A joint venture between Newmark Holdings and Olmstead Properties paid $60 million for an office tower in Queens.
43-01 22nd St., Long Island City, N.Y.
New York—Newmark Holdings has joined forces with Olmstead Properties on a transaction that will leave the partners with equal ownership of 43-01 22nd St., a 225,000-square-foot office tower in Long Island City in Queens, N.Y. The partners entered into a contract to purchase the property from a group of family members led by Roger Kaufman for, as reported by the Commercial Observer, approximately $60 million.
According to a document filed with Queens County in early 1998, 43-01 22nd St. was deeded to Kaufman and others in accordance with the last will and testament of Joseph B. Kaufman.
The property fits right into Newmark Holdings’ acquisition strategy, which is no simple accomplishment. “Whatever the market conditions, finding the right investment takes time and discipline. But Newmark Holdings is comprised of an experienced team of professionals with the ability to identify an investment target and recognize its underlying value early on,” Brian Steinwurtzel, co-CEO of Newmark Holdings, told Commercial Property Executive.
The six-story tower is a magnet for the creative set, with artists and the likes of French furniture and interior designer Christian Liaigre gracing the tenant roster. Currently approximately 78 percent occupied, 43-01 22nd will be reinvented, courtesy of a massive capital improvements program the new owners plan to undertake. New tenants are theirs for the taking. According to a year-end 2015 report by commercial real estate services firm JLL, “The Brooklyn and Long Island City markets could represent increasing competition to the Downtown market for firms considering a move from Midtown or Midtown South given their strong local demographics, growing office inventories, comparatively low rents and competitive tax incentive programs.” As Steinwurtzel noted in a prepared statement, Long Island City is a mere five-minute commute from Midtown.
Earlier this year, Newmark completed the $73 million disposition of the 286,700-square-foot One Long Wharf Drive medical office building in New Haven, Conn., achieving a pre-tax return of a whopping 332 percent after expansive upgrades and a nine-year hold. But of course, there are more acquisitions on the agenda as well. Steinwurtzel added, “Our focus remains on acquiring properties in emerging neighborhoods, particularly throughout the New York City area. We also put a premium on enhancing the value of the assets we acquire through continued capital improvements.”
