60 Guilders and Davidson Kempner have entered into a contract to buy an office condo at 330 Jay Street (AKA 12 MetroTech) in Downtown Brooklyn from Brookfield Property Partners for $130 million, The Real Deal reported. The sale consists of 186,000 SF across floors 26-30 at the top of the building.
Stabilized cash flow: The condo is leased to the city’s Administration for Children’s Services, which in 2019 inked a 20-year lease for 140,000 SF. The lower 25 floors of the building are owned by the city and house Kings County Family Court.
Important context: The deal comes as Brooklyn’s office market struggles to rebound. Leasing activity during the first quarter was 43% below the borough’s five-year average, according to CBRE. The borough added 177,000 more square feet of space than tenants absorbed during Q1, pushing the availability rate up near 23%, TRD noted. The largest new lease of the quarter was at Brookfield’s 15 Metrotech: a 51,000-SF deal for JLL’s flexible-office platform Orchard Workspace.
Worth Noting: The office property is part of Brookfield’s 16-acre MetroTech Center that was acquired as part of the $6.8 billion Forest City deal in 2018.
Eye on the block: This appears to be the first office purchase in Brooklyn for the Bastien Broda and Kevin Chisholm led firm. 60 Guilders has notably not acquired a retail asset in some time. At the height of the pandemic, hedge fund Davidson Kempner bought SL Green’s $100 million piece of debt on Savanna’s One Court Square in Long Island City for about 95 cents on the dollar.
Brokers: Cushman & Wakefield’s Adam Spies and Adam Doneger facilitated the sale. [TRD]
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