Anthony McElroy, managing director/acquisitions at CABR, tells GlobeSt.com that there is as-of-right zoning for 50,000 sf of commercial and/or hotel use and approximately 40,000 sf for residential use. The new owners are focusing first on familiarizing themselves with the current tenants at the sites and the neighborhood. "We're taking a wait-and-see approach." The site currently measures 15,000 sf.
Bob Billingsley, vice chairman of CABR, adds that location was a key factor in this off-market sale. "This area has become a corporate row." The site is near Bryant Park and is close to a number of transportation hubs. "We think it should do extremely well."
The 40th Street office tower encompasses 327,650 sf. Current tenants include Jones Apparel Group, Wells Fargo and Hampshire Designers. McElroy says the building is 88% occupied, and one-third of the building is leased to investment grade tenants. "Keeping in line with our investment strategy, the existing rents in the building are below-market and there are significant near-term lease expirations."
In November, the joint venture, which had been formed a month before, picked up its first asset here. The pair acquired the 156,000-sf 220 West 28th St. for an undisclosed sum. The venture plans to acquire assets in excess of $300 million in the New York metropolitan area. They will focus on existing class B office and retail properties, as well as development sites in strategic locations near major transportation hubs.
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