The Real Deal New York

Ray Yadidi is buying DKNY’s Midtown office

JPMorgan, Olmstead and Jonathan Rose have owned 240 West 40th for three years
By Mark Maurer | April 16, 2018 05:30PM

240 West 40th, Jonathan Rose and Ray Yadidi

Ray Yadidi’s Sioni Group is in contract to buy DKNY’s Midtown office from JPMorgan Chase, Olmstead Properties and Jonathan Rose Companies for about $105 million, sources told The Real Deal.

Yadidi, an active Garment District investor, signed a contract last week to acquire the 12-story, 160,000-square-foot office building at 240 West 40th Street, which is almost fully occupied by Donna Karan’s fashion label, sources said.

DKNY, which was acquired in 2016 by G-III Apparel Group, leases about 143,000 square feet in a deal that is set to expire in July 2020. The company is not expected to renew its lease, sources said.

The deal therefore would largely provide Sioni with a potential blank slate at the building.

The sellers bought the building for $85 million in 2015 from AEW Capital Management and Colliers ABR, which after several mergers is now part of Cushman & Wakefield.

Colliers International’s Richard Baxter, Jason Gold, Stephen Shapiro and Ameet Amin are brokering the deal. The brokers and JPMorgan declined to comment. Sioni, Olmstead and Jonathan Rose could not be reached for comment.

Yadidi is planning a skyscraper as tall as 1,005 feet on Sixth Avenue in partnership with Isaac Chetrit. The investors hired Kohn Pedersen Fox as the architect late last year.