NEW YORK CITY — Property Group Partners has sold a 154,953-square-foot office building, located at 148 Lafayette St. in SoHo, to Epic for $131.7 million. The New York City-based real estate firm paid $850 per square foot for the building, which is more than double the $390 per square foot the seller paid for the building in 2007.
“The sale of 148 Lafayette St. validates our original strategy with this building,” said Jeffrey Sussman, founder and president of Property Group Partners. “With our partners, we recognized that a complete renovation and expansion would vastly improve this asset for both tenants and investors.”
The 12-story building, which was designed by McKenzie Voorhees and Gmelin Architects in 1913, was originally an industrial building that housed printing presses and clothing manufacturers.
In 2007, Property Group Partners retained Cook + Fox Architects for a full renovation and conversion of the property, including a new office lobby, covered entry, addition of new state-of-the-art mechanical, electrical, life safety and security systems, new operable tilt-and-turn windows and new restrooms, elevators and hardwood floors, as well as new retail storefronts. Additionally, a 5,327-square-foot penthouse with an accessible private green terrace was added to the roof, and the limestone façade was completely restored.
The property achieved LEED Gold certification in 2009. It is one of the few century-old Manhattan office buildings to receive the honor.
“Not only did we fully lease the building within 24 months after purchasing it, but we have now completed the successful sale of the property just a few years later,” added Sussman. Current tenants of the building include the corporate headquarters of fashion designer Dolce & Gabbana, apparel maker Lafayette 148, architectural firm Callison, Tower Research and Utrecht Art Supplies.
Property Group Partners owned the building in partnership with Bruce Toll and members of the Louis-Dreyfus family. Douglas Harmon, Adam Spies and Kevin Donner of Eastdil Secured represented Property Group Partners in the transaction.
— Savannah Duncan