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Empire State Realty Trust is under contract to dispose of 250 W. 57th St., a mixed office and retail property in Midtown Manhattan, with published reports indicating a sales price of approximately $280 million. The 540,000-square-foot asset is being acquired by Namdar Realty Corp., which has agreed to purchase the property subject to existing financing.
According to Morningstar Credit, the building serves as collateral for a $180 million securitized loan. The reported contract price represents a significant discount from both the prior $350 million listing guidance earlier in the year and the $330 million appraised value assigned at the time the loan was issued. This repricing is occurring even as operating performance has exceeded initial underwriting expectations.
Morningstar Credit noted that the property’s 2025 net cash flow is projected to surpass the levels assumed at issuance, and it highlighted that lease rollover in the near term is limited. Despite this relatively stable cash flow outlook and modest lease expiration schedule, the current transaction value is still materially below the earlier listing and appraisal benchmarks.
On its website, Empire State Realty Trust describes 250 W. 57th St. as a circa-1921 property that has undergone a series of recent capital improvements. These upgrades include a new lobby designed by Gensler, modernized elevators and storefronts, new windows, and enhancements to building-wide systems. The REIT also emphasizes the building’s in-building access to the Time Warner Center/Columbus Circle subway station, as well as an amenity package for tenants.
The property is currently reported to be approximately 84% leased. With a combination of upgraded infrastructure, established tenancy, and direct access to a major transit hub, the asset offers a stabilized income profile even as the transaction demonstrates a lower clearing price relative to prior valuations.
The contemplated sale of 250 W. 57th St. illustrates how pricing for Midtown Manhattan office and retail assets has adjusted relative to pre-existing appraisals and marketing expectations, while also underscoring ongoing investor interest in well-located properties with in-place cash flow.
The post Empire State Realty Trust to Sell 250 W. 57th St. to Namdar Realty for About $280M appeared first on CRE Market Beat.
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