By Manhattan Real Estate Tracker, June 27, 2024
Manhattan Real Estate Tracker has learned that the financially troubled American Strategic Investment Company (ASIC) has entered into a contract to sell the building at 9 Times Square for $63.5 million. The company will be taking a huge loss on the sale price since according to company records, the property was purchased for $162,291,000 prior to 2015 – a loss of more than $98 million. Formerly New York City Reit trading under the NYC symbol, the company changed the name to American Strategic Investment Company in an effort to purchase property outside of the city. This REIT has been a disaster for investors who have lost a huge amount of their initial investment. The stock went public 2021 and has dropped approximately 90% in value. After paying off the loan, the sale is expected to net only $13.5 million which the company claims will be used to buy other properties outside of Manhattan. The sale price of 9 Times Square reflects how the Midtown office market has plunged since the pandemic resulted in many employees working remotely.
Manhattan Real Estate Tracker spoke with a couple of law firms this week who have shuttered their Manhattan offices giving back large chunks of space to the landlord. Some companies have most of their employees working remotely with only a receptionist and a few conference rooms to meet with clients. Other law firms outside the city in New Jersey and Long Island have also closed offices and are working remotely. The same business model change has also occurred in the insurance industry with many adjusters now working from home.
Michael Anderson, the Chief Executive Officer of ASIC stated, “We expect this sale to generate approximately $13.5 million in net proceeds at closing, which we intend to use to pursue the expanded asset acquisition and diversification strategy into higher yielding assets that was announced last year. Additionally, if completed, we expect that this strategic disposition will strengthen our balance sheet.”
More information on the sale of 9 Times Square can be found on the ASIC website.
