The Real Deal New York

Ivanhoe Cambridge set to buy 85 Broad
for $650M

Deal would work out to $590 psf
April 04, 2017 11:40AM

85 Broad and Ivanhoe’s Daniel Fournier

Ivanhoe Cambridge is in late-stage talks to buy Goldman Sachs’ former headquarters at 85 Broad Street in Lower Manhattan for roughly $650 million.

A joint venture of MetLife and Beacon Capital Partners owns the 32-story building, and hired Eastdil Secured to market it, according to Bloomberg. At that reported purchase price, the deal would work out to $590 per square foot.

Goldman built the tower in the 1980s as its headquarters, but the building sat half-empty for years after the company decamped in 2010 for 200 West Street. The property is now 87 percent occupied with tenants such as Oppenheimer & Co., WeWork and Vox Media, according to Bloomberg.

It’s not the first time Ivanhoe Cambridge, a pension fund with over $50 billion under management, has worked with Beacon Capital Partners. The Montreal-based fund partnered with Callahan Capital Partners to buy 330 Hudson Street from Beacon for $318 million last July.

After a slow start to the year, investment sales in Manhattan office towers have started to pick up. Chinese conglomerate HNA Group last month agreed to buy 245 Park Avenue for $2.21 billion ($1,227 per square foot), as The Real Deal first reported.

And in late January, Singaporean sovereign wealth fund GIC closed on the purchase of a 95 percent stake in 60 Wall Street for $1.04 billion, roughly $688 per square foot.

Ivanhoe, sometimes called the “quiet giant” in New York City real estate, owns large stakes in 3 Bryant Park and Stuyvesant Town-Peter Cooper Village. [Bloomberg]Rich Bockmann