The Real Deal New York

Dalan places pair of Midtown office buildings on the market for $60M

Landlord doubled rents since buying properties in early 2015

June 17, 2016 03:20PM

From left: 10 and 12 East 33rd Street, Andrew and Daniel Wrublin

From left: 10 and 12 East 33rd Street, Andrew and Daniel Wrublin

Dalan Management is looking to sell a pair of office buildings in Midtown, where the company has doubled rents since buying the properties early last year.

The firm, headed by Daniel and Andrew Wrublin, placed the buildings at 10 and 12 East 33rd Street on the market, according to Crain’s. The formal asking price is $60 million.

Dalan bought the adjacent 11-story buildings spanning a combined 70,000 square feet for $36 million in January 2015. At the time, most of the rents were in the $20s and low $30s per square foot.

But Dalan pumped about $5 million worth of capital improvements into the buildings and leased up about 45,000 square feet to new tenants. Rents are now in the $50s per square foot, Daniel Wrublin told Crain’s.

“We have created a road map for a buyer of this property in terms of the improvements that can be made and the rents that can be achieved,” Wrublin said. “There’s still upside for a buyer to come in and reposition the rest of the buildings.”

The company is nearing a deal with a tenant to take the top floor at 12 East 33rd with a new private roof deck at $67 per square foot.

The two properties each have 3,000-square-foot floors that can be easily combined, and the site’s zoning also allows for a residential conversion.

Dalan owns more than 40 buildings in the city, including some 1,200 residential units.

Cushman & Wakefield’s James Nelson, who is marketing the buildings, said there have been few properties in this price range to hit the market so far this year. [Crain’s] – Rich Bockmann

 

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