W
illiams Equities has acquired the 300,000-square-foot office building at 470 Park Avenue South in Midtown South for $147.5 million, a significant discount from its last sale price of $245 million seven years ago. The deal works out to $492 per square foot and marks a substantial loss for sellers SJP Properties and PGIM Real Estate, an affiliate of Prudential Financial. The property was renovated with a roof terrace, ground-floor lounge, and landscaped courtyard at a reported cost of $15 million.

    The adjustment in building values is attributed to the "post-pandemic interest rate and cap rate environment," according to Williams principal Michael Cohen. Despite this, tenants such as DAZN and Anchorage Digital have recently signed deals at the property. Williams plans to market upcoming office space for between $70s and $80s per square foot, with about 45% of the space expected to be available soon.

    Williams will replace a $56 million mortgage provided by MetLife Real Estate Lending with its own loan, although details on financing were not disclosed. Eastdil Secured advised the sellers on the deal. This acquisition comes after Williams Equities sold 655 Madison Avenue to Extell Development in October for $160 million and PGIM's sale of an apartment complex in Gramercy Park to Canvas Investment Partners at a loss.