Office

229 West 36th Street

229 W 36th St, New York, NY, 10018-7529, US

229 West 36th Street_Property for Sale

Gallery

Asset description

229 West 36th Street (the “Property”), a 150,894 rentable square foot, 12-story office building located in Midtown Manhattan at the convergence of high-growth submarkets including Hudson Yards, Chelsea, and the Penn District revitalization. Currently 86.2% leased, 51,544 rsf rolls within the first year bringing occupancy to 52.0% with 8.5 years of remaining average lease term, providing a new investor the opportunity to acquire an attractive in-place cash flow at a compelling basis with significant upside through lease-up and ability to partially convert to life science in the near term.

Attributes

Building area gross
150,894 sf
Occupancy
86.00%
Year built
1921

Investment highlights

COMPELLING VALUE ADD WITH UPSIDE POTENTIAL

+ Currently 86.2% leased, 51,544 rsf rolls within the first year bringing occupancy to 52.0% with 8.5 years of remaining average lease term, providing a new owner income security with ability to immediately grow NOI through lease-up

+ Ideal 12,600 rsf floorplates, double front entrances and elevator configuration enables a building-within-a-building structure

providing a competitive leasing advantage

+ Additional value creation from re-imagining and re-leasing the ground floor retail space


FLEXIBLE LIFE SCIENCES REPOSITIONING OPTIONALITY

+ Flexible M1-6 zoning and existing floor loads provide the optionality to partially convert the Property to life science as inplace tenancy rolls in the near term

+ Ability to capture premium rental rates as average life science rents in Manhattan exceed $100 psf on a net basis, driving NOI

and maximizing value

+ Existing tenancy provides durable in-place cash flow to cover repositioning costs with the ability to maintain a low investment basis and achieve outsized returns

+ Rapidly growing life science cluster anchored by tenants including IndiBio, Actinium Pharmaceuticals, Enzo clinical labs, and AccelBio


IDEALLY LOCATED AT THE CONVERGENCE OF TRANSPORTATION HUBS AND HIGH-GROWTH NYC SUBMARKETS

+ Transformative Midtown Manhattan location at the convergence of Hudson Yards, Chelsea, and the Penn District revitalization

+ Connected via proximate Penn Station and Moynihan Train Hall as Manhattan office demand congregates around regional transit (43% of all 2021 leases were within a 5-min walk from major hubs)

+ Positioned to benefit from the multi-billion dollar Penn Station and surrounding area redevelopment program

Contact brokers

Similar properties

View moreChevron Right
Do you have any questions? Visit our FAQ page
View FAQ PageArrow Right
JLL can help you finance and manage your portfolio. E-Mail us today to see how we can help achieve your ambitions.
Last updated
Nov 30, 2022