NYC Office Tower Commands $116M

August 1, 2024

Investment Featured Finance New YorkMoreNews Northeast Office

Northwind Group provided a key loan for the Financial District acquisition.

DWREI and BLDG Management secured a $95 million senior mortgage loan from Northwind Group to purchase the 29-story tower at 100 Wall St. in Manhattan. *Image courtesy of Northwind Group*

A joint venture between two New York City-based real estate investment firms—Lloyd Goldman’s BLDG Management Co. Inc. and David Werner Real Estate Investment—has acquired 100 Wall St., a 29-story Manhattan office building from Barings for $116 million.

Northwind Group, a Manhattan-based real estate private equity firm and debt fund manager, provided the buyers with a 10-year, $95 million senior mortgage acquisition loan for the 518,405-square-foot tower in the Financial District. Built in 1969 and completely renovated in 2013, the building also has 7,500 square feet of ground-floor retail space and an 8,232-square-foot showroom.

Barings, the investment arm of insurance firm MassMutual, purchased the building in August 2015 from Savanna for $270 million, according to CommercialEdge data. The Real Deal reported Barings was initially seeking $125 million for the asset when a Newmark team led by Adam Spies and Josh King began marketing it in the spring. Savanna, through its Savanna Real Estate Fund II LP, had acquired 100 Wall Street in May 2011 from Lehman Brothers Holdings as part of a foreclosure auction for $118.1 million, assuming $125 million in existing debt.

Lobby area at 100 Wall St. in Manhattan. *Image courtesy of CommercialEdge*

Although the multi-tenant building is about 83 percent leased, there is potential for an office-to-residential conversion, according to Northwind Group. A New York City zoning rule, which has spurred many conversion projects in the Financial District, allows commercial buildings constructed before 1977 to go full residential.

Two current office-to-residential projects underway in FiDi include 55 Broad St., which is being transformed into 571 market-rate apartments by Silverstein Properties and Metro Loft Management. GFP Real Estate, Metro Loft Management and Rockwood Capital are redeveloping 25 Water St. from a 22-story office building into a 32-story residential tower with about 1,300 rental units.

Current tenants

FedEx and Verizon are among the retail tenants. Current office tenants at 100 Wall St. include Octavian Capital Partners, Aleutian Capital Group, Integra Partners, National Bank of Pakistan, Harris Beach Attorneys at Law, DMG Investments, Rosenbaum & Rosenbaum, Godosky & Gentile, The Hanover Insurance Co., Foster Garvey, PRC and Aflac, according to CommercialEdge data.

The building has 19,700-square-foot floorplates and good light and air on all sides. Amenities include a fitness center. The transit-oriented tower, which is LEED Certified Silver, is within a quarter mile of two subway stations.

Northwind deals

Since the beginning of the year, Northwind has closed more than $650 million in loans across New York City and other major gateway markets. Founded in 2007 by Ran Eliasaf, the firm has $2.2 billion in assets under management and invests primarily in debt instruments through closed-end debt funds. In March, Northwind provided a $65 million first-mortgage senior acquisition loan to 601W Cos. which purchased Harborside 5, a 1 million-square-foot office tower in Jersey City, N.J., from Veris Residential.

Northwind was represented by John Vavas of Polsinelli Law Firm in the 100 Wall St. deal.