Durst sells Third Avenue office space to counteract weak leasing market

New York /
Sep.September 04, 2012 08:30 AM

Third Avenue’s weak office marketcompelled the Durst Organization to take a different approach to finding tenants for its building at 205 East 42nd Street, where Pfizer vacated about 250,000 square feet two years ago. It decided to try and sell the space rather than lease it. Now, the Wall Street Journal reported that the landlord has found a buyer for 170,000 square feet of the space in the City University of New York.

CUNY had previously been rumored to be in talks for the space, but now a sale is official. Though the terms of the agreement were not disclosed, Durst Organization said it would regain control of the space in 30 years.

“If it were a tight market it would be very easy [to lease it]. We had to think outside of the box,” Tom Bow, a senior vice president at the Durst Organization, told the Journal. Since 2008 the vacancy rate on the east side of Midtown has increased to 10.7 percent from 8.1 percent, while rents have plummeted by $19 a foot to $57.

As CUNY takes this office space, the Journal said it would look to sell a seven-story building it owns at East End Avenue and 80th Street that could become a 200,000-square-foot development site. CUNY hopes to use the proceeds to build a science center in Harlem. [WSJ] — Adam Fusfeld


Related Articles

arrow_forward_ios
Douglas Durst with 214 Front Street and 213-217 Front Street (Getty, Google Maps)
Durst eyes rare sale in Seaport district
Durst eyes rare sale in Seaport district
Skyline Robotics' Michael Brown and Durst's Douglas Durst with Skyline’s Ozmo robot (Skyline Robotics, the Durst Organization, Getty)
Durst invests in robotic window washer
Durst invests in robotic window washer
New York City Council member Tiffany Cabán along with a rendering of the Hallets North development (Photo Illustration by Steven Dilakian for The Real Deal with Getty Images, Studio V Architecture PLLC)
Far-left Council member approves 1,400-unit Queens development
Far-left Council member approves 1,400-unit Queens development
Durst Organization chairman Douglas Durst with 151 West 42nd Street in Manhattan, NYC (Loopnet, Durst.org)
Durst signs trading firm to full floor at One Five One
Durst signs trading firm to full floor at One Five One
From left: Developer Bruce Teitelbaum and Durst Organization CEO Douglas Durst and 44-02 Vernon Boulevard (Getty Images, LoopNet, iStock)
“A tremendous ordeal”: Lawyers in $97M Durst buyout slam case
“A tremendous ordeal”: Lawyers in $97M Durst buyout slam case
Durst's Douglas Durst and 44-02 Vernon Boulevard (The Durst Organization, Google Maps)
Investors in huge LIC project buy out Durst for $97M
Investors in huge LIC project buy out Durst for $97M
825 Third Avenue in Manhattan in NYC with Durst Organization financial associate Lucas Durst (LinkedIn, 825 Third Avenue)
Durst scores $100M loan for 825 Third
Durst scores $100M loan for 825 Third
Alexander Rinke, co-founder, Celonis, in front of One World Center (LinkedIn/Alexander Rinke, iStock)
German tech firm expands by 40k sf at 1 WTC
German tech firm expands by 40k sf at 1 WTC
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...