Brookfield eyeing One Manhattan West stake sale

Potential sale would value office tower at $2.8B: report

New York /
Dec.December 10, 2021 01:35 PM
 Brookfield Asset Management CEO Bruce Flatt and 395 Ninth Avenue (Brookfield)

Brookfield Asset Management CEO Bruce Flatt and 395 Ninth Avenue (Brookfield)

Brookfield Asset Management is reportedly looking to lighten its load at one of New York City’s most prominent office developments.

The firm is soliciting interest for a potential sale of a stake in One Manhattan West in Hudson Yards, people with knowledge of the matter told Bloomberg. The sale of the share the firm is looking to part ways with would reportedly value the building at nearly $2.8 billion.

Cushman & Wakefield is advising Brookfield, according to Bloomberg.

The office building scored the biggest financing deal of 2020 when Brookfield and Qatar Investment Authority landed $1.5 billion in September 2020 through the commercial mortgage backed securities market. Two mezzanine loans of $300 million boosted the financing to $1.8 billion.

A rent roll of the 70-story office tower in August 2020 found the weighted average lease term for tenants in the building to be more than 17 years. Law firm Skadden Arps and accounting firm Ernst & Young combined to make up more than 58 percent of the base rent at the building. Other major tenants include Accenture and the National Hockey League.

As of August 2020, the 2.1 million-square-foot office portion of the building was 94 percent leased to seven major tenants and three Brookfield affiliates. Average base rent was about $91 per square foot, but most smaller tenants paid more than $120 per square foot. Several anchor tenants took advantage of significant discounts from the market rate.

The pandemic devastated New York City’s office market. Figures released by the state comptroller in October showed the market value of city office buildings dropped by $28.6 billion during the previous fiscal year, the first decline of the century.

That hasn’t prevented big deals from seeping back into the city, however. In September, Google announced it was purchasing 550 Washington Street for $2.1 billion. In doing so, the tech giant, which was already leasing St. John’s Terminal, executed the biggest office purchase in the entire country since the onset of the pandemic.

[Bloomberg] — Holden Walter-Warner





    Related Articles

    arrow_forward_ios
    Latest fintech unicorn offers credit-score boost to renters
    Latest fintech unicorn offers credit-score boost to renters
    Latest fintech unicorn offers credit-score boost to renters
    Jonathon Yormak,founder, managing principal, East End Capital; and map of 48-02 48th Avenue in Sunnyside Queens (East End Capital, Google Maps)
    East End Capital bets on Sunnyside industrial
    East End Capital bets on Sunnyside industrial
    John Gilbert (Getty Images, iStock/Photo Illustration by Steven Dilakian for The Real Deal)
    Rudin COO and tech chief John Gilbert to step down
    Rudin COO and tech chief John Gilbert to step down
    Craig Solomon, ceo, Square Mile Capital (iStock)
    Square Mile issued record $3.1B of loans fueled by multifamily, life sciences
    Square Mile issued record $3.1B of loans fueled by multifamily, life sciences
    TENNY Policy Director Martha Star and New York City Comptroller Brad Lander (NYU Wagner, New York City Comptroller)
    Last Stand: Property tax reformers recruit Lander to lawsuit
    Last Stand: Property tax reformers recruit Lander to lawsuit
    Dermot Shea, former NYPD commissioner (Getty Images, iStock/Photo Illustration by Steven Dilakian for The Real Deal)
    Related hires Ex-NYPD commissioner to head property management
    Related hires Ex-NYPD commissioner to head property management
    LEX CEO Drew Sterrett (iStock, Twitter/Illustration by Kevin Rebong for The Real Deal)
    Startup LEX raises $15M to “take buildings public”
    Startup LEX raises $15M to “take buildings public”
    Boston Properties CEO Owen Thomas (Thomas by Axel Dupeux, iStock)
    Boston Properties: Crime, Covid hindering urban office recovery
    Boston Properties: Crime, Covid hindering urban office 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...