Fizzled Out: Coca-Cola’s Building Sale

Coca-Cola sold its building in a dramatic fashion. The entire story is pretty entertaining but I'll try to sum up the near 10-minute read. With the help of commercial brokers Cushman & Wakefield, Coca-Cola sold its glorious building at 711 Fifth Avenue in August to Nightingale Properties and Wafra Capital Partners for $909 million. One month later, Wafra sold its stake in a deal valuing the property at $937 million which indicates Coca-Cola missing out on tens of millions of dollars. The new buyer was an investment group led by Michael Shvo who had placed a higher bid to Coca-Cola of $955M prior to the sale. Coca-Cola had rejected it because of the negative news surrounding Shvo “They would not choose to do business with anybody with a less than stellar reputation or track record” said the Cushman brokers. Rumors have it the soft drink giant rejected the offer because Shvo pleaded guilty to tax fraud in 2018. Others claimed that an influential tenant opposed Shvo’s offer, fearing eviction if he converted the building to a hotel. Cushman has been getting some heat seeing that they represented both parties in the deal. I can see why someone would turn down a higher offer if there was a lot of risk in the buyer's ability to close but Shvo is a developer notorious for buying trophy properties. Would you have said no to an extra $48M? Get more of the nitty-gritty details by clicking here

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