Youngwoo aims for $2,000 per foot at 70 Pine
October 07, 2009 11:00AM By Adam Pincus
70 Pine Street, Young Woo, head of Youngwoo & Associates
Developer Youngwoo & Associates bought the Art Deco office tower and neighboring 72 Wall Street for $150 million, or about $105 per square foot in August, with financial partner South Korea's Kumho Investment Bank.
Young Woo, principal of Youngwoo & Associates, said the key to getting $2,000 per square foot was to market the building as a premium product, comparing it to a Louis Vuitton bag or an iPod.
"If we can create that perfect trend lifestyle for this building, for our targeted audience, we are not afraid to achieve $2,000 a square foot," Woo said. He added that units in his West Village condo, the Sky Garage at 200 11th Avenue at 24th Street, a building that includes an elevator for cars, sold for more than $4,000 per square foot.
Woo and firm principal Gregory Carney spoke last night at the New York University Schack Institute of Real Estate Silverstein Workshop in Midtown, co-moderated by the institute's divisional dean James Stuckey and Robert Shapiro, president of City Center Real Estate.
The company has been reluctant to release details about the mixed-use redevelopment project, saying the plans remain under development.
As part of a sale-leaseback deal, AIG will vacate the smaller building, 72 Wall Street, at Pearl Street, this year, and neighboring 70 Pine Street, by Dec. 31, 2010, Carney said.
The firm is considering residential for the tower at 70 Pine Street, with about 400,000 to 500,000 square feet above the 19th floor, Woo said, and commercial uses on the lower floors and in the smaller building. Woo estimated capital costs of about $50 per square foot and $70 per square foot in tenant improvement costs for the commercial portion of 70 Pine Street as well as the entire 72 Wall Street, but did not provide estimated costs for the residential construction.
"I think whatever we do on the office side -- that will break even. The whole idea is what to do with the tower," Woo said.
Carney added: "We think we can get the highest price Downtown."
To build a higher profile for the AIG building, the developer is considering options such as lasers or lights on the tower. Also, several firms have offered to pay for naming rights, Woo said.
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Comments
Anonymous
NOT a chance in hell they're going to score 2K a sq foot!!!
Comment #1 Posted By: Anonymous 10/07/09
Anonymous
He's crazy.
Comment #2 Posted By: Anonymous 10/07/09
Anonymous
Smokin it! Perfect case of too much Koolaid.
Comment #3 Posted By: Anonymous 10/07/09
Anonymous
smokin rope
Comment #4 Posted By: Anonymous 10/07/09
Anonymous
Lets see 500,000 square feet at $2,000 equals $1 BILLION. I recall that was the sellout value of 15 CPW. Guess 70 Pine is equivalent to 15 CPW!
Comment #5 Posted By: Anonymous 10/07/09
Anonymous
WHAT PLANET is this guy livin on?
Comment #6 Posted By: Anonymous 10/07/09
Anonymous
500 a foot is more realistic...
Comment #7 Posted By: Anonymous 10/07/09
Anonymous
Ignorance is bliss
Comment #8 Posted By: Anonymous 10/07/09
Anonymous
there is no one who will pay 2k/ft for FiDi. Ever. Again. Forever.
Comment #9 Posted By: Anonymous 10/07/09
Anonymous
I still cant wrap my mind around how low the purchase price was, and why noone else bid higher. The only building in Fidi that's selling close to 2000/ft is the new W, and even they have barely had any activity.
Comment #10 Posted By: Anonymous 10/07/09
Anonymous
They should warehouse the building until the market improves. They certainly can get $2000psf for the top floors, but the average will be much less. This feels like a 2012 project.
Comment #11 Posted By: Anonymous 10/07/09
Anonymous
Hes not crazy. Hes looking at his sales of 4,000 sf on 200 1tth ave and saying hey i if i only get HALF im good. Hes just ignorant of the future realities of the marketplace.
Comment #12 Posted By: Anonymous 10/07/09
Anonymous
people will pay if they have the money. they'll buy $2,000 handbags and they'll by $2000 a sq.ft.
Comment #13 Posted By: Anonymous 10/07/09
Anonymous
I am going to buy here regardless of price because the building is one of the most beautiful in the city. keep the glass boxes coming uptown, but the caverns have the class.
