What Downtown Office Property Sold at a Loss Last Week?

ICYMI, Crain's New York Business had an interesting story Friday on the sale of downtown's 100 William Street which reported that despite strong leasing activity and press hosannas, the building sold at a loss.

The article says that the 21-story building had been sold for about $170 million to Canadian insurer/investment firm Manulife--a surprising $10 million loss for owners Mitsui Fudosan, a giant Japanese real estate investment firm and developer whose business timeline dates back to 1673.

The article points out that the deal was arranged for Mitsui by star CBRE sales broker Darcy Stacom, who just a week earlier had announced a deal for 100 William Street's iconic neighbor, One Chase Manhattan Plaza. That deal fetched $725 million for JP Morgan Chase from a Chinese real estate investment bank. (Our last story: here.)

But it appears that 100 William Street was in part damage control for the owners. CBRE heavy hitters led by brokerage services vice chairman Mark Ravesloot had been hailed for their efforts in filling the vacancy-challenged building for Mitsui. The CBRE team had brought in new insurance tenants, and had expanded leases for at least one technology firm.

The property, with more than 400,000 square feet of available space, currently publicly lists only 5,700 square feet available.

As of this morning, neither Manulife nor Mitsui have updated their websites with information on the deal or the Crain's story.

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