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.