Durst’s commercial condo gamble pays off with nonprofit deal

United Way takes 50K sf at 205 East 42nd St.

New York /
Jul.July 25, 2013 08:30 AM

The Durst Organization has leased 50,000 square feet at 205 East 42nd Street to United Way, a vindication of the developer’s decision to turn part of the building into condominiums for nonprofits, Crain’s reported.

Durst began the process of targeting nonprofits two years ago, after losing pharmaceutical giant Pfizer as an anchor tenant in 2011. First, the developer went after the state’s OK to convert the 21-story, 530,000-square-foot building’s floors into separate condominium interests; then, it started marketing the space to nonprofits, which get about a 15 percent break on their real estate taxes, Durst executive Tom Bow told the magazine. 

The City University of New York signed on as Durst’s first nonprofit tenant, taking 161,000 square foot, and now United Way has inked a lease valued at more than $60 million for Durst. Both deals were structured as leasehold condo interests; the two tenants will buy their spaces for a set period, then the ownership will revert back to Durst. [Crain’s]Hiten Samtani


Related Articles

arrow_forward_ios
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
Robert Durst (AP Images)
Robert Durst: The life and crimes of America’s most tainted real estate scion
Robert Durst: The life and crimes of America’s most tainted real estate scion
Robert Durst (Getty)
Robert Durst dead at 78
Robert Durst dead at 78
2 Penn Plaza with Vornado's Steven Roth and 550 Madison Avenue with Olayan Group's Hutham Olayan (VNO, Getty, Olayan)
Manhattan’s 10 biggest office leases in 2021
Manhattan’s 10 biggest office leases in 2021
Durst Organization Chairman Douglas Durst and Port Authority Chairman Kevin O’Toole (Getty, O'Toole Scrivo)
1 WTC set for $700M refinancing
1 WTC set for $700M refinancing
arrow_forward_ios

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

Loading...