The Federal Reserve Bank of New York exercised its right to buy the downtown office building it occupies for $207.5 million, according to CBRE Group, which marketed the building. The 27-stoy 600,000-square-foot property at 33 Maiden Lane, between Nassau and William streets, was put on the market by Atlanta-based Invesco and Hannover Leasing in October.
While the Fed’s occupancy of three-quarters of the building lent it stability, the lease also mitigated the building’s upside, according to published reports, because it was signed in 1986 and guarantees a below-market rate through 2023. As a result the sales price was long expected to come in below Manhattan’s price per square foot average.
Darcy Stacom and William Shanahan, vice chairmen of CBRE, and Paul Gillen called the Fed’s purchase an “excellent” one, noting that it would meet future growth needs. “The great level of interest that the property received is a clear indication of increased capital flows into the Downtown market,” Stacom added.
Initial reports last month said 33 Maiden Lane had sold for $170 million. — Adam Fusfeld