The Real Deal New York

Waterman, USAA buy Garment District properties for $118M

Herald Square Properties group asked $125M for buildings earlier this year

May 06, 2015 05:10PM

Garment District

From left: 142 West 36th Street, 234 West 39th Street and Tod Waterman

Waterman Interests and USAA Real Estate have partnered to acquire a pair of Garment District buildings for $118 million.

An Eastdil Secured sales team is handling the sale of the two buildings, located at 142 West 36th Street and 234 West 39th Street. The two properties total 210,000 square feet.

A partnership between Herald Square Properties and the Davis Companies placed the buildings on the market earlier this year for an asking price of $125 million.

Roughly 75 percent of the leases at the two properties are set to expire within five years, according to Eastdil Secured marketing materials, while 234 West 39th Street features 30,000 square feet of available development rights for potential expansion.

The transaction reflects growing interest among investors in the neighborhoods surrounding Penn Station, Crain’s reports, with Vornado Realty Trust recently announcing plans to invest heavily in the area. [Crain’s] – Rey Mashayekhi