The sellers, a joint venture of JER Partners and GE Real Estate, bought the building in 2000 and proceeded to fully refurbish the building. The asset is now fully leased. Tenants include Scottish Equitable, Eurohypo, GMAC and Regus.

Witkoff Group principal Scott Alper tells GlobeSt.com that there is near-term rollover to contend with but that it should have a positive effect on the cap rate because rental rates have been on the rise. Further out on the horizon, Alper hopes add additional value by maximizing the use of the site, which has the potential to support an additional 120,000 sf of development. When the expansion might take place and whether the existing structures would be re-used or torn down is still being evaluated, Alper says.

This acquisition marks the Witkoff Group's return to the London market following its joint acquisition of Shell Mex House with Lehman Brothers in 1999 and subsequent sale to Rotch. "We aggressively targeted 90 Long Acre because it offers a redevelopment opportunity similar to Shell Mex House and Witkoff's redevelopment projects in New York, in that 90 Long Acre's building to site cover is only 57%," Alper says. "With planning approval, the property's density and massing can therefore be significantly increased… ."