Marcus Partners Acquires 10-12 East 33rd Street in Midtown South’s NoMad District
Marcus Partners, a value-oriented real estate investment, management and development firm, in partnership with Dalan Management, today announced the acquisition of 10-12 East 33rd Street, two adjoining 12-story boutique office buildings in Midtown South’s NoMad district, for $54.5 million. The buildings each contain approximately 35,000 square feet with 2,000 square feet of retail on the ground floor.
Marcus Partners was attracted to the properties’ ideal location in Midtown South’s NoMad district, their 3,000 square foot floor plate size and performance history under Dalan Management. 10-12 East 33rd Street are surrounded by vibrant amenities and are situated within close proximity to Grand Central Station, Penn Station and multiple MTA subway lines. The loft-style buildings feature exposed brick, windows on three sides, and provide small to mid-size companies with the opportunity to occupy an entire floor.
“Marcus Partners is truly excited to enter the Midtown South market with a unique property geared toward an entrepreneurial TAMI tenant base,” said David Fiore, Principal and New York Regional Director of Marcus Partners. “The properties offer a stable, diversified tenancy and provide opportunities to create further value over the next few years. We are excited to continue the improvement plan with the Dalan team to reposition 10-12 East 33rd Street to the next level of quality and performance.”
Dalan Management completed a renovation and modernization of both structures in 2015. The new venture will invest substantial capital to further upgrade the buildings including improvements to the façade, storefronts and entries, lobbies, and elevators.
“We are extremely excited to be teaming up with Marcus Partners on the continued operation and repositioning of these properties,” said Daniel Wrublin, Principal of Dalan Management. “Mo and the team at JLL did a great job in identifying the right capital partner for us. This transaction enables Dalan to recycle capital into a new investment while also maintaining an ownership stake in these great assets.”
Mo Beler, JLL Managing Director and Head of New York Investment Sales, along with JLL Managing Directors Glenn Tolchin and Anthony Ledesma, and Vice President Matthew Spiegel arranged the sale and joint venture partnership on behalf of JLL.
“The office property is fully leased to a mix of tenants in industries ranging from technology, advertising, media, information and architecture,” said Beler. “This asset presented the right investor with a rare opportunity to participate in the NoMad appreciation story through the acquisition of two well-leased, aesthetically pleasing loft-style office buildings that offer an opportunity to add further value through targeted upgrades and leasing to meet rising market demand.”
About half of Marcus Partners’ more than 7 million square foot portfolio is located in the Metro New York region, and as the company continues to grow its portfolio, it will pursue opportunities to acquire more urban properties like 10-12 East 33rd Street. Other notable assets include 44 Whippany Road in Morristown, NJ, a 229,157 square foot, Class A office building with first-class amenities, and 8-10 Wright Street in Westport, CT, an 84,000 square foot boutique office property that recently underwent a transformational repositioning program.
August 2018