W
illiams Equities has acquired 470 Park Avenue South, a historic Midtown South office building, for $147.5 million, significantly less than its previous sale price of $245 million in 2018. The sellers were SJP Properties and PGIM Real Estate, which had made significant investments in the property, including a new roof terrace, ground-floor lounge, and landscaped courtyard.

    The lower purchase price may seem surprising given the recent trend of bargain-basement deals, but Williams Equities' Michael Cohen attributes it to the post-pandemic interest rate and cap rate environment. "We're now in a very different market than what existed in 2019," he said. The company plans to capitalize on this shift by investing in the property.

    Williams Equities has already secured a new mortgage loan to refinance the existing debt, but terms were not disclosed pending lender approval. Cohen noted that the building's recent upgrades have attracted high-profile tenants such as DAZN and Anchorage Digital, with 45% of the office space set to hit the market in the low $70s per square foot to low $80s.

    The 1912-built property consists of two interconnected structures and offers a unique opportunity for Williams Equities to add another architecturally distinguished building to its portfolio. The company has a track record of revitalizing older properties, including 136 Madison Ave., where it recently completed 57,000 square feet of leasing.