Sedesco pays $18.5M to Vornado, LeFrak for office, retail in Midtown West condo tower

Sedesco through the entity Bob 57 Development LLC paid $18.5 million to Vornado Realty Trust and LeFrak through the entity 49 West 57th Street Owner LLC for three office condominium units and four retail condo units on the 57th Street side of the 168-unit, mixed-use condo building, Tower 58, at 58 West 58th Street in Midtown West, Manhattan. The expected use is cash flowing. The retail and office portion of the building is at the address 49 West 57th Street.
The deal closed on June 26, 2025 and was recorded on July 1, 2025. The seven properties have 19,282 square feet of built space according to a PincusCo analysis of city data. The sale price per built square foot is $959 per the PincusCo analysis. (The price per square foot analysis is the transaction price divided by square feet as reported in public records and assumes no air rights have been sold.)
The signatory for Vornado Realty Trust and LeFrak was Steven Borenstein and Arnold S. Lehman . The signatory for Sedesco was Brian Murn . Sedesco is led by Demir Sabanci and Derek Gilchrist. The contract date was June 12, 2025. This is the purchase of seven of the eight commercial condominiums (three office units on floors 2, 3, 4 and four ground floor retail units) that are in the mixed-use condominium building Muss Development constructed. The one commercial unit that was not purchased, the 23,121 sf garage unit C1 lot 1001, is owned by Centerpark and Chicago-based Syndicated Equities. Unit sf p. 19. The non-commercial units are owned by individual residential condo owners.

Traded NY reported on the sale previously.

Prior sales and revenue

Prior to this transaction, PincusCo has no record that the buyer Sedesco had purchased any other properties and has no record it sold any properties over the past 24 months.
The seller Vornado Realty Trust purchased four properties in two transactions for a total of $129.6 million and sold 13 properties in seven transactions for a total of $1.6 billion over the same time period.

Violations and lawsuits

There were no lawsuits or bankruptcies filed against the properties for the past 24 months. In addition, according to city public data, the properties have not received any significant violations in the last year.

Development

There are no active new building construction projects or major alteration projects with initial costs more than $1 million on this tax lot.

The neighborhood

In Midtown West, The majority, or 75 percent of the 75.9 million square feet of commercial built space are office buildings, with hotel buildings next occupying 14 percent of the space. In sales, Midtown West has the 2nd highest sale turnover among other neighborhoods in the city with $2.8 billion in sales volume in the last two years. For development, Midtown West is the most active neighborhood among other neighborhoods. It had 35.3 million square feet of commercial and multi-family construction under development in the last two years, which represents 46 percent of the neighborhood’s built space. There was one pre-foreclosure suit filed among other office buildings in the past 12 months.

The block

On the tax block of 58 West 58th Street, PincusCo has identified the owners of 10 of the 17 commercial properties representing 2,417,288 square feet of the 2,531,170 square feet. The largest owner is Solow Realty & Development, followed by Goodman Family and then Host Hotels & Resorts.
On the tax block, there was one new building construction project filed totaling 36,423 square feet. It is a 15-unit, 36,423 square-foot residential (R-2) building submitted by Solow Realty & Development and filed by Anthony Calicchio with plans filed December 30, 2016 and permitted January 24, 2018.

The majority, or 80 percent of the 2.5 million square feet of built space are office buildings, with hotel buildings next occupying 9 percent of the space.

The seller

The PincusCo database currently indicates that LeFrak owned at least 59 commercial properties with 9,662 residential units in New York City with 10,841,828 square feet and a city-determined market value of $1.6 billion. (Market value is typically about 50% of actual value.) Within the portfolio, the bulk, or 89 percent of the 10,841,828 square feet of built space are elevator properties, with office properties next occupying 10 percent of the space. The bulk, or 62 percent of the built space, is in Queens, with Manhattan next at 33 percent of the space.
The PincusCo database currently indicates that Vornado Realty Trust owned at least 55 commercial properties with four residential units in New York City with 15,490,385 square feet and a city-determined market value of $7 billion. (Market value is typically about 50% of actual value.) The portfolio has $6.7 billion in debt, with top three lenders as JPMorgan Chase, Goldman Sachs, and Morgan Stanley respectively. Within the portfolio, the bulk, or 78 percent of the 15,490,385 square feet of built space are office properties, with retail properties next occupying 12 percent of the space. The bulk, or 97 percent of the built space, is in Manhattan, with Bronx next at 3 percent of the space.

The buyer

The PincusCo database currently indicates that Sedesco owned at least one commercial property in New York City with 69,649 square feet and a city-determined market value of $18.1 million. (Market value is typically about 50% of actual value.) The portfolio consists of at least a single office property. It is located in Manhattan.

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