-square-foot mixed-use residential/retail property for $12 million. Terry says that HUBB NYC is also under contract to acquire another Manhattan retail property and expects the deal to close sometime next month.