At a glance
- The price is 62% below the $1.04 billion GIC paid in 2017 for a 95% stake in the property, which it bought from Paramount Group and Morgan Stanley.
- Funds that hold Financial District office in open-end core or core-plus vehicles now have a $250-a-foot transaction to check against their own carrying values.
- Bushburg specializes in office-to-residential conversion, and Commercial Observer reported the developer has an opportunity to convert the former single-tenant headquarters into a residential tower.
Bushburg Properties is in contract to buy 60 Wall Street, a 1.6 million-square-foot tower in Manhattan's Financial District, from GIC for $400 million, Commercial Observer reported, citing The Real Deal.
The price is 62% below the $1.04 billion GIC paid in 2017 for a 95% stake in the property, which it bought from Paramount Group and Morgan Stanley. That equals $250 a square foot, against $650 a square foot at the 2017 price.
Funds that hold Financial District office in open-end core or core-plus vehicles now have a $250-a-foot transaction to check against their own carrying values. Sponsors underwriting a conversion have a purchase basis for 1.6 million square feet.
Bushburg specializes in office-to-residential conversion, and Commercial Observer reported the developer has an opportunity to convert the former single-tenant headquarters into a residential tower. The building was developed in the 1980s by J.P. Morgan Chase and rises 46 stories. Deutsche Bank, its last occupant, vacated in 2021.
The contract has not closed. Whether Bushburg converts the tower to apartments or re-leases it as office will decide whether 60 Wall Street adds to or subtracts from Financial District office supply.
Reported by the Deals desk from Commercial Observer. Published . Corrections