X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

[IMGCAP(1)]NEW YORK CITY-The GVA Williams father-son team of Marty and Eric Meyer has arranged the sale of two local buildings–one in Chelsea and the other in the Penn Plaza District. The buyer, known as 127 W. 25th St. LLC, purchased the Chelsea property at 127 W. 25th St. for $32 million, or approximately $300 per sf.

A GVA source tells GlobeSt.com that the seller of the 25th Street property was the Lasser Family, who owned the building for 50 years. The source says that the buyer was a real estate partnership, which consists of a group of entrepreneurs.

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

“This was a great investment because leases are rolling in this building, making a renovation possible,” notes Marty Meyer, senior executive managing director at GVA Williams. “The renovation will make the building more desirable to a wider range of potential tenants and justify a significant increase in asking rents.”

[IMGCAP(3)]Eric and Marty Meyer represented both the owner and the seller and are the exclusive leasing agents for the building. The class B building, located between Sixth and Seventh avenues contains a total of 90,000 sf on 12 stories. It was built in 1912.

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

“The current sale price of nearly one-third more than the price paid just a year ago shows the incredible strength of the investment sales market in Manhattan,” says Eric Meyer, senior managing director at GVA Williams. Built in 1911, the Penn Plaza District property totals 57,636 sf and is 100% leased to 15 tenants. The transaction represents a 3% cap rate. Eric and Marty Meyer of GVA Williams represented both parties.

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

The source explains that both buildings were seen by the buyers as a good opportunity in terms of short-term leases and both sellers chose to capitalize on potential profits. The seller for 25th Street was out of state and knew investment needed to be made in the property, but didn’t want to be involved with a “long distance” renovation.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 3 free articles* across the ALM subscription network every 30 days
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2020 ALM Media Properties, LLC. All Rights Reserved.