Real estate developer Paramount Group has put up for sale two buildings that were handed back to their lenders in the early 1990s, and they could soon sell for more than $1 billion.
One is Clear Channel’s Times Square headquarters at 220 W. 42nd St., while the other is a downtown trophy at 32 Old Slip.
CB Richard Ellis is marketing the buildings.
The company, which is owned by the German-based Otto family, bought the 1.1 million-square-foot waterfront building at 32 Old Slip, also known as One Financial Square, for $135 million in 1995, four years after the building’s developer, the late Howard Ronson, turned it and two other buildings over to lender Sanwa Bank.
Today, the building is 95 percent leased, and could be sold for up to $800 million.
Meanwhile, the 227,000-square-foot building at 220 W. 42nd St. is leased through 2020.
After a default in 1989, lender Mass Mutual Life took possession of the building in 1993, renovating it in 1998.
In today’s market with cheap global money fueling prices, the building could garner $275 million, or $1,200 per foot.
