There are major new players and new plans for the 300 E. 42nd St., 18-storey 235,000-square-foot office and retail building, with investor David Werner reportedly buying at a deep discount.
Although it has not been posted to public records yet, the purchase ended last Wednesday at $52 million, as expected. It was less than half the last selling price of the property in 2019.
But the twist is that Warner is turning through most of the building and seeking partial home conversion, maintaining its precious 7,300-square-foot retailer himself.
The conversion project will first come to fruition with a $45 million pre-development acquisition loan from RAN Eliasaf’s private equity firm Northwind Group. The loan was also closed last week. The construction loan is probably nine months to a year away.
A few years ago, Northwind provided a $313 million construction loan, reviving the then 125 Greenwich St. Condominium Tower, making it a very active lender in the development scene.
Eliasaf refused to identify Werner’s Flippee. They also did not confirm what housing market sources told Realty Check. Most buildings are new owners of CSCs and do not confirm that they are real estate investment companies specializing in redeveloping and relocating distressed assets.
CSC’s New York City projects include the adaptive reuse of the former Catholic Church at 2045 Madison Avenue in East Harlem, and the conversion of a corrupt hostel to the Hiplif Chelsea Hotel, located on 397th Avenue in Chelsea.
Eliasaf shared that the 300 E. 42nd St. plan is to leave about 90,000 square feet on the upper floors, leased primarily to diplomatic and government tenants.
But more than 93,000 vacant square feet will be converted to 135 rental apartments, Eliasaf said. The project could enjoy tax relief to promote housing conversion in exchange for acquiring 20% of affordable units under the state’s 467-M program.
Eliasaf said, “The ability to provide a new supply of almost free markets is very attractive, especially in Midtown.”
The building at 300 E. 42nd St. stands diagonally across the intersection of the second avenue from the two former Pfizer buildings. Werner is a partner in Nathan Berman’s ambitious project with Metroloft.
