Eastern Consolidated retained to sell 40-42 Exchange Place

Eastern Consolidated has been retained as the exclusive agent for 40-42 Exchange Place, a 20-story office building with ground floor retail in Lower Manhattan, primed for a major office building reposition, or conversion to hotel or residential condominium. At one point the tallest building in Lower Manhattan, this 20-story, 250,000 s/f property is located at the southeast corner of Exchange Place and William St., one block from Wall St. This well-located corner property includes 18 ft. ceilings on the 1st floor, 14 ft. ceiling on the 2nd floor, and has 11+ ft. ceilings throughout the rest of the building. The recent spate of office-to-residential conversions — which has depleted the stock of office supply — coupled with the dramatic rise in demand for office space in Lower Manhattan, are driving up returns for office product. In addition, 40-42 Exchange Place is populated with tenants whose below-market rents are due to expire, allowing for significant rental rate increases, providing a huge value boost on net operating income. With this new offering 40-42 Exchange Place is now on the market for sale for just the first time in 25 years. "The continued migration of office tenants Downtown perfectly positions this asset for a major office building reposition," said Lipa Lieberman, senior director with Eastern Consolidated, who represents the seller on an exclusive basis "For the first time in modern history droves of office tenants are increasingly and passionately identifying Lower Manhattan as their preferred destination. There is no doubt that space users from various industries would seek out this property as their base of operations." "This classic property has now become available as the Lower Manhattan renaissance continues unabated," said Jason Marin, associate director with Eastern Consolidated, who also represents the seller. "The demand for residential and hotel product is also incredible, providing investors with multiple conversion opportunities in what is now a thriving, 24/7 live/work/play neighborhood." Originally built as a neo-Renaissance residential building in 1896, the property was named for Lord's Court, an open area in the middle of the block originally intended to provide light and air to neighboring buildings. Ultimately converted to office, the building has two primary entrances, one on Exchange Place and one on William St. Entrances from both streets lead to the lobby of the office tower portion of the building. The lobby contains an elevator bank, security desk, a small convenience store and second entrances to some retail spaces. Materials used in the lobby include terrazzo tile floors, marble walls, and a decorative ceiling. The property is located four blocks to the 4, 5 subway at Wall St. and Broadway, one block to the 2, 3 at William and Pine Streets and one block to the J, Z at Broad St. and Exchange Place.