[IMGCAP(1)]NEW YORK CITY-Time Equities Inc. has taken the deed to 127-135 W. 33rd St. in a deal valued at $70.5 million. Savanna Partners and the City Investment Fund were the sellers of the Midtown asset.The 176,594-sf property is better known as the Children's Wear Building. The 16-story property consists of 19,000 sf of retail space, including Stout NYC bar and Fat Annie's restaurant, as well as office and showroom tenants. The tenant roster features Perry Ellis Childrenswear and LM Services.

With the building now in its portfolio, TEI plans to keep the retail portion for long-term rental income and is reviewing the possibility of converting the non-retail space to office condos, according to a TEI release. A spokeswoman for TEI tells GlobeSt.com the building was 72% occupied. She adds the deal closed Oct. 12, but declined to reveal the cap rate.

[IMGCAP(2)] “We believe the Midtown South/Fashion District is ripe for office and showroom condominiums,” explains Francis Greenburger, chairman and CEO of TEI. “Businesses like to fix costs to avoid large rental increases in the future and benefit from the appreciating value of New York City office space. Office condominiums are especially appealing to nonprofits, which are eligible for exemption from New York City real estate tax. We plan to continue to pursue office condominium conversion opportunities in this and other areas of Manhattan.”