New York's post-modernist Sony Tower, formerly owned by AT&T, has been sold to Joseph Chetrit, a real estate developer who plans to convert the building into a luxury hotel and residential tower. The Chetrit Group signed a $1.1 billion contract to purchase the 37-story Philip Johnson-designed tower on January 18.
Local media is calling $1 billion "an aggressive price" for a tower in need of repair.
The price values the 28-year-old building at $1,287 a square foot, according to Bloomberg. By comparison, 510 Madison Ave., two blocks to the south, was sold new and empty in August 2010 for about $800 a square foot.
"Sony admitted that the motivation for the sale was to raise some much-needed cash, expected to equal $770 million, after debts on the building have been repaid," the BBC reports.
Sony will continue to lease office space in the tower until 2016, according to local media.
Find previous coverage of the Sony Building sale here.