David Werner is set to acquire the 50-story One Dag Hammarskjöld Plaza office tower for $270 million, according to information obtained by The Real Deal. The transaction is expected to close early next year.
This purchase price represents a significant reduction from the $566 million that Rockpoint Group paid for the Midtown East property in 2019. Werner has been active in purchasing office buildings at reduced prices over recent years. His acquisitions include 440 Ninth Avenue near Hudson Yards, which he bought for $105 million after it sold for $269 million in 2018, as well as 205 East 42nd Street and 675 Third Avenue, both acquired at similarly discounted rates.
A representative for Werner declined to comment on the deal. Rockpoint did not immediately respond to a request for comment. The sale was negotiated by Newmark’s Adam Spies and Adam Doneger.
One Dag Hammarskjöld Plaza, located at 885 Second Avenue near the United Nations Headquarters, was built in 1972 and is known as “One Dag.” It has served as home to several consulates and permanent missions over the years. The building comprises approximately 870,000 square feet and is currently about 72 percent occupied. Major tenants include Memorial Sloan Kettering, the United Nations, and the Republic of Germany.
According to a marketing memo from Newmark: “One Dag is strategically positioned among several iconic Class A office assets boasting an average occupancy of 90 percent in the Midtown East market.” The memo also highlights that more than $20 million has recently been invested in capital improvements at the property.
Newmark reports that similar properties in Midtown East command average rents between $80 and $90 per square foot, making One Dag an attractive option relative to its peers due to its pricing.
Rockpoint Group financed its original purchase with a $430 million loan from Wells Fargo and Brookfield. At that time, the price equated to roughly $650 per square foot; Werner’s current deal values the property at about $310 per square foot.
Werner has a reputation for buying properties when prices are low and often converts some of his acquisitions into residential apartments while retaining others as commercial spaces. He began his current series of purchases around 2022 and has since become one of Manhattan’s most active investors.
