Two Manhattan office blocks have been put up for sale as Paul Kemsley’s failed Rock property empire continues to crumble.
The joint administrators for Rock Joint Ventures have appointed Studley to sell a 250,000 sq ft office block at 183 Madison Avenue and a 270,000 sq ft office block with flats at 100-104 Fifth Avenue. The building are 70% and 80% occupied respectively.
Barry Gilbertson, specialist real estate partner at PricewaterhouseCoopers, said: “We have seen tremendous interest in both properties, during the first year of the administration, while we have been focused on stabilising the assets.
“We have been improving the buildings and enhancing value with new lettings, often at rental terms above market. Such is the potential of the locations for the intimate apparel industries historically located in the Madison building, and the advertising, media and hedge-fund companies in the Fifth Avenue building.
“Running a property company, in administration, in any country is a challenge. With Rock, we have been running a property company in New York, where the market is fundamentally different to London, in many respects.
“However, one characteristic similar to both cities is a very strong investor desire to buy good quality assets, with huge potential, at the right price, and just as the real estate market is ready to place one eager foot after another on the road to recovery.”
Woody Heller and Will Silverman of Studley’s Capital Transactions Group are leading the team.
Heller added: “The properties are exactly what the market is clamouring for: value-added investment opportunities at prime locations. As they transition from administrator control to investor ownership, these buildings are positioned to capture the value associated with today’s rebounding leasing market.”
The joint administrators for Rock Joint Ventures (in administration), are Peter Spratt, Laurie Manson and Bruce Cartwright of PricewaterhouseCoopers.
bridget.o’connell@estatesgazette.com
