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NEW YORK CITY-C&K Properties and Zamir Equities acquires the 420,000-sf Penncom Plaza for $91 million. Last December, Tribeca Associates, together with its investment partner, Ritchie Capital, purchased the 100%-leased site at 132 W. 31 St. for $63 million. Cushman & Wakefield’s Rich Baxter, Ron Cohen and Heather Brownfeld brokered the transaction.

Brownfeld tells GlobeSt.com that one reason for the price jump is the expectation that the neighborhood surrounding the building will “change very dramatically” over the next few years due to the addition of a number of luxury residential spaces. She also notes that there was a bidding war for retail space in the site. Another key factor in the sale was that the space taken by major tenant with a long-term lease who had filed for bankruptcy protection was secured by the succeeding company.

For his part, one of Tribeca’s principals, Bill Brodsky says, that though the pair had every intension of keeping the property for the long term, the site’s “dramatic “dramatic appreciation in value made this transaction too compelling.” to make this value achievable.” Bradley Settleman, managing director of Ritchie Capital, adds that the pair felt due to strong demand, it was the right time to sell and lock in “significant profits for our investors.”

“This is a high-value acquisition of a fully occupied office building that has stable cash flow, long-term leases with creditworthy tenants, and the opportunity to further enhance its position in a thriving and vital Manhattan submarket,” points out Ben Korman, a principal of C&K Properties. Located at 132 West 31st St., the 18-story, 420,000-sf office was built in 1925 and formerly known as the Greeley Arcade Building. The site is distinguished by a through-block main lobby that connects 31st and 30th streets and has windows on all four sides.

C&W’s Mitchell A. Arkin will oversee the property with colleague John Picco. Insurance company HIP is looking to sublease space as part of consolidation to a Lower Manhattan locale.

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