NEW YORK CITY-Rockrose Development Corp. has purchased 15 E. 26th Street—a boutique office building—for $105 million from Savanna.
Craig Deitelzweig, head of Rockrose's office division, represented the company in this transaction. Senior managing directors Adam Spies and Doug Harmon as well as directors Adam Doneger and Joshua King of Eastdil Secured represented Savanna.
Constructed in 1920, 15 E. 26th Street spans 150,000 square feet and houses a mix of high-tech and creative tenants, including Vera Wang—which has executive offices and a showroom in the building. The commercial portion of the building consists of 150,000 square feet on floors one through eight and is currently over 95% leased. It's located in a landmarked historic district and is in Madison Square Park, between Madison and Fifth avenues.
Savanna acquired the property in 2012 and updated the building through a $9 million capital improvement plan that included an extensive redesign of the entrance and lobby, upgraded freight and passenger elevators, a complete sidewalk replacement and a conversion of the boiler to more efficient fuel.
Additionally, Savanna worked with Jones Lang LaSalle's vice chairmen Mitchell Konsker and Matthew Astrachan, along with associate brokers Matthew Polhemus and Brittany Wunsch of in its marketing and leasing effort at the property. The Savanna and JLL team handled the building's leasing and the relocation of two tenants, allowing those spaces to be marketed at prevailing Midtown South market rents.
“We are pleased that upon completion of our business plan and leasing efforts at 15 East 26th Street, we will be able to deliver exceptional returns to our investors,” says Nicholas Bienstock, managing partner of Savanna. “Rockrose is acquiring a terrific asset in a market where we see strong demand and great additional opportunity.”
Under Rockrose ownership, the building will be further modernized and upgraded. The purchase is part of a strategic plan for Rockrose to significantly grow its office portfolio in New York City and Washington, DC.
In particular, says Rockrose president Justin Elghanayan, the company is bullish on Midtown South. “We are very strong believers in the strength of the Midtown South office market. We completed our renovation and rebranding of the nearby Creative Arts Building at 300 Park Ave. South in 2012, bringing it to full occupancy with stellar tenants in less than a year. 15 East 26th Street is a similar, very handsome building located on one of the most pristine parks in Manhattan, and it fits with our plans to purchase well located office buildings, upgrade them to be best-in-class, and hold the assets for the long-term.”
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Rayna Katz
Rayna Katz is a seasoned business journalist whose extensive experience includes coverage of the lodging sector, travel and the culinary space. She was most recently content director for a business-to-business publisher, overseeing four publications. While at Meeting News, a travel trade publication, she received a Best Reporting award for a story on meeting cancellations in New Orleans during Hurricane Katrina.
