Brian Ezratty, vice chairman and principal of Eastern Consolidated, tells GlobeSt.com that the sellers are four family members scattered across the country; however; he could not provide further specifics. He adds that the reasons for selling are simply "to raise some cash."
Ezratty also tells GlobeSt.com that there have been several offers already, with most interested buyers attracted to "the hot area." Ezratty adds that "in addition to the stellar location of the this property, close to both Grand Central Terminal and Penn Station, it will be directly and positively affected by the recreation of the Farley Post Office Building, the extension of the No. 7 subway line, the expansion of the Jacob Javits Convention Center and the general redevelopment of the entire Penn Plaza and Hudson Yards area."
Annual rents at 29 W. 36th St. average $19.68 per sf for the upper floors, approximately half of the market rate for the area, according to Eastern Consolidated. The ground-floor tenant pays just over $41 per sf, which is also only 50% of the market. In addition, the second floor could soon become available, in addition to other lease expirations, so that a prospective purchaser could possibly immediately occupy one floor for its own use.
Capital improvements now in progress include all new elevator systems and a new card key access system, plus the boiler and burner were replaced earlier in 2007 with all new equipment. The property offers 6,500-sf floor plates and 12.5-foot ceiling heights and at 100% occupied, the building is completing its transition from a Garment Center property to a commercial office building.
Neighboring tenants include Ralph Lauren at 25 W. 39th St., Oxford Industries at 101 W. 37th St. and H. Thomas O'Hara Architects at 135 W. 36th St. "As Midtown office rents continue to spike, properties such as this one offer tenants a viable affordable alternative," Ezratty says.
According to Ezratty, "for an investor purchasing with a 1031 tax deferred exchange requirement, if new medium-term leases are signed to be co-terminus with the existing leases, the entire property could be offered for sale in 2015-2016 to a well-capitalized purchaser for residential conversion if a variance is obtained."
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Natalie Dolce
Natalie Dolce, editor-in-chief of GlobeSt.com, is responsible for working with editorial staff, freelancers and senior management to help plan the overarching vision that encompasses GlobeSt.com, including short-term and long-term goals for the website, how content integrates through the company’s other product lines and the overall quality of content. Previously she served as national executive editor and editor of the West Coast region for GlobeSt.com and Real Estate Forum, and was responsible for coverage of news and information pertaining to that vital real estate region. Prior to moving out to the Southern California office, she was Northeast bureau chief, covering New York City for GlobeSt.com. Her background includes a stint at InStyle Magazine, and as managing editor with New York Press, an alternative weekly New York City paper. In her career, she has also covered a variety of beats for M magazine, Arthur Frommer's Budget Travel, FashionLedge.com, and Co-Ed magazine. Dolce has also freelanced for a number of publications, including MSNBC.com and Museums New York magazine.
