Jones Lang LaSalle
Pre-War Site Trades for $27M
By Barbara Jarvie
NEW YORK CITY-A local investment group has acquired a 12-story pre-war office building for approximately $26.5 million. The site, also known as the Craftsman Building, was sold by the Winter Organization.
The 87,447-sf building occupies a full block-through site at 6 East 39th St. between East 38th and 39th just east of Fifth Avenue. The buyer, 6 East 39th St Holdings LLC, fulfilled a 1031 requirement with the purchase.
The site is currently 99% occupied by tenant mix that includes video, film and television production companies, not-for-profit foundations, attorneys and business consultants. Office tenants include City Light Productions and the Jewish Life Network.
Brian Ezratty, vice chairman and principal together with Scott Ellard, director, financial services of Eastern Consolidated, exclusively represented the seller. The firm’s senior managing director’s Ronald A. Solarz and Eric M. Anton and Daniel Volk, associate broker, represented the buyer.
While the Midtown South market for office space continues to strengthen and with many of the existing leases at below market rents, there is significant upside in the property’s potential cash flow, the brokers say. "This was an excellent investment play," notes Anton, "because there’s steady cash flow from the existing tenants over the course of the next several years while the new owner determines his leasing strategy. The fact that the property can be converted to a hotel is another distinct advantage."
Ezratty says the firm‘s clients are "bullish" on Midtown South as an office location, especially as availability in Midtown tightens. He adds that the site had recent capital improvements including a new boiler and burner in 2002, a new roof, upgraded elevator systems and façade work.
Copyright © 2006 ALM Properties, Inc. All rights reserved. Reproduction in whole or in part without permission is prohibited.
Pre-War Site Trades for $27M
By Barbara Jarvie
NEW YORK CITY-A local investment group has acquired a 12-story pre-war office building for approximately $26.5 million. The site, also known as the Craftsman Building, was sold by the Winter Organization.
The 87,447-sf building occupies a full block-through site at 6 East 39th St. between East 38th and 39th just east of Fifth Avenue. The buyer, 6 East 39th St Holdings LLC, fulfilled a 1031 requirement with the purchase.
The site is currently 99% occupied by tenant mix that includes video, film and television production companies, not-for-profit foundations, attorneys and business consultants. Office tenants include City Light Productions and the Jewish Life Network.
Brian Ezratty, vice chairman and principal together with Scott Ellard, director, financial services of Eastern Consolidated, exclusively represented the seller. The firm’s senior managing director’s Ronald A. Solarz and Eric M. Anton and Daniel Volk, associate broker, represented the buyer.
While the Midtown South market for office space continues to strengthen and with many of the existing leases at below market rents, there is significant upside in the property’s potential cash flow, the brokers say. "This was an excellent investment play," notes Anton, "because there’s steady cash flow from the existing tenants over the course of the next several years while the new owner determines his leasing strategy. The fact that the property can be converted to a hotel is another distinct advantage."
Ezratty says the firm‘s clients are "bullish" on Midtown South as an office location, especially as availability in Midtown tightens. He adds that the site had recent capital improvements including a new boiler and burner in 2002, a new roof, upgraded elevator systems and façade work.
Copyright © 2006 ALM Properties, Inc. All rights reserved. Reproduction in whole or in part without permission is prohibited.
posted by Jones Lang LaSalle NJ News Blog at 4:20 PM
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