Durst in Line to Sell Midtown East Property for $165M

The Durst Organization is on the verge of selling a legacy building in Midtown East.

Durst is in contract to sell 205 East 42nd Street to New York-based 601W Companies for $165 million, according to investor materials viewed by The Promote. Family patriarch Joseph Durst purchased the building for his burgeoning 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.

At the contracted price, the sale would break down to $310 per square foot. Major tenants at the building include the City University of New York, Fedcap Rehabilitation Services and the United Way of New York City. A WeWork formerly operated there, though another co-working company moved into 41,000 square feet of space two years ago, according to the New York Business Journal.

A $15 million renovation of the property was completed in 2013, upgrading elevators and updating the Art Deco-style lobby. There’s more than 3,600 square feet of green roofs, retail space on the ground floor and proximity to Grand Central Terminal.

Durst did not immediately respond to a request for comment from The Real Deal. A representative for 601W did not respond to a request for comment.

Last month, Wells Fargo, JPMorgan Chase and Bank of America agreed to originate a $1.3 billion commercial mortgage-backed security for Durst’s 1.8 million-square-foot tower at 151 West 42nd Street. The loan for One Five One, carrying a 6.1 percent interest rate, is set to pay off roughly $1.1 billion in existing debt and fund nearly $40 million in reserves and closing costs, according to an S&P Global presale report. 

Meanwhile, 601W is in talks to acquire the 1.4 million-square-foot property at 175 West Jackson Boulevard, one of Chicago’s most troubled Loop office towers. 

Should that deal close, it would extend 601W’s run as one of Chicago’s most active buyers of distressed office space, adding to holdings that include the Old Post Office and the Aon Center.

— Holden Walter-Warner

Read more

Durst nears $1.3B loan to refinance One Five One 

601W’s office buying streak targets distressed Brookfield property

601W eyes data center conversion for expensive office redevelopment