For One Landlord, Attracting Tenants is All About the Buzz
When you own a 1980s-era office building located in what has been described as “one of the least alluring parts of the Financial District,” you’ve got to think far outside the box to fill the vacant space. In 2022, 99c LLC purchased the 31-story, approximately 700,000-square-foot vacant building at 175 Water Street, which had previously served as the headquarters of AIG. A $165 million loan financed the $252 million transaction. Many tenants within the building “are signing discounted two-year leases, one paying as little as $11.20 per square foot; and although third-year options would see rents double, it’s still a bargain compared to the reported Downtown average of about $57.16 per square foot. Rebranded as WSA, for Water Street Associates, with a new address of 161 Water Street, the space inside the “particularly corporate” building has been transformed into a “place where artists schmooze with editors and curators, then stop for elevator selfies” according to an April 2024 article by Curbed. Due to the buzz that the building generates from the high-profile events that unfold at night on a regular basis, getting an office space there requires joining a waiting list. What has been described as a “transformative renovation” enabled ownership to benefit from a $41.3 million tax incentive awarded in January 2024 by the New York City Economic Development Corp. (NYCEDC) and the New York City Industrial Development Agency (NYCIDA) through the Manhattan Commercial Revitalization Program (M-CORE) and $39.8 million in additional tax breaks. The estimated $150 million redevelopment of the property will deliver production facilities, art galleries, restaurants, bars, and a four-level department store with FACT (fashion, arts, creative and technology) tenants being specifically targeted.
Source: https://www.curbed.com/article/161-water-street-associates-gabriella-khalil-office-building.html