The Real Deal New York

Clarion Partners buys Bryant Park-area office building from EQ Office for $282M

Seller pumped $30M into property it purchased for $166M in 2014
By Rich Bockmann | December 13, 2018 03:05PM

From left: 114 West 41st Street, Clarion Partners’ David Gilbert, and EQ Office’s Lisa Picard (Credit: Clarion and VTS)

The Blackstone Group sold one of its Bryant Park-area office buildings in a $282 million deal with Clarion Partners.

Blackstone’s EQ Office subsidiary sold the nearly 350,000-square-foot office-and-retail building at 114 West 41st Street to the Park Avenue-based investors, brokers who negotiated the deals said.

The sale works out to slightly more than $800 per square foot.

Newmark Knight Frank’s Edward “Woody” Maher, who worked on the brokerage team that marketed the building for EQ Office, said the property appeals to “fast-growing TAMI tenants that are currently flocking to Bryant Park.”

Tenants include streaming-television company Roku, Quartet Health, real estate-technology company View the Space, Kensington Publishing, advertising agency SpotCo and the New York headquarters of fashion brand Guess.

MetLife provided Clarion with a $141 million loan to finance the purchase. Jordan Roeschlaub and Dustin Stolly, co-heads of Newmark’s debt and structured-finance group, arranged the loan with their colleagues Nick Scribani, Chris Kramer and Stephen Feinberg.

Newmark’s James Kuhn, David Colen and Jim Tribble worked on the team that marketed the property, which went up for sale in June.

EQ Office previously put in $30 million in capital improvements to reposition the property, which the landlord purchased in late 2014 from Leon Charney’s L.H. Charney & Associates for $165.7 million.

EQ office has been selling off its properties around Bryant Park. The company in May sold the 34-story, 665,000-square-foot 5 Bryant Park to Savanna for $640 million.

In 2015, EQ Office – formerly known as Equity Office Properties – sold 3 Bryant Park to Ivanhoe Cambridge and Callahan Capital Properties for $2.2 billion.

Clarion Partners, meanwhile, recently teamed up with Taconic Investment Partners to buy a pair of multifamily buildings in the Bronx for $427.8 million.