D
avid Werner has agreed to purchase the 32-story 675 Third Avenue building from the Durst Organization for over $100 million. The property, which spans 340,000 square feet at the corner of 42nd Street and Third Avenue, was listed as a potential office-to-residential conversion last fall. However, its occupancy rate stands at about two-thirds, with some tenants holding "sticky" leases that may hinder a conversion.

    Werner is still weighing his options for the building, which he has discussed with Nathan Berman of Metro Loft Management, his partner on the Pfizer project in Midtown. The Dursts built 675 Third Avenue in 1966, just before the city's new zoning laws took effect, which expanded the pool of eligible buildings for conversion.

    Office-to-residential conversions are gaining momentum, thanks in part to the City of Yes legislation, which allows for more properties to be converted from office space. Berman is also working on a similar project at 767 Third Avenue, built in 1981, but may need to undergo an upzoning to take advantage of new zoning regulations.