German investor buying 100 Pearl Street office tower for $850M

Sellers GFP and Northwind oversaw $250M renovation of property formerly known as 7 Hanover Square

New York /
Sep.September 30, 2021 09:58 AM
German investor buying 100 Pearl Street office tower for $850M

100 Pearl Street in NYC, GFP Real Estate Co-CEO Eric Gural, Northwind Group founder Ran Eliasaf (Google Maps, GFPRE, Northwind Group)

GFP Real Estate and the Northwind Group have agreed to sell the tower at 100 Pearl Street — previously known as 7 Hanover Square — to German investor Commerz Real.

The price for the building was $850 million, or $900 per square foot, according to the Commercial Observer. Cushman & Wakefield arranged the transaction.

The office building spans just under 1 million square feet and was recently renovated for $250 million. Changes to the 1983 building included a new lobby, infrastructure improvements, the addition of a food hall and the creation of a tenant-exclusive rooftop and amenity lounge.

Ownership of the building between GFP and Northwind has been brief, although GFP is staying on as part of a long-term management agreement. The two companies acquired the building in 2018 for $308.5 million. It wasn’t long, however, before the companies began looking for an equity partner.

They eventually found one in TPG Real Estate Partners, which agreed to join the purchase and repositioning of the building as a majority stakeholder. The stake it purchased valued the building at $600 per square foot, or approximately $585 million overall, The Real Deal previously reported.

The office building is 96 percent leased and 92 percent of tenants are locked in to the building until at least 2050, the Commercial Observer reports. Among its tenants are NYC Health + Hospitals, which agreed to take up 500,000 square feet for 25 years, and the Securities and Exchange Commission, which signed a 20-year lease.

Germany-based Commerz Real has proven to have a healthy appetite for big commercial real estate purchases stateside. The firm purchased an office building in the Fulton Market section of Chicago in 2019 for $175 million, one of the biggest office sales in the city that year. The arm of Commerzbank also agreed to purchase the NYU Langone Medical Center for more than $330 million in 2018.

[CO] — Holden Walter-Warner





    Related Articles

    arrow_forward_ios
    Prologis Chairman and CEO Hamid Moghadam (Getty, Prologis)
    Industrial space “effectively sold out” amid leasing frenzy, Prologis says
    Industrial space “effectively sold out” amid leasing frenzy, Prologis says
    Starwood raises $10B for distressed real estate plays
    Starwood raises $10B for distressed real estate plays
    Starwood raises $10B for distressed real estate plays
    Aulder Capital CEO Jonah Bamberger and 162-164 East 82nd Street (Rosewood Realty Group, Slate Property Group)
    Two Upper East Side apartment buildings head to foreclosure sale
    Two Upper East Side apartment buildings head to foreclosure sale
    Stripes founder Ken Fox and a rendering of 40 10th Avenue (Stripes, Neoscape)
    Private equity firm carves out 14K sf at Aurora’s Solar Carve building
    Private equity firm carves out 14K sf at Aurora’s Solar Carve building
    Resurrection! Work resumes on stalled Clinton Hill residential project
    Resurrection! Work resumes on stalled Clinton Hill residential project
    Resurrection! Work resumes on stalled Clinton Hill residential project
    CRE held up through the pandemic far better than most expected (iStock)
    How commercial real estate survived the pandemic
    How commercial real estate survived the pandemic
    Harbor Group grabs $558M in financing for Black Rock purchase
    Harbor Group grabs $558M in financing for Black Rock purchase
    Harbor Group grabs $558M in financing for Black Rock purchase
    Retail availabilities decreased, but leasing increased in the third quarter (iStock, Wikimedia, LoopNet)
    Manhattan retail market ticks up, indicating slow recovery
    Manhattan retail market ticks up, indicating slow recovery
    arrow_forward_ios

    The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

    Loading...