David Werner, BLDG Management pay $116M to Barings for office in FiDi

David Werner Real Estate Investments and Lloyd Goldman’s BLDG Management through the entity 100 Wall Realty LLC paid $116 million to Barings through the entity 100 Wall Investments LLC for the office building (O4) at 100 Wall Street in Financial District, Manhattan.

The Real Deal reported Barings, the asset management subsidiary of MassMutual, was selling to David Werner. BLDG Management is one of the largest property owners in New York City with residential and commercial holdings. The BLDG Management stake in the purchase has not been previously reported.
The deal closed on July 24, 2024 and was recorded on July 29, 2024. The property has 463,664 square feet of built space according to a PincusCo analysis of city data. The sale price per built square foot is $250 per the PincusCo analysis. (The price per square foot analysis is the transaction price divided by square feet as reported in public records and assumes no air rights have been sold.)
Cornerstone Real Estate Advisors, a subsidiary of MassMutual, bought the property on July 13, 2015, for $270 million. The signatory for Barings was Hayden Tilley. The signatory for David Werner Real Estate Investments and BLDG Management was David Werner for the sale and LLoyd Goldman for the loan. The contract date was April 12, 2024.

Cornerstone Real Estate Advisors, also a subsidiary of MassMutual, bought the property for $270 million from Savanna in July 2015. Barings is a subsidiary of MassMutual.

Cornerstone Real Estate Advisors and other asset management affiliates of MassMutual in 2016 were rolled up under Barings. At the time of the Cornerstone purchase, it borrowed $137.5 million from New York Life Insurance Company, but that loan was paid down in 2022. Werner and Goldman borrowed $95 million for this purchase. Adam Spies and Josh King of Newmark negotiated the transaction for Barings, The Real Deal reported. David Werner recently teamed up with Metro Loft Management for a residential conversion of the Pfizer building.

Prior sales and revenue

Prior to this transaction, PincusCo has records that the buyer David Werner Real Estate Investments purchased one property in one transactions for a total of $101 million and sold two properties in two transactions for a total of $363.9 million over the past 24 months.
The seller Barings purchased two properties in two transactions for a total of $234.6 million and sold one properties in one transactions for a total of $49.5 million over the same time period.

The property

The office building in Financial District has 463,664 square feet of built space according to a PincusCo analysis of city data. The parcel has frontage of 117 feet and is 194 feet deep with a total lot size of 22,398 square feet. The lot is irregular. The zoning is C6-9 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 $92.7 million.

Violations and lawsuits

There were no lawsuits or bankruptcies filed against the property for the past 24 months. In addition, according to city public data, the property has received $1,635 in OATH penalties in the last year.

Development

For the tax lot building, it received its initial certificate of occupancy on March 19, 2021. There are no active new building construction projects or major alteration projects with initial costs more than $1 million on this tax lot.

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 $2.4 billion in sales volume in the last two years. For development, Financial District is the 3rd most active neighborhood among other neighborhoods. It had 9.4 million square feet of commercial and multi-family construction under development in the last two years, which represents 12 percent of the neighborhood’s built space. There was one pre-foreclosure suit filed among other office buildings in the past 12 months.

The block

There are no active new building construction projects on this tax block.

All properties are office.

The seller

The PincusCo database currently indicates that Barings owned at least two commercial properties in New York City with 414,325 square feet and a city-determined market value of $139.9 million. (Market value is typically about 50% of actual value.) Within the portfolio, the bulk, or 75 percent of the 414,325 square feet of built space are office properties, with hotel properties next occupying 25 percent of the space. They are all located in Manhattan.

The buyer

The PincusCo database currently indicates that BLDG Management owned at least 169 commercial properties with 3,885 residential units in New York City with 5,536,010 square feet and a city-determined market value of $1.6 billion. (Market value is typically about 50% of actual value.) Within the portfolio, the bulk, or 58 percent of the 5,536,010 square feet of built space are elevator properties, with office properties next occupying 11 percent of the space. The bulk, or 76 percent of the built space, is in Manhattan, with Queens next at 12 percent of the space.
The PincusCo database currently indicates that David Werner Real Estate Investments owned at least three commercial properties with 133 residential units in New York City with 1,100,762 square feet and a city-determined market value of $401 million. (Market value is typically about 50% of actual value.) Within the portfolio, the bulk, or 88 percent of the 1,100,762 square feet of built space are office properties, with elevator properties next occupying 12 percent of the space. They are all located in Manhattan.

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