Manhattan Office Building’s Lease Sells for $230 Million in Rare Pandemic Deal

A global investment firm has purchased a 99-year lease on an office building in Manhattan’s Meatpacking District for about $230 million in one of the few office-building deals in New York City since the pandemic hit.

Meadow Partners, based in New York and London, closed late last year on its purchase of 860 Washington St., a 120,000-square-foot tower known for a Tesla Inc. showroom on its ground floor and office tenants that include Alibaba Group Holding Ltd. Thanks to the growing popularity of the trendy Meatpacking District, the building is almost fully leased at rents comparable to the top boutique buildings in Midtown Manhattan, according to participants in the deal.

Commercial property sales overall have greatly cooled off in New York during the pandemic, but there have been exceptions for well-located properties that have leased most of their space to tenants with good credit…