Eastern Road Office building 42 to be transformed into apartments

There is a big player, and a new plan, for 300 E. 42nd St., an 18-storey office, 235,000 square meters and retail building that investor David Werner was reported to be buying at a deep discount.

Although not yet posted on public data, the purchase was closed last Wednesday for $ 52 million, as expected – less than half of the last price of sale of property in 2019.

But the turn is that Werner is spending most of the building for a party conversion, holding at 7.300 square meters retail for himself.

The converting project will first come to life with a $ 45 million pre-development loan from RAN Eliasaf Northwind Group’s private capital firm. Credit also closed last week. A construction loan is likely nine months to one year away.

Northwind a few years ago secured a $ 313 million construction loan to revive the then 125 Greenwich St. Condo and has been a very active lender on the development scene.

Eliasaf refused to identify Werner’s flip. Nor would it confirm what resources of the residential market did not tell the real estate control-the new owner of the majority of the building is CSC, a real estate investment firm specializing in repositioning worries.

CSC projects in New York City include the adaptive reuse of a former Catholic in 2045 Madison Ave. In East Harlem, and the transformation of a rotten hotel at the Hip Riff Chelsea hotel into 397 Tigh Ave. in Chelsea.

Eliasaf divided the plan at 300 E. 42nd St. It will leave about 90,000 square meters in higher floors, which are largely rented to diplomatic and government tenants, such as offices.

But more than 93,000 free square meters will be turned into 135 apartments for rent, Eliasaf said. The project is likely to enjoy a tax reduction based on the 467-m state program to facilitate housing conversions, in exchange for caring 20% ​​of units as affordable.

Eliasaf noted, “the ability to offer mainly new free market supply is very attractive, especially in midtown”.

Building at 300 E. 42nd St. It stands diagonally beyond the intersection of Avenue Avenue by two former Pfizer buildings that are turning into a 1,600 -town rented apartment. Werner is a partner in that ambitious project with Nathan Berman’s Metroloft.