HPS Investment Partners pays $265m for Manhattan office

HPS Investment Partners has acquired a 21-story, class-A office building, located at 850 Third Ave. in Manhattan's Midtown East area, for $265.93 million.

The seller of the 617,000-square-foot asset was Chetrit Group.

Chetrit bought the 21-story building in 2019 for $422 million.

Manhattan’s office market still hasn’t recovered from COVID restrictions. Manhattan office leasing declined by 46.5 percent during fourth quarter 2022 to 4.94 million square feet. This was the lowest quarterly volume since second quarter 2021 and the sharpest quarterly drop in demand since second quarter 2020, according to Colliers.