Jack Cayre’s Midtown Equities Group has signed a “soft contract” to purchase 180 Water Street for between $165 million and $180 million, Crain’s reported. The 24-story building, between John and Christopher Streets, is owned by Melohn Properties and leases all of its 509,000 square feet to the city’s Human Resources Administration.
The soft contract allows Midtown Equities an exclusive, yet undisclosed, period to raise the necessary funds in exchange for a non-refundable deposit on the building. Brothers Leon and Alfres Melohn marketed the property without brokers.
Midtown Equities is counting on the building to be vacant by 2015 when the HRA is scheduled to move to 4 World Trade Center, but published reports indicate that the city may extend its lease on the building. Some industry professionals told Crain’s they are skeptical of what they say is an over-priced deal for a fully vacant building. They say building’s actual value lies somewhere closer to $125 million. [Crain’s]