158 West 27th Street

The Opportunity

In 2010, Himmel + Meringoff purchased 158 West 27th Street, a 125,000-square-foot building located in the Chelsea neighborhood of Manhattan's Midtown South submarket. The property was 35% vacant at acquisition. The property was in the midst of a foreclosure and was impaired by significant deferred maintenance and lacked a Certificate of Occupancy.

Actions Taken

Recognizing the long-term value in purchasing the property given its gentrifying location and mass transit access, Himmel + Meringoff:

  • Signed a contract within 48 hours;
  • Closed title in less than 30 days;
  • Completed a rigorous leasing campaign for all of the vacant office space, including a three-story flagship retailer for the ground and second floor;
  • Implemented a $6 Million capital improvement program that included a significant increase in the size of the lobby, elevator modernization, new windows and skylights, etc.

Value Created

Within eight months of acquisition, the property was 100% leased, including Planet Fitness signing a 20,000-square-foot multi-level retail lease, which marked its inaugural Midtown Manhattan location. Gracious Homes also took space to serve as its headquarters. Upon sale, a leveraged IRR of over 100% was achieved.

Summary

Through market foresight and capital investment, Himmel + Meringoff added value to the property and now provides a state-of-the-art health and fitness center as a market amenity. The property was recently sold for $57.5 Million.

© 2012 Himmel + Meringoff Properties LLC All Rights Reserved.  |  30 West 26th Street  |  New York, NY 10010  |  212.888.1810  |   Credits