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Rudin Selling Half-Empty Financial District Tower

A 40-story office tower that occupies a full block in the Financial District, previously anchored by AIG but now more than half empty, is being marketed as an upside play that is primed to lease up and achieve higher revenue following a recent renovation.

The 1.2M SF tower at 80 Pine Street, which was developed by Rudin in 1960, is being pitched by Eastdil Secured on behalf of Rudin, according to a report in Green Street.

The upside play includes a scenario in which a buyer creates a "building within a building" deploying the Pine Street tower's three entrances. Zoning in Lower Manhattan also would permit converting the 63-year-old property to residences.

According to the report, the building is expected to fetch bids around $200M, which translates into about $176 per SF.

Existing tenants at 80 Pine have a weighted average remaining lease term of 12 years, agreements that translate into about $200M of revenue, which the marketing suggests will provide a stable cash flow while a buyer determines a strategy.

Rudin upgraded the tower with $100M in renovations that began in 2020, including upgrades to the lobby and building systems, as well as the installation of touch-free access points and air-filtration technology.

An amenity center was built on the 22nd and 23rd floors, including a dining hall, a conference facility and a terrace. Floorplates at 80 Pine are as large as 60K SF, with ceilings of 11 to 16 feet.

AIG occupied 500KSF of the leased space at 80 Pine until it consolidated its operations at 1271 Sixth Avenue. The building was nearly two-thirds vacant as of July 2021.

According to a website for 80 Pine, the building currently has 720K SF of available space for a single-tenant or multi-floor blocks.

The renovated tower, branding itself "The Next Generation Workplace," has installed Nantum OS, which the website calls "the world's most advanced building operating system."

The tower occupies the block bounded by Pine Street, Maiden Lane, Pearl Street and Water Street, within walking of the Seaport District, the East River and Wall Street.

Tenants at 80 Pine include Vibrant Emotional Health, which operates a national suicide and crisis hotline; the National Urban League; and the New York Property Insurance Underwriting Association.
Reprinted with permission from the Tue, 03 Oct 2023 05:50:38 EDT online edition of GlobeSt © 2023 ALM Media Properties, LLC. All rights reserved. Further duplication without permission is prohibited, contact 877-256-2472 or reprints@alm.com.