A GVA source tells GlobeSt.com that the seller of the 25thStreet property was the Lasser Family, who owned the building for50 years. The source says that the buyer was a real estatepartnership, which consists of a group of entrepreneurs.

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[IMGCAP(2)]The new owners have planed major renovations to thebuilding that they believe will help nearly double asking rentsfrom the mid $20s to $40s per sf. Within the next 12 months, anumber of leases will expire, freeing up 50,000 sf to 60,000 sf tolease at the higher rents.

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"This was a great investment because leases are rolling in thisbuilding, making a renovation possible," notes Marty Meyer, seniorexecutive managing director at GVA Williams. "The renovation willmake the building more desirable to a wider range of potentialtenants and justify a significant increase in asking rents."

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[IMGCAP(3)]Eric and Marty Meyer represented both the owner andthe seller and are the exclusive leasing agents for the building.The class B building, located between Sixth and Seventh avenuescontains a total of 90,000 sf on 12 stories. It was built in1912.

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The Meyers also arranged the sale of 35 W. 36th St. for $28million, or $486 per sf, to 3526 Associates LLC, a locally basedinvestor. Douglaston Equities LLC was the previous owner. Thebuilding was sold just one year earlier for $19 million.

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"The current sale price of nearly one-third more than the pricepaid just a year ago shows the incredible strength of theinvestment sales market in Manhattan," says Eric Meyer, seniormanaging director at GVA Williams. Built in 1911, the Penn PlazaDistrict property totals 57,636 sf and is 100% leased to 15tenants. The transaction represents a 3% cap rate. Eric and MartyMeyer of GVA Williams represented both parties.

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With leases rolling within the next two years, the new ownerplans to renovate the building with a new lobby, elevators,installation of tenant controlled central air, upgraded securitysystems and electronic tenant directory. The renovations areexpected to generate asking rents in the $40s per sf, up from the$20s currently.

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The source explains that both buildings were seen by the buyersas a good opportunity in terms of short-term leases and bothsellers chose to capitalize on potential profits. The seller for25th Street was out of state and knew investment needed to be madein the property, but didn't want to be involved with a "longdistance" renovation.

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Natalie Dolce

Natalie Dolce, editor-in-chief of GlobeSt.com and GlobeSt. Real Estate Forum, is responsible for working with editorial staff, freelancers and senior management to help plan the overarching vision that encompasses GlobeSt.com, including short-term and long-term goals for the website, how content integrates through the company’s other product lines and the overall quality of content. Previously she served as national executive editor and editor of the West Coast region for GlobeSt.com and Real Estate Forum, and was responsible for coverage of news and information pertaining to that vital real estate region. Prior to moving out to the Southern California office, she was Northeast bureau chief, covering New York City for GlobeSt.com. Her background includes a stint at InStyle Magazine, and as managing editor with New York Press, an alternative weekly New York City paper. In her career, she has also covered a variety of beats for M magazine, Arthur Frommer's Budget Travel, FashionLedge.com, and Co-Ed magazine. Dolce has also freelanced for a number of publications, including MSNBC.com and Museums New York magazine.