It's Official: AIG's Downtown HQ Sold

NEW YORK CITY-Rumored for the past year–and in the works since at least earlier this spring–the sale of AIG’s headquarters at 70 Pine St. and 72 Wall St. is now a foregone conclusion. Local development firm Youngwoo & Associates and Korea-based Kumho Investment Bank went into contract last week on the two adjacent properties, CB Richard Ellis announced Tuesday. AIG tapped CBRE to market the buildings in March; GlobeS.com reported a possible sale last week.

Terms of the pending transaction were not disclosed. Recent published reports have speculated that given the current market and the nature of the sale–a move by a troubled financial services giant looking to divest assets to help repay $45 billion in federal loans–the two properties would sell for around $100 million, about a third of what they would have fetched two years ago.

What is certain is that the deal is not a sale-leaseback and that AIG will be vacating its 1.4 million square feet of space at the 66-story 70 Pine and 16-story 72 Wall, which are connected by a skywalk. AIG has owned 70 Pine since 1976, when it purchased the Art Deco office tower for $15 million.