- A retail condo in the former New York Times building in Midtown Manhattan has sold for just $28M — roughly 6% of its $470M appraised value in 2016.
- Kushner Cos. purchased the 248K SF space for $295M in 2015 but lost the asset to foreclosure in 2024 after major tenants defaulted during the pandemic.
- The new owner, Forum at Times Square LLC, plans to reposition the property with a new tenant mix, capitalizing on its location across from the proposed Caesars Palace Times Square casino.
A Steep Discount
The retail portion of the former New York Times building has been sold again, this time at a steep discount, reports Bisnow. The 248K SF space spans six floors at 229 W. 43rd St. It was acquired for $28M — a dramatic drop from the $295M Kushner Cos. paid in 2015. That price is also far below its 2016 appraised value of $470M.
From High Hopes To Foreclosure
The space, which occupies the first four floors and two basement levels of the 18-story tower, faced significant headwinds starting in 2020. Major tenants National Geographic and Gulliver’s Gate defaulted on lease payments, triggering financial distress. The mortgage went into special servicing, and in May 2024, KeyBank foreclosed on the property for the CMBS bondholders. It officially took possession in July 2024.
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The New Buyer
Forum at Times Square LLC, a Delaware-registered shell company linked to a high net worth individual, purchased the asset. CBRE’s Jack Stillwagon and Doug Middleton handled the sale for the lender, while BayBridge Real Estate Capital advised the buyer.
Looking Ahead
According to the buyer’s advisers, the plan is to reposition the property with a curated mix of entertainment, retail, and restaurant tenants. With only 34.5% of the retail space leased, the property offers a clear opportunity for repositioning and growth. With Caesars Palace Times Square potentially opening across the street, new entrepreneurial ownership could breathe new life into the property.
Why It Matters
The deal highlights the volatility of retail real estate in Midtown post-pandemic and underscores the risks of overleveraging. It also highlights a broader trend of distressed urban retail properties selling at deep discounts. New investors are betting on long-term upside through re-tenanting and experiential concepts.
What’s Next
As tourism, retail, and office patterns shift in Midtown Manhattan, developers are actively reimagining legacy assets like the former NYT building. The new owner’s success will depend on their ability to execute a vision that aligns with Times Square’s evolving dynamics.