Comment #14 Posted By: Anonymous 10/07/09
Anonymous
Visionaries are always ridiculed by the small minded. Build it Youngwoo, they will come.
Comment #15 Posted By: Anonymous 10/07/09
Anonymous
Given the fact that his building at 200 11th ave is not in the west villiage, It gives one pause as to whether his reality is the same reality the rest of us live in.
Comment #16 Posted By: Anonymous 10/07/09
Anonymous
"Build it Youngwoo, they will come" So did the ghost of dead starchitect walk out of a building start talking to Youngwoo?
Comment #17 Posted By: Anonymous 10/07/09
Anonymous
200 11th is on the verge of disaster and yungwoo's equity is long gone....FYI
Comment #18 Posted By: Anonymous 10/07/09
Anonymous
Even if he gets $1000/sq ft.. hes still making a killing..
Comment #19 Posted By: Anonymous 10/07/09
ADL
From what Woo did with 200 Eleventh, I'm willing to bet that Google will mark his words as correct four of five years from now when the market recovers. He is simply the most innovative developer in town. Read the NYO cover story on him and then pick up Graham's Value Investing. Woo knows 70 Pine's residential is worth a blended 2 k per square foot and he's going to make it happen, the way that Shvo never could with the luxury branding efforts of 20 Pine and 123 Washington. This will not be smoke and mirrors. It will be innovation. Look at this: already 19 posts in a few hours. One never learns anything by being jealous. Woo, Congrats for buying so low and keep it up! Your vision for New York is the future.
Comment #20 Posted By: ADL 10/07/09
Anonymous
Most of the posters above are morons! Will he get $2000 psf for these homes? Most likely not. Will he get the highest prices for any condo in Fidi? Most likely, an absolute YES! This is one of FiDi's most beautiful towers, will have spectacular views and, by the time this comes to market, FiDi will have completed its amazing transformation into one of the city's top 24/7 residential communities. Considering his acquisition costs of $100 psf, you'd be a moron to think that he wouldn't make a fortune. You go Woo!
Comment #21 Posted By: Anonymous 10/07/09
Anonymous
#9 is bitter that he didn't buy into FiDi when he had the chance. Instead of being angry about FiDi's success, you should be thrilled that New York has been able to turn a bunch of obsolete office buildings into a fabulous new residential neighborhood that now has the largest percentage of households with children under 18! That's right! Peole are choosing to raise their kids in FiDi. Lots of them!.
Comment #22 Posted By: Anonymous 10/07/09
Anonymous
He's going to build straight to foreclosure.
Comment #23 Posted By: Anonymous 10/07/09
Anonymous
he will get 1000-1250 and will make a killing the building was a steal, he can't fail.
Comment #24 Posted By: Anonymous 10/07/09
Anonymous
i think woo is smoking hopeium......
Comment #25 Posted By: Anonymous 10/07/09
Anonymous
I wish him well, I also wish all families with children under 18 were REQUIRED to live in FIDI, then their "special" kids can go "woo-hoo" in a Woo building
Comment #26 Posted By: Anonymous 10/07/09
Anonymous
Those of you who are negative critics- get a life. Instead of sitting on your ass behind your comps at your pathetic cubicles, try to do some business on your own, achieve something. You'll notice that success comes to positive, goal oriented people who do not critisize.
Comment #27 Posted By: Anonymous 10/07/09
Anonymous
Woo is visionairy. How can I get an equity stake in this project?
Comment #28 Posted By: Anonymous 10/07/09
Anonymous
I just read (NYO) that Atlantic Yards is projecting $1,200 sq/ft (in 2015). Are Bruce and Young related?
Comment #29 Posted By: Anonymous 10/07/09
Anonymous
The financial district isn't my favorite neighborhood, but plenty of other folks like it. I do think these numbers will work, and they will get $2,000 for the higher floors. Remember we are talking a few years from now. This really would be a trophy residential property.
Comment #30 Posted By: Anonymous 10/07/09
Anonymous
love ya' but have you seen 20 Pine - The Collection.....? last time i Heard claims of $2,000 a foot.
