Investment sales in Manhattan reached a record high last year. Cushman & Wakefield reported that about $20.9 billion of sales were closed last year, and $5.2 billion of sales were under contract,resulting in record sales of $26.1 billion.The high sales volume was nearly a 40% increase over a 2004 sales volume of $15.1 billion. This year may even surpass the 2005 total. The managing director at Eastdil Secured, Douglas Harmon, said, “As we sit today, there is no reason why 2006 should not continue the terrific pattern of recording breaking sales activity of 2005.”

Last week, a real estate investment trust, Boston Properties, announced it is in discussions for the possible sale of two of its Manhattan office properties. The company anticipates that these properties could generate gross sales proceeds of more than $2 billion. According to the trade, one of the buildings is the 37-story, 1.1 million-squarefoot FiveTimes Square, which was built in 2002. The building is fully leased to Ernst & Young; retail tenants include Red Lobster, Champs Sports, and Times Square Brewery Restaurant.The other building is 280 Park Ave., between 48th and 49th streets. This building complex consists of two office towers,one of 30 stories and another 43 stories, with a main lobby on Park Avenue. Tenants include Deutsche Bank, the National Football League, and the Prime Grill restaurant. Insiders believe a possible buyer could be Dubai-based Istithmar, which paid $705 million in November for 230 Park Ave.

Atlanta-based Jamestown Properties raises equity from individual German investors. Last year, it paid $300 million for an investment in the General Motors building at 767 Fifth Ave. Jamestown, with Apollo Real Estate Advisors, owns a 75% interest in the 43-story, 1.9 million-square-foot AXA Financial Center at 1290 Sixth Ave. The partners paid $745 million for the tower in 2002. Later this month, it will be selling the building to Hudson Waterfront Associates for $1.25 billion.

Demand is high for Fifth Avenue properties, especially those in the Plaza district. In July 2004, the office building at 717 Fifth Ave., originally known as the Steuben Glass building, was sold. The large REIT Equity Office bought the office-tower component, comprised of 380,796 square feet of space for $160.5 million from a joint venture of German-based HGA Capital and a fund sponsored by Walton Street Capital.The retail component, a condominium of about 80,734 square feet on the ground and first three floors of the tower adjacent to Trump Tower, was sold for $160.5 million to a joint venture of Lloyd Goldman’s BLDG Management (one of the largest investors in the World Trade Center site), the Feil Organization, Stanley Chera, and other investors. The total purchase price for the building’s office and retail space was $353 million. In 2000, Steuben Glass vacated the building and the building was sold byYale University Investments for $266 million. The retail component is being offered for sale to a foreign investor, The New York Sun has been told. The condominium may fetch close to $270 million.

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Last fall, JPMorgan sold the 23-story, 545,000-square-foot office building at 522 Fifth Ave. to a joint venture of the Rockpoint Group and Stellar Management for $164 million. The joint venture purchased the underlying ground lease for about $53 million. The combined purchase price for the building and the land is $217 million.The building currently is 100% occupied on a short-term basis by JP Morgan Asset Management.The property is being offered for about $500 million, or close to $1,000 a foot.

Mr. Harmon of Eastdil is marketing the sale of the landmark 38-story, 428,000-square-foot Fred F. French Building at 551 Fifth Ave. In 2002, MetLife sold the building to a joint venture of the Feil Organization, Lloyd Goldman, and Mr. Chera. Last month, the principal of the Moinian Group, Joseph Moinian, closed on the purchase of three office buildings at 509, 535, and 545 Fifth Ave. A joint venture of Emmes and Apollo Real Estate Advisors sold the buildings for $270 million.

Last month, the REIT SL Green Realty announced it had entered a longterm operating net leasehold interest in the 40-story, 460,000-square-foot office building at 521 Fifth Ave. with an ownership group led by RFR Holding, which retained fee ownership of the property. SL Green also purchased an option to acquire fee ownership of the property in five years. Assuming it exercises its option, the total cost would be $225 million.

Last year, Murray Hill Properties, headed by Norman Sturner and Neil Siderow, purchased the building at 417 Fifth Ave. Last week, Murray Hill went to contract to purchase its first commercial building outside of Manhattan, agreeing to pay $85 million to Steven Witkoff for a nine-story office building and 206-acre site in Westchester. The property, known as One Pepsi Way, was built in 1986, and is in Somers, off Interstate 684. Mr. Witkoff acquired the property in 1998 for $65 million.

One block away from 417 Fifth Ave. is a site that is ready to be developed into a residential condominium or hotel. Last month, the owners of the site, a joint venture of Yitzak Tessler and Lehman Brothers, announced it was planning to sell the site, which is at 400 Fifth Ave. on the northwest corner of 36th Street. According to the trade, the joint venture expects the property to change hands for about $600 a developable square foot.It has about 190,000 developable square feet. The 17-story, 58,253-square-foot building at 307 Fifth Ave. and the adjacent parking lot are expected to be sold, the Sun has been told. Trade sources believe the 1928 building will be demolished to make way for residential condominiums. According to the trade, the site is expected to be sold for a developable land cost of about $400 a foot.

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Besen & Associates is marketing for sale the six-story, office/retail property at 1200 Sixth Ave., near 47th Street in the diamond district. The property, which includes some airs rights, is expected to sell for about $42 million. Last month, a joint venture of Normandy Realty Partners and the Landis Organization sold the 34-story, 359,000-square-foot building at 1370 Sixth Ave. It was built in 1971 for Principal Financial at a cost of $220 million.

Mr. Harmon has been retained by the German-owned Paramount Group to sell the 44-story, 1.1 million-squarefoot 1540 Broadway, built in 1990. The building serves as the American headquarters of Bertelsmann, BMG Entertainment, Planet Hollywood, and Virgin Megastore. The property could trade for as much as $1 billion, or about $830 a square foot. Paramount purchased the building from Bertelsmann for $425 million in June 2004. The building is on the former site of the Loews State Movie Theater, which was built in 1920.

Last week, Citibank announced plans to sell its 11-story, 363,000-square-foot loft building at 250 West St., which is also known as 34 Hubert St., in TriBeCa.Built in 1910,it has been expanded from four floors to 11. The property is being marketed for conversion into 250 residential condominiums. Industry leaders expect the property to sell for about $150 million.

The demand for commercial office buildings in Manhattan does not appear to be slowing. A senior executive broker at Besen & Associates, Adelaide Polsinelli, said, “The market is still robust and activity is strong due to the influence of REITS and foreign money. NYC will remain healthy because of this.”

Mr. Stoler is a television broadcaster and senior vice president at First American Title Insurance Company of New York. He can be reached at mstoler@firstam.com.