NYC Office Building Commands $107M
- Dec 14, 2015
By Keith Loria, Contributing Editor
A joint venture between William Macklowe Co., and Principal Real Estate Investors, LLC, has acquired 311 W. 43rd St., a 186,000-square-foot office building in Manhattan, from Atlas Capital Group for $107 million.
Eastern Consolidated arranged the sale on behalf of the seller.
This is the third time since 2010 that the property has changed and each time Eastern brokers Brian Ezratty and Scott Ellard have brokered the sale.
Atlas recently completed its first phase of a value-add strategy consisting of façade work, all new electric service, fully renovated elevators and refinishing both lobbies.
“This property has increased in value by nearly 170 percent in five years for a number of reasons,” Ezratty said in a prepared release. “In addition to Atlas’ upgrades and the improving real estate market, WeWork-type tenants are seeking space in commercial loft-style office buildings like this with high ceilings, oversized windows, good light and air, a full floor presence, and roof top amenities, plus the neighborhood has undergone significant improvements.”
Macklowe and Principal is expected to further the enhancements by implementing new tenant improvements in the vacant upper floors and penthouse level as well as adding a new roof deck amenity as part of its overall leasing strategy.
Located in one of the most desirable markets in the area, the 14-story building is located between Eighth and Ninth Avenues, just steps from New York City’s world-renowned Theatre District. It was designed by architect Ernest Flagg circa 1908 and served for decades as the New York printing plant and headquarters of Charles Scribner’s Sons. It features 13-foot ceilings with dual-window lines on the front and back of the building offering abundant light and air to the tenants on all floors.
The building is adjacent to the 300,000-square-foot Intercontinental Hotel site that Ezratty sold to Tishman Hotels, and on the same block as 322-326 W. 44th St., where he arranged a long-term net lease for hotel developer Sam Chang.
The sales history of the building is interesting. In 2010, Zuberry Development Co. bought out its partner, a Douglas Durst controlled entity, for about $40 million. Then in January 2013, the Eastern team repped Zuberry and sold the asset to Atlas Capital for $62.4 million.