Name: 229 West 43rd Street | 28,228 RSF (Direct Lease)
Published: 2023-07-24

Multiple fully built-out big box leasing opportunities with new
HVAC, vertical transportation and ADA compliant bathrooms
Join Bowlmor Lanes, The Ribbon, Haru and Los Tacos No. 1
Within 1 block of 18 Broadway Theaters
Steps from Marriott Marquis, The Westin, Hotel Carter, Intercontinental New York
Times Square

Building Details

The $386 million decline in the property’s value, from $470 million to $84 million, was the biggest valuation dip of the first half, topping a 57 percent drop of Brookfield’s 1.4 million-square-foot Gas Company Tower office property in downtown Los Angeles, the CRED iQ analysis shows.
The valuation of 229 West 43rd was $109 million in December 2021 two years after a $295 senior million loan tied to the property transferred to special servicing, according to CRED iQ. The loan defaulted in March 2021 with a receiver subsequently appointed.
The initial $470 million appraisal Kushner received on 229 West 43rd came on the heels of acquiring the 18-story property in the fall of 2015 for $296 million from Africa Israel USA, a U.S. subsidiary of Israeli investment firm Africa Israel Investments, Commercial Observer previously reported.
In October 2016, Kushner received a $370 million debt package to refinance the property in October 2016 that includes a $285 million commercial mortgage-backed securities (CMBS) loan from Deutsche Bank (DB). The deal also involved a $70 million mezzanine loan from Paramount Group and a separate $15 million mezzanine piece from SL Green (SLG) Realty Corp.
Mike Hass, founder of CRED iQ, noted that net operating income for the property — according to the latest estimates — was between $10 and $13 million, compared with $21 million when it was underwritten.

229 West 43rd Street | 28,228 RSF (Direct Lease)