Jewish Nonprofit Sells a Portion Of Headquarters at 59th, Lexington

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The New York Sun

The UJA-Federation of New York plans to sell 38,000 square feet of retail space at its headquarters on 59th Street and Lexington Avenue to a Spanish-owned real estate holding company for $107.4 million.


The UJA-Federation, a Jewish nonprofit, expanded the existing retail space in its headquarters, grouping together the ground, cellar, and second floor levels, and will sell it as one retail condominium unit. The buyer, an affiliate of Ponte Gadea, plans to lease it.


In one of the city’s most attractive retail locations, across the street from Bloomingdale’s and near the new Bloomberg commercial and residential building, the retail space generated top dollar, according to real estate agents familiar with the transaction.


The president of the UJA-Federation, Morris Offit, said in a statement: “The current interest rate environment combined with high demand for retail properties, particularly in midtown Manhattan, makes this an excellent time to sell … We were able to monetize the most valuable part of the building, thereby diversifying our investments, while retaining ownership of the space.”


The chief financial officer of the UJAFederation, Irvin Rosenthal, said that materials advertising the retail space were presented to 900 potential investors and resulted in nine serious bids.


Mr. Rosenthal said income from the sale would go to the organization’s $450 million endowment. He said the deal would replace income that was generated from rent the organization received from the retail stores that previously occupied the ground floor.


The UJA-Federation built the 17-story building, which contains 245,000 square feet of office space, in 1954.The building is undergoing a $90 million renovation to upgrade its electrical, mechanical, and plumbing systems as well as re-do its glazed brick facade to one made of metal and glass.


When the renovation is complete at the end of next year, the UJA-Federation will occupy eight floors of the building, and rent out the remaining space.


Mr. Rosenthal said that the sale agreement contained restrictions about the type of retail business that can occupy the space. He said, “Since it our home, we want to make sure the retail presence on the ground floor is first class.”


The New York Sun

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