Vertex Acquires 61-63 Crosby Street for $53M

The five-story, 32,400-square-foot landmark building at 61-63 Crosby Street in Manhattan’s SoHo neighborhood has just changed hands for $53 million in an all-cash deal, Commercial Observer can first report.

The buyer was Vertex, a recently launched office investment platform that has now closed its second purchase in 60 days. Vertex is co-founded by Adam Arnow,  formerly the acquisitions manager at Olmstead Properties, and Patrick Pavone, formerly Olmstead’s managing director of acquisitions. Olmstead will be the property manager and leasing agent for 61-63 Crosby Street.  

Vertex, which is backed by New York City real estate titans the Rosenblatt and Arnow families, acquired the building from Blackstone, a source close to the deal said. The building is home to the flagship store of popular outdoor apparel and accessories retailer Patagonia. 

“This is a generational buying opportunity for anybody that can screen out all the other noise out there,” Pavone told CO, though he was unable to comment on the specifics of the deal. “It’s a strong leasing market … it’s an iconic area, and we’re very happy with our second acquisition.”

Newmark’s Adam Spies, Adam Doneger, Josh King, Brett Siegel, Ben Lushing, Marcella Fasulo, Meaghan Philbin brokered the all-cash transaction. Spies declined to comment on behalf of Newmark. 

In November, Vertex made its first acquisition with the purchase of two Flatiron District office buildings — 373 and 381 Park Avenue South — from ATCO Properties & Management for $104 million, a transaction also arranged by Newmark. 

“The Vertex platform is laser focused on the commercial office in Manhattan,” Pavone said. “Our intent is to go on a buying spree, and this is the beginning of it.” 

The building is fully leased with four tenants divided across the 24,300 square feet of office space on the upper floors. Those tenants include Comcast Ventures, the corporate venture capital arm of the conglomerate Comcast, as well as blockchain tech company Aptos Labs and an international production and entertainment company called Sister. Patagonia has leased the ground-floor retail space since 2024.

“We are pleased to have reached this outcome for our investors and are confident in the property’s future under Vertex’s ownership,” a spokesperson for Blackstone said. 

This particular swath of Broadway in SoHo has seen several properties change hands recently with deals arranged by the same Newmark team. Bastien Broda’s 109Co real estate investment firm sold the landmarked 542 Broadway for $23 million to Benenson Capital Partners, CO reported in October. Publishing house Scholastic sold 555-557 Broadway for $386 million to Empire State Realty Trust (ESRT).

“This area is on the upswing,” Pavone said. “I think we’re going to see rents moving on Crosby Street over the next couple of years, in our favor.”

Amanda Schiavo can be reached at aschiavo@commercialobserver.com.