The partnership is purchasing the complex on more than 40 acres from Related Properties, an affiliate of the Related Cos. LP for approximately $166 million or $250 per sf. Eastdil Realty of New York City is representing Related Properties in the pending transaction, which is scheduled to close in September.
An official with the joint venture partnership, who asked not to be identified, says there is potential upside in rents, considering space at the property is now fetching in the low $30s a sf in rent. He notes that the new ownership will likely look to raise rents to the high $30s per sf once leases expire. There is some rent rollover in the next few years.
Major tenants at the complex include: Reuben H. Donnelly, National Realty, New York Life, Met Life, Smith Barney, Diversified Investment Advisors and NorthMarq Capital Inc. The O'Connor/George Comfort JV plans to undertake some upgrades to the property, specifically to the lobby and the landscaping, he notes.
O'Connor Capital Partners was the developer and former owner of the Westchester shopping mall in White Plains. George Comfort & Sons owns approximately nine million sf of commercial space, including significant holdings in New York City. In the New York suburbs, the firm owns High Ridge Park in Stamford.
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