David Werner finalized his acquisition of One Dag Hammarskjöld Plaza, securing a $250 million loan from JPMorgan to complete the purchase of the 50-story office tower. Werner bought the 870,000-square-foot property for $270 million, roughly half the price paid by the previous owner in 2019. This transaction highlights Werner’s strategy of acquiring undervalued office buildings in prime locations.
In addition to the purchase price, Werner intends to invest around $60 million into upgrading and leasing the building, which currently faces nearly 30 percent vacancy. This capital infusion will raise the total investment in the property above $330 million, reflecting a significant commitment to repositioning one of Midtown East’s prominent office assets.
JPMorgan’s participation with a substantial office loan signals a cautious revival of commercial real estate lending as banks gradually reengage with the sector. Newmark facilitated the financing arrangement, with Jordan Roeschlaub and Nick Scribani leading the effort, while Adam Spies and Adam Doneger brokered the sale.
Built in 1972, One Dag Hammarskjöld Plaza sits at 885 Second Avenue near the United Nations Headquarters. It has long housed various consulates and permanent missions. Current tenants include Memorial Sloan Kettering, the United Nations, and the Republic of Germany. The building benefits from strategic positioning amid Midtown East’s Class A office market, which enjoys average occupancy rates of 90 percent. Prior to the sale, the building underwent more than $20 million in capital improvements.
Rockpoint Group, the previous owner, acquired One Dag in 2019 for $566 million, financed through a $430 million loan from Wells Fargo and Brookfield. Werner’s purchase price reflects a steep markdown amid shifting office market dynamics.
This acquisition is the latest in Werner’s string of discounted office deals in New York City. Last year, he purchased 440 Ninth Avenue in Hudson Yards for just over $100 million, after it had sold for $269 million seven years earlier. More recently, he entered contract to acquire 311 West 43rd Street for slightly over $40 million, about one-third of the amount paid by seller DivcoWest in 2018.