Lower Manhattan’s Gehry apartment tower for sale asking $850M

Brookfield and Nuveen look to sell 8 Spruce Street in a litmus test for the city’s multifamily investment market

New York /
Nov.November 03, 2021 06:45 PM

From left: Bruce Flatt, chief executive officer, Brookfield Asset Management, and Mike Sales, chief executive officer, Nuveen Real Assets and Real Estate (Brookfield, Nuveen, Getty Images, LoopNet)

Lower Manhattan’s 8 Spruce Street, the Frank Gehry-designed rental tower instantly recognizable for its one-of-a-kind undulating surface, is for sale with an equally eye-catching price tag.

The owners of the 76-story highrise are seeking north of $850 million, sources familiar with the offering told The Real Deal. One of the biggest listings of its kind since the start of the pandemic, investors are viewing it as a litmus test for the health of the city’s multifamily rental market.

Brookfield Property Partners and Nuveen, the real estate arm of TIAA, have put the building up for sale with Eastdil Secured. Representatives for Brookfield and Nuveen did not immediately respond to requests for comment.

A potential sale of 8 Spruce Street would represent a new chapter for a building that has typified the city’s ups and downs.

Gehry designed the 870-foot-tall building for Forest City Ratner, which had just started construction when the Great Recession hit in 2008. Forest City halted construction, leaving the project’s fate uncertain until the developer restructured its debt and pushed forward.

When the roughly 900-unit tower opened in 2011, it was the tallest residential building in North America and enjoyed a successful lease-up as the city pulled out of the financial crisis.

Brookfield Property Partners gained the tower when it acquired Forest City in 2018. The building struggled during the pandemic as renters fled Manhattan, with nearly a quarter of its units left vacant.

Occupancy has since recovered to 94 percent, according to marketing materials from Eastdil Secured, whose team of Will Silverman, Gary Phillips, Jeff Organisciak and Drew Isaacson is marketing the property.

The multifamily sector, meanwhile, has led the city’s investment-sales recovery.

The $3.2 billion worth of apartment-building sales made up nearly half of the $6.5 billion in overall investment deals recorded in the third quarter.

Free-market buildings like 8 Spruce Street have seen rents rise dramatically since tenants began returning to the city.





    Related Articles

    arrow_forward_ios
    Brookfield's Bruce Flatt, Aurora Capital Associates' Bobby Cayre and 530 Fifth Avenue (Google Maps)
    Brookfield taking big loss on Fifth Ave retail condo
    Brookfield taking big loss on Fifth Ave retail condo
    12 MetroTech Center with Davidson Kempner Capital Management's Anthony A. Yoseloff (Getty, Brookfield)
    Joint venture closes $128M deal at 12 MetroTech Center
    Joint venture closes $128M deal at 12 MetroTech Center
    Rendering of 227 West Street with Brookfield's Brian Kingston and Blackstone's Katie Keenan (OMA, Brookfield, Blackstone)
    Brookfield lands $500M for next Greenpoint Landing development
    Brookfield lands $500M for next Greenpoint Landing development
    Brookfield Property Partners CEO Brian Kingston and 300 Vesey Street, at far left (Brookfield)
    Brookfield scores $224M refi on Battery Park office tower
    Brookfield scores $224M refi on Battery Park office tower
    Many people are excited for shoppers to return, but many have switched to e-commerce. (Getty)
    Is e-commerce king? Retailers reflect on pandemic changes during earnings calls
    Is e-commerce king? Retailers reflect on pandemic changes during earnings calls
    Procore CEO Tooey Courtemanche (Linkedin, SEC) 
    Procore raises $635M in long-awaited IPO
    Procore raises $635M in long-awaited IPO
    Brookfield Asset Management’s Bruce Flatt (iStock)
    Brookfield posts record FFO in Q1 — but not because of real estate
    Brookfield posts record FFO in Q1 — but not because of real estate
    60 Guilders' Kevin Chisholm, Brookfield's Brian Kingston and 12 Metrotech. (Brookfield, Chisholm ph: Larry Ford)
    Brookfield to sell DoBro office condo for $130M
    Brookfield to sell DoBro office condo for $130M
    arrow_forward_ios

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

    Loading...