David Werner Real Estate Investments and 601W Companies have finalized the purchase of 205 East 42nd Street in Midtown East for $165 million, according to the Commercial Observer. The deal values the property at $310 per square foot. Financing for the acquisition came from JPMorgan Chase, which provided a $100 million balance sheet loan.
The transaction was arranged by a Newmark team led by Adam Spies, Doug Harmon, and Adam Doneger on the sale side, with Jordan Roeshlaub and Nick Scribani handling financing.
Current tenants in the building include the City University of New York, Fedcap Rehabilitation Services, and United Way of New York City. In 2013, ownership completed a $15 million renovation that included elevator upgrades and updates to the Art Deco-style lobby. The property features over 3,600 square feet of green roofs and ground-floor retail space. Its location near Grand Central Terminal adds to its appeal.
Joseph Durst originally purchased the building more than eight decades ago as part of his early real estate investments. Built in 1927 and designed by Starrett & Van Vleck, the property comprises 532,000 square feet across 21 stories.
The new owners are reportedly considering options for partial conversion of the building. Vacant upper floors could be converted into residential units or used as a contiguous office space for a single tenant. David Werner has experience with similar projects in Midtown East. He previously partnered with Nathan Berman’s Metro Loft Management to convert another former Durst property at 675 Third Avenue into a planned 464-unit residential building covering 321,000 square feet. Werner is also involved in transforming the former Pfizer headquarters at 235 East 42nd Street into what will be New York City’s largest office-to-residential conversion with approximately 1,500 rental units.
Werner and representatives from 601W did not respond to requests for comment regarding future plans for their recent acquisition.
