Children's wear manufacturer Haddad Brands is buying a Manhattan office property for $360 million and plans to occupy some space at the site, which has been a growing industry trend.
The deal made by Morgan Stanley, which was represented by Newmark, was the largest advisor-led office sale in New York City during 2024, the broker announced on Thursday. While it's unclear how much, Haddad, which acts as the global licensee for major brands including Nike and Jordan, intends to operate some of the space at the one million square feet site, called Two Park Avenue. The rest of it will get leased out.
Research from Newmark finds that owner-occupier deals surged 36 percent in the year-to-date through the third quarter of 2024. This is because "more companies are choosing to "purchase properties for a discount rather than lease," Newmark said in a statement. While Manhattan has been a steady market for office that has seen a strong recovery, other key markets are seeing those categories of properties sell for deep discounts. Most notably, the average sale price of office space in Chicago has dropped by more than half from $217 per square foot to $98 per square foot.
"The sale of 2 Park Avenue reflects the growing trend of occupiers transitioning to ownership as a strategic move to align their business needs with long-term real estate goals," said Adam Spies, co-head of US capital markets for Newmark.
"This transaction allows Morgan Stanley to achieve a strong outcome in today's market while enabling Haddad Brands to secure a flagship presence in one of Manhattan's premier office towers."
Two Park offers amenities including an outdoor terrace, a conference center, bike parking, multiple floor plates for layouts, and a penthouse lounge on the 27th floor. The 29-story building is within a 10-minute walk from both Penn Station and Grand Central.