As tech stocks struggle, prominent start-up investors are buying into the decline in another struggling sector, New York City’s office market.
AllyCorp, a venture capital firm led by entrepreneur Kevin Ryan, has acquired an office building at 174 Mott Street in Nolita from Jack Djangana’s Continental Equities affiliate and investor Jürgen Ostertag for $41 million. It was purchased for dollars, records show.
The six-story building is just over 32,000 square feet. So AlleyCorp paid him nearly $1,300 per square foot. PincusCo was the first to report the sale.
Records show that Continental Equities purchased the property for $8.9 million in 2006 and listed the building as 368 Broome Street. Ten years later, Jangana 25% stake in the building for $11 million to Ostertag, who was a partner at the law firm Prior Cashman at the time.
Jangana’s firm has secured multiple loans for the property over the years. By 2019, the NASA Federal Credit Union had loaned him $25.6 million, records show.
The entire building was recently made available for lease and sale, according to marketing materials. This means AlleyCorp is free to redesign interiors to meet its needs or those of its portfolio companies. other technology companies, including Googlemade a similar move in New York.
AlleyCorp is led by Kevin Ryan, a New York City technology investor who rose to prominence during the dot-com boom as CEO of DoubleClick, an online advertising company that Google acquired in 2007 for $3.1 billion. Wedding registry Zola and e-commerce startup Gilt.
Jangana is perhaps best known for its partnership with WeWork’s first investor, developer Joel Schreiber. The pair partnered in 2014 to purchase his 1 million-square-foot historic department store, Broadway Trade Center, in Los Angeles for his $130 million. Foreclosure From a lender affiliated with Barry Sternlicht’s Starwood Capital.
Schreiber recently sold the property to go bankrupt To stem the foreclosure, Jangana and members of his family filed a motion to dismiss the bankruptcy filing, arguing that it was a waste of money that they did not consent to, according to court filings.
Jangana isn’t the only Nolita office to enter into a relationship with WeWork. The Neumann-led joint venture acquired his AlleyCorp-backed social media platform, Meetup, for her $156 million in 2017.
Continental Equities and Alley Corp. did not immediately return requests for comment.