Pearl Realty Acquires LIC Office Building for $28M in Discounted Sale
Pearl Realty Management has acquired the Paragon Building, a seven-story office and retail property in Long Island City, for $28 million, marking a significant discount from its prior sale.
The seller, BrightSpire Capital, purchased the property for approximately $64.3 million in 2023, meaning the latest transaction reflects a roughly 56% decline in value over a three-year period.
129K SF Office Asset in Long Island City
The Paragon Building totals approximately 129,000 square feet and includes both office and ground-floor retail space.
Originally constructed in 1916, the property was redeveloped in 2018 into a modern office asset, positioning it to attract creative and office tenants in the Long Island City submarket.
The building is located near major transit connections, including the 7 train and Long Island Rail Road, providing direct access to Midtown Manhattan.
Discounted Sale Reflects Office Market Reset
The transaction represents one of the more notable discounted office sales in the New York City market this year.
The roughly 56% drop in valuation highlights the continued repricing of office assets, particularly in non-core submarkets and mid-tier buildings.
Market participants have pointed to several contributing factors:
- elevated interest rates impacting valuations
- reduced demand for traditional office space
- increased vacancy and tenant downsizing
- limited availability of debt for office acquisitions
Deals like this are increasingly viewed as part of the “price discovery” phase for the office sector.
Opportunistic Capital Targets Repriced Assets
Pearl Realty Management, led by Jack Guttman, has been actively acquiring commercial properties at discounted pricing across New York City.
The firm’s strategy appears focused on cash-flowing or repositionable assets that can be stabilized or upgraded over time as market conditions improve.
The Long Island City acquisition fits that pattern, providing a relatively low basis in a transit-oriented location with long-term upside potential.
Final Thoughts
The sale of the Paragon Building underscores the ongoing reset in office valuations across New York City.
As more assets trade at discounted pricing, opportunistic investors are stepping in to acquire properties at a new basis, signaling the next phase of the office cycle.
For the broader market, transactions like this suggest that while challenges remain, liquidity is returning — but at significantly adjusted pricing levels.
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