Ray and Jack Yadidi are reportedly selling a newly completed Midtown South office building on property they purchased for $9 million in 2014.
Jack Ezon and Sion Betesh, the entrepreneurs behind Silver One International and Blue Star Clothing, are purchasing 44 West 37th Street for $49 million, according to Crain’s. The transaction comes seven years after the Yadidis purchased the building through the Sioni Group for $9 million.
The developer filed plans in August 2016 for a 38,000-square-foot building, standing 203 feet tall.
The developer reportedly had plans for a much larger building in 2016, where they were hoping to attract tech tenants, showrooms and a ground-floor restaurant. Sources told The Real Deal at the time the projected asking rents for the building would’ve been in the mid-$60s.
Since then, the Yadidis finished construction at the site, which was vacant at the time of the purchase. The completed construction gave way to a 15-story office building, about half of which Ezon and Betesh will use, sources familiar with the deal told Crain’s. The pair will rent out the other half.
Venture Capital Properties President Soly Halabi brokered the deal on behalf of the buyers, according to Crain’s.
Manhattan’s office market recovery has seen some glimmers of hope in recent months, but recent analysis by KPG Fund and Newmark shows its comeback is uneven among the borough’s neighborhoods.
Midtown South has emerged as a leader in the return of office demand. In the third quarter, prospective tenants were on the hunt for 6.5 million square feet across Chelsea, Flatiron, Hudson Square, the Meatpacking District and NoHo/SoHo, up 64 percent from the first quarter of the year.
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[Crain’s] — Holden Walter-Warner