10 Hanover Square trades for $261M

March 02, 2011 09:21AM

Colorado-based multi-family landlord UDR has signed a contract to buy 10 Hanover Square, the 493-unit rental apartment building in the Financial District, for $260.8 million from the Witkoff Group, Bloomberg News reported. The 23-story building — a former office building between Pearl and Water streets that once housed Goldman Sachs and was converted to residences in 2005 — has a 28,000-square-foot fitness center and 41,650 square feet of retail space, which is fully leased. UDR will assume Witkoff’s $192 million mortgage and pony up an additional $4.5 million in cash as part of the deal, which was brokered by Eastdil Secured. It will also issue $64.3 million in equity to Witkoff. The sale price is estimated at around $484,000 per apartment unit. “Our decision to receive nearly all of our equity in the form of operating partnership units in UDR confirms our beliefs in the management team and their ability to create significant long-term value for its shareholders,” said Steven Witkoff, the company’s CEO. [Bloomberg]