Spanish Billionaire Ortega Takes Hit, Sells Midtown Office Building at a Loss

Amancio Ortega, the Spanish billionaire known for his global real estate acquisitions, has hit a roadblock in his latest venture as his family office, Pontegadea, agreed to sell 366 Madison Avenue in Midtown Manhattan for $50 million. This is a significant markdown from the $115.5 million Ortega spent to acquire the office building roughly two decades ago.

The contracted buyer for the property is The Sioni Group, but neither firm has responded to requests for comment from Bloomberg, who first reported the sale. The sale price breaks down to $588 per square foot for the 85,000 square foot building.

According to sources, the Eastdil Secured team that brokered the sale included Will Silverman and Adam Spies, who are both well-known names in the industry.

This sale comes as a surprise to many, as Ortega's real estate holdings have been on an upward trend in recent years. However, this loss serves as a reminder that even the wealthiest investors are not immune to market fluctuations and risks.

"This is a significant hit for Ortega's real estate portfolio," said one industry insider. "But it just goes to show that even the most successful investors can make mistakes and suffer losses."

Despite the loss, Ortega's wealth is still estimated at over $80 billion, making him one of the richest people in the world. His family office, Pontegadea, also holds a large portfolio of global real estate assets.

Originally reported by The Real Deal: