Printer Friendly

'Fort Knox' fetches $92m.

With most buyers in wait-and-see mode, a private investment group with ties to a real estate management and consultant firm that specializes in large floor plate space took a classic pre-war commercial building off the east side market, with an approximately $92 million buy.

The Parkoff Organization sold the building to an investment group led by David Berley, chairman of real estate management firm Walter & Samuels, Inc. Walters & Samuels will handle both the management and leasing of the 250,000 s/f property located at 80-88 West End Avenue, which has approximately 12,630 s/f of vacant space.

"It's got 35,000 s/f plates, so it's a super-wide industrial type building," said Peter Weiss, executive managing director at Walter & Samuels.

According to Weiss, with ongoing construction at Lincoln Center diminishing office space in the neighborhood, along with the firm's experience with large loft buildings, the acquisition was an obvious decision for the investment group.

The site was formerly home to the Sherman Tank factory. With 15-foot ceilings and its sturdy industrial uses, Weiss likened the six-story building to Fort Knox. The building, which also includes a 13,000 s/f penthouse, occupies a full block; it faces the park and is just a stone's throw from Lincoln Center. It also offers 200 feet of frontage along West End Ave., and 125 feet of frontage on West 63rd and 64th streets.

"We look at this as a buy and hold," Weiss said, "The area's only going to get better."

Meridian provided financing for the acquisition and no brokers were involved in the transaction. Existing tenants include the Transit Workers Union, the Metropolitan Opera and a large furniture company. Rents at 80-88 West End Ave. typically go for the mid $50s psf range. Weiss, who's firm has completed close to 40 residential, co-op, condo and loft office conversions in New York, said the investment group does have cancellation rights and that the space is ideal for television studios.

But there are no major renovations--or a residential conversion--planned for the building. "We've converted these types of loft buildings before and they're a pain to do," he added, "We're happy with what we have."
COPYRIGHT 2008 Hagedorn Publication
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 2008 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Author:Turcotte, Jason
Publication:Real Estate Weekly
Date:May 7, 2008
Previous Article:Fiterman funds flap.
Next Article:Tishman, MTA on road to deal.

Related Articles
Fort Knox pursues Inco property.
Inco to sell off mines. (Mining & Forestry News).
Fort Knox moves forward to keep production on target: gold mine gets new equipment to access final ore stockpiles.
Fort Knox seeks mine life extenstion: originally due to close this, year Fort Knox still producing.
Heap leach adds life to Fort Knox: gold mine receives extension to 2019.

Terms of use | Copyright © 2017 Farlex, Inc. | Feedback | For webmasters