The Real Deal New York

Westbrook shopping Midtown South
office building

12-story, 144K sf property at 31 West 27th Street could sell for $115M: report
March 29, 2017 11:45AM

Westbrook’s Sush Torgalkar and 31 West 27th Street

UPDATED, March 29, 12:52 p.m.: Westbrook is looking to sell a 144,000-square-foot office building in Midtown South.

The building at 31 West 27th Street is fully leased, with some leases with rents at 20 percent below market rate expiring within three years, Real Estate Alert reported. Sources told the publication it could fetch as much as $115 million.

The ground-floor retail space could also be upgraded to attracter higher-paying tenants, and amenities could be added to the roof.

Hodges Ward Elliott TRData LogoTINY brokers Will Silverman, Paul Gillen and Daniel Parker are advising Westbrook, which bought the 12-story building from San Francisco-based Walnut Group in 2014 for $80.8 million, or $561 per square foot.

If the property sells at $115 million, the deal would work out to $800 per square foot.

Westbrook made renovations including converting a freight elevator to passenger use, and inked new leases for more than half the space, boosting occupancy from 93 percent at the time of purchase to fully leased.

Tenants include Federated Media Publishing, Stella Adler Acting Studio and A24, the film studio that produced the Oscar-winning “Moonlight.”

Westbrook locked in a $69 million mortgage from TD Bank last year on the property, which sits on the north side of West 27th Street Between Broadway And Sixth Avenue.

The building has traded hands four times over the past 11 years. Witkoff Group bought it for $31.5 million in 2006 from a local family, and Sharif El-Gamal’s Soho Properties bought it in 2009 for $45.7 million. Walnut Hill purchased it in 2012 for $65 million. [RE Alert] – Rich Bockmann

This story was updated to include the names of the Hodges Ward Elliott brokers.