David Werner Actual Property Investments and 601W Firms closed on an acquisition in Midtown East, elevating the query: Is a conversion subsequent?
Werner and 601W purchased 205 East forty second Avenue from the Durst Group for $165 million, the Industrial Observer reported. New York-based 601W was reported to be in contract to purchase the constructing in September, however Werner’s involvement was not disclosed on the time.
The deal breaks right down to $310 per sq. foot. JPMorgan Chase offered a $100 million steadiness sheet mortgage to finance the acquisition.
A Newmark group together with Adam Spies, Doug Harmon and Adam Doneger organized the sale, whereas the agency’s Jordan Roeshlaub and Nick Scribani led the best way on financing.
Tenants on the workplace constructing embody the Metropolis College of New York, Fedcap Rehabilitation Companies and the United Manner of New York Metropolis. Possession accomplished a $15 million renovation in 2013, upgrading elevators and updating the Artwork Deco-style foyer. There are greater than 3,600 sq. toes of inexperienced roofs in addition to retail house on the bottom flooring. The constructing additionally advantages from its proximity to Grand Central Terminal.
Durst patriarch Joseph Durst purchased the constructing for his nascent actual property empire greater than 80 years in the past. The 532,000-square-foot, 21-story property was developed in 1927 and designed by Starrett & Van Vleck.
Its future might not be as an workplace constructing, although. The incoming homeowners are contemplating a partial conversion of the property. The higher flooring of the constructing, that are vacant, may work for residential use; alternatively, they might be remodeled right into a contiguous block for a devoted workplace tenant.
Werner and 601W didn’t reply to the publication’s requests for remark.
Werner, after all, isn’t any stranger to office-to-residential conversion, together with in Midtown East.
The investor partnered with Nathan Berman’s Metro Loft Administration on a conversion at 675 Third Avenue, one other former Durst property that traded for 9 figures. The conversion plans name for a 464-unit constructing spanning 321,000 sq. toes.
The 2 are additionally companions at 235 East forty second Avenue, the place they’re remodeling the previous Pfizer headquarters into 1,500 rental items, the biggest office-to-residential conversion in New York Metropolis.
Learn extra
Durst in line to sell Midtown East property for $165M
Metro Loft, David Werner take on Midtown East with next conversion
Metro Loft, David Werner close record loan for office-to-resi conversion
