Atlas Capital, a full service real estate investment, development and management firm, acquired 311-319 West 43rd Street in Midtown New York for $62.4 million. Zuberry Associates sold the property in a deal with representation from Eastern Consolidated, which marketed the property and procured the buyer. Atlas Capital has assumed Zuberry's mortgage in the form of a securitized loan.
"We had to act quickly, since the buyer was obliged to close the transaction by year end within 45 days," said Eastern Consolidated Vice Chairman Brian Ezratty, who added that the property's close proximity to Times Square, it's current cash flow, potential for rental increases when leases expire, as well as its upscale international Chinese restaurant retail tenant, Hakkasan NYC, were all drivers in attracting Atlas.
Zuberry closed on the building in 1982, though the sale price was not available in public records, Zuberry Associates manager Dick Berry said he did not remember how much he paid for the property. "We did good," he said. "We put so much money into it so quickly that I've really lost track. It's a long time, too."
The 14-story office building was 100% leased at the time of sale. While currently rated a Class B building, Atlas could upgrade the property to the Class A category, or take advantage of current zoning that would allow for a future conversion of part, if not all, of the building to residential use when the leases expire. Zuberry will remain in the property for 10 years as a tenant. "We're going to see what that's like," Berry said.
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