David Werner Leading $165M Acquisition of Durst’s 205 East 42nd Street: Sources

David Werner Real Estate Investments is leading a $165 million acquisition of the Durst Organization’s office building at 205 East 42nd Street, Commercial Observer has learned.

The sale of the 21-story Midtown Manhattan office property, which was developed by the Durst family in 1927, is expected to close “imminently,” sources told CO. The Promote reported in late September that 601W Companies was in contract to buy the building steps from Grand Central Terminal, but the developer is a minority partner in the deal, while David Werner has a majority stake, according to sources.

A partial residential conversion of 205 East 42nd is being considered, sources said. 

The purchase marks something of a trend for David Werner, who has been targeting office-to-resi transformations in partnership with MetroLoft Management at neighboring buildings at 675 Third Avenue along with 235 East 42nd Street and 219 East 42nd Street. With the purchase of 205 East 42nd, a contiguous strip would be mapped out for the developer. 

Current anchor tenants in the 532,000-square-foot building at 205 East 42nd include City University of New York, Fedcap Rehabilitation Services and United Way of New York City, according to Durst.

Newmark arranged the sale with a team led by Adam Spies, Doug Harmon, Adam Doneger, Josh King and Marcella Fasulo. 

A Durst  Organization spokesperson said in a statement that 205 East 42nd Street is “prime for a residential conversion” similar to neighboring 675 Third Avenue.

David Werner Real Estate Investments, 601W and Newmark did not immediately return requests for comment.

Andrew Coen can be reached at acoen@commercialobserver.com.