Durst Organization Seeks Ground Lease Tenant At 825 Third Ave.
The Durst Organization does not want to sell its office building at 825 Third Ave., but it is looking for some help renovating it.
The family-owned developer is seeking a large tenant to replace Advance Publications, whose 25-year lease will expire in 2019, along with all the sublease tenants that currently occupy the building, the New York Post reports.
Durst built the 42-story tower in Midtown Manhattan in 1969, and recognizes the likely need for renovations in order to compete for Class-A tenants. With the help of broker Darcy Stacom at CBRE, it is hoping to find either another full-building tenant like Advance (previously Random House) or a developer who will sign a ground lease, according to the Post.
The glass-and-steel building has a side core, meaning its 12K SF floors lend themselves more easily to a complete redevelopment. According to the Post, a complete re-stacking in the vein of L&L Holding Co.'s 390 Madison Ave. and 425 Park office buildings could be in the cards, if the right developer comes along.
To encourage such a deal, Durst reportedly is willing to lease without requiring a down payment. Its priority is in maintaining stable value from 825 Third Ave. into the future, and it needs a partner with the reliability and the capital to do so.
L&L partnered with a pension fund last year to spend $4B on more value-add office properties in Manhattan.