Cushman: A Possible $200M for Luxury Tribeca Apartment

In a deal that's been speculated to reach north of $200 million, developer/owner Africa-Israel USA has sold 88 Leonard St., a 352-unit mixed-used luxury rental building in New York City's Tribeca district, to a Chicago-based investment firm.

September 9, 2011
By Nicholas Ziegler, News Editor

In a deal that’s been speculated to reach north of $200 million, the New York capital markets group of Cushman & Wakefield have sold 88 Leonard St., a 352-unit mixed-used luxury rental building in New York City’s Tribeca district, to a Chicago-based investment firm. The property, developed in 2007 by then-owner Africa-Israel USA, is 100 percent occupied.

“We received strong demand from a wide variety of investors, specifically because of the outstanding features and strong fundamentals of the asset, as well as the attractive demographics of the neighborhood and the strength of the apartment market in Manhattan,” said Nat Rockett of Cushman & Wakefield.

The building, featuring more than 384,000 square feet which included 11,365 square feet of retail space, is well-positioned to take advantage of what some are calling the rebirth of Downtown Manhattan. It sits near the new redevelopment site of the World Trade Center as well as the new, $1.2 billion Fulton Street Transit Hub. According to a report by Jones Lang LaSalle, since September 11, 2001, Lower Manhattan has widened its reputation as a business-friendly real estate market with incentives offered at the city, state and federal levels. While these aggressive incentives are designed to increase employment and economic expansion, they do so by encouraging tenants to relocate to or stay in Lower Manhattan.

“While government funding has been allocated to attract office tenants to Lower Manhattan, a great deal of effort has also gone into increasing the quality of life for the residents, workers and tourists,” said Peter Riguardi, president of Jones Lang LaSalle’s New York region.