New York office tower could be acquired by investment group.
U.S. Steel Tower could be bought by a group of New York investors in a new deal that has been valued at around $250 million.
The office property spans 64 storeys, currently its largest lease is health care company UPMC who occupy 500,000 square feet of office space in the building. The firm replaced U.S. Steel as principal tenants and even have a logo adorning the top of the building.
The deals to buy the building aren’t final however and still have time to fall through. The group of investors is led by Mark Karasick who owns properties across New York, the deal is dependant on his ability to acquire a loan to cover 70 per cent of the cost.
A press release from the buildings owners AREA stated “We are in discussions with our lenders for an extension and we have received unsolicited offers from buyers at prices well in excess of the debt.”
Initially the landlords were seeking an extension or refinancing of the 2.3 million square foot tower but have ended up looking for a sale.
The tower is one of the most iconic buildings in the area. Created in 1970 by the U.S. Steel Corporation the building has had a series of different landlords over the past 4 decades.
Mark Karasick also owns buildings across the US, most notably he acquired 555 California Street or the Bank of America Tower in San Francisco.