The William Kaufman Organization (WKO) and Principal Real Estate Investors, owners of 77 Water Street in Lower Manhattan, announced today that Sage Realty Corporation, the company’s leasing and management division, is taking full control of the 26-story, 600,000 square-foot class A tower once again. As of April 1, 2018, the building will convert from a triple-net-lease with Goldman Sachs back to a gross lease.
With the transition soon approaching, Sage Realty has proactively made forward commitments with some of the building’s major tenants, which will take effect after their subleases with Goldman Sachs expire on March 31, 2018. They include law firm Lewis Brisbois Bisgaard & Smith LLP, which occupies 100,000 square feet on the 18 through 21st floors, and engineering consulting firm Arup, which currently occupies five full floors and is expanding by an additional 25,286 square feet on the entire 25th floor.
Commenting on the move, Jonathan Kaufman Iger, CEO of WKO and Sage Realty Corporation, said: “We are grateful for our relationship with Goldman Sachs over the last 17 years and look forward to them being a tenant at 77 Water Street for the next four years. As we embark on this new transition period, we look forward to managing the building to the standards of Sage Realty and delivering the highest levels of service to our tenants and the community at large.”
“We have been in the building since 2012 and our 400+ New York based staff currently occupy five floors consisting of more than 125,000 square feet,” said Joseph Dennis, Principal and General Counsel at Arup Americas. “Arup’s staff and clients love the lower Manhattan location, accessibility to public transport, open space, and spectacular views. With regard to the transition to Sage Realty Corporation, our management team have already been impressed with their responsiveness, attention to detail, and their vision for the building.”
Lenchner represented building ownership in-house in both leasing transactions. Jonathan J. Larsen and Mitti Liebersohn of Avison Young represented Lewis Brisbois Bisgaard & Smith LLP in the long-term transaction, while Ken Fishel and Jessica Jaber of Legacy NY Commercial Real Estate represented Arup in the three-year transaction.
Built by WKO and designed by Emery Roth & Sons in 1970, 77 Water Street is widely known for redefining the traditional image of an office building. The property features an open plaza area with whimsical design elements, including honey locust trees, streams, foot bridges and a wood-framed, turn-of-the-century-style candy store. The crowning jewel is the trademark World War I replica fighter plane on the building’s rooftop.
Located between Old Slip and Gouveneur Lane, 77 Water Street is easily accessible via multiple subway lines and ferries, and is situated in close proximity to the New York Stock Exchange and the South Street Seaport.
For further information about space availabilities at 77 Water Street, please contact Lenchner at Sage Realty’s Midtown offices: 212-755-5151 and mlenchner@sagerealty.com.
Add Comment