Cash-Rich GIC pays US$30 Million For A Garage In New York
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http://therealdeal.com/newyork/articles/singapore-pays-30m-for-east-side-garage-at-318-east-48th-street
The Real deal, 5 Oct 2009
Singapore pays $30M for East Side garage
The Singapore government paid $29.5 million for a 40,000-square-foot garage building near the United Nations that will be converted to office space, a broker on the deal said.
The Government of the Republic of Singapore closed on the purchase of 318 East 48th Street, between First and Second avenues, Oct.1, according to Gil Robinov, executive managing director at brokerage NAI Group, who represented the southeast Asian nation.
The seller was Chapman Consulting Group, an owner and operator of garages, and was represented by David Noonan at Newmark Knight Frank, a statement from NAI Group said.
The five-story structure will be converted to an office building or be demolished and rebuilt at about the same size, for the nation's mission and consulate offices to the United Nations, Robinov said.
Singapore paid $737 per square foot, almost double the average price per square foot of $392 for Manhattan office building sales closed in the first half of the year, according to data in a July report from investment brokerage Massey Knakal Realty Services.
The government was willing to pay a relatively high price to be near the United Nations, which is a block away, Robinov said.
"They had to be near the UN; this was an excellent location and there is not much available in the area," he said.
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Here are some the comments from readers:
Comments
Anonymous
This article would be 100x more helpful if it would report the price per buildable foot. Comparing this sale to office building sales is not relevant to this property and should be excluded from the report.
Comment #1 Posted By: Anonymous 10/05/09
Anonymous
way overpaid
Comment #2 Posted By: Anonymous 10/05/09
Mr. Anonymous
Rough ballpark figures: C1-9 zoning - 10.0 FAR 7,538 sf lot x 10.0 FAR yields 75,380 bsf $29,500,000 / 75,380 = $391.35/bsf That is a huge number. Luckily for the sellers, governments print their own money
Comment #3 Posted By: Mr. Anonymous 10/05/09
Anonymous
If this is looked at as a user deal, which it is, the price per sq ft per FAR is not so bad. Remember they will build a building and then pay taxes and operating expenses forever. And they want to be near the UN, which is a limited market.
Comment #4 Posted By: Anonymous 10/05/09
Gil Robinov
None of these people know what they are talking about especially the last one. The government does not pay taxes on a building they use for itself.
Comment #5 Posted By: Gil Robinov 10/05/09
Anonymous
I do not believe this building has any air rights attached to it (I could be wrong). I believe it sold all of them to the Trump building on 1st Ave on the same block.
Comment #6 Posted By: Anonymous 10/05/09.
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they bought a garage in the usa???why dont they buy an entire building next to the united nations building instead?
tells me spore got no more money left...........so poor now.........instead of tearing down the garage n building a new building ,they now end up having to live n werk in one dusty old garage????!!!!
i bet they now have to ask GLC staff to go paint the garage.
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damn it,,,,,,din they check the price b4 they buy it???is someone there doing an insider stafff under table profiteering scheme???nobody could be that dumb!