Massey Knakal Sells $55,500,000 Office Building In Midtown South
An office building at 27-35 West 24th Street, located between Broadway and Avenue of the Americas in Manhattan’s Midtown South, was sold in an all-cash transaction valued at $55,500,000.
This 11-story pre-war building, located mid-block on West 24th Street in the heart of Midtown South’s “Silicon Alley”, contains approximately 114,880 rentable square feet and sits on a 100’ x 98.75’ lot. The building’s 100% occupancy reflects the neighborhood transformation that has driven nearby vacancy rates to historic lows. The tenancy is comprised of 51 office tenants who pay approximately $40 per net rentable square foot and one retail restaurant tenant who currently pays approximately $67 per square foot. The sale price equates to approximately $556 per gross square foot and a 5.32% capitalization rate.
“This property offered a rare acquisition opportunity in one of New York City’s hottest submarkets due to the short term in place leases which allow the new ownership the flexibility to continue to enjoy current rent growth, reconfigure the footplates or reposition the asset altogether,” said Massey Knakal Vice President of Sales Thomas Gammino, who exclusively who exclusively handled this transaction, with Vice Chairman and Partner John Ciraulo and Director of Sales Craig Waggner.
The seller was represented by J. Gregory Saver of Satterlee Stephens Burke & Burke LLP.
The purchaser, a joint venture of Kaufman Organization and Lubert-Adler was represented by Olshan Frome Wolosky LLP partner Thomas D. Kearns and counsels Hyman Kindler and Martin Cooper. Lubert was separately represented by Shep Federgreen and James Petrucci, Directors of Gibbons P.C.
Signature Bank, the lender for the deal, was represented by Robert Liner and Ann Marie Kearney Wood of Stark Amron Liner, LLP.
Massey Knakal specializes in the sale of investment and user properties in the New York Metropolitan area. Since 1988, our agents have closed over 4,200 transactions having a market value in excess of $15 billion.