Confidence is slowly returning to New York’s office market, and a new deal in Midtown Manhattan is drawing attention from real estate investors across the industry.
REALM, together with DelShah Capital and A.M. Properties, has acquired the office condominium portion of CitySpire at 156 West 56th Street in Manhattan. The companies announced the transaction through an official statement released this week.
The office property covers about 377,000 square feet across 24 floors inside the CitySpire tower, located just steps away from Central Park and Carnegie Hall. The building sits in one of Manhattan’s busiest commercial districts and offers access to transportation, restaurants, hotels, and corporate offices.
High Occupancy Strengthens Investor Interest
According to the official announcement, the office portion of the property is currently 98% occupied. The building also underwent nearly $22 million in capital improvements before the acquisition.
The upgraded property includes renovated common areas, modern office infrastructure, and improved building systems. Current tenants include footwear company Caleres, law firm Windels Marx Lane & Mittendorf LLP, and nonprofit organization New York Road Runners.
The buyers said the property attracted interest because of its strong occupancy level and prime Midtown location at a time when many investors remain cautious about older office assets.
Financing and Investment Details
Reports confirmed that Affinius Capital provided $88 million in acquisition financing for the transaction. Industry reports also valued the deal at approximately $135.7 million.
The acquisition reportedly closed at an 8.5% capitalization rate, which is considered attractive in the current commercial real estate market. Investors often use capitalization rates to estimate potential returns from income-producing properties.
REALM Founder and CEO Travis King said the company continues to focus on high-quality office investments in major business districts.
In the company statement, King said the CitySpire office property represents the kind of opportunity the firm seeks in today’s market, especially assets with strong tenant demand and stable occupancy.
Manhattan Office Market Shows Signs of Recovery
The acquisition comes during a period of transition for the U.S. office market. Remote and hybrid work models continue to affect many office buildings across the country, but premium properties in strong locations such as Midtown Manhattan are still attracting investment. Real estate analysts say well-maintained buildings with long-term tenants and modern upgrades continue to perform better than aging office properties in weaker markets.
CitySpire remains one of Midtown Manhattan’s recognizable mixed-use towers. Construction on the skyscraper began in the mid-1980s, and the property later became known for combining office and residential space in one of New York’s most valuable business corridors. The latest acquisition highlights how investors are still willing to back high-performing office properties despite uncertainty in the wider commercial real estate sector.
