A joint venture of Brickman Associates and DivcoWest acquired three office buildings at 24-28 and 40-46 W. 25th St. in New York City from the Albert Einstein College of Medicine at Yeshiva University for $115 million, or $460 per square foot.
The properties were built in 1911 and 1913, between Broadway and Sixth Ave., in the heart of Chelsea's Midtown South submarket. The 12-story structures total approximately 250,000 square feet. At the time of sale the buildings were 73% leased. The new owners plan to make capital improvements and position the properties to appeal to tech-based tenants.
The acquisition was made on behalf of DivcoWest Fund III, an $870 million investment fund, and Brickman Fund V, a $200 million investment fund, both raised in 2011. The duo has partnered on several other acquisitions in tech-based markets, including San Francisco and Northern California, Seattle, Boston, and Austin.
"We consider these buildings to be a strategic expansion of the creative space options we need to properly accommodate the national growth now happening within many of our existing tenants around the country," said DivcoWest CEO, Stuart Shiff. "That would definitely include West Coast based firms that are looking for the 'right' urban locations for immediate expansion into the New York Metro market."
The buildings were reportedly part of an estate left to the university at the end of 2012. The school has already sold off another three buildings to other buyers in a separate transaction. All told the university did not hold any of the properties for more than a few months. Proceeds from these sales will go towards biomedical research being done at the school.
"Yeshiva University owned a portfolio of well-located, in-demand office properties," said James Murphy, an executive managing director with Colliers International, who along with Tri-State president Michael T. Cohen, executive managing director Louis Prisco, and managing director Margaret O’Keeffe, represented the seller in the transaction. "They felt that current market conditions provided an ideal time to sell, taking advantage of Midtown South’s record rents and lack of new product."
Please see CoStar COMPS #2685616 for additional information on this transaction.