The Real Deal New York

Dennis Wong buys out Dermot at Kips Bay rental building

The $50M stake sale ups Verbena Road's ownership in the 23-story building
By Will Parker | February 12, 2018 11:40AM

Dennis Wong and 377 East 33rd Street

Dennis Wong And 377 East 33rd Street in Kips Bay

Dennis Wong bought out the Dermot Company’s stake in the 23-story luxury rental building at 377 East 33rd Street, records filed with the city Monday show. The stake sold for $49.5 million.

Wong, who runs Verbena Road Holdings (previously SPI Holdings), is also an investor in Dermot. Therefore, his increased ownership in the Kips Bay building is moving from one of his investment concerns to another. Previously, sources told The Real Deal that Wong wanted fuller control of the property after becoming dissatisfied with Dermot’s management.

Apartments at 377 East 33rd Street, known as the Lanthian, currently list for between $2,815 for a studio up to $5,827 for a large two-bedroom.

Dermot bought the 209-unit building from its developer, AvalonBay Communities, for $175 million in 2015. It holds 185,549 square feet of residential space and 19,000 square feet of commercial space.

Wong did not immediately respond to a request for comment. The San Francisco developer is also a minority owner in the NBA team the Golden State Warriors. His stake in Dermot was first reported in 2015, after he purchased a 50 percent stake in the company in partnership with Dermot executives and the London-based Forum Partners.

In 2016, Verbena Road acquired a portfolio of Los Angeles-area rental buildings for $430 million.

Last year, Wong put his Bay Area mansion on the market for $32.8 million.