830 Third Ave., one of the office properties recently purchased by Namdar and Empire Capital.
Namda Realty GroupIt has amassed a nationwide portfolio of unwanted malls.
Namdar’s joint venture with Empire Capital Holdings has spent nearly $180 million to acquire two old Manhattan office towers in the past two months. bad assets He plans to buy more as other real estate investors shy away from the ward’s office market. Bloomberg report.
After acquiring the 24-story, 90-plus-year-old 345 Seventh Ave. building for $107 million last September, Namdar and Empire acquired the 64-year-old 13-story office building at 830 Third Ave. Bought the building for $72 million. The building was purchased for less than $500 per SF. Far below the average Manhattan office price of $896 per SF, down more than 10% from its 2019 peak. MSCI Real Assets Data reported by Bloomberg.
“New York City is doing a rough patch right now, but I don’t think people will be working from home in the long run,” says Namdar Realty founder Igal Namda told Bloomberg. “Once everything settles down and hopefully the economy improves, we will see more businesses coming back and renting space.”
Namdar’s bet centers on the New York City-based company shrinking office space. hybrid work Or move to a higher quality space in a more attractive location. As interest rates rise, borrowing may become more complicated for some office owners. Real estate seeks new funding, giving Namdar an opportunity to raid.
JLL Managing Director Max HerzogHe advised Bloomberg on the financing transaction for the acquisition of 830 Third, he told Bloomberg that the joint venture between Namdar and Empire Capital needed to acquire buildings at low prices for the strategy to succeed.
“It’s really a cost-based function, and like his previous mall acquisitions, it’s contrarian,” says Herzog.
Namdar believes it will have more opportunities as more office buildings are damaged. March this year, black stone handed over the key return to lender 1950s midtown office tower 1740 BroadwayEarlier this week, a bank lender of an office property in the financial district filed a foreclosure against the owner. Crain’s New York Business reported.
According to the Bloomberg Billionaires Index, Namdar’s personal net worth is around $2 billion. Most of this figure was built during his 10-year venture, where he made an all-cash offer at the troubled mall. MarketWatch previously reported.
During that time, Namdar acquired over 250 underperforming shopping malls, filled vacancies with downmarket retailers, limited debt and improved capital expenditures before selling properties for profit. . Bloomberg previously reportedThe strategy has also spawned multiple lawsuits alleging lower revenues and higher costs than Namdar offered.
But unlike malls, which are difficult to repurpose, Namdar and Empire Capital told Bloomberg they deliberately chose office properties with high occupancy but enough windows that could be converted into residential apartments.
“We like voluntarism,” Namdar said. “We can stay in the office, or we can go to residential areas.”