Dalan Recaps Valuation, Marcus Acquires Interest in NoMad Property
The real estate firms’ joint venture purchased 10-12 E. 33rd. St. for $54.5 million.
NEW YORK CITY—Dalan Management sold two adjoining 12-story, boutique office buildings in Midtown South’s NoMad district at 10-12 E. 33rd St., in which it owned a majority interest, to its joint venture partnership with Marcus Partners for $54.5 million. Following the transaction, Dalan maintained a minority interest in the asset.
The buildings each contain approximately 35,000 square feet with 2,000 square feet of retail on the ground floor. Designed by Charles I. Berg, 10 E. 33rd St. was constructed in 1908. Designed by Walter E. Thompson, 12. E. 33rd St. was built in 1910. In 2015, Dalan completed a renovation and modernization of both structures.
The new venture will invest capital to further upgrade the structures with improvements to the façades, storefronts, entrances, lobbies and elevators.
“Marcus Partners is truly excited to enter the Midtown South market with a unique property geared toward an entrepreneurial TAMI tenant base,” says David Fiore, principal and New York regional director of Marcus Partners. “The properties offer a stable, diversified tenancy and provide opportunities to create further value over the next few years. We are excited to continue the improvement plan with the Dalan team to reposition 10-12 East 33rd Street to the next level of quality and performance.”
Daniel Wrublin, principal of Dalan Management, notes, “This transaction enables Dalan to recycle capital into a new investment while also maintaining an ownership stake in these great assets.”
Mo Beler, managing director and head of New York investment sales, managing directors Glenn Tolchin and Anthony Ledesma, and VP Matthew Spiegel, all with JLL, arranged the sale and joint venture partnership. JLL’s managing director Max Herzog, VP Marko Kazanjian and analyst Matt Fagella handled the financing.
“The office property is fully leased to a mix of tenants in industries ranging from technology, advertising, media, information and architecture,” says Beler. “This asset presented the right investor with a rare opportunity to participate in the NoMad appreciation story through the acquisition of two well-leased, aesthetically pleasing loft-style office buildings that have been fully renovated and repositioned to meet rising market demand.”