Brickman, DivcoWest Acquire Three Manhattan Office Buildings
- Feb 26, 2013
By Keith Loria, Contributing Editor
San Francisco-based real estate firm DivcoWest has partnered with a private equity firm headed by New York real-estate investor Bruce Brickman to acquire three office buildings in Midtown South from Einstein College at Yeshiva University.
Although the companies wouldn’t disclose the price, published reports revealed it to be approximately $114 million.
The three Midtown South buildings are located at 24-28 West 25th St., and 40 West 25th St. The properties were acquired for DivcoWest Fund III, an $870 million fund raised in 2011 and Brickman Fund V, a $200 million fund raised in 2011.
“We consider these buildings to be a strategic expansion of the creative space options we need to properly accommodate the national growth now happening within many of our existing tenants around the country,” Stuart Shiff, DivcoWest’s CEO, said in a prepared statement. “That would definitely include West Coast based firms that are looking for the ‘right’ urban locations for immediate expansion into the New York Metro market.”
Following a pattern that DivcoWest and Brickman have established with buildings they own in markets like San Francisco, Seattle and Boston, this purchase is a key tech center in the country.
Built in 1911 and 1913, the Midtown South properties are comprised of three 12-story structures comprised of 11,000-square-foot floor plates, creating 270,000 square feet of office space in the emerging midtown technology cluster. The properties are currently 73 percent leased.
“These properties are particularly suited to Brickman’s focus on creating a unique, dynamic, and modern experience for smaller tenants,” Bruce Brickman, Principal of Brickman, said in a statement. “We are looking forward to our partnership with DivcoWest and in particular their strong ties to media and technology companies.”
DivcoWest has acquired 30 million square feet of high-level commercial space in locations throughout the US. Meanwhile, Brickman has invested more than $3 billion of total capital in more than 70 real estate transactions.
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