Dalan Management paid $36 million for two Midtown South office properties comprised of 22 full-floor office lofts and ground-floor retail space as part of a 1031 exchange.
The 12-story buildings are located at 10 and 12 East 33rd Street, between Madison and Fifth Avenues.
Timour Shafran and Phil Fierro of Citicore represented Dalan in the deal. Pavan Uttam of UP Real Estate Advisors represented the seller, Adee Associates.
Daniel Wrublin, Dalan Management’s co-founder and principal, said his company bought the buildings after selling three Washington Heights buildings in November for $16 million.
The East 33rd buildings comprise 61,100 s/f and can be converted into residences or a hotel.
Brian Hosey from Marcus & Millichap marketed the properties for $35 million before the owner took them off the market.
Since the summer, Adee Associates has maintained a $40 million asking price, according to Shafran. Adee bought the properties in the 1980’s.
Each building includes a 2,000 s/f store. 10 East 33rd’s retail space is occupied by a nail salon, paying $52 a foot on a lease expiring in 2021. 12 E33 has a dry cleaning business paying $60 a foot on a lease expiring in 2018,