The Real Deal New York

Acadia buys East 62nd St. commercial space for $51M

O'Connor Capital Partners is converting the UES building into condos
By Mark Maurer | February 16, 2015 12:08PM

UPDATED, Feb. 16, 3:28 p.m.: Acadia Realty Trust picked up commercial space and a garage at the base of an Upper East Side rental tower owned by O’Connor Capital Partners for a total of $51 million in an off-market deal, according to property records filed with the city late last week.

O’Connor, led by Cushman & Wakefield alumnus Glenn Rufrano, has owned the 30-story, 241,000-square-foot tower known as the Wellington since March 2014, when it paid $240 million, as The Real Deal reported. The property, constructed in 1967, has the addresses 200-206 East 62nd Street, 203 East 61st Street and 1033-1049 Third Avenue.

Acadia, a White Plains-based real estate investment trust, bought the retail for $15 million, the garage for $22 million and office space for $14 million, records show. The commercial space occupies the bottom two floors of the tower.

Retail tenants at the roughly 11,000-square-foot ground-floor space include French shoemaker Arche and women’s clothier Variazioni. Total office space at the building spans 19,250 square feet.

Most of the retail is located along Third Avenue. O’Connor is planning to convert the 120-unit residential component to condominiums by late 2015. Current tenants would be able to either buy their unit or prepare to move out when their lease is up.

A representative for Acadia declined to comment. CBRE’s Gary Trock and Michael Kadosh represented both sides in the deal.