NEW YORK, April 9, 2017 /PRNewswire/ -- Recently, it's reported that HNA plans to sell its Class A office building (1180 Building) at the Avenue of the Americas, Manhattan, New York City, New York. It's also known that HNA Americas Property Holdings Co. Ltd. has already reached an agreement with a well-known American real estate agent, commissioning them to be in charge of the sale of the building, and handle all the negotiations with buyers. The project has been progressing rapidly.
It's understood that Manhattan real estate market is divided into Upper Manhattan, Midtown Manhattan, and Lower Manhattan, among which Midtown Manhattan has always been the golden area of the entire US which encompasses from 32nd street to 59th street and from 3rd avenue to 7th avenue, the top office building market. In this area, Class A office buildings cover 226 million square feet, and the retail, commercial and hotel occupancy rate and price level in this area rank the top in the US. And 1180 Building is located in the heart of Midtown, the conjunction of 46th street and American Avenue, adjacent to Times Square and Rockefeller Center, which gives it remarkable geographical advantage. In the aspect of occupancy rate, according to "Manhattan midfielder office market report" issued by US real estate giant CBRE, until February 2017, the average vacancy rate of office building in Manhattan Midtown is 8.1%. However, many years of dedicated management by Americas Property, the occupancy rate of 1180 building has always been kept 100% ever since 2016, way ahead of the average level of this area.
From the prospective of micro environment, the US economy has been accelerating recovery since 2016. The demand for rental of office building in Manhattan area has been increasing remarkably and the rent has been increasing as well, which brings the real estate market of this area into fast lane. Compared with 2009, the overall market value increased by 60%, and is still increasing rapidly. It's reported that, the net absorption of Midtown Manhattan exceeded 700 thousand feet during 2016. High demand drives rent to increase. Domestic and foreign investors are optimistic about the rental expectations and they remain active in the investment market.
The 1180 Building has been acquired for 6 years, which has outstripped the possession period. It conforms to the investment rules to sell the property at this time for the optimization of layout.
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SOURCE HNA Group