BentallGreenOak signs ground lease valued at $271M with Safehold, Inc. for office property in Grand Central

BentallGreenOak through the entity GO 685 Third Avenue Owner LLC signed a ground lease as tenant with Safehold, Inc.’s 685 Third Avenue Ground Owner LLC that was valued at $271.3 million, for 685 Third Avenue in Grand Central. The deal closed on December 20, 2019, and was recorded on December 27, 2019. The transaction consists of 1 parcel, including the tax class office building tower type with 20 or more stories (O4). The property is 559,755 square feet. The parcel(s) have total development potential of 559,755 square feet.
The average ground lease value per square foot is $485.

Safehold, a REIT managed by iStar, created a ground fee position valued at $180 million, according to the firm’s press release. The Acris filing represents the value of the ground lease signed with the new ground tenant BentallGreenOak, which owned the building in full before the ground lease position was created.  BentallGreenOak is a company created through the merger of Bentall Kennedy and GreenOak Real Estate. The DOB issued a major alteration (A1) initial temporary certificate of occupancy for the building on May 7, 2013.
Over the past five years, there have been 75 NYC Department of Buildings permit applications filed for this parcel valued at more than $20,000. There were 75 renovation/alteration projects (A2) applied for with a total estimated value of $35,273,033.
Direct link to Acris document. link
Direct link to the city’s interactive property map, ZOLA. link