From left: 24-28 West 25th Street and 40 West 25th Street (credits: PropertyShark)
In an eastward expansion, San Francisco-based DivcoWest last week bought several office properties in the hot Midtown South market in a partnership with investor Bruce Brickman, the Wall Street Journal reported. DivcoWest, a real estate investment firm, and Brickman paid roughly $114 million for the buildings, 24-28 West 25th Street and 40 West 25th Street.
As would be expected, the plan is to fill the buildings, which include 270,000 square feet of space, with creative-type tenants. The partnership purchased the buildings from Yeshiva University.
In February, Midtown South had a 5.8 percent vacancy rate, the Journal said, citing CBRE data. Meanwhile, in central Midtown, vacancy in February ticked in at 8.1 percent.
DivcoWest recently made similarly tech-friendly purchases in Boston, the Journal said. [WSJ, 1st item] –Zachary Kussin