The William Kaufman Organization (WKO) and Principal Real Estate Investors, owners of 77 Water Street in Lower Manhattan, announced that Sage Realty Corporation, the company’s leasing and management division, is taking full control of the 26-story, 600,000 s/f class A tower once again.
As of April 1, 2018, the building will convert from a triple-net-lease with Goldman Sachs back to a gross lease.
Goldman Sachs leased the property from WKO back in 2000 before deciding to build their own property. They subsequently sub-leased
to companies such as Lewis Brisbois Bisgaard & Smith LLP, which occupies 100,000 s/f on the 18 through 21st floors, and engineering consulting firm Arup, which currently occupies five full floors and is expanding by an additional 25,286 s/f on the entire 25th floor.
With the expiration of the Godlam Sachs deal, Sage Realty has proactively made forward commitments with some of the building’s major tenants, which will take effect after their subleases with Goldman Sachs expire on March 31, 2018.
Commenting on the move, Jonathan Kaufman Iger, CEO of WKO and Sage Realty Corporation, said: “We are grateful for our relationship with Goldman Sachs over the last 17 years and look forward to them being a tenant at 77 Water Street for the next four years. As we embark on this new transition period, we look forward to managing the building to the standards of Sage Realty and delivering the highest levels of service to our tenants and the community at large.”
Michael Lenchner, Vice President and Director of Leasing of Sage Realty Corporation, added: “We are delighted that Lewis Brisbois and Arup have recommitted to the property for many years to come. It truly speaks volumes about their confidence in Sage Realty as we embark on a new era for this iconic downtown asset.”
“Lewis Brisbois is pleased that 77 Water Street will continue to be our firm’s New York home,” said Gregory S. Katz, managing partner of Lewis Brisbois’ New York office.
“The location in the heart of the downtown business and financial district is ideally situated among the majority of our New York client base. We look forward to many years of continued growth at this key location.”
“We have been in the building since 2012 and our 400+ New York based staff currently occupy five floors consisting of more than 125,000 square feet,” said Joseph Dennis, Principal and General Counsel at Arup Americas.
“Arup’s staff and clients love the lower Manhattan location, accessibility to public transport, open space, and spectacular views. With regard to the transition to Sage Realty Corporation, our management team have already been impressed with their responsiveness, attention to detail, and their vision for the building.”
Lenchner represented building ownership in-house in both leasing transactions. Jonathan J. Larsen and Mitti Liebersohn of Avison Young represented Lewis Brisbois Bisgaard & Smith LLP in the long-term transaction, while Ken Fishel and Jessica Jaber of Legacy NY Commercial Real Estate represented Arup in the three-year transaction.
Built by WKO and designed by Emery Roth & Sons in 1970, 77 Water Street features an open plaza area with whimsical design elements, including honey locust trees, streams, foot bridges and a wood-framed, turn-of-the-century-style candy store. The crowning jewel is the trademark World War I replica fighter plane on the building’s rooftop.
Located between Old Slip and Gouveneur Lane, 77 Water Street is accessible via multiple subway lines and ferries, and is situated in close proximity to the New York Stock Exchange and the South Street Seaport.