NEW YORK — CIM Group and Kushner Companies have sold 2 Rector Street, a 26-story office building in Manhattan’s Financial District, for $225 million. The buyer of the building is Multi-Employer Property Trust (MEPT), advised by Bentall Kennedy (U.S.) Limited Partnership (Bentall Kennedy), in a joint venture with Cove Property Group LLC (Cove),
CIM Group and Kushner Companies acquired the property in 2013 for $140 million according to The NY Post. The building was constructed in 1907 and is most recognized for its ornate façade, which has been preserved by the Trust for Architectural Easements (formerly known as the National Architectural Trust).
The building includes both office and ground-level retail space and spans a full block on Rector Street with additional frontage along Trinity Place and Greenwich Street. The property has direct views of the historic Trinity Church and sits just blocks from the transformational World Trade Center development as well as the recently completed retail, restaurant and entertainment hub at Brookfield Place. Additionally, 2 Rector is within steps of several major subway lines, ferry services and PATH trains to New Jersey.
“We are very excited to work with Cove as our partner on this acquisition. Two Rector Street provides a tremendous opportunity to own and redevelop a unique Art Deco building in one of the most renowned and resurgent office submarkets in the world. The Financial District, and more specifically the World Trade Center area, has reemerged as a 24/7, highly amenitized live/work/play environment and we expect this trend to continue,” said Kevin Rivest, Senior Vice President of Transactions at Bentall Kennedy.
“This acquisition reflects the Fund’s primary urban market investment strategy and brings MEPT’s total investment in the New York market to over $1.3 billion and more than 2.1 million square feet,” stated David Antonelli, Executive Vice President and MEPT Portfolio Manager at Bentall Kennedy. “Two Rector Street aligns exceptionally well with the Fund’s focus on responsible investment in transit-oriented locations serving knowledge industry tenants.”
Bentall Kennedy and Cove intend to renovate and reposition the building as a Class A office property. “The Art Deco aesthetics, unique layout and six sides of light and views make Two Rector Street a truly unique office tower located in the most conveniently accessible area of Manhattan. Following our intended capital renovation program, which includes brand new elevators, mechanical systems and a redesigned lobby, we are confident that the property will attract the highest quality tenancy,” said Kevin Hoo, founder and Managing Partner of Cove.
For more than a decade, CIM has been involved in the New York metropolitan area and made its first investment in the Financial District in 2010 with its acquisition of 15 William Street, a 47-story residential condominium. CIM’s other New York City investments include 432 Park Avenue, 737 Park Avenue, Halcyon (at 305 East 51st Street), 11 Madison Park, 47 E. 34th Street, 225 Fifth Avenue, as well as 200 Lafayette, which was also acquired in a partnership with Kushner Companies.