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Dallas-based family, Thakkar Developers, has acquired the Manhattan office building at 135 West 50th Street through an online auction. The leasehold purchase price of $8.5 million is a significant reduction from the original sale price of $332.5 million in 2006. Poorvesh Thakkar, CEO of Thakkar Developers, declined to reveal specific plans for the property but hinted at something "creative" being in store.

    The family's first real estate project outside Texas will be a challenge, given the building's dated design and struggling occupancy rate. The leasehold purchase includes a substantial rent payment that helps explain the low sale price. UBS, the original seller, listed the property on Ten-X after reportedly deciding to cut its losses rather than try to salvage more value from the aging building.

    The Thakkar family purchased the 23-story Midtown property through an entity called TD 135 West 50 LLC, with Poorvesh's mother Veena signing the ground lease. The sale is unusual for a major asset like this one, typically sold through traditional channels rather than online auctions. UBS had previously bought and sold the land beneath the building, realizing a $6 million gain in the process.

    The Thakkars will now be responsible for the $800,000 monthly payments on the lease signed by UBS, which expires in 2123. Options for the property include converting it to residences, repositioning it for commercial tenants, or tearing it down and rebuilding. However, razing the building would require clearing out remaining tenants, a time-consuming and expensive process.