Comment #31 Posted By: Anonymous 10/07/09
Anonymous
Hey #23....Explain why he is going "straight to foreclosure". You can't, of cource, because you're an imbecile. He got this building for $100 psf. AIG is paying rent until the end of 2010. I the meantime, he gets to design the conversion and can start as soon as the last cubicle is removed. The economy will have rebounded, FiDi will be booming, and you will be crying the bitter tears of envy. Woo can't lose on this deal.
Comment #32 Posted By: Anonymous 10/07/09
Anonymous
I buy it!! - Joe Moinian
Comment #33 Posted By: Anonymous 10/07/09
Anonymous
I find it very discouraging that someone behind one of few deals of '09 would make such an idiotic statement.
Comment #34 Posted By: Anonymous 10/07/09
Anonymous
the building was a steal, lets just hope he doesn't mess it up by getting greedy. I've seen it too many times "how can this fail" I have no idea in October 2009 how there is any risk associated with this building, that being said, we have 2 years for them to mess up. I think there isn't enough demand to meet the supply of this building if its going in at 2k/SF but I could be wrong, just because i' wouldn't pay that, doesn't mean others wont...
Comment #35 Posted By: Anonymous 10/08/09
Anonymous
The Apthorp is WELL under $2K psf and they are going begging right now. So how in the heck is this idiot going to get $2K for this location? I suspect the Apthorp is infinitely more desirable than this.
Comment #36 Posted By: Anonymous 10/08/09
Anonymous
#36....You're a moron! The Apthorp is a deeply troubled project with a terrible reputation coming on the market at about the worst time. The sponsors also have a terrible reputation. 70 Pine won't come on line for at least 3 years when the economy will be much better and it will have views that the Apthorp can't come close to matching. When 70 Pine comes on the market FiDi will be firmly established as a prime residential neighborhood that will appeal to many. Not to mention that the school district in FiDi will be superior as well. The buzz will be all around 70 Pine. The Apthorp is Buzzless!
Comment #37 Posted By: Anonymous 10/08/09
Anonymous
cant believe the other usual suspects didnt buy this..this was the deal of the century..$105 psf, its almost free..good luck Woo, class steal..even if you are all in for $600, hes flying!
Comment #38 Posted By: Anonymous 10/08/09
Anonymous
Positive or negative is irrelevant---his future is tied to his ability to find buyers and renters of his residential and business space. Most have already made moves that lock them in for the future. The losers have been big commercial holders, who made low ball deals just to keep tenants. These contracts are set in stone for a long period of time into the future.
Comment #39 Posted By: Anonymous 10/09/09
Anonymous
Geez, I see most on here aren't investors.... The building was purchased by a bid. The first thing you want to worry about when you win a bid, is did I pay too much for this? Very smart developers bid 20-50% less than Woo. This is fact. He has no choice but to go residential -- but selling 1M SF is nearly impossible and will be incredibly difficult over the next 5-10 yrs. The office market is DEAD down there, he'll be lucky to break even on it if he splits the buidling. Secondly, it is a beautiful building, but do you know how difficult it is to convert a building that old to residential? No small task and can lead to horrible apartments and massive cost overruns. This is fact. Please point out conversions of this size that didn't break budgets within the first 6 mos. Woo, is an innovator? Please... talk to his peers and you'll get the real skinny on a guy with a giant ego and little intelligence.
Comment #40 Posted By: Anonymous 11/13/09
Anonymous
#40, jealousy and envy are not good for the soul.
Comment #41 Posted By: Anonymous 02/01/10
Anonymous
It is a gorgeous building. Not sure how much renovations will cost though .. $400 sq/ft? FiDi is quiet and some areas are rather deserted. But I personally would rather live in FiDi than UES, land of the living mannequins.
Comment #42 Posted By: Anonymous 03/22/10
Anonymous
#41 You must work at Young Woo's company -- everyone in the acquisition world knows how buying an office bldg works when its empty.... they paid too much for that area.... tough to fill it up without giving the space away.... keep in mind they purchased the bldg next door as well, that's another 300,000 SF.... that alone is daunting but throw in the tower and forget about it.... the guy does have solid Korean backers so maybe they have some foreign tenants coming in, otherwise its tough.... and if he converts to resi he basically got a $150/PSF discount on land, which is substantial but sure will be tough to sell 1,300,000 SF of condos.... good luck, he's going to have his hands full but maybe he can pull it off.
Comment #43 Posted By: Anonymous 03/30/10