David Werner Real Estate Investments and 601W Companies have finalized the purchase of 205 East 42nd Street in Midtown East for $165 million, according to a report by Commercial Observer. The sale price equates to approximately $310 per square foot. JPMorgan Chase supported the acquisition with a $100 million balance sheet loan.
The transaction was managed by Newmark, with Adam Spies, Doug Harmon, and Adam Doneger arranging the sale, while Jordan Roeshlaub and Nick Scribani handled the financing.
The building’s tenants include the City University of New York, Fedcap Rehabilitation Services, and the United Way of New York City. In 2013, ownership invested $15 million to renovate the property, which included elevator upgrades and updates to its Art Deco-style lobby. The property also features over 3,600 square feet of green roofs and ground-floor retail space. Its location near Grand Central Terminal is considered a key advantage.
The Durst Organization had owned the property for more than eight decades after Joseph Durst purchased it early in his real estate career. The structure is a 21-story building spanning 532,000 square feet that was developed in 1927 by Starrett & Van Vleck.
Future plans for the property are under consideration. The new owners are exploring options including converting vacant upper floors into residential units or consolidating them as office space for a single tenant.
Werner has previous experience with office-to-residential conversions in Midtown East. He partnered with Metro Loft Management at 675 Third Avenue—another former Durst property—for a project involving 464 residential units across 321,000 square feet. Werner is also working with Metro Loft Management on transforming the former Pfizer headquarters at 235 East 42nd Street into 1,500 rental units.
Both David Werner Real Estate Investments and 601W Companies declined requests for comment regarding their plans for the newly acquired building.
