Gotta go to Mo’s: Modell and Brodsky families pay $61M for Garment District office
Partnership is purchasing 22 West 38th Street from Dalan Management
A partnership between the Modell family of Modell’s Sporting Goods fame and the Brodsky family’s BEB Capital is purchasing a Midtown office building for $60.5 million, according to sources familiar with the deal.
Dalan Management sold the 12-story, 60,000-square-foot property at 22 West 38th Street in an off-market 1031 exchange that did not involve brokers. The building includes one retail unit and 11 office units, and Knotel has a large lease at the property spanning six floors and about 35,000 square feet.
Dalan had purchased the building in 2015 for $43.5 million and spent the past few years renovating it. Founding partner Daniel Wrublin said in a statement that the company was “pleased to have executed a successful repositioning of this asset.”
Mitchell Modell declined to comment on the deal, which pencils out to roughly $1,000 a foot.
BEB Capital CEO Lee Brodsky said the firm was interested in the building because of its great location, and they view it as a very stable asset.
“We may do minor modifications,” he said, “but nothing drastic.”
Dalan joined with Elion Partners last year to buy a portfolio of apartments across from Google’s Chelsea headquarters for $83 million, along with 2568 Broadway on the Upper West Side for $66 million. The firm also recapitalized a pair of its Midtown South office buildings at 10-12 East 33rd Street in a deal valuing them at more than $54 million.
Modell’s recently unveiled plans to trial small concept stores across the city spanning between 5,000 and 8,000 square feet in an attempt to turnaround its business following a drop in sales amid an increase in online shopping. It listed its 300,000-square-foot Bronx warehouse for $100 million in January.