The heir to Sheldon Thoreau’s real estate empire is in talks to sell 9 West 57th Street, arguably the most important address in modern capitalism.
Stefan Soloviev is finalizing a deal to sell a luxury office building, a source familiar with the negotiations said. real.
The Plaza District property deal is the biggest pandemic-era deal in New York City and could be one of the biggest office deals of all time. The 50-story, 1.6-million-square-foot building is Final evaluation in July 2016 $3.4 billion, or more than $2,000 per square foot, CMBS documents filed with the SEC show.
TRDs The buyer group could not be confirmed, but two sources pointed to the trophy-collecting investors. Michael Shuvo buying commercial properties one after another with the support of German Pension Fund BVK private equity group german finance.
A representative for Soloviev did not comment by press time, but Shuvo could not be reached.
Developed by Solow in 1974, the building has become as famous for its unique sloping façade designed by SOM as for the meticulous nature of its developer.
Thoreau reportedly handpicked the companies he thought would be a good fit for his prized fortune. That velvet his rope gave 9 West 57th Street an exclusive vibe beyond what a $200-per-foot rent could create.
Private equity giant KKR was headquartered in this building during the heyday of leveraged buyouts, doing deals for movies like the RJR Nabisco buyout. Nine West, a popular footwear company, is named after the building.
Current tenants include Sculptor Capital Management (formerly Och-Ziff Capital Management Group), Apollo Global Management and fragrance company Chanel.
The building sometimes coped with high vacancies. Thoreau preferred to empty the space Instead of lowering the rent and hurting its reputation. In the half-century since 9 West opened, a newer, shinier building has pulled some of its residents away. KKR moves to Hudson Yards — but the property retains its charm.
one real estate investor Called it “Everybody’s Favorite Class B Building” Located in a Class A location. “
Thoreau died a millionaire in November 2020 At the age of 92, his son Stéphane took over the business. But Soloviev — someone who devoted himself to the management of cattle and wheat develop an agricultural business in New Mexico, buy a farm, Vineyards on the North Fork of Long Island — sources say he has little interest in running his father’s real estate empire and has moved to dismantle his portfolio.
Earlier this year, he signed a deal to sell about 1,700 units in six rental apartments on the Upper East Side. $1.8 billion in partnership with Josh Gotlib’s Black Spruce Management Orbach Affordable Housing Solutions from Meyer Orbach.
Shvo, on the other hand, had quite the run. The former luxury home broker disappeared from the Manhattan real estate scene during bankruptcy, Revived as a boutique condo developer in 2013In his latest avatar, he has become a major commercial real estate investor with a penchant for name brand properties. The Coca-Cola Building at 711 Fifth Avenue, Transamerica Pyramid in San Franciscoand the “Big Red” office building in Chicago.
Manhattan office rental volumes soared in the third quarter That’s because the borough’s vacancy rate has fallen to its lowest level in 18 months, according to Colliers. Asking rents, on average, remain about 7% lower than they were at the start of the pandemic.
However, Trophy office towers such as 9 West 57th Street tend to outpace market trends. In 1970, Thoreau Completed 5 years of assembly Of the Tower, he told The New York Times, “You can only escape this once.”
“We are in barracuda country,” he said.