Investment Firm Buys 13K-SF Midtown South Office Condo For $11M
Liam La Guerre May 3, 2016, 5:45 p.m.
Economic Growth Group, a financial services firm, has purchased the ninth-floor office condominium at 207 West 25th Street from The Nugent Organization for $10.8 million, Commercial Observer has learned.
The financial company, which manages retirement and pension funds, intends to move its offices to the 13,307-square-foot condo between Seventh and Eighth Avenues, according to the seller’s broker, Rudder Property Group.
Economic Growth Group operates the subsidiary Economic Growth Pension Services and will relocate from nearby 333 Seventh Avenue between West 28th and West 29th Streets, where the company has 10,000 square feet on the third floor.
The Nugent Organization has owned the condo for more than two decades and since 2008 rented it out to a marketing printing company NugentAlison, which recently moved to 47-50 30th Street in Long Island City, Queens in search of cheaper rent, according to Vincent Longo, a managing partner of The Nugent Organization. The rent was $27 per square foot. (The Nugent Organization and NugentAlison are different companies, but have some of the same investors.)
“The seller took advantage of the extraordinary appreciation in the value of office condominiums in the Midtown South submarket, which have doubled in the past five years,” Rudder Property Group Principal Michael Rudder said in prepared remarks. ”The purchaser recognized the benefits of office ownership, including eliminating any future rent escalations and permanently securing their office space needs.” Mr. Rudder represented The Nugent Organization in the sale with colleague Michael Heller.
Economic Growth Group’s new digs features loft-like ceilings, windows on four sides, an open layout and exposed brick walls and steel columns. The firm is planning to renovate the condo, Mr. Rudder said.