TPG joins Gurals, Northwind on FiDi office redevelopment

Private equity giant takes majority stake in 7 Hanover Square

TRD New York /
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.


Related Articles

arrow_forward_ios
(Image by Wolfgang & Hite via Dezeen)

Hudson Yards megadevelopment inspires a new line of sex toys

Cammeby's International Group founder Rubin Schron and, from top: 194-05 67th Avenue, 189-15 73rd Avenue and 64-05 186th Lane (Credit: Google Maps)

Ruby Schron lands $500M refi for sprawling Queens apartment portfolio

Wendy Silverstein (Credit: Getty Images)

Wendy Silverstein, co-head of WeWork’s real-estate fund, is out

Masayoshi Son

Small Talk: Our foolproof plan to get SoftBank’s investments back on track

REBNY president Jim Whelan (right) and Council member Robert Cornegy (Credit: Getty Images and iStock)

REBNY asks city to help landlords pay for lead abatement

StreetEasy hikes prices, biz fears commercial rent control

StreetEasy hikes prices, biz fears commercial rent control

Sam Chang and 40 West 45th Street (Credit: Google Maps)

Sam Chang hit with $2M suit over Club Quarters hotels

(Illustration by Isabel espanol)

The floundering retail market is about to get even worse

arrow_forward_ios