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Related Companies affiliate has agreed to sell a Hell's Kitchen office building at 321 West 44th Street for an undisclosed price below $50 million. The property was acquired by Namdar Realty Group, Empire Capital, and Mason Asset Management, with Namdar holding a 92.5% stake. This sale represents a significant discount from the original purchase price of $153 million in 2018.

    The building's value has plummeted due to high interest rates and the pandemic's impact on the office sector. The transaction was a short sale, allowing Related and its lenders to sell the property for below the outstanding mortgage balance, reportedly over $100 million. CBRE arranged the deal.

    This sale is an example of Related CEO Jeff Blau's advice last year to Class B office owners: "take what you can and run." Namdar Realty Group has faced difficulties with another Midtown office property, where Benefit Street Partners initiated a foreclosure action in the summer.