224 Fifth Ave

Cushman & Wakefield has been retained on an exclusive basis to arrange for the sale of 224 Fifth Avenue, an incredible multi-tenanted commercial office and retail building within Manhattan’s Flatiron District just half a block north from the famous Madison Square Park. The 6-story, 15,949 square foot property is located between West 26th and 27th Streets and features 28’ of frontage along Fifth Avenue in the famed “NoMad” neighborhood. Originally built mid-19th century and significantly altered in 1980, the property is currently leased to 3 office tenants plus one retail tenant, 7-Eleven, while the top two floors, 5 and 6 are intentionally vacant. Prior to the 5th and 6th floor leases expiring this year the building was 100% occupied since 2011. The building has floor plates that range from 2,600 RSF to 2,827 RSF. Average office rents in the building are currently $35.63/RSF, ~47% below the average asking rent in the Madison Square neighborhood of $67.47/RSF. Additionally, there is a 2,623 SF retail store occupied by 7-Eleven through December 31, 2021 at a current rent of $93/RSF, ~54% below market. 7-Eleven has two 5-year options to extend their lease, however they also have a demo clause that can be exercised when their initial lease term expires. With various short-term lease expirations and landlord demo clause/buyout agreements in place, the entire building can be vacant by the end of 2021, or sooner by negotiating with current tenants. Due to the near-term vacancy, the property presents an exceptionally unique opportunity as a value-add income producing asset for the short or long term, as a redevelopment or for an end-user occupier. While the property lies within the Madison Square North Historic District, it has been classified as a non-contributing asset and in 2007 plans submitted by Beyer Blinder Belle Architects & Planners LLP were approved by the Landmarks Preservation Commission (LPC) to demolish the existing structure and build a 20-story residential building with ~33,203 SF, including mechanical deductions and private terraces. Average condo sellouts in the immediate area range from $2,200 to well over $3,000 per square foot. Given the flexible C5-2 (R10) zoning, an investor, developer or user has the ability to execute a wide variety of potential visions, including boutique condominiums, a mixed-use retail & residential project, a corporate headquarters or a hotel. Named for the famed Flatiron Building at the intersection of Fifth Avenue and Broadway the Flatiron District has grown to include some of the city’s most popular restaurants, a dynamic retail environment and a world-class residential community. In addition, the area is highly accessible via public transit, within close proximity to the N, R, F, M, 6 and 1 trains, as well as the New Jersey PATH train and multiple bus lines. 224 Fifth Avenue represents a unique opportunity for an investor, developer or user to acquire an ideally located commercial building with stunning views of Madison Square Park.