NEW YORK CITY—A joint venture of USAA Real Estate Co. and Waterman Interests has acquired two mid-block office properties in the Times Square South section of Midtown. Combined, the two assets reportedly were purchased for over $118 million, according to reliable industry data sources.
RealCo's portfolio, known as “the Midtown West Collection” includes 234 W. 39th St.—which was purchased for nearly $53 million, or about $647 per square foot—and 142 W. 36th St., which was purchased for $65.5 million, or again for about $647 million per square foot. The buildings, respectively, are a 91,466-square-foot, 10-story property and a 118,338-square-foot, 17-story office building.
The offices reportedly were sold by a joint venture of Herald Square Properties and the Davis Cos., and the transaction was done by Eastdil Secured. Parties to the deal could not be reached by press time.
Both buildings are located a short walking distance from the 34th Street retail corridor, Times Square and Herald Square subway hubs as well as Penn Station and the Port Authority Bus Terminal, sit between Broadway and 8th Avenue. The area is attracting many technology, advertising, media and information companies.
Savitt Partners, led by Robert Savitt, “will be spearheading the execution of the leasing strategy in this portfolio,” declares Philip Waterman III, founder and managing member of Waterman Interests.
Says Tom Bermingham, managing director of USAA Real Estate Co.'s office here, “The buildings are presently fully leased at rents that are below market, thus offering significant upside potential in a one of Manhattan's hottest neighborhoods.”
“With its proximity to Midtown South and the new Hudson Yards development, the Times Square South submarket is experiencing a renaissance and we believe tenant demand will be quite strong,” adds Len O'Donnell, president and CEO of USAA Real Estate Co.
Asserts Waterman,“We know that this transaction will allow us to utilize all of our team's core competencies to reposition this portfolio and deliver exceptional results for the benefit of our investors, USAA RealCo, and the tenants in these buildings."
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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.
