CIM Group Sells 88 University Place

CIM Group has sold a Greenwich Village office building once co-owned by Adam Neumann to a New York-based group.

Sam Goldsmith and Rob Goldman’s Bulldog Real Estate Partners teamed up with Acram Group to acquire 88 University Place for $46 million, records show. The sale was Bulldog’s first acquisition, Goldsmith said.

The new owners plan to upgrade the 100,000 square foot, 11-story office building, including adding pre-built suites to attract AI and tech tenants. The building is about 65 percent occupied, according to Goldsmith. Bulldog and Acram secured $42 million in financing from BridgeInvest. Crain’s first reported on the deal.

“We were familiar with the property for probably a decade, and aware of its unique positioning as a Greenwich Village boutique asset,” said Goldsmith.

The building went up for sale after the previous owners fell into default on their loan. Arch Companies secured a $71 million refinancing from CIM in 2022, but within a year the building was already facing foreclosure.

At the time, Arch’s founder Jeff Simpson, partner Jared Chassen and majority investor Oak Companies, were fighting for control of the company. A New York Supreme Court Judge eventually removed Simpson from Arch and placed Oak in charge.

Prior to Arch, WeWork co-founder Adam Neumann and fashion designer Elie Tahari bought the historic property for $70 million in 2015, and leased space to WeWork. IBM then agreed to lease 70,000 square feet at the building.

But the arrangement between Neumann and WeWork came under scrutiny as WeWork prepared for an IPO. Investors were concerned about a possible conflict of interest since Neumann owned the property and leased it to WeWork, the Wall Street Journal reported.

WeWork’s now infamous IPO flopped. And during the pandemic IBM vacated its lease. Arch leased space to itself and Neumann’s post WeWork venture, Flow, leased space as well. Neumann remained a passive, minority investor in the building.

But CIM’s foreclosure in 2024 provided a clean slate for the new owners.

“The building is in the right place and has the right features. It’s ready for some institutional reinvestment,” said Goldsmith.

Adam Spies, Adam Doneger and Michael Collins of Newmark brokered the sale. Newmark’s Jordan Roeschlaub and Max Ralby arranged the financing.