The Real Deal New York

David Werner closes on Mobil Building leasehold for $855M

Hiro Real Estate sells long-term ground lease for office trophy property
October 27, 2014 05:35PM

A partnership led by real estate investors David Werner and Mark Karasick closed on the purchase of a long-term ground leasehold at the 42-story Mobil Building for $855.2 million, according to property records filed with the city today.

Werner entered contract on the 1.8 million-square-foot trophy office building at 150 East 42nd Street in April, as previously reported. The seller, Hiro Real Estate, leased the ground from the building’s owner the Goelet Corporation. As part of the deal, the Goelet family extended the ground lease for another 99 years.

In August, Meridian Capital Group and Eastdil Secured arranged a $700 million loan for the buyers, as The Real Deal reported.

Goldman Sachs Group holds a large amount of debt on the property. Eastdil Secured’s Adam Spies and Douglas Harmon began marketing it in March. — Mark Maurer