Vacant Manhattan Office Tower Trades for $252M

NEW YORK, NY – Real estate firm 99c LLC has acquired a 31-story, 684,500-square-foot office tower in Manhattan’s Seaport neighborhood for $252 million. The firm purchased the asset from privately-owned real estate investment and advisory firm Vanbarton Group.

Located at 175 Water St., the acquired asset is fully vacant and offers various repositioning opportunities. The property was renovated in 2014 and it currently features flexible 24,000-square-foot floorplates, 12-foot ceiling heights, expansive windows and two rooftop terraces. The tower is located near numerous subway lines, PATH trains, bus lines and the New York Waterway East River Ferry.

“99c is tremendously excited to deliver a comprehensive re-use plan in a prominent FiDi location,” states 99c LLC co-founder Carlo Bellini. “The fabric of the Fox Fowle-designed building is visible from the Brooklyn waterfront and a prominent part of Fidi’s skyline. When considering the challenges some commercial buildings are facing post-pandemic, we at 99c are looking for unique and sustainable ways to reinvent such spaces.”

As New York’s original commercial hub, the Seaport neighborhood has received more than $30 billion in public and private funding in the last decade, which has revitalized the area. In addition, residential demand in downtown Manhattan is currently rising. The area boasts a 3.3% vacancy rate, with less than 400 units under construction.

JLL’s capital markets group marketed the property on behalf of the seller and procured the buyer. The firm’s capital markets investment sales advisory team representing the seller was led by senior managing directors Andrew Scandalios and David Giancola, managing directors Vickram Jambu and Marion Jones, senior director Steven Rutman and director Alexander Riguardi.

“175 Water St. received a generous amount of investor interest given the nature of the building, which provided a blank canvas to reimagine and reactivate the property as a best-in-class office tower or consider alternative uses,” says Scandalios.

“Downtown Manhattan and particularly the Seaport submarket is going through a transformative period for both office and residential uses,” Jambu added. “Between the interest in this building and the results we achieved through this process, we think this transaction signifies the strengthening of the New York City office market.”