JPMorgan is seeking to sell a Plaza District office building at a significant reduction from its pre-pandemic price. The 23-story property at 125 West 55th Street, also known as Avenue of the Americas Plaza, has been listed for $270 million, which is about half of the $550 million asking price set in January 2020.
The building is currently about 50 percent vacant, with most empty space located on the upper floors where rents are typically higher. According to an offering memo from Newmark, “Given the obvious dearth of Class A office space in the Plaza District (let alone Manhattan), 125 West 55th Street offers an unmatched contiguous block that will certainly command a pricing premium in today’s market.”
J.P. Morgan Asset Management declined to comment on the sale. The process is being managed by a Newmark team led by Adam Spies and Josh King.
The current asking price translates to approximately $450 per square foot for the roughly 587,000-square-foot property. JPMorgan originally acquired the building for $470 million in 2013 from BXP (formerly Boston Properties). BXP had previously obtained it as part of a larger portfolio purchase involving properties once owned by Harry Macklowe.
Shortly after JPMorgan initially put the property up for sale in early 2020, New York City began experiencing its first Covid-19 cases and entered lockdown. Many property owners removed their assets from the market and reconsidered their strategies during this period.
Since then, Manhattan’s office leasing activity has improved and is expected to reach its highest level since 2019. However, despite signs of recovery, high interest rates and costs associated with attracting tenants mean many buildings continue to sell below previous valuations.
