Manhattan Office Building Commands $115M
- Nov 18, 2015
A joint venture between Northwind Group and Newmark Holdings has acquired 40-42 Exchange Place, a 20-story office building with ground-floor retail in Lower Manhattan, from Weiss Realty for $115 million. Eastern Consolidated arranged the sale of the building.
Located at the southeast corner of Exchange Place and William Street, the 250,000-square-foot office building was once the tallest building in Lower Manhattan. The property includes 18-foot ceilings on the first floor, 14-foot ceilings on the second floor, and has 11-plus-foot ceilings throughout the rest of the building.
“I am really bullish on downtown and the financial district. I think it’s finally becoming a great live/work/play neighborhood,” Ran Eliasaf, Northwind Group’s managing partner, told Commercial Property Executive. “There’s new subway hubs coming in, lots of retail, and it’s just a great neighborhood.”
Office leasing in Lower Manhattan is strong, with more than 640 firms having relocated to the area since 2005, and more than 323,000 people now working in the area. Over the last couple of years, property values in Lower Manhattan have been rising and many investors are looking to acquire office buildings, especially in the Financial District.
“It was a value-add play. The building’s current office leases are under market so the property offers a tremendous amount of upside,” Jason Marin, Eastern Consolidated’s director, told CPE. “In addition to the financial and government sectors, TAMI (Technology, Advertising, Media, and Information) firms are increasing their footprint in the area.”
Originally built as a neo-Renaissance residential building in 1896, the property was named for Lord’s Court, an open area in the middle of the block originally intended to provide light and air to neighboring buildings. According to Eliasaf, there will be a significant capital improvement program taking place in the building.
“We’re going to redo the lobby, elevators, storefront, facade, and lots of other things throughout the building,” he said. “In 1901, it was considered one of the most modern buildings in the area and we’re planning to bring it back to its glory days.”
The property is located four blocks from the 4/5 subway at Wall Street and Broadway, one block from the 2/3 at William and Pine Streets, and one block from the J/Z at Broad Street and Exchange Place.