Jeff Gural’s Newmark Holdings has partnered with the Northwind Group to buy 40 Exchange Place for $115 million from Weiss Realty.
The partners plan a capital improvement program to reposition the building as a home for small-to-mid-size firms.
“40 Exchange is a perfect fit for our business strategy as it provides an opportunity to acquire an excellent but somewhat overlooked property in an outstanding location, execute a total renovation and upgrade, and offer the space for lease at market rates to small-to-mid-size tenants in the market,” said Brian Steinwurtzel, managing director of Newmark Holdings.
“This acquisition exemplifies Newmark Holdings’ standing as an exceptional asset manager, prepared to invest substantial capital to recognize each asset’s highest potential.”
The 20-story, 300,000 s/f office and retail building is located in the heart of the Financial District, near the New York Stock Exchange, the Fulton Street transportation hub and the World Trade Center complex.
The deal originated with Jason Marin, director at Eastern Consolidated, and former Eastern broker Lipa Lieberman, who represented the seller.
The buyers were represented by Lieberman and former Eastern broker Abie Kassin. Gary Meese, senior director of financial services, was the analyst for the deal.
Ran Eliasaf, founder and managing partner of Northwind Group, said, “This acquisition once again validates our ability to transact quickly and efficiently, further expanding our presence in Downtown Manhattan. We are honored to partner with Newmark Holdings.
“We have been tracking this property for a long time as we identified it offers opportunity to create significant value. Together with our partners, we look forward to unveiling next year the new and improved 40 Exchange Place.”
Both partners have been active investors in the market. In the last year, Newmark Holdings, also acquired 10-27 46th Avenue and 11-05 44th Drive in Long Island City; 285 North 6th Street in North Williamsburg; and 7 Bushwick Place in Brooklyn. Similarly, in the last 12 months, Northwind Group acquired 66 Pearl Street and 45 Beekman Street in the Financial District.