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New York

Daytop’s Bryant Park building goes for $27M

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From left: 54 West 40th Street, Richard Baxter, Scott Latham, Ron Cohen and Jon Caplan

Landlord Allied Partners is in contract to pay $26.5 million for an
11-story office building on the south side of Bryant Park adjacent to
another property it has owned since 1999, a source with knowledge of
the deal said. 

Allied Partners signed a contract to buy 54 West 40th Street
earlier this week from the drug and alcohol rehabilitation clinic
Daytop Village, which is headquartered there, the source said. 
bought the building in 1972, city property records show, but the price
was not available. 

The approximately 50,000-square-foot building between Fifth and Sixth
avenues has development rights for a total of about 60,000 square feet,
data from PropertyShark.com shows, giving it a price per buildable foot
of $441. 

The building is likely to be demolished at some point and
along with Allied’s 50 West 40th Street, which has about 130,000 square
feet of buildable air rights, will be redeveloped, the source
said. 

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It would be the second development site on that block to sell in two
months. In June, Ziel Feldman’s HFZ Capital Group bought an undeveloped
site now being used as a parking lot at 14-20 West 40th Street for
$52.9 million, or about $280 per buildable foot. Total sales and
contract volume in Manhattan more than doubled in the first half of 2010
to $5.8 billion compared with $2.5 billion in the same period of 2009,
data from commercial firm Cushman & Wakefield shows. 

The Daytop building was put on the market in March by the investment
sales team Richard Baxter, Jon Caplan, Yoron Cohen and Scott Latham
while they were at Cushman. In May they moved
to the competing firm Jones Lang LaSalle, where the four executive
managing directors along with senior vice president Glenn Tolchin
continued to exclusively represent the seller in the deal.

Allied Partners, whose chairman is Eric Hadar,
owns additional properties in Manhattan such as 75 Prince Street at
Broadway in Soho and the office building 770 Lexington Avenue at 60th
Street in Lenox Hill. 

Daytop is expected to use the proceeds from the sale to buy a new location in Manhattan, the source said.

Daytop
and Allied did not immediately respond to calls for comment, and the
JLL brokers did not immediately respond or declined to comment.

Tags
Allied PartnersBryant ParkCushman & WakefieldJLL