Colonnade Management Acquires Office Ground Lease At 909 Third Avenue In Midtown East For $191.7M

909 Third Avenue, located in Midtown East, was recently sold in a ground lease transaction. The property is an office building with a total area of approximately 1,320,750 square feet. The deal was completed in June 2021 with a sale price of $191,670,794. The previous sale of the property occurred in March 2004 for $50,756,250.

Summary of transaction details

• Property Type: Office
• Transaction Amount: $191,670,794
• Date: 06/2021
• Address: 909 Third Avenue
• Market: Midtown East
• Square Footage: 1,320,750 SF

The buyer/lessor in this transaction is Colonnade Management, represented by John DiMurro. The seller is 601W Companies, with Mark Karasick and Mendik Company listed as the sellers' representatives. The lessee is Vornado Realty Trust.

Vornado has held the ground lease at 909 Third Avenue since 1999 and has invested over $184 million in capital improvements to date. Currently, Vornado pays a fixed annual rent of $1.6 million until 2063.

Some of the notable tenants in the building include USPS, occupying 492,400 square feet, Allergan with 168,700 square feet, Geller & Company with 125,500 square feet, and Omni Holdings with 32,500 square feet.