636 Eleventh Avenue
Case Study
Purchased by Essex Capital from Goldman Sachs' Whitehall Fund, prior plans had called for this 600,000 square foot office/industrial building to be turned into a hub for the Global Crossing telecommunications company. That plan was ended by the dot-com collapse of the late '90s, and Essex Capital saw great potential in the flailing property, which was located on an emerging stretch of Eleventh Avenue on the west side of Manhattan. High-end residential and commercial development were gradually extending to the area, and Essex Capital bought the building with plans to reposition it as office or residential space.
Essex Capital began the process of re-development, enhancing the building's common areas and seeking new tenants, while also positioning the asset for a possible residential conversion. It was during this process that Essex Capital was approached by a developer seeking to purchase the building for single-tenant use.
Less than two years after Essex Capital acquired the property, 636 Eleventh Avenue was sold for $110 million, nearly twice its previous purchase price. The deal demonstrates Essex Capital's ability to change course on large-scale deals quickly and when called for, ensuring that gaining the highest possible returns for its partners is Essex Capital’s top priority.
The building is now the New York headquarters for Ogilvy & Mather, the international advertising and public relations firm.
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