Brookfield Asset Management and China Investment Corporation are no longer listing their 50-story One New York Plaza building for sale, The Real Deal has learned.
Located at 1 Water Street in the Financial District, it had been one of the biggest office listings in New York City.
The firms had put the building on the market earlier this year, but stopped marketing it early in the summer as rising interest rates made deals harder to finance. In recent months, banks have pulled back on lending, complicating matters further.
The tower, whose largest tenants are Morgan Stanley and the white shoe law firm Fried Frank, once had a valuation of $1.4 billion. As of April, it was 93 percent leased.
An Eastdil Secured team led by Gary Phillips and Will Silverman was marketing the property.
Eastdil and Brookfield both declined to comment.
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Brookfield acquired the 50-year-old office building in 2006 as part of its $9 billion acquisition of Trizec Properties. Since 2012, Brookfield has invested more than $230 million into the property, including rebuilding its retail concourse, repairing its facade and building out flex office space.
In 2016, Brookfield sold a 49 percent stake in One New York Plaza to the Chinese sovereign wealth fund China Investment Corporation. It also sold a 16 percent stake to AEW Capital Management.
Both deals valued the property at $1.4 billion. Brookfield retained a 35 percent stake and continues to manage the building, which overlooks New York Harbor.
The owners refinanced the property late in 2020 with an $835 million loan originated by Wells Fargo, Goldman Sachs and BMO Harris Bank. That replaced a $750 million loan obtained from Wells Fargo in 2016.
Demand for office space in Manhattan has slowed since the onset of the pandemic because of remote work, but some deals are still getting done. A group led by Empire Capital recently bought a 40-story office building at 1330 Sixth Avenue from RXR and Blackstone for $320 million.