Brause Realty puts Midtown East office building on the market

About 60% of 10-story property's leases set to expire next year

10 East 34th Street in Midtown (inset: David Brause)
10 East 34th Street in Midtown (inset: David Brause)

UPDATED, 6:24 p.m., June 30: Brause Realty is placing its 10-story Midtown office building at 10 East 34th Street on the market.

The company tapped a Cushman & Wakefield team led by Bob Knakal to handle the sale of the 55,000-square-foot building, located between Fifth and Madison avenues.

Around 60 percent of the property’s leases expire at the beginning of 2016, according to Cushman marketing materials. While such looming vacancy would usually negatively impact an office building’s value, it’s now viewed as a positive allowing landlords to capitalize on rising rents, and the building is expected to fetch as much as $1,000 per square foot.

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The vacant space could also allow a new owner to covert the building into residential or hotel space through buying out the remaining tenants, according to Crain’s.

The lease on the building’s ground-floor retail space, previously occupied by Capital One, is also set to expire at the end of the year. Capital One has already vacated the location.

Brause Realty’s other office properties in the city include a 21-story building at 52 Vanderbilt Avenue in Midtown and a 15-story property at 254 West 31st Street near Madison Square Garden. [Crain’s] — Rey Mashayekhi