David Werner acquiring Harlem office leasehold for $60M

Brookfield unloading legacy property from Forest City takeover

New York /
Apr.April 01, 2021 12:00 PM
317 Lenox Avenue (Google Maps)

317 Lenox Avenue (Google Maps)

UPDATE, Apr. 1 2021, 1:55 p.m.: David Werner is betting on Harlem.

The prolific real estate investor will acquire the 55-year leasehold of a Harlem office complex at 317 Lenox Avenue from Brookfield Asset Management. The deal is still pending, but is expected to close for approximately $60 million.

The seven-story, 160,000-square-foot complex sits atop 100,000-square-foot retail space whose tenants include CVS and Marshalls. The property is controlled by a partnership led by Madison International Realty, according to Real Estate Alert, which first reported the news. The average remaining lease term for office tenants is about nine years.

The complex was developed by Forest City Realty Trust in 2002, and Brookfield took it over when it acquired that firm in 2018.

The ground under the building is deeded to New York City, according to property records.

“We had a number of investors that were chasing this asset,” said Brett Siegel of Newmark, who represented Brookfield along with Evan Layne and Henry Fox.

Werner has established himself as one of New York’s most active real estate investors. In 2014, he acquired both Ernst & Young’s headquarters at 5 Times Square for $1.5 billion, and the Socony-Mobil Building at 150 East 42nd Street for nearly $1 billion.

Most recently, he led a group of investors to purchase All Year Management’s 72-building Brooklyn multifamily portfolio for $344 million. But Werner later withdrew the bid after raising concerns over alleged rent discounts given to tenants without his consent. Werner’s group is suing All Year to get its $15 million deposit back.

CORRECTION: This story was updated to reflect the correct address for the Harlem office complex, as well as the correct square footage for the retail portion. 





    Related Articles

    arrow_forward_ios
    Seth Weissman, Financing
    Urban Standard wants to rescue property owners from high interest rates
    Urban Standard wants to rescue property owners from high interest rates
    From left: Michael Dell with 25 Water Street, Alex Sapir with 261 Madison Avenue and Marc Holiday with One Madison Avenue (Getty, Edge Funds, Sapir Organization, SL Green)
    Office properties (yes, office!) got Manhattan’s biggest December loans
    Office properties (yes, office!) got Manhattan’s biggest December loans
    Mark Zuckerberg, Jeff Bezos, Hudson Yards and San Francisco's Salesforce tower (Getty, Dead.rabbit/CC BY-SA 4.0/via Wikimedia Commons)
    Tech office leasing plummeted in fourth quarter
    Tech office leasing plummeted in fourth quarter
    Salim Assa with 15 West 55th Street
    Troubled Midtown rental saga headed for a foreclosure finale
    Troubled Midtown rental saga headed for a foreclosure finale
    Rendering of 640 Columbia Street in Red Hook, 9-11 Metrotech Center and TerraCRG's Ofer Cohen
    Brooklyn boasted $9B in investment sales last year
    Brooklyn boasted $9B in investment sales last year
    Atlas Hospitality Brokerage president Alan Reay (Atlas Hospitality Brokerage)
    Listen: Inside the looming distress across the hotel market
    Listen: Inside the looming distress across the hotel market
    Businessman arguing with buildings
    The bickering bros: Jemals escalate battle over portfolio
    The bickering bros: Jemals escalate battle over portfolio
    Oxford Hospitality's Paul Amoruso and 1 Computer Associates Plaza in Islandia (Getty, Jones Lang LaSalle IP, Inc., Oxford Hospitality)
    Owners of vacated CA Technologies’ campus paid pennies on the dollar
    Owners of vacated CA Technologies’ campus paid pennies on the dollar
    arrow_forward_ios

    The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

    Loading...