JP Morgan Lends $100M for David Werner’s Purchase of 205 East 42nd Street

A joint venture between David Werner Real Estate Investments and 601W Companies has sealed $100 million of acquisition financing for the purchase of Durst Organization’s longtime office building at 205 East 42nd Street, Commercial Observer has learned.

J.P. Morgan Chase provided the balance sheet loan for the $165 million acquisition of the 21-story building developed by the Durst family in 1927 steps from Grand Central Terminal. 

The loan and sale both closed Tuesday.

Newmark negotiated the financing with a team led by Jordan Roeshlaub and Nick Scribani. The sale was arranged by Newmark’s Adam Spies, Doug Harmon, Adam Doneger, Josh King, Marcella Fasulo and Avery Silverstein. 

CO reported in late October that the sale to David Werner and 601W was “imminent” with the new owners considering a partial residential conversion of the 532,000-square-foot Midtown East office building. 

The vacant upper floors could be converted to residential use or would be ideal for an office user seeking a contiguous block of space, according to a source familiar with the deal. Current anchor tenants at 205 East 42nd include City University of New York, Fedcap Rehabilitation Services and United Way of New York City. 

David Werner has been targeting other 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. 

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

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