David Werner has acquired the office building at 440 Ninth Avenue in Hudson Yards for just over $100 million in cash, according to Bloomberg. The price per square foot is $243, a significant reduction compared to what the previous owners paid.
Taconic Investment Partners and Nuveen Real Estate, who sold the property, originally bought it seven years ago for $269 million. The sale was classified as a short sale, with MetLife—holding the outstanding mortgage—agreeing to the transaction. CBRE’s Doug Middleton and Jack Stillwagon facilitated the deal. Nuveen and MetLife did not provide comments on the transaction; other parties also did not respond immediately to requests.
The property, known previously as the Harding Building, was constructed nearly a century ago. It spans 411,000 square feet across 18 stories and has housed tenants such as BlackRock and KKR.
Werner continues to invest heavily in New York City’s office market and is active in converting offices into residential spaces. Earlier this year, Madison Realty Capital extended a $720 million loan to Werner and Nathan Berman’s Metro Loft for redeveloping the former Pfizer headquarters at 235 East 42nd Street in Midtown East. This financing may have set records both for Madison Realty Capital and for similar redevelopment projects.
The area could see more deals soon. Two months ago, Related Companies along with Oxford Properties started considering selling part of 35 Hudson Yards—including office, retail, fitness, and hotel condominiums—with an estimated value around $600 million.
Recent data from Green Street’s Commercial Property Price Index indicates that office sale values have declined by about 37% since 2022 (https://www.greenstreet.com/insights/indices/cppi).
“David Werner didn’t hesitate when a deal came his way in Hudson Yards.”
— Holden Walter-Warner
