A pair of Manhattan office buildings has fetched $100 million. The property at 119 West 40th street was bought by a joint venture between Colliers ABR (CABR) and AEW Capital Management, L.P. The sale includes a 5-story building at 120 West 41st street that comes with additional development rights. The 119 West 40th street property encompasses 327,650 sq. ft., and the 5-story building holds 15,000 sq. ft. but is zoned for more than three times as much space.
Colliers ABR is Boston-based a real estate services firm; AEW is a real estate investment advisory firm with more than $21 billion in assets under management. This is the joint venture’s second acquisition. The first—Manhattan office building 229 West 28th street—was acquired late last year.
“This purchase is consistent with our strategy of sourcing off-market deals through our extensive network of contacts,” says Anthony McElroy, managing director/acquisitions at CABR. “The current tenant roster at 119 West 40th Street is a diverse mix of major businesses in the financial services, software, apparel and corporate travel industries.” The 119 West 40th street property is 88% occupied, one-third of its space leased to investment grade tenants. Adds McElroy: “The site at 120 West 41st with its additional air rights may provide us with several redevelopment opportunities.”