David Werner is shopping for one other workplace property at a discount basement value.
The thrifty investor is in contract to purchase the 50-story One Dag Hammarskjöld Plaza tower for $270 million, The Actual Deal has discovered. The deal is anticipated to shut early subsequent yr.
That’s about half of the $566 million price ticket that vendor Rockpoint Group paid for the Midtown East workplace tower in 2019, and provides to the listing of deeply discounted workplace buildings that Werner’s snapped up lately.
That features the Hudson Yards-area workplace constructing at 440 Ninth Avenue he purchased in August for $105 million (sellers Taconic Funding Companions and Nuveen Actual Property $269 million in 2018), the constructing at 205 East forty second Road he and 601W Corporations purchased final month for about $300 per sq. foot and the tower at 675 Third Avenue he and Metro Loft Administration purchased in April for $100 million.
A consultant for Werner declined to remark, and a spokesperson for Rockpoint didn’t instantly reply to a request. A Newmark group led by Adam Spies and Adam Doneger negotiated the sale.
Inbuilt 1972, the property also called One Dag stands at 885 Second Avenue close to the United Nations Headquarters and has lengthy been house to numerous consulates and everlasting missions.
The 870,000-square-foot constructing is about 72 % occupied, with Memorial Sloan Kettering, the United Nations and the Republic of Germany counting as its largest tenants.
“One Dag is strategically positioned amongst a number of iconic Class A workplace property boasting a median occupancy of 90 % within the Midtown East market,” reads a advertising and marketing memo from Newmark, which notes the constructing lately acquired greater than $20 million in capital enhancements.
Comparable buildings within the space get common rents starting from $80 to $90 per sq. foot, in keeping with Newmark, which positions One Dag as “a compelling relative low cost in Midtown East.”
Boston-based Rockpoint Group financed its 2019 buy of the constructing with a $430 million mortgage from Wells Fargo and Brookfield.
The acquisition value then labored out to about $650 per sq. foot. Werner’s deal pencils to roughly $310 per sq. foot.
Werner, identified for placing when property costs are low in addition to for his quirky dealmaking fashion and penchant for flipping offers, has been changing a few of his discounted workplace properties into residential residences, and protecting others as industrial buildings.
His present shopping for spree began in about 2022, and he’s since been one of the busiest investors in Manhattan.
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