Verizon announced that it has reached a $274 million agreement to sell a condominium interest to an affiliate of Magnum Real Estate Group, encompassing 22 floors and one of the five sub-basement levels of its 140 West St. building.
Verizon will retain approximately 60 percent of the building — floors two through 10 and four of the sub-basement levels — for necessary telecommunications switching equipment and administrative offices.
The sale is consistent with other partial building sales the company has conducted in New York City. It sold parts of its buildings at 1095 Ave. of the Americas and 375 Pearl St., while maintaining an ownership interest of both.
Verizon said it will also return its headquarters to space it owns in 1095 Ave. of the Americas in midtown Manhattan.
After the sale, approximately 600 employees will occupy the lower floors of 140 West St., maintaining Verizon’s significant presence in lower Manhattan.
“We are pleased to continue to move forward with the conversion of our building on West Street from a traditional telecommunications hub to a multipurpose building that will contribute meaningfully to the city’s long-term vision for a vibrant World Trade Center neighborhood,” said John M. Vazquez, Verizon senior vice president of global real estate.
“We believe that with our co-owners, Magnum Real Estate Group, we will stand out in what already has become a desirable tourist and residential center for New York City.” Said Benjamin Shaoul, president of Magnum Real Estate Group: “We are excited to acquire a significant portion of this distinguished Tribeca asset.
“In light of the success of Walker Tower, the condominium developed above the Chelsea Verizon building, our aim is to convert 140 West Street into another world-class residential property. Verizon has been an excellent partner throughout our negotiations, and we look forward to extending the relationship.”
Steven Spinola, president, REBNY (Real Estate Board of New York), said: “Downtown Manhattan is as dynamic and alive as it has ever been with more residents, more tourists, more retail stores and a more diverse tenant base than ever before.
“The plan to convert 140 West Street is a continuation of this growth and transformation of downtown and a meaningful addition to the fabric of the city.”
Verizon is moving approximately 1,100 employees — most of them customer service representatives — to a Verizon-occupied building at 395 Flatbush Ave. in Brooklyn., where it is creating a state-of-the-art facility that will include a fitness center and centralized training facilities.
A Cushman & Wakefield brokerage team led by Josh Kuriloff represented Verizon in the sale.
Verizon is currently marketing the ground-floor space to find what it calls “the proper fitˮ with the redevelopment of the property.
Since the 140 West St. building contains switching and other telecommunications equipment, the sale must be approved by the New York Public Service Commission.