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
    (Facebook via The Palms Hotel Fire Island)
    Fire (Island) sale: Palms Hotel hits the market
    Fire (Island) sale: Palms Hotel hits the market
    Trump International Hotel D.C. and Donald Trump (Getty, Trump Hotels)
    Trump could profit $100M in DC hotel sale
    Trump could profit $100M in DC hotel sale
    Related's Stephen Ross and the Chelsea-Elliott Houses (Getty, Wikimedia)
    Related wades into NYCHA — and becomes a target
    Related wades into NYCHA — and becomes a target
    Enterprise President and CEO Priscilla Almodovar (Getty)
    Enterprise closes low-income housing funds after raising $365M
    Enterprise closes low-income housing funds after raising $365M
    WeWork CEO Sandeep Mathrani (Mathrani/Wikipemedia, Getty)
    WeWork says it must correct financial statements
    WeWork says it must correct financial statements
    601 Madison Ave. and Ben Soleimani (Google Maps, Ben Soleimani)
    Ben Soleimani leases 12,000 square feet on Madison Avenue
    Ben Soleimani leases 12,000 square feet on Madison Avenue
    Rolling Gardens Apartment Homes at 405 Franklin Turnpike in Mahwah NJ (Apartments.com)
    Morgan Properties trades NJ multifamily portfolio for $57.5M
    Morgan Properties trades NJ multifamily portfolio for $57.5M
    645 Madison Avenue (Google Maps)
    645 Madison ground lease trades to Titan Golden for $27M
    645 Madison ground lease trades to Titan Golden for $27M
    arrow_forward_ios

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

    Loading...