JLL completes $252M sale of downtown Manhattan office tower

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Oct 17, 2022, 10:46 ET

175 Water St. is positioned in the heart of the NYC's Seaport District and offered a true value-add opportunity

NEW YORK, Oct. 17, 2022 /PRNewswire/ -- JLL's Capital Markets group announced today that it has closed the $252 million sale of 175 Water St., a 31-story, 684,500-square-foot office tower prominently positioned in downtown Manhattan.

JLL marketed the property exclusively on behalf of the seller, Vanbarton Group, and procured the buyer, 99c LLC.

175 Water St. is a fully vacant office tower offering a variety of repositioning opportunities. The property was renovated in 2014 and features a center core configuration with flexible 24,000-square-foot floorplates. Each floor offers 12-foot ceiling heights with expansive windows and an abundance of natural light and air. Additionally, the tower has two usable rooftop terraces with protected views of New York City and all three East River bridges.

"99c is tremendously excited to deliver a comprehensive re-use plan in a prominent FiDi location. The fabric of the Fox Fowle-designed building is visible from the Brooklyn waterfront and a prominent part of Fidi's skyline," said 99c co-founder Carlo Bellini. "When considering the challenges some commercial buildings are facing post-pandemic, we at 99c are looking for unique and sustainable ways to reinvent such spaces."

Located within the Seaport submarket of downtown Manhattan, 175 Water St. has exceptional accessibility throughout Manhattan and the entire New York City metro area via numerous subway lines and PATH trains. In addition, the property is served by numerous bus lines and is close to the New York Waterway East River Ferry. The Seaport submarket is New York's original commercial hub and has received more than $30 billion in public and private funding in the last decade that has revitalized the area to a 24-hour live-work-play neighborhood. Residential demand in downtown Manhattan has been on the rise with only a 3.3% vacancy rate and less than 400 units under construction.

JLL's Capital Markets Investment Sales Advisory team representing the seller was led by Senior Managing Directors Andrew Scandalios and David Giancola, Managing Directors Vickram Jambu and Marion Jones, Senior Director Steven Rutman and Director Alexander Riguardi.

"175 Water St. received a generous amount of investor interest given the nature of the building, which provided a blank canvas to reimagine and reactivate the property as a best-in-class office tower or consider alternative uses," Scandalios said.

"Downtown Manhattan and particularly the Seaport submarket is going through a transformative period for both office and residential uses," Jambu added. "Between the interest in this building and the results we achieved through this process, we think this transaction signifies the strengthening of the New York City office market."

JLL's Capital Markets group is a full-service global provider of capital solutions for real estate investors and occupiers. The firm's in-depth local market and global investor knowledge delivers the best-in-class solutions for clients — whether investment and sales advisory, debt advisory, equity advisory or a recapitalization. The firm has more than 3,000 Capital Markets specialists worldwide with offices in nearly 50 countries.

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About 99c LLC
99c is a specialty financing and development firm focused on adaptive reuse development within urban markets. The firm is actively looking to broaden its New York portfolio.

About Vanbarton Group
Vanbarton is a privately owned, vertically integrated boutique commercial real estate firm founded in 1992 that invests in both credit and equity strategies across multifamily, office, medical office, hospitality, and retail investments in the U.S. The firm has a national market presence with offices on both U.S. coasts and an investment history across 20 states as both an owner and a lender. The firm has been a registered investment adviser since 2002 and manages private funds and programmatic ventures with tailored investment strategies on behalf of a sophisticated institutional client base.

About JLL
JLL (NYSE: JLL) is a leading professional services firm that specializes in real estate and investment management. JLL shapes the future of real estate for a better world by using the most advanced technology to create rewarding opportunities, amazing spaces and sustainable real estate solutions for our clients, our people and our communities. JLL is a Fortune 500 company with annual revenue of $19.4 billion, operations in over 80 countries and a global workforce of more than 102,000 as of June 30, 2022. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated. For further information, visit jll.com.

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Contact: Jenna Sharp, JLL Associate, Public Relations
Phone: +1 214 394 3356
Email: Jenna.Sharp@am.jll.com

SOURCE JLL