110 Fifth Avenue | New York, NY
110 Fifth Avenue | New York, NY

Identifying The Real Opportunities

While we occasionally buy stabilized properties, more often our acquisition targets are misunderstood and underperforming assets that we can develop. We typically hold assets for the long term, often for decades, but we also capitalize on short-term opportunities when they will generate returns we can direct to our long-term investments.

Real World Results

110 Fifth Avenue

110 Fifth Avenue, New York, NY

Opportunity

Originally known as the Judge Building, 110 Fifth Avenue is a 170,000 square foot, eleven story office building in New York’s Flatiron District designed by the renowned firm of McKim, Mead & White and constructed in 1888.  In 1996, just as The New York Times Company elected to sell the property, the sole office tenant announced plans to relocate to midtown. The new property owner would assume a huge leasing risk in a then-unproven sub-market.

Strategy

Along with partner Samson Management, we entered a heated bidding war with speed and strength, and without hesitation offered an all-cash deal with a 10-day close.  Focus was quickly shifted to leasing the nearly empty building in order to stabilize income and allow us to arrange permanent financing for the property. Within the first year, the office portion of the building was completely leased at record breaking rents for the neighborhood while keeping Armani in the retail space.

Results

As one of the premier office buildings in the Flatiron District, 110 Fifth Avenue is home to a range of exciting innovative companies from the Swedish multinational fast-fashion clothing retailer H&M to Work-Bench, an enterprise technology venture capital fund.  Long-term ownership and rising markets have seen rents escalate from $23 per foot for office rents at the time of purchase to almost four times that number twenty years later.