- The 18-story office tower at 440 Ninth Ave. sold for just over $100M — a 62% drop from its $269M sale price in 2018.
- The transaction was a short sale approved by the building’s lender, MetLife, as owners Taconic Investment Partners and Nuveen Real Estate sold the asset at a loss.
- Office building values across the US have fallen 37% since 2022, according to Green Street, as rising rates and remote work reshape the commercial real estate landscape.
A Deep Discount In Hudson Yards
An 18-story office building near Hudson Yards has changed hands at a steep discount, reports Bloomberg. Investor David Werner acquired the property for slightly more than $100M in cash. That price is far below its $269M valuation in 2018.
The 411K SF tower at 440 Ninth Ave., built in 1927 and formerly known as the Harding Building, was sold via a short sale, according to a person familiar with the matter. The building’s owners — Taconic Investment Partners and Nuveen Real Estate — sold for less than what remained on their mortgage, with lender MetLife agreeing to the transaction.
Brokered Quietly
CBRE’s Doug Middleton and Jack Stillwagon brokered the deal. Neither CBRE nor the involved parties — including MetLife, Taconic, Nuveen, or Werner — commented publicly on the transaction.
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A Sign Of The Times
The steep discount reflects broader turmoil in the office market. As borrowing costs rise and remote work persists, values for office assets nationwide continue to decline. Green Street’s July Commercial Property Price Index reports a 37% drop in office valuations since 2022.
Yet even as distress spreads, demand remains for modern office space in well-located areas. Manhattan’s Far West Side, where 440 Ninth Ave. is located, has recently attracted blue-chip tenants like BlackRock and KKR.
What’s Next
This sale underscores a trend likely to continue: distressed office assets changing hands at deep discounts. Legacy buildings are facing leasing challenges and refinancing pressures. Investors with capital — like Werner — may find opportunities in repositioning or redeveloping well-located, underperforming assets.
Why It Matters
The deal illustrates the ongoing reset in the commercial office sector. As values fall, more distressed assets are likely to trade at discounts, especially in older buildings without premium amenities or strong tenancy.
