Rutter of Essex Capital Ptrs. and Frydman of White Acre Equities acquire 500 10th Ave.

Rutter of Essex Capital Ptrs. and Frydman of White Acre Equities acquire 500 10th Ave.

New York Real Estate Journal

Mitchell Rutter and Jacob Frydman have secured a net lease with DHL for 500 10th Ave., a 250,000 s/f property. The 20-year deal, which is valued at more than $181 million, is guaranteed by Deutsche Post AG, the German parent company of DHL. Rutter, president of Essex Capital Partners, and Jacob Frydman, CEO of White Acre Equities, acquired and redeveloped 500 10th Ave. in a joint venture.

Known as he REMCO Building, 500 10th Ave. is located on the western blockfront of 10th Ave. between 38th and 39th Sts. The seven-story building abuts the entrance of the Lincoln Tunnel, providing DHL with access for its shipping operations. DHL plans to create an identity within the property, wrapping the building in DHL colors. The deal with DHL allows Rutter and Frydman to retain rights for additional construction above the existing building in the future.

The property has permanent open light and air on north and west sides, which accommodate below-grade tunnel access, and construction above the building would offer views, including the Hudson River to the west, and the Midtown skyline to the east.

"We acquired the property before the Hudson Yards rezoning occurred and this transaction enables us to maximize immediate value in the property while preserving additional development benefits that will come as the neighborhood develops and changes," said Rutter.

© Essex Capital, 2012