Property Types Office
Citigroup May Have $1.6B Taker for Tribeca Building
Nov 7, 2007
By: Adam Perrotta, News Writer

Citigroup may have found a buyer for its namesake building in Manhattan's Tribeca neighborhood, in a sale expected to reach $1.6 billion.

According to a report by John Koblin in yesterday's New York Observer, the banking giant is in the final stages of negotiations with two finalists for the 2.6 million-square-foot tower at 388-390 Greenwich St.

The report, citing a source with knowledge of the deal, said that the price would be lower than Citigroup's original target of more than $1.8 billion, which would have broken the record for the highest single-building sale in U.S. history--set last January when Kushner Cos. shelled out that amount for 666 Fifth Avenue in Manhattan. The Citigroup sale will fall short of that figure due to the drying up of debt financing, as well as the fact that the transaction will be a sale-leaseback, with Citigroup remaining as a tenant in the building at slightly below market-rate rents.

Even so, the $1.6 billion figure is no small change; if that is indeed the price, it will be the fourth-largest single building sale in American history, according to the Observer report.

Citigroup initially put the building on the block in September. The tower is being marketed by the Cushman & Wakefield Inc. team of Scott Latham, Richard Baxter, Jon Caplan and Ron Cohen, giving Cushman bragging rights as the broker for all of the top four American building sales.

 


 
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