The first trophy tower of the year is coming on the market as a creative opportunity that can be entirely transformed.
The 40-story 825 Third Ave., developed in 1969 by the Durst family, isn’t being sold.
Instead, the family is ready to sign a new, long-term agreement with either a tenant or another developer for a ground lease.
Darcy Stacom of CBRE has been hired to pitch the property, which will be entirely vacant in May 2019. The building was initially leased by Random House and for the past 25 years by Advance Publications, so the remaining tenants are all sub-tenants.
“It was a very good deal for the Dursts, and they are looking to do it again,” said the family’s head of leasing, Tom Bow, of the long-term deals. “Last time it was occupied by a tenant; this time it is likely somebody who will be putting capital into the building.”
Unlike most sales of ground leases, this one likely won’t come with an upfront payment. The family is interested in a steady income from a reliable company with the capital and wherewithal to undertake an entire modernization plan and recognize there will be a large upfront cost to do so.
This work could also include a complete restacking such as what L&L Holding has done at both 425 Park and 390 Madison.
The Class A building was designed by Emery Roth & Sons and developed by the Dursts on the east side of Third Avenue between East 50 and 51 streets. There are several small commercial buildings that will also be delivered vacant and can be absorbed into any restacking.
The current floors in the side core building are just under 12,000 square feet. The black glass curtain wall also hides a continuous wall of large windows.
