Columbus Properties buys 909 Third Avenue fee from 601W Companies for $191.7M

By Varvara Budetti

Columbus Properties purchased the fee interest in 909 Third Avenue from 601W Companies for $191.7 million, according to city property records. Vornado Realty Trust controls the office tower through a ground lease it acquired in 1999.

Mark Karasick, through the entity 909 Third Holding LLC, was the signatory for 601W Companies. John DiMurro, through the entity 909 Third Fee Owner LLC was the signatory for Columbus Properties. The deal closed on June 11, 2021 and was recorded on June 21, 2021.

At the same time, Columbus Properties signed a $45 million loan with JPMorgan Chase for the property.

Representatives of 601W Companies declined a PincusCo request for comment. Columbus Properties did not immediately respond.

The property has 1,321,050 square feet of built space according to PincusCo analysis of city data. The sale price of the fee per built square foot is $145 per the PincusCo analysis.

601W Companies acquired the fee in 2004 for $50.7 million. Vornado acquired the leasehold in 1999, and recently refinanced it with a $350 million loan.

Within a 400-foot radius of 909 3rd Avenue, PincusCo identified six commercial real estate items of interests occurred over the past 24 months. Of those six items, one was for major renovation including a certificate of occupancy change. It was an initial temporary certificate of occupancy issued on May 8, 2020 for the $380,947 renovation of 10,590-square-foot office building.

Of those six items, two were sales above $5 million totaling $101.1 million. The most recent of the two was Palin Enterprises which bought the 112,000-square-foot, 102-unit office building (O6) on 155 East 55th Street and two other properties for $65.1 million from Alvin Dworman on June 15, 2021.

Three of the items were loans above $5 million totaling $356.5 million. The most recent of the three was Noorollah Asherian which borrowed $19.5 million from Morgan Stanley Bank secured by the 51,923-square-foot, 42-unit office building (O6) on 160 East 56th Street on May 5, 2021.

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