Downtown Office Building In Contract at 70% Discount of 2014 Purchase Price
DWS Group has entered into contract to sell 222 Broadway for $150 million, representing an approximately 70% lower price than the $502 million Deutsche Bank’s asset manager paid in 2014. Contract vendee GFP Real Estate Is planning a residential conversion of the 27-story, 800,000-square-foot building that spans the entire Broadway block-front between Fulton and Ann Streets in Lower Manhattan. Since the onset of the pandemic, there continues to be a surplus of office space; and while the city’s housing shortage has prompted some developers to embrace office-to-residential conversions, these projects remain complex and expensive. Recently the Vanbarton Group completed the conversion of 160 Water Street into a 588-unit residential rental building dubbed Pearl House; GFP Real Estate, Metro Loft Management and Rockwood Capital have begun work on the conversion of 25 Water Street into a 1,300-unit rental property; and Silverstein Properties and Metro Loft, along with the Rudin Family and Ares Real Estate are planning to convert the 410,000-square-foot building at 55 Broad Street into 571 market rate units.