J
ack Elo is bucking the trend by purchasing a 1920s office building at 21 West 46th Street, despite many investors shying away from Class B offices. The 15-story property is fully occupied and Elo plans to keep it as an office space. "Midtown is a good location," he said, citing its desirability without needing further justification.

    The acquisition adds to Elo's substantial office portfolio in the Diamond and Garment districts. His company recently bought a building in the Diamond District from Eli and Isaac Chetrit for $110 million in December 2020. Elo also owns another office building at 151 West 46th Street, according to property records.

    Elo Organization has sold a Gowanus development site to Yitzchok Katz for $22 million, but it's unclear if the deal qualifies for a 1031 exchange that would allow him to defer capital gains taxes. The owner of 21 West 46th Street, Arline Hannon-Weinmann, did not comment on the sale.

    The building has been in her family since 1967 and does not appear to have a mortgage. Extell purchased air rights from the Weinmanns for $1.3 million in 2008. Coworking company WorkHouse occupies 15,000 square feet of the property, with other tenants including YGI Group and House of Kaizen.

    The value of Class B and C buildings has plummeted due to high interest rates and remote work, leading some owners to sell at a discount rather than face refinancing challenges. However, brokers see an opportunity as older building mortgages come due and interest rates stabilize.