Bank of the Ozarks Finances Midtown South Office Buy
Dalan Management paid $36 million for two Midtown South office properties, as part of a 1031 exchange, with a $25 million mortgage from Bank of the Ozarks, according to HKS Capital Partners, which brokered the loan.
The four-year loan has a rate of 375 over Libor with a floor of 4 percent, according to a representative for the broker. HKS principals Jerry Swartz and Ayush Kapahi worked on the deal.
The company bought the 12-story buildings at 10 East 33rd Street and 12 East 33rd Street, between Madison and Fifth Avenues from Adee Associates, said Daniel Wrublin, a co-founder and principal at Dalan Management, after selling three Washington Heights buildings in November for $16 million. Commercial Observer first reported the sale earlier this month.
The buildings are comprised of 22 full-floor office lofts and ground-floor retail space. The East 33rd Street buildings comprise 61,100 square feet and could be converted into residences or a hotel. Adee bought them in the 1980s.
Each building includes a 2,000-square-foot store. The 10 East 33rd Street property’s retail space is occupied by a nail salon and the neighboring building has a dry cleaning business.
In the short run, Dalan plans to just update the spaces, Mr. Wrublin said. “Down the road the potential is to convert [the site] or sell it to somebody to convert it,” he said.
Dalan has tapped William Cohen and David Emden of Newmark Grubb Knight Frank to market the office space.
Additional reporting by Lauren Elkies Schram