Bushburg pays $160M for 80 Pine, borrows $134M

Bushburg Properties through the entity Pine RE LLC paid $160 million to Rudin Development Group through the entity 80 Pine LLC for the 1.1 million square foot office building at 80 Pine Street with an alternate address of 110 Maiden Lane, in the Financial District, Manhattan. The expected use is conversion to residential.
The purchase was financed with a $134.4 million loan from Pine Financial Ltd., a company formed in 2019, with an address in the Cayman Islands.
The deal closed on September 6, 2024 and was recorded on September 18, 2024. The property has 1.1 million square feet of built space according to a PincusCo analysis of city data. The sale price per built square foot is $145 and the price per the PincusCo analysis.
The Real Deal first reported the sale in April.

The signatory for the buyer was Abraham J. Hoffman and for the seller was Andrew Migdon. The contract date was February 11, 2024.

The PincusCo database currently indicates that Bushburg Properties owned at least six commercial properties with 592,298 square feet, 1,123 residential units. The portfolio has $213.2 million in debt, with top three lenders as Valley National Bank, Webster Bank, and Cross River Bank respectively. Within the portfolio, the bulk, or 73 percent of the 592,298 square feet of built space are elevator properties, with walkup properties next occupying 21 percent of the space. The bulk, or 91 percent of the built space, is in Brooklyn, with Queens next at 9 percent of the space.

The property

The office building in Financial District has 1,104,184 square feet of built space according to a PincusCo analysis of city data. The parcel has frontage of 223 feet and is 255 feet deep with a total lot size of 48,946 square feet. The lot is irregular. The zoning is C5-5 which allows for up to 15 times floor area ratio (FAR) for commercial and up to 10 times FAR for residential with inclusionary housing. The city-designated market value for the property in 2022 is $151.5 million. The most recent loan totaled $100 million and was provided by Bank of America on June 25, 2021.

Prior sales and revenue

The 1,104,184-square-foot property generated revenue of $39.3 million or $36 per square foot, according to the most recent income and expense figures.

Development

For the tax lot building, it received its initial certificate of occupancy on May 30, 2017.

Violations and lawsuits

According to city public data, the property has received two DOB violations and $3,400 in OATH penalties in the last year.

There were no lawsuits or bankruptcies filed against the property for the past 24 months.

The neighborhood

In Financial District, The majority, or 74 percent of the 79.9 million square feet of commercial built space are office buildings, with elevator buildings next occupying 15 percent of the space. In sales, Financial District has the 4th highest sale turnover among other neighborhoods in the city with $2.6 billion in sales volume in the last two years. For development, Financial District is the 3rd most active neighborhood among other neighborhoods. It had 11.2 million square feet of commercial and multi-family construction under development in the last two years, which represents 14 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of four of the five commercial properties representing 1,304,481 square feet of the 1,327,095 square feet. The largest owner is Atlas Hospitality, followed by Breakwater and then Mack Real Estate Group. On the tax block, there was one new building construction project filed totaling 44,773 square feet. It is a 128-unit, 44,773 square-foot hotel/dormitory/shelter (R-1) building submitted by Atlas Hospitality and filed by Raj Guru with plans filed December 22, 2014 and permitted August 21, 2017.

The owner

The PincusCo database currently indicates that Rudin Management owned at least 20 commercial properties with 1,725 residential units in New York City with 7,412,811 square feet and a city-determined market value of $2.5 billion. (Market value is typically about 50% of actual value.) The portfolio has $970.5 million in debt, with top three lenders as JPMorgan Chase, Bank of America, and PGIM Real Estate respectively. Within the portfolio, the bulk, or 64 percent of the 7,412,811 square feet of built space are office properties, with elevator properties next occupying 36 percent of the space. They are all located in Manhattan.

The surrounding

Within a 400-foot radius of 134 Maiden Lane, PincusCo identified seven commercial real estate items of interests occurred over the past 24 months. One of those seven items was a sale which David Werner Real Estate Investments and BLDG Management bought the 463,664-square-foot, 65-unit office building (O4) on 100 Wall Street for $116 million from Barings on July 29, 2024. Of those seven items, six were loans above $5 million totaling $615.2 million. The most recent of the six was David Werner Real Estate Investments and BLDG Management in which borrowed $95 million from Northwind Group secured by the 463,664-square-foot, 65-unit office building (O4) on 100 Wall Street on July 29, 2024.

Correction: A previous version of this post misspelled Bushburg, and stated an incorrect sale price.

Direct link to the property’s ACRIS page and link to DOB NOW portal.