99 Hudson is a 35,000 RSF office condominium located in the heart of TriBeCa. The property, which spans the building’s topthree floors (15-17), features 12.5’-13’ ceiling heights, unobstructed views tothe north, east and west, efficient side-core floor plates that average 11,500 RSF and private access to a roof deck. Given these attributes and a prime TriBeCa address, JMC believed the space would cater to a broad range of high rent-paying tenants ranging from financial service firms to the burgeoning “creative class” tenant.
JMC acquired the property for $18.5MM from a non-profit who occupied the space for nearly 30 years. After a 9-month leaseback period to the seller, JMC gutted and white-boxed the space. Once renovated, JMC felt the property would represent some of the most desirable office space in Manhattan. JMC’s overall business plan was to convert what was a highly illiquid asset (i.e. a small and vacant office condo) into something significantly more liquid and valuable (i.e. an office condo leased long-term to credit tenants).
JMC invested approximately $6.5MM in renovating and re-leasing the property, including the build-out of a rooftop deck. Upon completion of landlord’s work, JMC hired CBRE to market all three floors for lease. JMC first leased the15th floor to NYCRC, a financial services firm who re-located from a nearby TriBeCa building. JMC then leased the 16th and 17th floor (with exclusive access to therooftop deck) to a subsidiary of Unilever, the world’s third-largest consumer goods company. Both tenants signed 10 year leases at blended rents that exceeded underwriting by 15%. Given the quality and duration of the cash flows, JMC was able to market the asset to a wide array of institutional buyers and achieve exit pricing that significantly exceeded pro forma.