David Werner has agreed to purchase the One Dag Hammarskjöld Plaza tower in Midtown East for $270 million, according to information obtained by The Real Deal. The transaction is expected to be finalized early next year.
This price represents a significant reduction from the $566 million that Rockpoint Group paid for the 50-story office building in 2019. The acquisition continues Werner’s pattern of buying Manhattan office properties at steep discounts.
Recent purchases by Werner include the Hudson Yards-area office building at 440 Ninth Avenue, which he bought in August for $105 million. This property was previously sold for $269 million in 2018. In addition, last month Werner and 601W Companies acquired a building at 205 East 42nd Street for about $300 per square foot, and earlier this year he and Metro Loft Management purchased the tower at 675 Third Avenue for $100 million.
A representative for David Werner declined to comment on the deal, while Rockpoint did not immediately respond to requests. The sale was brokered by Newmark, with Adam Spies and Adam Doneger leading negotiations.
One Dag Hammarskjöld Plaza, also known as One Dag, is located at 885 Second Avenue near the United Nations Headquarters. Built in 1972, it has long served as home to various consulates and permanent missions. The property spans approximately 870,000 square feet and is currently about 72 percent occupied. Its largest tenants include Memorial Sloan Kettering, the United Nations, and the Republic of Germany.
According to a marketing memo from Newmark: “One Dag is strategically positioned among several iconic Class A office assets boasting an average occupancy of 90 percent in the Midtown East market.” The memo also states that more than $20 million has recently been invested in capital improvements for the building.
Newmark reports that similar buildings nearby command average rents between $80 and $90 per square foot. They describe One Dag as “a compelling relative discount in Midtown East.”
Rockpoint Group financed its original purchase with a $430 million loan from Wells Fargo and Brookfield. At that time, the price equated to roughly $650 per square foot; under Werner’s agreement, it amounts to about $310 per square foot.
Werner is recognized for acquiring properties when prices are low and sometimes converting discounted office buildings into residential apartments or maintaining them as commercial spaces. His current series of acquisitions began around 2022, making him one of Manhattan’s most active investors.
