The owners of a distressed office building at 16 East 40th Street in Midtown are navigating foreclosure proceedings while attempting to sell the property, currently appraised at $22 million. They received a $35 million offer, which would exceed their $32 million debt. The building has seen significant vacancy and cash flow issues, with occupancy dropping to 40% last year. Although appraised values from firms like Morningstar tend to be conservative, this sale could provide crucial insights into the current state of the New York office market. If the sale proceeds, it would reflect a price of $364 per square foot, lower than the average market rate of $615.
16 East 40th Street
