Joint Venture Secures Leasehold for Vacant Penn Plaza Office Property
Onyx Equities, LLC, in a joint venture with GMF Capital, announced the acquisition of the ground leasehold interest on 320 West 31st Street, a four-story, 150,000-square-foot office building located in the Penn Plaza neighborhood of midtown Manhattan. The seller was Overtime Properties, LLC.
The property, formerly the home of TCI College of Technology, sitson the south side of West 31st Street between 8th and 9th Avenues,directly across the street from the new Moynihan Station. TCI recently terminated operations and the Onyx and GMF Capital joint venture have now acquired the leasehold on the vacant building. The joint venture plans to gut renovate the property into a modernized office building in the rapidly transforming Penn Plaza and Hudson Yards office district, which has arguably become the most desirable submarket in Manhattan.
“In collaboration with our partner, GMF Capital, we are pleased to expand our part in the overall redevelopment movement within the Penn Plaza district,” said Stephen Sullivan, Chief Investment Officer of Onyx Equities. “We have been studying the neighborhood for some time and this transaction represents our second redevelopment play, after previously acquiring 210 West 31st Street nearby. This neighborhood is one of the best locations in Manhattan for commuters and visitors given the pulse of Penn Station below and unparalleled entertainment next door.”
Jeff Selinger,Chief Investment Officer of GMF Capital,added that “We are excited to undertake the transformative repositioning of this property alongside our partner, Onyx Equities. The property is incredibly well located at the confluence of two submarkets that are experiencing burgeoning growth. The immense public and private investment in the surrounding area and the site’s transit connectivity is certain to generate strong interest from tenants.”
The Onyx/GMF joint venture was represented in negotiations by David Colen, Senior Managing Director, Newmark Grubb Frank. The seller was represented by David B. Glassman, Executive Managing Director with Colliers International.
The lawfirms of Paul, Weiss, Rifkind, Wharton & Garrison LLP and Greenberg Traurig, LLP advised the joint venture in the transaction, along with the Cole Schotz team of Jordan Metzger, Matthew Schneid, Samantha Epstein and Rosanne Cohen. Shearman & Sterling’s Chris Smith and David Ullman represented the seller.
About Onyx Equities, LLC
Headquartered in Woodbridge, New Jersey, Onyx Equities, LLC is a leading, full-service real estate firm specializing in investment, asset repositioning and ground-up development. Since its founding in 2004, Onyx has acquired more than $2.2 billion worth of real estate assets throughout New Jersey, New York, Pennsylvania and Connecticut. Onyx has executed over $230 million in capital improvement projects under its signature repositioning program. Driving Onyx’s success is its loyalty to core geographic markets, a seasoned team of expertise in all facets of real estate, its adaptability to market conditions, and the experience gained from managing over 65 million square feet since inception. Throughout its portfolio, Onyx takes aim at increasing operational efficiency, tenant satisfaction and long-term value. For more information contact the firm at 732-362-8800, or visit www.onyxequities.com.
About GMF Capital
GMF Capital is a private investment management platform engaged in private equity and alternative investments across a range of asset classes including real estate, healthcare and structured credit. For more information contact the firm at 212-300-1270, or visit www.gmfcapital.com.
