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
    The 300 West 125th Street location of Buffalo Wild Wings is closing for good. (Google Maps, Getty)
    Buffalo Wild Wings chickens out on Harlem lease
    Buffalo Wild Wings chickens out on Harlem lease
    General Assembly's CEO Lisa Lewin (General Assembly)
    General Assembly renews 40K sf lease in Flatiron District
    General Assembly renews 40K sf lease in Flatiron District
    HqO CEO Chase Garbarino (HqO via Facebook)
    Big landlords invest $60M in “tenant experience” startup HqO
    Big landlords invest $60M in “tenant experience” startup HqO
    Doctors and medical professionals have remained on time with their rent payments in the past year (iStock)
    Medical offices are just what the doctor ordered for landlords
    Medical offices are just what the doctor ordered for landlords
    A rendering of 85 Jay Street and RXR Realty CEO Scott Rechler (Winick, Getty)
    RXR makes $220M apartment bet in Brooklyn
    RXR makes $220M apartment bet in Brooklyn
    Thor Equities Group Chairman Joseph J. Sitt. (Thor)
    Thor facing foreclosure on Harlem rental building
    Thor facing foreclosure on Harlem rental building
    Photo illustration of Vornado CEO Steven Roth and Hotel Pennsylvania at 401 Seventh Avenue (Getty, iStock, Vornado)
    “Inevitable”: Vornado will demolish Hotel Pennsylvania
    “Inevitable”: Vornado will demolish Hotel Pennsylvania
    The rate of loans sent to special servicers continued to fall in March. (Unsplash)
    CMBS special servicing rate declines in March
    CMBS special servicing rate declines in March
    arrow_forward_ios

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

    Loading...