Syndicator David Werner has lined up Alexandria Real Estate Equities and Deutsche Asset Management as his equity partners for two adjacent office buildings in Midtown Manhattan he is buying from pharmaceutical giant Pfizer.
Werner in April agreed to pay about $365 million for the 350,000-square-foot building at 219 East 42nd Street and the leasehold interest in the 825,000-sf building at 235 East 42nd Street. Pfizer, which is being represented by Cushman & Wakefield, will lease back both properties for five years.
Werner and Alexandria are buying the fee position on Pfizer’s 350,000-square-foot building at 219 East 42nd Street, which they will lease back to the pharmaceutical company for five years.
Alexandria will hold the majority interest in the property, and will have sole ownership after Pfizer’s lease expires. The loan from Morgan Stanley has a five-year term to coincide with the change in ownership.
Werner and Deutsche Bank’s asset management spinoff, meanwhile, are purchasing a leasehold on Pfizer’s larger building, the 825,000-square-foot 235 East 42nd Street. The asset manager will hold the controlling interest on the lease, which runs for another 40 years.
Interesting.
Laying the groundwork for next cycle
Would be interesting if something big gets built here.
So close to Times Square.
With the rezoning hopefully it could be big. Would love a redevellopement of the current building along the lines of 425 park
Yeah, If anything is done to this building I’d like to see it get the 425 Park Avenue treatment rather than be taken down entirely. I have to admit, I like it the way it is, there’s just something about it.
I’m nearly positive that this will be completely razed and redeveloped largely as residential. Given the small footprint, it should be well over 1,000’.
I’ll be sad to see this one go…what can I say? I have a soft spot for Roth-Scrapers. (Emery Roth and Sons buildings) It would be cool if they gave this one a facade similar to its predecessor, though.
If Kohn Pederson Fox did this design though, that’s cool- I’m a fan of theirs!
After five years, this topic is getting interesting again, but a new rendering has not been released yet. The Grand Central region could be richer for another redevelopment.
I could imagine that the old building will be demolished or completely renovated. Another supertall around 1000 feet would be possible. Keep this topic on the watch list.
Huh? There are two supertalls essentially completed, and three more in development. There are still many millions of square feet of transferable air rights available. Not every single block in Midtown is immediately gonna get razed for a supertall office tower. It will take decades to fully utilize air rights.
