TPG joins Gurals, Northwind on FiDi office redevelopment

Private equity giant takes majority stake in 7 Hanover Square

Jun.June 18, 2019 04:30 PM
From left: GFP CEO Brian Steinwurtzel, 7 Hanover Square, and Northwind's Ran Eliasaf (Credit: Google Maps)

From left: GFP CEO Brian Steinwurtzel, 7 Hanover Square, and Northwind’s Ran Eliasaf (Credit: Google Maps)

TPG Real Estate Partners is joining the Gural family and the Northwind Group as the majority stakeholder on their deal to purchase and reposition the 7 Hanover Square office tower in the Financial District, sources told The Real Deal.

The real estate investment arm of private equity firm TPG Capital signed an agreement last week to form a joint venture with the Gural’s GFP Real Estate and Ran Eliasaf’s Northwind Group on their $308.5 million purchase of the 1980s era building, which is expected to close later this year.

“They believe in the business plan to redevelop 7 Hanover and they believe in Lower Manhattan and the east side of the Financial District,” GFP co-CEO Brian Steinwurtzel told TRD.

TPG’s stake – the exact size of which was not immediately clear – values the redevelopment project at $600 per square foot, or about $585 million.

A spokesperson for TPG declined to comment.

Doug Harmon and Adam Spies

Doug Harmon and Adam Spies

A Cushman and Wakefield team of Doug Harmon, Adam Spies, Kevin Donner, Adam Doneger and Josh King marketed the stake on behalf of GFP and Northwind. The brokers declined to comment.

The same team negotiated the sale of the property to GFP and Northwind on behalf of owner/occupier Guardian Life Insurance, which is vacating the building and relocating to Hudson Yards.

The new owners plan to upgrade the building and reposition it as two separate addresses: 50 Water Street at the base of the building and a tower section called 100 Pearl Street.

GFP and Northwind have already negotiated a deal with the NYC Health + Hospitals Corporation to take 500,000 square feet at the 50 Water Street portion of the redevelopment.

TPG, meanwhile, announced in March that it had closed a $3.7 billion real estate opportunity fund. TPG remains a major shareholder in Cushman & Wakefield, which it purchased for $2 billion in 2015 and led to an initial public offering last year.

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