Marx Realty has purchased a pair of Bowery office buildings from a joint venture for $48.5 million.
The New York-based landlord and developer bought 135 and 161 Bowery from a partnership consisting of Caspi Development, RWN Real Estate Partners and Artemis Real Estate Partners. Ultimate Realty was also part of the group that sold 161 Bowery.
James Nelson’s Tri-State Investment Sales Group at Avison Young represented all sides in both transactions.
“This sale demonstrates that, with the right product and location, there is still strong demand in the
marketplace,” Nelson, a principal at the real estate firm, said. “We were able to identify a well-established purchaser who utilized a 1031 tax-free exchange, and orchestrate a very smooth and easy process with real professionals on both sides of the table.”
Totaling 48,000 s/f, the two buildings are fully leased and include a variety of tech-centric office tenants as well as ground-floor retail. The acquisitions bring Marx Realty’s commercial real estate portfolio to 4.3 million s/f.
Marx Realty CEO Craig Deitelzweig said he was drawn to the “vibrant” energy of The Bowery as well as the surrounding areas, which includes the Lower East Side, NoLita, the East Village and the various bars, restaurants and museums in each.
Deitelzweig also saw an opportunity to add value to his company’s portfolio with the two recently-improved properties.
“Both buildings are architecturally significant and are located one block away from each other in the very dynamic Bowery neighborhood,” he said. “The constructed office space in both properties has broad appeal to tenants across a variety of business sectors and we are delighted to have 135 and 161 Bowery join the Marx Realty portfolio of best-in-class office assets in premier locations.”
“This sale demonstrates that, with the right product and location, there is still strong demand in the marketplace.”
Standing eight stories tall with a total of 23,000 s/f, 135 Bowery was built in 2016 and includes high-speed wireless connectivity as well as two private terraces. Tenants include Lola, a visual effects company; Minds + Assembly, a creative agency; Tradewind, a tech trading firm and the law firm of Martin Liu & Associates.
The other building, 161 Bowery, was built in 1920 and remodeled in 2016. It is seven stories tall with 25,000 s/f, 12-foot ceilings, open floorplates and fiber-optic Ethernet. Tenants include Warner Music; Kik Interactive, a social media company; Space 150, an advertising firm; Brainly, an educational startup and Mark Fisher Fitness on the ground floor.
“The current tenants at both properties are a testament to the neighborhood’s continuous growth and exciting future,” Deitelzweig said. “The acquisition once again reinforces our ability to transact quickly and efficiently, further expanding our presence in Manhattan. We’re excited to bring new life and energy to 135 and 161 Bowery.”
