New York’s Helmsley Building, with nearly 100 years of history, has been put up for sale following a period of loan stress, even as rents have hit a record high.
The 34-story tower spans Park Avenue near Grand Central Terminal and has long served as a visual anchor of midtown Manhattan. Designed by Warren & Wetmore and completed in 1929, the building features ornate limestone and a gilded cupola in the Beaux-Arts style, distinguishing it from the emerging Art Deco structures of the time.
It served as the New York Central Railroad’s headquarters and was later acquired by developer Harry Helmsley and renamed the Helmsley Building in 1978. The tower was added to the National Register of Historic Places in 1983.
The offering includes the 100% fee simple interest in the landmarked 1.4 million-square-foot building at 230 Park Ave. at 45th Street. The listing gives buyers the opportunity to acquire “a world-class asset at a historically low attachment point with accretive assumable financing following a senior loan modification,” according to marketing materials from Newmark, which is overseeing the sale.
The listing comes as pressure has mounted on owner RXR, which faced a March 14 deadline to restructure a commercial mortgage-backed securities loan or risk foreclosure on the trophy asset. CEO Scott Rechler told CoStar News then that his firm had secured a one-month extension.
'Strategic decision'
“Given the turnaround in the New York City office market, RXR made the strategic decision to put the building up for sale,” a spokesperson for RXR told CoStar News on Monday. The spokesperson declined to elaborate on how sale proceeds would be allocated, saying it would depend on pricing.
Newmark is marketing the property on behalf of both the lender group and RXR in a “cooperative sale,” according to a person familiar with the matter.
Commercial real estate publication The Promote earlier reported the listing.
The $670 million CMBS loan backing the property was originated in 2021 and transferred to special servicing in October 2023 ahead of its December maturity. SL Green Realty’s Green Loan Services was later appointed special servicer in August 2024. RXR has been in discussions with lenders and contributed equity to reserves tied to the loan.
SL Green did not respond to a request for comment.
Highest asking rent ever
The marketing effort comes as the Helmsley Building has posted its highest asking rent ever — $120 per square foot — even as broader distress continues to weigh on parts of the office market. It also comes as the Park Avenue corridor, anchored by corporate headquarters, has one of the city’s tightest vacancy rates and helped drive Manhattan’s top-tier leasing activity last year.
The property “serves as the southern anchor of Park Avenue, the world’s most prestigious corridor,” according to the marketing materials, which added that the area represents the strongest office cluster in the United States.
The building has struggled since the pandemic, with major tenants including Voya Financial and Clarion Partners departing. The vacancy rate stands at about 40%, more than double the 13.8% rate recorded for all of the Grand Central market, CoStar data shows.
RXR acquired the building in May 2015 with private-equity firm Blackstone for $1.21 billion. Blackstone later exited its stake.
The tower’s value has declined sharply, falling to $770 million from $1.3 billion when the CMBS loan was issued in 2021, according to a 2024 report from Morningstar Credit.
The bond-rating firm S&P Global has more recently cut its estimated net recovery value to $368.4 million — 13.2% below its prior estimate and roughly 53% below the most recent appraised value.