Pace University has bought Lower Manhattan property it leased for a dormitory for just under $42.1 million, according to property records.
Building owner SL Green Realty and retail investor Jeff Sutton developed the dorm for Pace at 180 Broadway.
Lower Manhattan 2013
The first of at least two major dormitories in the pipeline at Pace University is open just in time for the beginning of the school year.
DNAinfo reported that 600 Pace University students have a new home in Lower Manhattan after the university’s 24-story dormitory at 180 Broadway opened this past weekend.
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Manhattan Market Report
When David Falk toured Pace University’s new dormitory at 180 Broadway in January, he was struck not only by the gleaming facilities but also by what they said about the 107-year-old school.
Mr. Falk, the New York tristate region president of Newmark Grubb Knight Frank, has worked with the university since 1999. The new building “is beautiful,” Mr. Falk said. “It’s the new Pace.”
The transformed school has helped alter the real estate landscape of lower Manhattan. In the past 15 months, Pace has inked deals for the entire 47,000 square feet at 140 William Street, renewed a 32,707-square-foot office lease at 156 William Street, and, with partner SL Green, announced plans for a 30-story dormitory at 33 Beekman Street.
The 220,000-square-foot 180 Broadway—also a joint project with SL Green—came to light in the darkest days of the recession. Pace wanted to bring about 600 beds back to its lower Manhattan campus from Brooklyn Heights.
Though it still makes up just two percent of the Manhattan office market’s total inventory, a number of significant deals have caused a surge in the education sector’s Manhattan footprint.
A report from CBRE attributes the 47 percent jump in office space leased by the sector – between 2005 and November 2012 – to a growing residential population, increases in enrollment at universities, campus expansions, greater availability and lower asking rents in sections of Midtown South and Downtown.
An Israeli insurance and finance group and a local developer are partnering with SL Green Realty Corp. to build a tower for student housing at Pace University. Harel Insurance and Finance and the Naftali Group are developing a dormitory with the REIT at 33 Beekman Street.