ClearRock, Juster Close on Two of Yeshiva’s Midtown East buildings for $29M

The Real Deal, 3/8/2013

By Hiten Samtani

A joint venture between ClearRock Properties and Juster Properties has acquired two adjacent Midtown buildings from Yeshiva University for $29 million, according to a press release issued by the two development firms. ClearRock also bought a third building from Yeshiva for $58.5 million in partnership with the Carlyle Group. The deals were confirmed in February by Massey Knakal Realty Services, which represented the seller, but the buyers were not revealed.

The partners purchased 9 East 38th Street, a 93,700-square-foot, 12-story office building, and 14 East 39th Street, a 7,400-square-foot commercial townhouse with 22,200 square feet of air rights. Both properties are located between Madison and Fifth Avenues, within the confines of the city’s upzoning proposal for Midtown East.

Massey Knakal’s Bob Knakal and John Ciraulo represented Yeshiva University. Massey Knakal also arranged the sale of the university’s 920 Broadway, a 16-story, 110,000-square-foot office building located at East 21st Street, for $58.5 million to ClearRock and the Carlyle Group.

ClearRock will invest $10 million in capital improvements on the two buildings, including a new lobby and elevator upgrades.

“The redevelopment will give companies wanting to be near Grand Central a polished, boutique option at reasonable pricing,” said ClearRock Principal Steve Grant.

“As Midtown South supply gets tighter, we expect 9 East 38th Street to benefit from rising demand,” added Juster’s president Howard Juster.