Empire State Realty Trust is looking to sell an office building in the Garment District — the latest in a string of sales as the company prioritizes where it’s putting its money.
The Tony Malkin-led REIT put the nearly 500,000-square-foot building at 501 Seventh Avenue on the market, The Real Deal has learned, eyeing a price tag of about $150 million.
The 18-story building at the corner of West 37th Street is 84 percent leased, according to an offering memo from Newmark. The building is popular with fashion industry tenants, including Steven Madden, PVH Corp and Carolina Herrera.
ESRT has invested $54 million in the property (40 percent of it in the last five years) on modernized elevators, windows, building systems and a rooftop lounge, according to Newmark.
“A buyer will inherit a modernized and amenitized asset with limited go-forward capital needs,” the offering memo read.
A spokesperson for ESRT did not immediately respond to a request for comment. A Newmark team led by Adam Spies and Josh King is overseeing the sale process.
The property is the latest offering from Malkin’s company, which has recently sold buildings to pay down debt and buy back shares.
The company last week closed on its $218 million sale of 1359 Broadway to Joe Sitt, and earlier this year sold 250 West 57th Street to Igal Namdar for $280 million.
Malkin said on the company’s third-quarter earnings call last week that ESRT is using the proceeds from sales to buy back shares and pay down debt.
“And we will continue to test the market where it’s appropriate,” he said. “And then we look to redeploy as makes sense for growth.”
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