NEW YORK CITY—Dalan Management has bought two Midtown South office properties, at 10 and 12 E. 33rd St., for $36 million as part of a 1031 exchange. The two 12-story buildings—which are located between Madison and Fifth avenues—are comprised of 22 full-floor office lofts and ground-floor retail space.
Timour Shafran and Phil Fierro of Citicore represented Dalan in the deal. Pavan Uttam of UP Real Estate Advisors represented the seller, Adee Associates. Brian Hosey from Marcus & Millichap marketed the properties for $35 million before the owner took them off the market. Since the summer, Adee Associates has maintained a $40 million asking price, according to Shafran. Adee bought the properties in the 1980's. Dalan has tapped William Cohen and David Emden of Newmark Grubb Knight Frank to market the office space.
Daniel Wrublin, Dalan co-founder and principal, says his company bought the buildings after selling three Washington Heights buildings in November for $16 million. The East 33rd buildings comprise 61,100 square feet and can be converted into residences or a hotel.
Each building includes a 2,000-square-foot store. The number 10 building's retail space is occupied by a nail salon, paying $52 a foot on a lease expiring in 2021. Meanwhile, the number 12 building has a dry cleaning business paying $60 a foot on a lease expiring in 2018, according to Shafran.
“The 10 building is primed for converting,” Shafran says, because the office leases expire by 2016 and there is potential permanent access to light and air on three sides if the buyer obtains an easement. The last lease in the number 12 building expires in 2019.
In the short run, Dalan plans to just update the spaces, says Wrublin. “Down the road the potential is to convert the site or sell it to somebody to convert it,” he adds.
Want to continue reading?
Become a Free ALM Digital Reader.
Once you are an ALM Digital Member, you’ll receive:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
*May exclude premium content© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
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.
