Developer acquires prime NYC commercial real estate

Rockrose specializes in New York City luxury developments.

Madison Square is a New York City hotbed, with ample tourist destinations, eye-catching architecture and well-known businesses. Rockrose Development Corp. is one of the latest newcomers to the area, as it recently acquired the commercial portion of the Madison Square Building from Savanna Real Estate Fund for $105 million, which is about $700 per square foot.

The commercial portion of the building – floors one through eight – is 95 percent leased, with tenants including Vera Wang's executives offices and showroom, according to CoStar. The total commercial portion is about 150,000 square feet in the 20-story, 330,000-square-foot building that was developed in 1920.

"We are very strong believers in the strength of the Midtown South office market," said Justin Elghanayan, president at Rockrose. "We completed our renovation and rebranding of the nearby Creative Arts Building at 300 Park Avenue South in 2012, bringing it to full occupancy with stellar tenants in less than a year. 15 East 26th Street is a similar, very handsome building located on one of the most pristine parks in Manhattan, and it fits with our plans to purchase well located office buildings, upgrade them to be best-in-class, and hold the assets for the long-term."

Savanna Real Estate Fund acquired the building in February 2012 for $57.8 million and soon started a $9 million capital improvement plan, including a redesign of the entrance and lobby, upgrades to the elevators, replacement sidewalk and boiler upgrade, CoStar reported.

The commercial real estate move is a strong move for Rockrose Development, which specializes in luxury New York City real estate. The company also recently expanded to Washington, D.C., where it acquired more than 1 million square feet of office space in six buildings.

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