Assets in prime retail spots in Manhattan seem to be selling like hot cakes.
The Wall Street Journal reports that Joseph Sitt, head of Thor Equities, has just agreed to pay $277 million for a 35,000-sq.-ft. retail space at 680 Madison Avenue, on the corner of 61st Street. Vornado Realty Trust reportedly was willing to pay as much as $280 million for the asset, but its negotiations with the seller fell apart.
According to The Wall Street Journal:
Mr. Sitt said he plans to ask about $1,800 a square foot for the space—a jump from the $1,500 a square foot Mr. Barnett was asking a year ago.
Average asking rents on Madison Avenue have indeed climbed nearly 30% in the past year to more than $1,100 a square foot in the third quarter of 2012, according to the real-estate brokerage Cushman & Wakefield.