For Sale sign looming for three AIG towers
Wednesday, September 24, 2008
Source: Crains
Crains reports: Still, some experts suggest that AIG’s aging headquarters at 70 Pine St. could fetch a healthy sum, even though it has seen far better days. The 775,000 square foot art deco tower would make a beautiful condominium or hotel.
“It is a unique art deco property that would be a perfect residential conversion,” says Dan Fasulo, managing director at Real Capital Analytics. He says that even though the Manhattan residential market is also softening, buyers—especially Europeans—would be drawn to the building’s high ceilings and extensive architectural details.
Buildings in lower Manhattan typically sell for far less than their midtown counterparts, but experts estimate that 70 Pine St. could fetch between $400 and $500 per square foot.
So far this year, 64 office buildings have been sold in Manhattan for an average price of $814 a square foot, according to Real Capital. Midtown towers have fetched an average of $848 a square foot while properties downtown captured an average of $442 per square foot.
Buildings in lower Manhattan, such as those owned by AIG command lower rents than their midtown counterparts but Mr. Fasulo notes that downtown is becoming a more attractive place for people to live. That could help the sale of 70 Pine St., as well as that of another art deco building at 72 Wall St., which Mr. Fasulo believes would also be an attractive conversion site.
“These older buildings don’t work as modern offices,” he says.
In addition, the insurer also owns a 31-story, 592,235 square-foot building at 175 Water St. that was built in the 1980s.
Mr. Fasulo said it was possible that AIG could sell the two art deco towers as residential properties and then consolidate workers in the Water Street location.
View the full article on Crains: For Sale sign looming for three AIG towers
Posted by: Matt Stone