David Werner, 601W Seal Deal on $165M Midtown East Buy

13 November 2025

David Werner Real Estate Investments and 601W Companies closed on an acquisition in Midtown East, raising the question: Is a conversion next?

Werner and 601W bought 205 East 42nd Street from the Durst Organization for $165 million, the Commercial Observer reported. New York-based 601W was reported to be in contract to buy the building in September, but Werner’s involvement was not disclosed at the time.

The deal breaks down to $310 per square foot. JPMorgan Chase provided a $100 million balance sheet loan to finance the acquisition.

A Newmark team including Adam Spies, Doug Harmon and Adam Doneger arranged the sale, while the firm’s Jordan Roeshlaub and Nick Scribani led the way on financing.

Tenants at the office building include the City University of New York, Fedcap Rehabilitation Services and the United Way of New York City. Ownership completed a $15 million renovation in 2013, upgrading elevators and updating the Art Deco-style lobby. There are more than 3,600 square feet of green roofs as well as retail space on the ground floor. The building also benefits from its proximity to Grand Central Terminal.

Durst patriarch Joseph Durst bought the building for his nascent real estate empire more than 80 years ago. The 532,000-square-foot, 21-story property was developed in 1927 and designed by Starrett & Van Vleck.

Its future may not be as an office building, though. The incoming owners are considering a partial conversion of the property. The upper floors of the building, which are vacant, could work for residential use; alternatively, they could be transformed into a contiguous block for a dedicated office tenant.

Werner and 601W did not respond to the publication’s requests for comment.

Werner, of course, is no stranger to office-to-residential conversion, including in Midtown East.

The investor partnered with Nathan Berman’s Metro Loft Management on a conversion at 675 Third Avenue, another former Durst property that traded for nine figures. The conversion plans call for a 464-unit building spanning 321,000 square feet.

The two are also partners at 235 East 42nd Street, where they are transforming the former Pfizer headquarters into 1,500 rental units, the largest office-to-residential conversion in New York City.

— Holden Walter-Warner