Syndicator David Werner has lined up Alexandria Real Estate Equities and Deutsche Asset Management as his equity partners for two adjacent office buildings in Midtown Manhattan he is buying from pharmaceutical giant Pfizer.
Werner in April agreed to pay about $365 million for the 350,000-square-foot building at 219 East 42nd Street and the leasehold interest in the 825,000-sf building at 235 East 42nd Street. Pfizer, which is being represented by Cushman & Wakefield, will lease back both properties for five years.
Werner and Alexandria are buying the fee position on Pfizer’s 350,000-square-foot building at 219 East 42nd Street, which they will lease back to the pharmaceutical company for five years.
Alexandria will hold the majority interest in the property, and will have sole ownership after Pfizer’s lease expires. The loan from Morgan Stanley has a five-year term to coincide with the change in ownership.
Werner and Deutsche Bank’s asset management spinoff, meanwhile, are purchasing a leasehold on Pfizer’s larger building, the 825,000-square-foot 235 East 42nd Street. The asset manager will hold the controlling interest on the lease, which runs for another 40 years.