David Werner Real Estate Expands Office-to-Residential Conversions
David Werner is making waves in the real estate sector with his ongoing commitment to transforming office buildings into residential units. His firm, David Werner Real Estate Investments, has entered into a significant contract to acquire a 25-story office building located at 5 Hanover Square in New York City’s Financial District. The expected purchase price for this property is between $50 million and $60 million, according to an informed source, as first reported by The Real Deal.
Financial Background of the Deal
This upcoming acquisition reflects a notable reduction compared to the $104 million that CIM Group paid for the approximately 330,000-square-foot building back in 2013, as highlighted previously by Commercial Observer.
Future Plans for 5 Hanover Square
While specific plans for 5 Hanover Square have not been disclosed, it is believed that the building is currently around 50% vacant and that any renovations will likely involve a partial conversion to residential units, as suggested by reporting from The Real Deal.
Involvement of CBRE and Other Transactions
The acquisition deal is being brokered by Doug Middleton and Jack Stillwagon from CBRE. As of now, CBRE has chosen not to comment on the transactions, while CIM Group representatives did not respond to requests for comment. A spokesperson for Werner was also unavailable for immediate comment.
This development follows closely on the heels of Werner’s collaboration with Nathan Berman of Metro Loft Management, which recently secured a $90 million loan from Northwind Group aimed at converting the office property at 675 Third Avenue into approximately 430 residential rental units, as noted earlier by Commercial Observer.
Both Werner and Berman are also involved in another major conversion project on the same block, converting the former Pfizer headquarters at 235 East 42nd Street and the adjacent 219 East 42nd Street into approximately 1,600 rental units, according to recent reports.
Additional Acquisitions
Earlier this year in February, Werner went into contract to buy another office building at 300 East 42nd Street from Fortress Investment Group for $52 million, with plans for further residential conversions.
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