$6.1 Million Office Condominium Sale at 125 Maiden Lane

Rudder Property Group is pleased to announce the sale of an 18,201 square foot office condominium on the 14th floor of 125 Maiden Lane.  SCPG Property, LLC, a subsidiary of a China-based publishing company, paid $5.9 million. Michael Rudder and Mike Heller of Rudder Property Group represented the seller, while Arthur Hung from Corcoran represented SCPG.

125 Maiden Lane is a 340,000 square foot, class B office building located in the Financial District. The property was converted to office condominiums in 2006 by Time Equities.  Other owners include the Lower Manhattan Cultural Council, Jewish Forward, International Planned Parenthood, the Consulate General of Trinidad and Tobago and the Guttmacher Institute. The property features a roof garden, free fitness center, a rotating art exhibit in the lobby, and has recently received LEED certification.

“The purchaser recognizes the benefits of office condominium ownership and they anticipate significant long term appreciation of real estate values in Lower Manhattan,” said Michael Rudder, principal of Rudder Property Group.  “This sale is indicative of the recent influx of overseas buyers of office condominiums.”

“SCPG was attracted to 125 Maiden Lane’s amenities like the garden on the roof, and they plan to reconstruct the space in order to occupy a portion and lease a portion out” said Mike Heller, Director of Sales of Rudder Property Group.

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Durst sells Third Avenue office space to counteract weak leasing market

The Durst Organization recently completed a “leasehold office condominium” transaction at 205 East 42nd Street. Durst converted the building into an office condominium. They then leased 170,000 RSF condominium unit to theCity University of New York.  The purpose of the leasehold condo is to avoid paying real estate taxes. Since the space that CUNY, a non-profit, is leasing is its own tax lot and condo unit, and since the term of the lease is for 30+ years, there are no real estate taxes. The tax exemption enables Durst to rent the space to CUNY at approximately $10/RSF below market rate and still achieve the same net operating income. Other landlords have recently used this sophisticated technique to lure tenants, including SL Green’s lease to the MTA at 333 West 34th Street. This transaction highlights one of the many benefits to office condominiums. Please contact us for more information on leasehold office condominiums.

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