NEW YORK CITY-In furthering its commitment to the city’s Financial District, the Federal Reserve Bank of New York has purchased 33 Maiden Lane for $207.5 million following an evaluation of the bank’s real estate needs, the Fed unveiled late Tuesday. The regional bank acquired the 27-story, 600,000-square-foot building from Merit US Real Estate Fund III LP and formed a new limited liability company called Maiden & Nassau LLC to serve as owner of the property.
The decision comes on the heels of a financial analysis that considered the bank’s long-term space requirements and potential fluctuations in Lower Manhattan’s real estate market. The purchase officially got the green light by the New York Fed’s board of directors and the board of governors of the Federal Reserve System today.
In a prepared statement, William C. Dudley, president of the New York Fed, says the purchase will enable the bank to "more easily ensure" appropriate security for operations. "We are also pleased to contribute, through our investment, to the ongoing revitalization of Lower Manhattan," he says.
The Federal Reserve is the building’s major tenant, occupying 75% of the property. Approximately 1,100 employees work at the Maiden Lane location, according to the Fed.
An investment sales team of Darcy Stacom, William Shanahan and Paul Gillen of CBRE acted on behalf of the seller in the transaction, a closed-end German fund managed by Invesco Real Estate, in cooperation with Hanover Leasing.
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